[ Rattan Agency]

1. [Rattan Agency] Analysis Tools and Supplementary Data

2. Contents (c) Ade Cahyat 2003

3. Stakeholder Analysis Who is impacted by your business and how? (c) Ade Cahyat 2003

4. Stakeholder Analysis Who is impacted by your business and how? • There are many stakeholders in SEP aside from the obvious customers and suppliers • Some stakeholders such as customers and the farmer suppliers have direct contact with the company and have a high degree of influence on the future success of the company • Others have in-direct contact and either relatively high influence on SEP such as funders and NGO partners, while some such as local financial institutions are of lower importance but still warrant consideration (c) Ade Cahyat 2003

5. Stakeholder Analysis How does the business impact the stakeholders? (c) Ade Cahyat 2003

6. Stakeholder Analysis How does the business impact the stakeholders? (c) Ade Cahyat 2003

7. Stakeholder Analysis How does the business impact the stakeholders? (c) Ade Cahyat 2003

8. Stakeholder Analysis How does the business impact the stakeholders? • SEP is to be formed as a privately held company with private shareholders who will be looking for long term wealth creation and short-term dividend cash-flows • Contract employees that will be operating the local processing plants will benefit from involvement in terms of cash-flow stability and avoiding the risk of trading raw rattan • Traders that are incorporated into SEP will benefit from stable cash-flows and low-risk employment • Price and volume stability is critical for both suppliers (the rattan farmers) and the buyers – the furniture and semi-finished goods customers in Surabaya • Employees should be attracted to SEP by the promise of stable employment and company growth opportunities • While FSC certification value is unclear for customers, it is a potential market access opportunity (c) Ade Cahyat 2003

9. Stakeholder Analysis How does the business impact the stakeholders? • Both suppliers and employees can benefit from becoming shareholders in the company • The biggest risk for funders is that the SEP concept doesn’t work out and they lose credibility in the NGO community for supporting a commercial project • Non-financially supporting NGOs face similar risks but will benefit from the socio-economic activities that SEP will take-over and expand • Local and district governments are currently oblivious to SEP plans, however they should be supportive if long-term benefits can be provided for rattan farmers. They have power to influence the central government classification of East Kalimantan rattan as a forest product. (c) Ade Cahyat 2003

10. Stakeholder Analysis How are you going to manage the risks? (c) Ade Cahyat 2003

11. Stakeholder Analysis Summary • Stakeholders risks are many and varied • Operationally, it will be important for SEP to encourage transparency of operations and facilitate regular communication sessions with major stakeholders • Similarly, SEP should adopt a small set of operational metrics that it will share with suppliers and shareholders on a regular basis, that underline the success of SEP operations • One of the biggest problems that SEP faces is its NGO heritage and close ties with social concerns. It should be possible for the company to operate a “triple bottom-line” but it should remain aware that its primary goal is commercial success through which it can improve local farmer livelihoods (c) Ade Cahyat 2003

12. Problems and Causes What are the root of your problems? (c) Ade Cahyat 2003

13. Problems and Causes What are the root of your problems? • Problems can be categorised under the following headings: • Economic • Environmental • Social • Technological • Governmental • Many economic problems stem from a lack of market power and awareness of rattan quality of individual farmers • Economic problems are also caused by a lack of domestic and international market demand for rattan furniture (c) Ade Cahyat 2003

14. Problems and Causes What are the root of your problems? • Socially, a lack of local leadership and uncertainty over land ownership creates further problems • Low rattan quality is also an environmental problem while a reliance of some upstream farmers on river transportation limits their ability to sell rattan in the drought seasons when water levels are low • The biggest technological problem is probably the cost and lack of alternative transportation opportunities for shipping rattan downstream • In action or reticence by the government in refusing to repeal the forest products tariff from cultivated rattan helps to restrict demand for the product (c) Ade Cahyat 2003

