Business Plan ALPHA GENESIS SARL

INTRODUCTION ALPHA GENESIS SARL , Douala Akwa, a aims to equip, provide, to inform and to train properly and efficient private enterprises and public office equipment: stationery, computer networks, maintenance, furniture,

accessories, communication and various. ALPHA GENESIS Sàrl has therefore opted for an office vision not only for physical represent an example of

its products and services, but also will create a space for the receipt and management of files and client contracts.

Special products distributed by ALPHA GENESIS SARL are of various origins (Europe, Asia, Africa and local). Height of the experience of its promoters, ALPHA GENESIS SARL maintains a computer database of 208

suppliers, 18 computer and communication technicians to guarantee its clients a better quality/price ratio. To continue the consolidation of the business and enter a market rather ran by novices of the desktop thing, the company will need a line of Credit goods of 120 million CFA FRANCS and an overdraft of 25

million FCFA to meet required capital generated by the increase in turnover and the client workstation.

SUMMARY Pages

Introduction 2 ID card of Corporation 4

First part : PRESENTATION of the company

Legal form and ownership Activity and market

Supply Competition

Diagnosis of ALPHA GENESIS SARL Analysis of market position

Evolution of sales 2015-2016-2017-2018

Second part : BUDGETED financial statements Perspectives of evolution of turnover

Funding requested The financial model assumptions and forecasts

1. Operating accounts 2 Details of the charges

3 Forecast of BFR 4 Free cash flow

COMMENT ON ESTIMATED ACTIVITY

ID card of the company

BUSINESS name: ALPHA GENESIS SARL

HEAD OFFICE: AVENUE KING AKWA BEHIND DOUALA-BERCY

ADDRESS: P.O. BOX 2487 SUCH DOUALA. (237) 694 174 728 / 676 604 470

LEGAL FORM: CORPORATION HAS RESPONSIBILITY LIMITED (LLC)

SPECIAL DIETS: COMPANY PRIVACY

ACTIVITY: Provision of SERVICES & COMMERCE GENERAL

SOCIAL CAPITAL: 1 000 000 CFA FRANCS

DISTRIBUTION: DJAPA PANDJA MARCIAL PAODRY 70% TOUNKA MINKO AARON JOVEN 30%

MANAGER: DJAPA PANDJA MARCIAL PAODRY

EFFECTIVE EMPLOYEE: 05

NUMBER CONTIBUABLE: M121412248509G

TRADE REGISTER: RC/DLA/2014/B/4724

CREATION DATE: 19 DECEMBER 2014

BANK ACCOUNT: N ° 00017-00455045100-54 AFRILAND FIRST BANK.

First part : PRESENTATION of the company

1) Legal form and ownership

ALPHA GENESIS Ltd is a company limited with capital of CFAF 1 000 000 inmate by two (2) Cameroon and allocated as follows:

MR. DJAPA PANDJA MARCIAL PAODRY 70% MR. TOUNKA MINKO AARON JOVEN 30%

It is created December 19, 2014 and is headquartered in DOUALA Street KING AKWA Douala Bercy behind. It is registered to the RCCM (trade and personal property credit register) under the number

RC/DLA/2014/B/4724 by Mr. DJAPA PANDJA Marcial Paodry himself cardholder taxpayer no. M121412248509G

2) Activity and market

a) Activity: ALPHA GENESIS SARL for main activity in Cameroon and in the CEMAC physical distribution area and online

materials for office and the provision of communication and marketing services. · Distribution of office equipment:

ALGE offers a wide range of products in office and stationery divided into family article as follows: 1. u Classification (shirts, organizers lever etc...) tools 2. Sorting and Organization (sorter, speaker, signature books etc...) 3. Protection and presentation (pouches, port cards of visits etc) 4. Note and management (rame papers, sheet bristol registry etc...) 5. Accessories and planning (pins, paintings, paper clips etc...) 6. Carton drawing (under hands, diaries, carton drawing etc...) 7. Desktop (review workbook, wastepaper basket etc...) 8. Equipment and consumables computer (computers, printers, inks, routers, etc...)

