Th e C adbur y P ro p o s a l 2 0 1 0

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 The Cadbury Proposal 2009 Page 2

Dear Prospective Cadbury Vending Operator,

PK Vending Distributors and Cadbury thank you for responding to our call for potential vending
machine operators. Cadbury have decided to create a presence in the vending industry with their well-
known brands. In order to achieve this on a national basis they have decided to partner with would be
entrepreneurs like yourself. So you get to partner with an internationally recognized brand.

Briefly put, Cadbury will provide you with exceptional discount of 15 % on all Cadbury product
purchased directly from themselves for the next five years, to secure the sale of their products through
your vending machine. The machine can either be a combination machine (sells cans and snacks,
etc.) or snack machine (sells snacks only). Please note: Other products are also allowed.

The cost of Cadbury machines vary from R55,000.00 to R 59,500.00 depending on the number of
machines purchased. The price includes VAT, initial stock, change for the initial filling of your machine
as well as a location for the machine.

A conservative projection is attached and an average return on investment is ±40% per annum.

Cadbury will require you to sign an agreement with them and purchase stock directly from them or
their nominated agent.

The Cadbury vending program has been extremely successful in New Zealand, the United Kingdom
and Australia. There are no hidden costs and this is a Turn-key program. The price of this stock will be
Cadbury’s best price less a further 15%.

Do not miss out on the opportunity to get in on the ground floor, as Cadbury’s is limiting the
total number of operators and machines for the South African market.

We have attached a proposal for your perusal. To get started, please call us!!

The PK Vending Team

Please note: Should you be purchasing a generic machine, PK Vending still provide all the services
herein except for filling of stock and a discount from Cadbury

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 The Cadbury Proposal 2009 Page 3

Table of Contents
4  COMPANY BACKGROUND - Vending Commercially
4  Your Key to a Successful Business in Vending
4  A Good Investment
4  The objective of this business is...
4  Your Customers...
4  Your Role...
4  Our Role in the Business…
5  Finding your locations
5  Maintaining your sites and satisfying your customers
5  The Profits
5  A Complete Business Plan
5  Summary of Business
5  The Equipment Supplier
5  The Equipment
5  Equipment Maintenance
6  Equipment Placement Procedure
6  Illustration (Profit per product)
6  Stock and Merchandise
6  Pricing
6  Locations
6  Future Expansion
6  Questions Investors Frequently Ask
6  Why is vending a good investment?
6  What sort of equipment do I need to start off with?
7  Who will do the siting?
7  How many sites will I need?
7  Where will my sites be?
7  Where do I get stock?
7  Will I get training?
7  What vehicle will I need?
7  Does PK Vending Distributors offer any guarantees?
7  Is there an industry watchdog?
7  I’m interested, what do I do now?
8  CADBURY MACHINE FINANCIAL PROJECTIONS

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 The Cadbury Proposal 2009 Page 4

COMPANY BACKGROUND - Vending Commercially

PK Vending has been in business for over 14 years and has provided the industry with quality cost-effective machines.
The sale of products in these machines range from confectionery and cold drinks to combinations of snack and cans. We
supply new and refurbished vending equipment on a trade basis specialising in confectionery vending distributing both
imported and locally assembled machines.
Purchasing machines from PK Vending Distributors means that you get the opportunity to buy direct at wholesale prices -
no middlemen. We don’t restrict your area because it stunts commercial growth. We don’t charge franchise fees because
it is in our interests to offer the required assistance to help our customers’ businesses grow and therefore help us sell
more machines. We do sell very reliable, secure and versatile vending equipment at the lowest prices. We will show you
how to set up and run your own independent vending service to businesses in your own area, advise you how and when
to expand, what equipment and product mix you will need for individual sites and how to obtain the highest returns from
each site.
PK Vending are members of the Vending Association of South Africa (VASA) and adhere strictly to their charter.
Cadbury have chosen to partner with PK Vending in the establishment and running of their vending program.

Your Key to a Successful Business in Vending

A Goo d Inve stme nt
We will show you how to set up and run your own independent vending services to businesses in your own area, and
advise you how and when to expand and what equipment you’ll need for individual sites to obtain the highest returns from
these sites. When you consider the Return on investment on other products such as Bank Fixed Deposits (10%) and the
Stock Market (± 20%) The Return On Investment of ± 40% per annum can be achieved on cash purchase of a machine is
highly favorable. Should finance be required, we can liaise with any finance company of your choice.