15. STRENGTHS – SEP’s Advantage Shared costs of supplier support programs with SHK Strong relationship with relevant NGO and industry bodies (ASMINDO, SHK) Ability to harvestrattan throughout the year Potential to obtain FSC certification within 3 years Capacity to produce 5000 to 10000 tonnes per year of wet rattan (assuming 7,000 P3R membership) Capacity to process 5000 tonnes per year of dry rattan (assuming hiring 35 processors)?? Crops accessibility to high quality rattan species with greatest potential to meet consumer demands (strong, bright in color, clean and with a soft peel). Strong relationships with suppliers: ability to purchase raw rattan from its members at competitive price. Craft-making division: ability to absorb low to medium quality rattan WEAKNESSES – SEP’s Disadvantages Currently only 10 P3R members (limited concrete track record to secure commitment) Limited transportation during dry season for some farmers (40%) who depend on river for transportation Limited supplier flexibility (committed to buy only from P3R members) Highly dependent on P3R’s success in serving its members Limited flexibility due to constraints imposed by social and NGO values Limited awareness among consumers about sustainable production of rattan Yet to identify niche market of its own Limited knowledge of customers and purchasing habits Quality of dry rattan perceived to be low to medium due to poor processing Limited data collection ability. Unclear management of relationship with stakeholders within the cooperative Currently no transportation partner?? (Reduction in the quality of the product in transit) SWOT Analysis What are your strengths and weaknesses? (c) Ade Cahyat 2003

16. OPPORTUNITIES No-one currently serving the environmentally sensitive rattan market Increasing consumer awareness for sustainably sourced rattan products Supply chain inefficiencies due to long distribution chain (potential to adapt middle chains) Eager farmers due to long experience of powerlessness Fragmented and uncoordinated nature of the supply-side No other initiatives to organize suppliers Some of our competitors’ are dependent on climate for rattan harvesting THREATS ASMINDO is lobbying for export ban or increased export tax on raw material rattan export Possible retaliation by rattan traders by undercutting prices Skeptic farmers due to long experience of powerlessness Declining number of rattan producers due to relatively low return on rattan production (people would rather cut woods b/c price of woods are higher than rattan or convert rattan forests to palm oil plantation etc) Difficulty in obtaining transport documentation (SKSHH) due to conflict between the local government of West Kutai and the Provincial Government of East Kalimantan and the Department of Forestry Rapid changes in design and trends in furniture products which influence the type and quality of raw materials in demand. Value of FSC certification unclear Increasing accessibility and attractiveness of substitutes SWOT Analysis What are the opportunities and threats? (c) Ade Cahyat 2003

17. 1 3 2 Situation Analysis Value Proposition Market Tactics Marketing Strategy How to determine a marketing strategy • Market/Industry Trends • Market Competitors • Market Segmentation • Company Strengths & Weaknesses • Volume vs. Profit • Segmentation • Customer Targets • Competitor Targets • Value Proposition • Product • Promotion (Communication) • Place (Distribution) • Price • Cost Based • Value Based (c) Ade Cahyat 2003

18. Situation Analysis 1 Marketing Strategy How to determine a marketing strategy The first step in determining a marketing strategy for your company is to analyze the current situation in the marketplace. • What are the important industry and market trends? • Who are the possible competitors in this market? • What are the possible ways to segment the market? • Product (type of rattan, round/semi-finished, etc.) • Channel (traders, furniture manufacturers) • Size/volume • Geography • Use (furniture, baskets) • Eco-sensitivity • Transportation method • Quality Requirements • What are my company’s strengths and weaknesses (from SWOT)? (c) Ade Cahyat 2003

19. Value Proposition 2 Marketing Strategy How to determine a marketing strategy The second step is to determine the value proposition for your company. • Volume vs. Profit: Do I go after a high margin/low volume (“profit”) strategy or a high volume/low margin (“volume”) strategy? • This decision will determine customer and competitor targets • Segmentation: Who is my specific customer target? Who is my competition specific to that target? • Value Proposition: What value (benefits – costs) can I offer my customers? • Benefits: What differentiates me from my competition in products and services? • Costs: What will my products/services cost my customers? • Consider Switching Costs: What are the costs my customer will incur by switching to me? This can include the monetary cost of breaking a contract or the intangible cost of breaking an existing relationship. • Consider Acquisition Costs: What are the costs to me of acquiring a new customer? (c) Ade Cahyat 2003

20. Market Tactics 3 Marketing Strategy How to determine a marketing strategy • Product • What are my products and how do they fit with my value proposition? • What are the advantages and disadvantages of my products relative to competition? • Promotion (Communication) • How do I get my message out to my customers? • Sales Strategy • Advertising • PR • Place (Distribution) • What is the best way to distribute my product to my customer targets? • This will determine supply chain and logistics strategies The final step is to determine what tactics you will use in the marketplace to execute your strategy. (c) Ade Cahyat 2003