· Provision of services:

ALGE offers the following services: e-shopping Administration network windows, unix, unix... Installation and confirmation of IP (internet protocol) networks Configuration of network devices and printers Setting up domains Windows, Unix... Web solution, design, audiovisual production. Community management (your image on social networks) SMS marketing (marketing and mobile communications solution).

The management of the company is ensured by Mr. DJAPA PANDJA PAODRY MARCIAL previously responsible for trade, responsible for the purchases nine (09) years at SOKAFI SARL. It shall be assisted in its management for a start by three (03) collaborating internally (two commercial and an Assistant) and two (02) persons in external consultant (accounting) and a carrier (carrier). After 14 months of activity the company has won eighteen (18) clients as follows: - eight (08) private companies - one (01) public corporation - nine (09) various customers (so 2 in the sub-region)

· Organization of the enterprise:

The management of the company is the responsibility of Mr. Djapa martial Paodry. Previously Sales Manager, responsible for local purchases and international at SO.KA.FI. SARL.

Staff (internal and external) must be allocated as follows:

Internal: commercial 2collaboratrice 1collaboratrice Executive Assistant

External: account manager 1 collaborator 1 collaborator carrier-carrier

Market: Launch strategy

We decided for a start to develop our strategy in Cameroon and essentially market penetration on the city of Douala.

- 2016/2017: LANDLOCKED; the main targets are mainly the following: the harbour area, the zone administrative (Akwa and Bonanjo) and finally the zone commerciale.2017/2018: South

West (Tiko, Mutenguene, Buea, Limbe) CENTRE (Yaoundé). - 2018/2019: Under Central Africa REGION (Equatorial Guinea, Gabon).

3) Supply ALPHA GENESIS SARL has sourcing from both domestic and foreign distributors.Its main suppliers are: · At the national level: SOKAFI SARL, DREAM Millennium COMPUTER, ZARATHUSTRA, MANUEALLA

COMPUTER, ORCA, SKT, RIMEX, ECAF, BASE, success, JAMAI DISTRIBUTION etc... · At the international level, we want to negotiate the distribution of certain products including with international suppliers in the coming years. We will be discussing also a new commitment to purchase

minimum once per year.

4) Competition The competition is particularly harsh on the distribution of the office equipment market, with partly

products of counterfeiting. Therefore, we are considering the competition in two (02) aspects: competitors and competitive products.

· Carriers: the distribution of office equipment market mainly consisting of private companies, we like competing potential TSEKENIS, IMPEXTEAM, ZARATHUSTRA, ARNO, LIPACAM.. .who are all names in a

reference in the strong business services from their experience. We note that in recent years, from Asia and ORIENT products whose qualities are acceptable to introduce in the latter, where their ability to sell

dirt cheap. · Competing products: products from counterfeiting, origin Asian, Eastern and even African constitute a

real obstacle for our penetration of the market. or view advantage that there is a growing demand for materials of qualities and origin

5) Diagnosis of ALPHA GENESIS SARL

THREATS: - Competition from products of Asian or Eastern - Low purchasing power of the populations for quality products

OPPORTUNITIES: -Strong demographic growth - Increased business professionalization - Absence of barriers to entry - Share of population looking on the quality of the product

FORCES : -e-shop (first in the country for the activity) - Remarkable in the distribution manager -Quality and monitoring via the service - online sales service (Innovative in the field) - Dynamism of the employees

WEAKNESSES: -Lack of funding - Lack of working capital - Insufficient logistics - Stock reduced - Non-existent bonded warehouse - Low hands of works

6) Analysis of market position The analysis of the competitive positioning here is based on PORTER's 5 forces: 6.1. the bargaining power of suppliers Local suppliers are counted as leader in their various fields. They consist of domestic enterprises and enterprises with foreign investment. Suggesting us that a possible negotiation between them would be impossible given the objectives pursued by each of them. It is inter alia: SOKAFI SARL, DREAM Millennium COMPUTER, ZARATHUSTRA, MANUELLA COMPUTER, ORCA, SKT, RIMEX, ECAF, BASE, success, JAMAI DISTRIBUTION... etc. They do have high bargaining power.

