XYZ MANPOWER CORPORATION

Financial Projections at 100 Deployments Per Month

For a Total Deployments of 2,000 Workers

Description of the Project

The Project involves the sending of at least Two Thousand (2,000) Overseas Filipino Workers at One
Hundred (100) persons per month over a 20-month period. If successful, the Project will continue
sending OFWs after the projected number is deployed.

The Project will recruit qualified OFWs throughout the Philippines. However, interviews will be
conducted only in Metro Manila, Cebu City, Davao City and Cotabato City. The Project will send a team
to conduct the said interviews in these urban areas.

This Project aims to deploy OFWs throughout Saudi Arabia.

Estimated Project Cost and Sources of Financing

The Project needs a seed money of at least Five Million Pesos (P5 million), or US$______ (converted at
P44.66:US$1) which will be borrowed from a Saudi Arabian-based partner. This amount will be used as
the initial working capital of the Project.

Results of the Study

This study showed that the Project will earn P11,128,740 (US$249,188, converted at P44.66:US$1) after
the deployment of 2,000 OFWs at 100 persons per month.

In addition, the study showed that the Project can start paying the borrowed seed money at P1 million
(US$22,391) starting in Month 5, until fully paid in Month 9.

At Month 20, the Project will have a cash balance of P22,362,213 (US$276,807, converted at
P44.66:US$1) t lest

Projected Results of Operation

As basis for financial analysis, pro-forma financial statements were prepared to simulate project
operations for the projected years. In actual operations, conditions may vary and the operating results
may be different from those projected since the assumptions were developed based on conditions
prevalent at the time assumptions were formulated.

The projected results of operations over the projection period are shown on the attached Exhibits 1 to 3,
with their supporting computations as shown in the subsequent exhibits.

Financial Projections and Assumptions

The financial projections and analyses of the projected balance sheets, statements of income, statements
of cash receipts and disbursements, and the supporting schedules are presented as exhibits of this report.
Summary of Significant Financial Assumptions

The financial projections represent, to the best of Management’s knowledge and belief, the expected
financial position, results of operations and cash flows for the projected period. Accordingly, projections
reflect the Management’s judgment as of the projection date, the expected conditions and courses of
actions. There will usually be differences between the projected and actual results because events and
circumstances frequently do not occur as expected and those differences may be material.

The key financial assumptions are as follows:

Accounts receivable – This represents the portion of placement fees that were not collected at the end of
each month. It is estimated that at least 50% of the fees of a current month are collected in full in the
following month.

Refundable expenses – This represents the expenses of the unskilled workers that were paid first by the
Company and later on collected from the principal. It is projected that these expenses are collected the
following month.

Reserve for repatriation – This account is provided to cover any possible expenses that may be incurred
in connection with the repatriation of any deployed worker. This is estimated at 5 % of the projected
placement revenues.

Revenues – Revenues arise from the placement fees of people who will be sent to work abroad. The
details are shown in Exhibit ____.

Operating Expenses - These are the costs and expenses incurred in carrying out the day to day
operations of the business. The assumptions used for the expenses shown n the summaries are as follows:

1. Salaries and wages. This represents the cost of the salaries and benefits of the President and three
(3) staffs. The details are shown in Exhibit __.

2. Agents’ fees. This represents the amount given to different persons who will canvass for applicants
located in different provinces. They will be paid a fixed monthly fee at P25,000 each.

3. Travel and transportation – This represents the airfare, lodging and meal expenses of the staffs
that will go to Cebu, Davao and Cotabato to interview interested applicants. The details are shown
in Exhibit _____.

4. Security expenses - This includes costs and expenses that are incurred in outsourcing a security
from an agency. This is estimated at P75,000 per month.

5. Rent - This is estimated at P55,000 per month. The rate is fixed over the projection period.

6. Representation – This expense includes meeting expenses with different government officials,
business partners and other person who can expedite and facilitate the Company’s transactions. This
is estimated at P30,000 per month

7. Light, power and water - This represents the cost of utilities at the office. This is estimated at
P25,000 every month.
8. Telephone and postage – This represents communication expenses incurred during the day-to-day
operations of the Company, which included landline and internet connections, and mobile phones
and private courier expenses. The said expense was estimated at P20,000 every month.

9. Professional fees – This represents legal, accounting and other professional fees. This is estimated
at P15,000 per month.

10. Taxes and licenses – This represents the taxes and licenses payable to the local government which is
computed at 1% of the net revenue.

11. Repairs and maintenance – This represents expenses incurred in the maintenance of the property
and equipment, estimated at P5,000 per month.

12. Newspapers and subscriptions - This represents the expenses incurred for the daly subscriptions of
newspapers and other reading materials for the office and the applicants while waiting for their turn
to be interviewed or while waiting for their papers to be processed. The said expense was estimated
at P5,000 every month.

13. Miscellaneous expenses - This includes other costs and expenses that are not included above. This
is estimated at 5% of all operating expenses, excluding “Miscellaneous expenses”.

Income Tax. This represents the 30% corporate income tax levied under the internal revenue code. Due
to the changing laws on taxation, the highest tax rate is used in the projections for the purpose of
conservatism.

Value-added Tax (VAT). This represents the 12% tax on consumption, levied on the sale, barter,
exchange or lease of goods or properties and services. The seller is the one statutorily liable for the
payment of the tax, but the amount of the tax may be shifted or passed on to the buyer, transferee or
lessee of the goods or properties or services.