21. Market Tactics (continued) 3 Marketing Strategy How to determine a marketing strategy • Price: You can use two methods to determine your pricing strategy, but ideally, the two methods produce the same result. Value to Customers Cost Based Value Based Mark-down Mark-up All benefits provided to customers (cost savings, time savings, etc.) Costs + Mark-up　= Price Benefits – Mark-down = Price All costs incurred producing the product (labor, transportation, packaging, commissions, etc.) (c) Ade Cahyat 2003

22. Customer Screen and Selection How attractive are different customer segments? High Low *How attractive are the customers quality requirements to SEP? ** How unlikely is the customer of defaulting on payments? (c) Ade Cahyat 2003

23. Customer Screen and Selection How attractive are different customer segments? • IKEA is the most attractive customer due mainly to its extreme market power but it will demand low prices first and foremost • High quality furniture manufacturers have a high potential for price sustenance but may not purchase significant volume • Low quality furniture manufacturers will be a valuable source of revenue for low quality products • Home furniture manufacturers only buy in small volumes but there are a large number of potential customers and they can be served easily from a central Cirebon or Surabaya base • Only IKEA is likely to care about eco-labelling and social responsibility but even then, price is more important (c) Ade Cahyat 2003

24. Customer Screen and Selection How easy will it be to engage customer segments? • Customer engagement includes • the following considerations: • Length of the sales cycle • Purchasing decision making complexity within the target customer • Location and geographical focus High Low (c) Ade Cahyat 2003

25. Customer Screen and Selection How easy will it be to engage customer segments? • Due to the complexity of corporate decision making, IKEA is a very difficult customer to engage. It will need guarantees of supply stability and long-term pricing • High quality manufacturers will need to have confidence in the quality of the supply of rattan from SEP and are most likely to be able to be contracted over the long-term • Low quality manufacturers care only about price and are therefore relatively easy to engage if sufficient farm-gate volume can be achieved • Home manufacturers will not need volume guarantees and are likely to purchase on an ad-hoc basis. These are probably the easiest customers to engage if SEP has a warehouse within their easy reach (c) Ade Cahyat 2003

26. Customer Value Proposition Why will customer segments want to buy from us? High Low (c) Ade Cahyat 2003

27. Customer Value Proposition Why will customer segments want to buy from us? • In terms of product attributes, customers will find the following characteristics of value: • Ikea – FSC labelling, stable supply, processing that produces low chemical residues and SEP’s stance as a legal supplier • High quality furniture manufacturers – stable supply, high quality round rattan and red pulut and associated opportunities • Low quality furniture manufacturers value little except price • Home-based furniture manufacturers may value red-pulut as a way to differentiate their products (c) Ade Cahyat 2003

28. Customer Value Proposition Why will customer segments want to buy from us? High Low (c) Ade Cahyat 2003

29. Customer Value Proposition Why will customer segments want to buy from us? • In terms of company service, customers will find the following characteristics of value: • Ikea – Long-term stable contracts, on-time delivery and the ability to visit and understand the background of the SEP production area • High quality furniture manufacturers – long-term stable contracts, on-time delivery, certified and supported rattan products and potentially pre-cut and prepared rattan • Low quality furniture manufacturers value little apart from on-time delivery at low prices • Home-based furniture manufacturers will value pre-cutting and preparation highly (c) Ade Cahyat 2003

30. Supply Chain Analysis How to design your supply chain? • Understand why we are holding inventory • Enhance customer service • Decouple supply-demand chain (so you don’t have to sell everything) • Protect against uncertainties • Achieve economies of scale • Who are your customers? What is the customer service level you are trying to achieve? How close do you need to be to your customer? • How do they order? Price negotiation and freq? Need to check out goods? Where? When(Order cycle)? Who? How much (max, min order qty?)? Can they forecast their demand? • Returns allowed? • % of new customers? % of repeat customers? • Who are your suppliers? What is the flexibility and reliability of your suppliers? How close do you need to be to your supplier? • How can you order from your farmer? How often? How is it packaged? Maximum transportation time? • What supply chain skills do you need and have? • Who are your transportation partners? How flexible are they? • Can warehouse be rented short term? How fast can you get it up and running? • Cost consideration • Inventory holding cost (fraction of item value) • Warehouse cost (includes rent (if purchase then land, building, depreciation), maintenance, electricity) • Inventory management cost (includes labor) • Opportunity cost of capital • Obsolescence or shrinkage, etc. • Transportation cost (includes rent, labor, documentation cost) • Shortage cost (cost of not having the inventory; includes long term loss of good will, immediate loss of profit) (c) Ade Cahyat 2003