The o bj ec tive of th is busi ne ss is...

To provide a complete solution to run your own highly profitable business from a small capital outlay, by eliminating
unnecessary costs like franchise fees, area licenses, etc. You will be providing a unique vending service to companies,
offices and factories in your area by supplying low cost, quality vending machines stocked with brand name snack
products such as Nestlé, Coca-Cola, Simba and Cadbury’s. Even once your business is running, we will provide on-
going help and advice without imposing restrictions, leaving you free to expand and develop at your own pace.

You r Custo me r s...

Will be factories, offices, hospitals, schools or any working environment that will benefit from having a snack/can vending
machine on their premises. Many businesses value the opportunity to have snack vending machines on their premises
as this often reduces the amount of absenteeism whilst employees wander to the snack shop or canteen during working
hours. This yields more productivity to the company and is often described as an “invisible” asset. Few businesses of
suitable size object to vending machines being sited on their premises.

You r Ro le...
Is to offer and provide a snack/can vending service on a company’s premises in and around your area (it should be noted
that we do not have any restrictions on where you operate the machines, but it does make practical business sense to
have machines sited within easy traveling distance). You will be required to stock and cash these machines on a regular
basis. All proceeds from the takings of these machines are yours.

THE MORE SITES YOU OPERATE,

THE MORE PROFIT YOU WILL MAKE !!
O u r Ro le i n the Busi ne ss…
Is solely to supply you with the equipment, at trade prices, and give you all the advice necessary to operate your
business successfully. PK Vending only profit from the sale of its machines. It is in our interests to give you all the advice
and knowledge to help your business succeed, as your success contributes to our success. We will even find sites for
you, so all you have to do is install the machine, keep it stocked and collect the cash. Should a machine not perform
adequately within three months of being sited PK will supply a secondary site for you free of charge, you will however
have to pay for the movement of the machine which can be carried out by our trained technicians.

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 The Cadbury Proposal 2009 Page 5

Fi nd i ng you r loca tio ns

For some people the idea of picking up the phone, arranging appointments with prospective customers and selling the
idea may be daunting. As briefly explained in the previous paragraph, we find your locations for you so all you have to do
is maintain the sites. It is surprising how quickly your business can grow with this approach. References are available on
request.

Ma i nta i n i ng you r site s a nd sa tisf yi ng you r custo me r s

Once your sites are up and running, you will be required to keep them stocked with products on a regular basis. At the
same time you will cash the machine (all takings are yours). The machines are designed to be easily accessible, and PK
Vending provides full training on the operating of your machines and advice on how to deal with your sites.

The Prof i t s
On average, one machine makes a profit of around R1 800.00 per month that is a profit of R21 600.00 per year, per
machine. You could comfortably maintain around 10 machines a month generating a profit of R 216 000.00 per year. We
already have customers making good profits and purchasing machines from us on a regular basis.
Please note that this is still a part time business.

We don’t … We do...
• Charge any franchise fees • Supply all types of vending equipment
• Charge royalty or license fees • Provide and guarantee locations
• Restrict your area • Provide full business and technical support

A Complete Business Plan

Su m ma r y of Busi ne ss
To provide an in-house vending service to businesses. It is intended to offer this service free of charge to the businesses.
Approaching companies of small to medium size, as it is this area of the vending market that to date has been neglected
by traditional vending supply companies.
The business will initially be operated on a part time basis, with the intention to develop this over the next 12 - 18 months,
so that it will become a full time concern. Once the vending equipment has been placed into appropriate locations, these
machines will then be visited at least once weekly for re-stocking and cash collection. It is likely that some sites will
require further visits. Stock will be purchased from local wholesalers.

The Equ i p me nt Su ppl ie r

PK Vending specializes in the distribution of floor model vending equipment, designed primarily for the entry-level start
up of vending operators. We supply locally assembled and imported machines that are S.A.B.S., EC and Cadbury
approved.
PK Vending Distributors, although not a franchise, does offer full business start-up assistance and advice, and this is
available on an on-going basis. We do not charge any royalties or start-up fees, and do not impose any contractual
restrictions on our clients.

The Equ i p me nt
PK Vending will provide a minimum of 1 new machine either snack or combination. These machines are either locally
assembled or imported and are S.A.B.S. and E.C. approved.

Equ i p me nt Ma i nte na nce

No special maintenance contracts are required for the electronic vending machines. PK Vending offers full training to
enable the operator to troubleshoot his or her own machines. Operators are expected to carry out routine cleaning and
servicing as required. Full technical backup is available from PK Vending.