6.2. the bargaining power of customers The sizeable number of our potential customers in Cameroon and in the sub region does not allow them to get together as part of a strategy or a cartel. Their bargaining power is therefore low. However it is important for us to diversify our portfolio up to not ending up with a very large volume of cases on a reduced number of client. 6.3. the intensity of competition within the sector. a) competitors Arno, Tsekenis, Impexteam, Zarathustra, Lipacam are so many names that are a reference in the strong business services from their experience. These are companies which, over time, a fairly consistent address book were formed and have acquired a remarkable reputation. Most of these competitors (including those not mentioned) offer products of famous brand at higher prices by 30-40% to the Cameroonian market average. There is everything and for some years from Asia and Orient products whose qualities are acceptable are introduced in the latter, where the opportunity to sell at low prices. b) competing products The products of the East, and particularly Asia, poor quality, are articles having a detrimental effect to our sales. We also have products smuggling and counterfeiting that will also delay our progress of the turnover. But faced with all these realities on the ground which does not surprise us, we will develop strategies to distinguish ourselves. c) Strategies of distinction The weakest companies ignore their competitions; medium business copy and strongest companies dominate. Since ALPHA GENESIS SARL is a strong company we dominerons competition in the following manner: § flexibility in the price level due to the level of our structure low loads. § attention is given to our client companies when it comes to the Board and service. § the creation of a website selling online book exclusively to the distribution of office equipment and related services _ In addition to the possibility of negotiating a representation with the Orient, Asia and eventually Europe, we offer primarily commercial products (reasonable price-quality ratio) coupled with a service maintenance to accompany the customer with solutions additive for not only us give more added value but also to help the client in promoting (advertising) of its product at a reasonable cost. Therefore, we set ourselves apart from the competition. 6.4 threat of new entrants The absence of barriers to entry such as approvals, certifications, and permissions allow us to position ourselves on the market without incurring huge costs. The office equipment market is so open to the point where the entry of a new competitor can be almost ' invisible. This is a serious asset for us insofar as we wish to set up discreetly on the market. 6.5 substitutes Substitution products consist mainly of counterfeit products. They have the disadvantage of very quickly demonstrate their shortcomings compared with the products we want to sell. Substitutes represent a major asset which will enable us to better promote the best quality products at very reduced costs.

7) Evolution of turnover We have grouped our horizon forecast over three years with a cutting as follows; July-December 2016; January-December 2017, January-December 2018 and finally January-June 2019. According to our estimate, the CIME (center of tax of medium-sized firms) of the city of Douala have a population of nearly 5,000 companies that are our potential customers. If these companies consume an average of 60 000 FCFA/month of office equipment, the global market can be estimated at close to 300 000 000 CFA FRANCS per month. Our market share forecast is estimated at 5% of the global market, as 15.000.000 FCFA/month for a start. Thus, our minimum turnover may be of 15 000 000 CFA FRANCS per month during the first six months. Then after increase in the volume of our activities, we easily takes 10% in 2017 either 30 000 000 FCFA/month, then 12% in 2018 is 36 000 000 CFA FRANCS per month and finally 15% during the first 06 months of 2019 45 000 000 FCFA/month. More concretely, following the launch of our activities a total general of 16 458 500 CFA FRANCS for 2015. This figure has been prepared from very reduced and limited external financing. For this reason, it has encountered difficulties from our different suppliers. In the light of our knowledge of the market and our potential, we frankly believe the fact if we get funding we will achieve all things being equal by further our goal of 15% of the global market in 2019 Provisional table on the evolution of the turnover over the next three years Mois Janvier Février Mars Avril Mai Juin Juillet Août Septembre Octobre Novembre Décembre TotalCA 2016 15 000 16 500 18 000 19 500 21 000 90 000 CA 2017 30 000 30 000 30 000 30 000 30 000 30 000 30 000 30 000 30 000 30 000 30 000 30 000 360 000 CA 2018 36 000 36 000 36 000 36 000 36 000 36 000 36 000 36 000 36 000 36 000 36 000 36 000 432 000 CA 2019 45 000 45 000 45 000 45 000 45 000 45 000 45 000 45 000 45 000 45 000 45 000 45 000 540 000

