Ingress Auto Sdn Bhd

Workshop Expansion Project

Introduction
The expansion of our workshop is one of our
prime agenda for this year due to capacity
constraint.

We have been surveying the nearby vicinity for

the last couple of months. A good opportunity
has recently arose when our next door neighbour
vacated their premise.

In addition, the proposed workshop expansion

will also cater for the recent MINI dealership
award from BMW Msia
Current Service Scenario

Vol/mth 650
Waiting days 6
Waiting units 177
Waiting units / day 8
Hoists 15
Working Day 22
Hoist turnover/day 2.0
Waiting % 27%
Current Capacity in Brief
Job all fastlane repair rate
Warranty 40% 10% 90% 10.38
Retail 60% 60% 40% 14.15

Job in RM all fastlane repair

Warranty 78,032 7,803 70,229
Retail 117,048 70,229 46,819
195,079 78,032 117,048

Job in FRU all fastlane repair

Warranty 7,518 752 6,766
Retail 8,272 4,963 3,309
15,789 5,715 10,075

Job in Hours all fastlane repair

Warranty 626 63 564
Retail 689 414 276
1,316 476 840

Job per unit all fastlane repair

Warranty 260 26 234
Retail 390 234 156
650 260 390

Hours per car all ave fastlane repair

Warranty 3.2 2.4 4.0
Retail 2.4 1.8 2.9
Average 2.8 2.1 3.5

Repair spill over (more than 1 day) 40%

Current Capacity in Brief
Total available labour hours
- Hours per day 7.5
- Days per month 20.6
- Available hours per month 154.25
- Number of Technicians 13
- Total number of available hours 2,005

Total actual labour hours

- Average service income per month (RM) 195,079
- Actual number of hours sold 1,316

Productivity 66%

Average number of cars serviced per month 650

Average hours per cars 2.0
Estimation of Bays & Technicians
Mini Service
- Monthly Throughput 130 cars 6 per day
- Hours per car 3 hrs
- Hours per day 7.5 hrs
- Days per month 20.6 days
- Hours per month 154.25 hrs
- Productivity 66%
- Capacity 34 cars per technician per month
- No. of technicians required 4

Bmw Service
- Monthly Throughput 259 cars 13 per day
- Hours per car 2.5 hrs
- Hours per day 7.5 hrs
- Days per month 20.6 days
- Hours per month 165 hrs
- Productivity 66%
- Capacity 43 cars per technician per month
- No. of technicians required 6
Capital Expenditure
Capex Deprn
Renovation 1,500,000
Aftersales 500,000
Body & Paint
2,000,000 33,333

Items Qyt Price Amount

Hoists 10 25,000 250,000
Special Tools 1 10,000 10,000
Tool Trolley 10 17,000 170,000
Misc 70,000
500,000
 MINI Stats
MINI Service
Estimated Current Population 1,600 (source: Business Times, 25 Mar 2011)
2010 sales 222
2011 sales 301 (source AAM)
Sales increase 36%
Growth Rate for 2011 19%

2012 2013 2014 2015 2016 2017

YoY Population with sames growth rate 1,826 2,169 2,577 3,062 3,638 4,323
IASB Service Throughput 32 228 482 782 1,157 736
Market share 1.7% 10.5% 18.7% 25.5% 31.8% 17.0%

Daily service @ 22-day month 0.2 0.9 1.8 3.0 4.4 5.6

IASB Customer base

Yearly Sales 30 64 76 92 112 60
Accumulated 30 94 170 262 374 434
Throughput over customer base 1.1 2.4 2.8 3.0 3.1 1.7
 BMW Stats
BMW Service
2012 2013 2014 2015 2016 2017
Service Throughput 1,062 2,195 2,220 2,442 2,686 1,555
Income per car 300 306 312 318 325 325

Daily service @ 22-day month 8.0 8.3 8.4 9.2 10.2 11.8
Monthly throughput 177 183 185 203 224 259
Current - daily service 30 30 30 30 30 30
- monthly 650 650 650 650 650 650
 Income Statement
Profit & Loss 2012 2013 2014 2015 2016 2017 Total
Revenue
- Mini Service 47,250 345,060 743,011 1,229,384 1,855,123 1,195,330 5,415,158
- BMW Service 2,102,760 4,376,544 4,910,483 5,509,562 6,181,728 3,332,431 26,413,508
- Body & Paint 0 0 0 0 0 0 0
2,150,010 4,721,604 5,653,494 6,738,946 8,036,852 4,527,761 31,828,667

Cost of Sales
- Mini Service 29,531 215,586 463,874 766,948 1,156,454 744,805 3,377,199
- BMW Service 1,384,583 2,867,379 3,215,388 3,605,674 4,043,375 2,178,946 17,295,344
- Body & Paint 0 0 0 0 0 0 0
1,414,114 3,082,965 3,679,262 4,372,622 5,199,829 2,923,751 20,672,543