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 The Cadbury Proposal 2009 Page 6

Equ i p me nt Place me nt Proce du re

• A deposit is received from the investor
• Site and area information is requested from the investor
• Where appropriate companies / sites are contacted to secure interest
• Site is secured by PK Vending and approved by the investor
• Balance of funds are transferred and machine delivered within seven days

Il lustra tio n (Prof i t pe r pro duc t)

Fresh Food Items e.g. BLT

Chips Cans Chocolates

SELLING PRICE R 4.00 SELLING PRICE R 6.50 SELLING PRICE R 6.50
COST PRICE R 2.20 COST PRICE R 4.00 COST PRICE R 3.60
PROFIT R1.80 PROFIT R2.50 PROFIT R2.90
45% Gross Profit 38% Gross Profit 44% Gross Profit

Stock a nd Me rcha nd ise

PK Vending and Cadbury offer complete product advice as to which product lines to stock the equipment with. This
includes advice about seasonal variations of products and alternative products that can be placed within the equipment.
Stock can be purchased directly from manufacturers or from wholesalers such as Makro, Trade Centre etc. Cadbury
stock can be purchased directly with the added benefit of a 15% discount.

Prici ng
In some instances prices may be rounded up or down to make the denominations of coinage easier for the end user i.e. a
product that retails at R 2.30 may be marked up at R 2.50 to make it easier for the consumer when obtaining change. PK
Vending will be able to advise you in this regard.

Loca tio ns
Due to the high capital costs traditionally associated separate machines ie can vendor and snack equipment, it has been
financially not viable for vending operators to site equipment into smaller sites. The new combination machines offered by
PK Vending Distributors are relatively low in capital cost and are ideally suited for this type of location.

Fu tu re E x pa nsio n
This is the initial period for Cadbury into vending, within 12 months budgets will be increased to place even more
machines under this program. You therefore can expand your business at your own pace

Questions Investors Frequently Ask

Why is ve nd i ng a goo d i nve stme nt?
All people eat and drink foods of one description or another, and by providing vending equipment on site, you are giving
your customers a convenient way to purchase leading brand products. The confectionery-vending sector is one of the
fastest growing sectors of the vending industry with an annual growth rate of 12%. This growth actually increased to 15%
during the recession of the early 90’s.

Wha t so r t of e qu i p me nt do I ne e d to sta r t of f wi th?

Cadbury have approved two types of machines the one being a snack machine, which dispenses snacks only. The other
a combination machine that dispenses both snacks and cold drinks. Please note the new equipment is capable of also
dispensing water, Energade as well similar types of plastic bottles and Tetra Packs.

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 The Cadbury Proposal 2009 Page 7

Who wi l l do the si ti ng?

We dispatch an experienced representative who does your initial siting and, where appropriate, train you to be able to
carry out some of your own siting in the future. We accept that, for various reasons, some operators do not wish to be
involved and therefore provide this service.

How ma ny si te s wi l l I ne e d?
Under the Cadbury program the number of locations required depend on the number of machines you purchase.

Whe re wi l l my si te s be?
Your sites will usually be set up close to your residence or work but again we impose no restrictions. Therefore, if you
wish to have your equipment sited in a different area for any reason, then this can be arranged. In most cases your sites
will be located on Industrial and Trading Estates. P K will do their best to accommodate you within a geographical area
however in some instances you may have to go further to get better locations.

Whe re do I ge t stock?
All Cadbury products can be purchased directly from Cadbury and will be delivered to your door. A super discount rate
of Cadbury best price less a further 15% will apply. For chips and drinks, you may use local wholesales i.e.: Makro Trade
Centre or order directly from the manufacturers.

Wi l l I ge t tra i n i ng?
You will be trained on all mechanical aspects of the equipment, shown how to adjust the coin mechanisms and taught
how to carry out routine service and repairs. We will also, where appropriate, give you advice on running your business,
taking into account stock control, merchandising and product selection.

Wha t ve h icle wi l l I ne e d?
Initially a family type car or sedan would be suitable, but as your business grows and develops you will probably find it
useful to acquire a small van.or trailer.

D o e s PK Ve nd i ng D istri bu to r s of fe r a ny gua ra nte e s?

Because the only money you pay to us is for vending machines, your investment is 100% secured against your
equipment. So, should you ever wish to stop trading, you can return your money by selling your vending machines or
vending business. And, in most instances, you would make a profit from your sale. In addition PK offer a 3 month labour
and one year warranty on all working parts on all new machines supplied.