SECOND PART: BUDGETED FINANCIAL STATEMENTS I - PERSPECTIVES of EVOLUTION of turnover Over the next three years, turnover will increase from $ 116.5 million in 2016 (6 months) $ 540 million FCFA in 2019, representing an average growth rate of 10.5%. Turnover for 2016 forecast totaled 116.5 million CFA FRANCS for six months, or a monthly average of 19.42 million FCFA. The desired growth rate is estimated at 15% by 2019. To achieve this, the company will need a line of Credit of 45 million CFA FRANCS equivalent to three months of purchase. II - Funding unsolicited 1. Funding Due to difficulties in supply mainly related to funding, the company to need a line of credit of 45 million CFA FRANCS. This credit provider will cope: - Required in working capital related to the customer credit; -Part of the need for working capital related to the stock; - Other charges to finance mainly the rent of a store and the acquisition of a delivery vehicle. The model below, this forecast BFR is estimated at 45 million CFA FRANCS, or 34 days of CA to be financed in 2016. In late 2016, after financing of the WCR, the average cash flow is de - 8,823 million with consideration of the overdraft. 2 Guarantees In return, the Company undertakes to transfer shares of stock (30%) in place the necessary guarantees that you have requested. III - The model financial assumptions and forecasts The base currency is the CFA. 1 euro = 655,957 FCFA. The effects of inflation are neglected. The main assumptions of the model are: · Duration of the forecast: 3 years · Amount of credit requested supplier: 45 million CFA FRANCS · FY 2016 account six months and year 2019 six months also Average turnover growth rate: 10%

Tableau 2.1 ESTIMATED OPERATING ACCOUNTSYears

Montants % Montants % Montants % Montants %EntitledSale of Goods 117 000 100,00 360 000 100,00 432 000 100,00 270 000 100,00NET PROFIT 117 000 100,00 360 000 100,00 432 000 100,00 270 000 100,00purchasing goods 90 675 279 000 334 800 229 500 78 Stock variation 15 000 - 15 450 - 15 991 - COMMERCIAL MARGIN 41 325 35,321 96 450 26,7917 26,79166667 0,006 56 491 20,923other purchases 1 894 2 035 2 177 Transportation and travel 712 726 741 Outside services 15 915 24 262 25 445 Dues and taxes 548 714 754 Total external purchases and services19 069 16,30 27 737 7,70 29 117 10,78

VALUE ADDED 22 256 19,02 68 713 19,09 27 374 10,14soc personnel costs and expenses5 559 5 781 6 013 Budget surplus operating GROSS16 697 14,27 62 932 17,48 21 361 7,91Other expenses 429 434 439 depreciation 2 125 2 125 2 125 Others products - - OPERATING INCOME 14 143 12,09 60 373 16,77 18 797 6,96Financial productsFinancial expenses 1 800 1 750 1 600 BOTTOM LINE 1 800 - -1,54 1 750 - -0,49 1 600 - -0,59PROFIT BEFORE TAX 12 343 10,55 58 623 16,28 17 197 6,37Income tax 4 752 22 570 6 621 NET PROFIT 7 591 6,49 36 053 10,01 10 576 3,92

in thousands of FCFA2016 2017 20192018

Tableau 2.2DETAILS OF EXPENSE ACCOUNTS in FCFA

account N° ENTITLED 2 016 2 017 2 018 2 019 60 OTHER PURCHASES CONSUMED 648 000 1 976 000 1 976 000 2 278 000

Water 24 000 48 000 48 000 48 000 Electricity 144 000 288 000 288 000 300 000 Office supplies 180 000 200 000 200 000 210 000 computer consumables 240 000 400 000 400 000 420 000 Fuel 960 000 960 000 1 200 000 various purchases 60 000 80 000 80 000 100 000

61 TRANSPORT 640 000 1 840 000 - 1 876 800 Taxis and various trips 640 000 1 840 000 1 876 800

62 OUTSIDE SERVICES 9 229 300 9 345 000 - 9 460 000 Rent 6 600 000 6 600 000 6 600 000 vehicle maintenance 240 000 260 000 280 000 hardware maintenance 120 000 125 000 135 000 office equipment maintenance 180 000 220 000 240 000 junk mail 300 000 320 000 340 000 Phone 467 300 470 000 480 000 Cellphone 920 000 940 000 960 000 Other telecommunications costs 402 000 410 000 425 000