Gross Margin
- Mini Service 17,719 129,474 279,137 462,436 698,669 450,524 2,037,960
- BMW Service 718,178 1,509,166 1,695,095 1,903,888 2,138,353 1,153,485 9,118,164
- Body & Paint 0 0 0 0 0 0 0
735,896 1,638,640 1,974,231 2,366,324 2,837,023 1,604,010 11,156,124

Operating Expemditure 1,026,920 1,793,080 1,773,120 1,750,606 1,724,373 851,907 8,920,006

P&L (291,024) (154,440) 201,111 615,719 1,112,649 752,103 2,236,118

 Cashflow
Satellite Workshop Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Grand Total
Cashflow Total Total Total Total Total Total
Cashflow from operating activities
+ Sales 2,150,010 4,721,604 5,653,494 6,738,946 8,036,852 4,527,761 31,828,667
+ Other Income - - - - - - -
- Cost of sales 1,414,114 3,082,965 3,679,262 4,372,622 5,199,829 2,923,751 20,672,543
- Opex 1,024,607 1,384,146 1,366,398 1,346,094 1,322,073 651,585 7,094,904
Net Inflow from operating activities (288,711) 254,494 607,833 1,020,230 1,514,949 952,424 4,061,220

Cashflow from financing activities

+- Floor Stock drawdown - - - - - - -
+ Term loan drawdown 350,000 - - - - - 350,000
- Floor Stock redemption - - - - - - -
- Floor Stock Interest - - - - - - -
- Term Loan Repayment (+Interest) 40,313 78,934 76,722 74,511 72,300 35,322 378,103
Net Inflow from financing activities 309,687 (78,934) (76,722) (74,511) (72,300) (35,322) (28,103)

Cashflow from investing activities

+ Inflows - - - - - - -
- Capital expenditure 2,000,000 - - - - - 2,000,000
Net Inflow from investing activities (2,000,000) - - - - - (2,000,000)

Total Cashflow
+ Total Inflows 2,500,010 4,721,604 5,653,494 6,738,946 8,036,852 4,527,761 32,178,667
- Total Outflows 4,479,034 4,546,044 5,122,383 5,793,228 6,594,202 3,610,658 30,145,549
Total Net Inflows (1,979,024) 175,560 531,111 945,719 1,442,649 917,103 2,033,118

NPV 804,401
IRR 23%
Payback period 4.8
Discounting Rate 10%
 Initial Outlay
Satellite Workshop Yr1
Cashflow May Jun Jul Aug Sep Oct Nov Dec Jan Total
Cashflow from operating activities
+ Sales - - - 352,710 354,960 357,210 359,460 361,710 363,960 2,150,010
+ Other Income - - - - - - - - - -
- Cost of sales - - - 231,064 239,108 233,876 235,283 236,689 238,095 1,414,114
- Opex 220,917 56,917 56,917 116,223 109,529 116,111 116,054 115,998 115,942 1,024,607
Net Inflow from operating activities (220,917) (56,917) (56,917) 5,423 6,323 7,223 8,123 9,023 9,923 (288,711)

Cashflow from financing activities

+- Floor Stock drawdown -
+ Term loan drawdown 350,000 350,000
- Floor Stock redemption - - - - - - - - - -
- Floor Stock Interest - - - - -
- Term Loan Repayment (+Interest) 6,737 6,751 6,706 6,691 6,767 6,661 40,313
Net Inflow from financing activities - - 350,000 (6,737) (6,751) (6,706) (6,691) (6,767) (6,661) 309,687

Cashflow from investing activities

+ Inflows -
- Capital expenditure 2,000,000 2,000,000
Net Inflow from investing activities - - (2,000,000) - - - - - - (2,000,000)

Total Cashflow
+ Total Inflows - - 350,000 352,710 354,960 357,210 359,460 361,710 363,960 2,500,010
- Total Outflows 220,917 56,917 2,056,917 354,023 355,388 356,693 358,028 359,453 360,698 4,479,034
Total Net Inflows (220,917) (56,917) (1,706,917) (1,313) (428) 517 1,432 2,257 3,262 (1,979,024)
(56,917) (1,763,834) (1,765,147) (1,765,575) (1,765,058) (1,763,626) (1,761,369) (1,758,107) (1,979,024)
Location Map
Front View
Side View
The Layout

Office

Warehouse
The Specs
Warehouse 1,189 SqM

Ground Floor Office 303 SqM

1st Floor Office 485 SqM

Surrounding land 1,403 SqM

The Premise
Current setup as an office with a large warehouse at
the back

Warehouse size has the potential to accommodate 30

working bays

Being right next door eliminates many logistic barriers

and offers huge saving on operational costs

Only basic equipment are required for the operation as

most major and expensive equipment can be shared
with the main workshop
THANK YOU