31. Supply Chain Analysis Where are your suppliers and customers? Kadang Pahu Samarinda customers suppliers (c) Ade Cahyat 2003

32. Current Distribution System How does your product get around? Forest Land Garden Resource Base Rattan Farmer Harvesting Local Village Collector Local Large Trader Samarinda Trader Java Trader Processing Semi-Finished Local Craft Maker & Subsistent User Home Industry Furniture Factory Manufacturing Rattan Product Trader Java/Bali Product Trader (Processing) Exporter Ikea Distribution End User Overseas Consumer Domestic Consumer (c) Ade Cahyat 2003

33. System Constraints What constrains your capacity or throughput? (c) Ade Cahyat 2003

34. Non SEP boat/truck SEP managed Truck/boat SEP managed Boat Warehouse Analysis Option 1: Short term and mid-term alternative R&D Farmers SEP WH Processing Sorting?/Inventory Round Rattan Raw Dry Dry Furniture Makers Core Peeled SEP WH Processing Inventory Semi-Finished Craft-Makers Peeled Kedang Pahu SEP WH Inventory SEP WH Inventory Retail Craft Dry Peeled Core Crafts Dry Peeled Core Crafts Farmers Local Processing Units Dry Raw Samarinda Surabaya Down River Exporters/Oversea Furniture Makers Farmers Local Processing Units Dry Raw Up River (c) Ade Cahyat 2003

35. Non SEP boat/truck SEP managed Truck/boat SEP managed Boat Warehouse Analysis Option 2: Short-term and mid-term alternative R&D Farmers SEP WH Processing Sorting?/Inventory Round Rattan Dry Raw Dry Furniture Makers Peeled Core SEP WH Processing Inventory Semi-Finished Craft-Makers Peeled Kedang Pahu SEP WH Inventory Retail Craft Dry Peeled Core Crafts Dry Peeled Core Crafts Farmers Local Processing Units Dry Raw Surabaya Down River Exporters/Oversea Furniture Makers Farmers Local Processing Units Dry Raw Up River (c) Ade Cahyat 2003

36. Non SEP boat/truck SEP managed Truck/boat SEP managed Boat Warehouse Analysis Option 3: Long-term alternative R&D Farmers SEP WH Processing Sorting?/Inventory Round Rattan Raw Dry Dry Furniture Makers SEP WH Processing Inventory Semi-Finished Craft-Makers Peeled Peeled Kedang Pahu SEP WH Inventory Retail Craft Dry Peeled Crafts Farmers Local Processing Units Dry Raw Samarinda Down River Exporters/Oversea Furniture Makers Farmers Local Processing Units Dry Raw Up River (c) Ade Cahyat 2003

37. Non SEP boat/truck SEP managed Truck/boat SEP managed Boat Warehouse Analysis Option 4: Not a viable option Furniture Makers Farmers Raw R&D SEP WH Processing Sorting?/Inventory Round Rattan Dry SEP WH Inventory Retail Dry Dry Peeled Crafts Peeled Core Farmers Local Processing Units SEP WH Processing Inventory Semi-Finished Dry Raw Surabaya Down River Samarinda Exporters/Oversea Furniture Makers Farmers Local Processing Units Dry Peeled Raw Craft-Makers Craft Up River (c) Ade Cahyat 2003

38. Non SEP boat/truck SEP managed Truck/boat SEP managed Boat Warehouse Analysis Option 5 *: Mid-term to long–term alternative R&D Farmers SEP WH Processing Sorting?/Inventory Round Rattan Dry Raw SEP WH Semi-Finish Process Dry Furniture Makers Core Peeled SEP WH Processing Inventory Semi-Finished Craft-Makers Peeled Core Peeled Dry Kedang Pahu SEP WH Inventory Retail Craft Dry Crafts Dry Core Peeled Crafts Farmers Local Processing Units Dry Raw Surabaya Down River Exporters/Oversea Furniture Makers Farmers Local Processing Units Dry Raw Up River * with or without Samarinda Warehouse (c) Ade Cahyat 2003