63 OUTSIDE SERVICES B 13 945 400 14 917 400 - 15 985 400 Other bank charges 120 000 132 000 144 000 Commissions on sales 9 600 000 10 560 000 11 616 000 security costs 840 000 840 000 840 000 various fees 3 030 000 3 030 000 3 030 000 Miscellaneous fees 355 400 355 400 355 400

64 DUES AND TAXES 446 260 451 570 - 753 582 patent 73 510 73 510 370 000 recording lease 240 000 240 000 240 000 land and FNE credit on wages 132 750 138 060 143 582

65 OTHER EXPENSES 160 500 163 710 - 166 984 gratuities 160 500 163 710 166 984 Gifts to customers 240 000 247 200 254 616

66 PERSONNEL EXPENSES 5 558 700 5 781 048 - 6 012 290 Wages 5 310 000 5 522 400 5 743 296 Social charges 248 700 258 648 268 994

67 FINANCIAL EXPENSES 1 800 000 1 750 000 - 1 600 000 Agios 1 800 000 1 750 000 1 600 000

68 DEPRECIATION AND AMORTIZATION 2 125 000 2 125 000 2 125 000 Depreciation and amortization vehicle 2 125 000 2 125 000 2 125 000

6*** TOTAL EXPENSES 34 553 160 38 349 728 40 258 056

Table 2.3 PREDICTION OF ROLLING 2016 CAPITAL

JOBS Amounts RESOURCES Amounts Stocks (1) 80 000 000 Suppliers (3) 0 Customers (2) 0 TOTAL JOBS 0 TOTAL RESOURCES 0

(1) the stock position representing 90 days of turnover, 80 000 000 CFA FRANCS. (2) customers pay 60 per cent cash and 40% in 30 days. For a turnover average 40 million per month, this represents 24 million cash and 16 million in 30 days or 12 days of turnover. (3) the supplier credit represents 90 days of purchase, either (408 000 000 x 45) / 360 = 51 000 000 in working capital = JOBS - RESOURCES in working capital = 96 000 000 - 51 000 000 = 45 000 000 FCFA The need for initial capital for 2013 is 45 million CFA FRANCS, or 33.75 turnover [(45/480) x 360 days = 33.75 days]. From 2014, it is necessary to finance the variation of the BFR which is linked to the variation of the total turnover. Table 2.4 EVOLUTION AND VARIATION of in working capital 2016 to 2019 years 2016 2017 2018 2019 Turnover 480 000 000 528 000 000 580 800 000 VARIARITION OF Turnover - 48 000 000 52 800 000 in working capital 45 000 000 49 500 000 54 450 000 Variation of in working capital - 4 500 000 4 950 000

Table 2.5 FREE CASH FLOW

Sign Elements 2016 2017 2018 2019 + Net result 34 537 38 367 + Depreciation 2 125 2 125 2 125 - BFR or Variation BFR 45 000 4 500 4 950 = FTD -8 338 35 992

COMMENT ON ESTIMATED ACTIVITY I - Turnover On the three exercises, turnover forecasts spend 480 million to 580 million CFA FRANCS, representing an average growth rate of 10%. This development is conditioned by the implementation of the lines of funding sought to deal with the problem of scarcity and the need for working capital financing. II - Value added The added value is increase in absolute terms, although its level remains relatively constant in relative value. This added value is largely determined by the weight of external services that integrates distribution costs and rents whose weight is not negligible. III- The gross operating surplus EBITDA is also increase in absolute terms over the three years, even if his level in relative value remains relatively constant. Its level is still satisfactory over the three years. IV- The NET result The net result is stable at around 7% over the three years. With a commercial activity which the margin is less than 20%, we can conclude that the other operating expenses have consumed approximately 13% of this margin. This margin is satisfactory, but efforts must be made to move around 10%. This involves an effort at the level of control of loads, especially external services, and a good policy supply to further improve the profit margin.