39. Warehouse Analysis What are the advantages and disadvantages of each warehouse alternative? 2 1 4 (c) Ade Cahyat 2003

40. Warehouse Analysis What are the advantages and disadvantages of each warehouse alternative? N/A 3 (c) Ade Cahyat 2003

41. Warehouse Analysis What are the major costs for each warehouse alternatives? (c) Ade Cahyat 2003

42. Financial Model • SEP Penetration/Time Estimates • Input percentage of target farmers reached at steady state (max penetration) • Input number of months it will take from the first farmer to reach steady state (time to reach max penetration) • Input the month the production begins (start time) • Input existing number of target farmers (existing penetration), which is zero Inputs This generates an estimate of what percentage of target farmers to expect every month of SEP operation, or the S-Curve Model Key Inputs Outputs • Production Estimates • Input percentage production of K1, K2, S1, S2, and T for sega round; K1, K2, S1, S2, and T for sega semi-finished; A, B, C for sega filtrit/core; and for red pulut • Input price to pay to farmers for production for sega and red pulut • Input kg of wet sega and red pulut required to create dry (shrinkage) • Input kg of dry sega required to create semi-finished (shrinkage) • Input production costs per kg for sega, semi-finished sega, and red pulut • Input product base • Input transportation costs • Input machine purchase • Supply Side Estimates • Input number of farmers per processing unit • Input number of farmers served at the KP warehouse • Input the farmer capacity per month in kg of wet rattan • Input target farmers at steady state Sales Estimates Input percentage sales and price/kg in Surabaya of K1, K2, S1, S2, and T for sega round; K1, K2, S1, S2, and T for sega semi-finished; A, B, C for sega filtrit/core; and for red pulut This generates the Supply Side Forecast The Production and Transportation Cost Model coupled with Sales Estimates generates the Sales Model Farmer/Capacity Estimates coupled with Production Estimates generates the Production and Transportation Cost Model (c) Ade Cahyat 2003

43. Financial Model Sales Model • Long Term Asset Estimates • Input purchase prices of long-term assets • Input years these assets will be in use (useful life) • Input the month of purchase for these assets • Operational Cost Estimates • Input Variable Operation Costs • Input percentage Discount (Cash) Back • Input Fixed Costs • Input percentage General & Administrative Cost • Input percentage Other Sales & Marketing Expenses The Sales Model and Operational Cost Estimates create the Operational Cost Model Profitability Estimates Input Annual Interest Rate Production & Transportation Cost Model This generates the Long Term Assets Model This generates the Profit & Loss Model Input Starting Cash Flow, Other Operational Revenue, Sale of Assets, Donations, Equity, Debt Financing, Debt Repayment, and Dividends Input Starting Balances This generates the Balance Sheet This generates the Cash Flow Statement (c) Ade Cahyat 2003

44. Key Assumptions What have been the key financial assumptions? A. Production & Sales • All products provided to furniture, basket & lampit • No craft making division assumed • Buying raw materials from farmers: 1) Start in Month7, 2) Increase gradually (S-curve forecast model) until Month36, & 3) Stable afterwards • Total target buying raw material amount: 125,000kg (wet) in Month36 • Total target farmers served: 500 in Month36 • Processing capacity (farmers): Kedang Pahu Warehouse=217, Processing Unit=36 • Start with only Kedang Pahu Warehouse, & Increase Processing unit (0 => 8) from Month20 to Month34 • Farmers’ harvesting capacity: 250kg/mo.(wet) • Total target production (product): 55tons in Month36 • Fixed production mix: Sega=55%, RP=15%, Semi-Finished Product=30% • Buying price(/kg wet): Rp900(Sega), Rp6,000(Red Pulut) (c) Ade Cahyat 2003

45. Key Assumptions What have been the key financial assumptions? A. Production & Sales • Shrinkage rate: Sega=53.5%, Red Pulut=48.5% • Waste rate of Semi-finished product: 40.1% • Marginal (direct) processing/production cost [raw material, washing, drying, smoking, commission to Processing unit, transportation] (/kg product): Sega=Rp2,552, Red Pulut=Rp13,663, Semi-finished product=6,067 • Cash on Delivery for Cost of Goods Sold to farmers • Month(n) Production => Month(n+1) Sales => Month(n+2) Collection of sales money • Differentiated Pricing by quality/grade (kg product @Surabaya): 5 for Sega (Ave. Rp.3,897), 1 for Red Pulut (Rp.19,200/kg), 8 for SFP (Ave. Rp.11,006/kg) => price slides referred • Discount Money Back: Higher rates to lower graded products (0.0%-6.5%) • No volume discount assumed • Advertisement: Rp350,000/quarter • Other Marketing & Sales expenses (including entertaining expenses): 6.0% of Marketing & Sales expenses • All above prices & unit costs unchanged over 5 years => sensitivity analysis factor (c) Ade Cahyat 2003

46. Key Assumptions What have been the key financial assumptions? B. Operational costs Logistics • Surabaya Warehouse leased & Kedang Pahu Warehouse built (=>capital investment & financing) • Processing units paid on commission basis (per kg produced) • Products shipped from Samarinda to Surabaya on a per container basis • River transport cost assumed on a per kg basis • Surabaya Warehouse annual rent: Rp40,000,000 • No Samarinda Warehouse assumed • Farmers to Kedang Pahu Warehouse or Processing unit (/kg wet): Rp70 included in Cost of Goods Sold • Kedang Pahu Warehouse or Processing unit to Samarinda (/kg product): Rp200 • Samarinda to Surabaya (/container product) Rp3,000,000 (1 container=5,000kg) • Surabaya to customers (/kg product): Rp150 • Other variable operational cost [insurance, packing] (/kg product): Rp40-70 • All above unit costs unchanged over 5 years => sensitivity analysis factor Personnel & other costs • 6 Management people from Month7 (Month1-Month6: 6 minus 1 sales & 1 production directors) • Kedang Pahu warehouse employs contract staff paid on a commission basis • 2 Sales & Marketing directors: Rp1,300,000/month*person • Other 4 directors [CEO, 2 production directors & administrative director]: Rp825,000/month*person • Kedang Pahu Warehouse workers salaries included in processing cost (= Processing unit commissions) • Sales agents’ compensation included in sales prices and discounts • Service fees (profit sharing) to P3R: 5.0% of after tax annual profit paid in the first month of each year • Other General & Administrative costs (including cigarette costs): Rp.3,800,000/month (c) Ade Cahyat 2003

47. Key Assumptions What have been the key financial assumptions? C. Capital investment & financing • Initial capital investment budget: Rp399,500,000 (Kedang Pahu Warehouse land+building+machines, vehicles, computer) paid in Month0-Month4 • 2 additional machines (Rp47,000,000) purchased as the semi-finished products reach capacity (7,830kg/month No downtime assumed) in Month21& Month32 • Tentative account of building during construction (Month0-Month4) • Donation (Rp44,783,000) from DFID already paid in • Scheduled funding from EU assumed (Rp1,000,000,000) in Month0 • No additional funding from P3R members assumed (Rp120,000,000) • No borrowing and credit line providing from financial institutions assumed • Bank saving interest rate: 1.0%/year (real base) • Liability is basically only tax obligations (which happen the last month of each year and are paid next month) • Tax rate: 30.0% • Major capital investments are the Kedang Pahu warehouse, and purchasing of vehicles and processing machines • Start-up funds of Rp. 1bn provided by EU • No borrowing or credit facilities from banks (c) Ade Cahyat 2003

48. Overview of Financial Statements A. Cash flow statement • Monthly typical net cash flow after sales stabled: Rp97,045,548 • Monthly net cash flow turned positive in Month22 • Ending balance bottomed in Month25 with Rp187,827,937 • Working capital (account receivable + inventory) constantly grows as does sales B. Income statement (Profit & Loss) • Single year before tax profit turned positive in Month15 • Gross profit margin 36.8% after sales stabled (= Ratio of variable production costs / sales: 63.2%) • Net profit margin in Year4&5 (after sales stabled): 13.3% • Monthly profits (losses) decreases (increases) in 6th month of each year due to payment of annual rent for Surabaya Warehouse C. Balance Sheet • Total asset at end of Year3: Rp1,875,273,481 (including Rp1,616,324,025 equity) • Retained earnings (Cumulative profits) turned positive in Month25 • Balance sheet reached double in Month42 with Rp2,101,835,569 from starting point • Working capital (account receivable + inventory) constantly grows as does sales (c) Ade Cahyat 2003

49. Five Year Cash-Flow Forecast (c) Ade Cahyat 2003

50. Five Year Cash-Flow Forecast (c) Ade Cahyat 2003