Is the re a n i ndustr y wa tchdog?

PK Vending Distributors and Cadbury are members of the Vending Association Of South Africa (VASA) and we
encourage all new operators to join the Association and to adhere to its code of ethics and charter. They can be
contacted on 086 110 0610.

I ’m i nte re ste d, wha t do I do now?

Contact the office and speak to one of our staff, we will be happy to discuss your particular requirements. If you prefer,
then we can arrange for one of our vending experts to visit you for an informal discussion, allowing us the opportunity to
furnish you with all the details that you will need to make an informed decision for your future.

For more information contact

PK Vending on 0861656055
or visit w w w.pkvending.co.za

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 New Combination Vendor
Sells beverages, sweets and snacks

LOCATIONS
PROVIDED
CADBURY MACHINE FINANCIAL PROJECTIONS
& GUARANTEED
COUNTRYWIDE

1 Machine 2 Machines 3 Machines

R59 500.00 per R58 000.00 per R55 000.00 per
machine fully inclusive machine fully inclusive machine fully inclusive

Above price includes the following:
• Site provided by PK Vending 100 people or more.
• Start up stock provided.
• Start up change provided.
• On site training and ongoing training provided.
• Delivery and installation in Gauteng.
• 12 months warranty on all working parts and three months on labour.
• Financing available from banks.
• Note reader and coin acceptor
Dimensions - 1040 (w) x 960mm (d) x 1970 (h)
Standard Configuration

Selections Number of selections Capacity

Sweets / chocolates 8 items 135
Snacks / chips 10 items 80
Drinks 24 items 120
Total Selections 42 335

* Profit Potential

15 Chips, 20 Chips 25 Chips 30 Chips

Average price for Drinks is R 6.50, 15 Drinks 20 Drinks 25 Drinks 30 Drinks
Chocolates R 6.50, Chips R 4.00 10 Chocolates 15 Chocolates 20 Chocolates 25 Chocolates
Daily for 22 Days Daily for 22 Days Daily for 22 Days Daily for 22 Days
Total Sales (Rands) 4807 6765 8635 10505
Less cost of sales (snacks & drinks at 60% - Rands) 2884 4059 5181 6303
OPERATING PROFIT (per month in Rands) 1922 2706 3454 4202
RETURN ON INVESTMENT (%) 38 45 69 84
Purchase Price Based on R59 500 incl. VAT

Please note: Actual machines may vary in branding

Terms and Conditions:
A 50% deposit with orders are required and the balance is payable 7 days prior to delivery.
Financing is subject to credit approval. Delivery and installation outside Gauteng will cost
R2 500.00 per machine. E&OE.
* Bear in mind that these fi gures are only an indication of potential fi nancial viability and may 
not be achieved. Your management style and overall commitment are crucial to success.
Making more than just centS... for you!
call us on 0861 656 055 and visit www.pkvending.co.za for more information
 EARN A PART-TIME PASSIVE INCOME NOW!

GET 3 MACHINES
GET 3 MACHINES
for a deposit of only R33 000

New Cadbury Branded

Combi Vendor
Sells beverages, sweets and snacks
Above price includes the following:
• Less 15% off purchases from Cadbury.
• Site provided by PK Vending 100 people or more.
• Start up stock provided.
• Start up change provided.
• On site training and ongoing training provided.
• Delivery and installation in Gauteng. LOCATIONS
• 12 months warranty on all working parts and three months on labour. PROVIDED
• Financing available from banks. & GUARANTEED
• Note reader and coin acceptor COUNTRYWIDE
Dimensions - 1040 (w) x 960mm (d) x 1970 (h)
Standard Configuration

Selections Number of selections Capacity

Sweets / chocolates 8 items 135
Snacks / chips 10 items 80
Drinks 24 items 120
Total Selections 42 335

* Profit Potential

15 Chips, 20 Chips 25 Chips 30 Chips

Average price for Drinks is R 6.50, 15 Drinks 20 Drinks 25 Drinks 30 Drinks
Chocolates R 6.50, Chips R 4.00 10 Chocolates 15 Chocolates 20 Chocolates 25 Chocolates
Daily for 22 Days Daily for 22 Days Daily for 22 Days Daily for 22 Days
Machine 1 4807 6765 8635 10505
Machine 2 4807 6765 8635 10505
Machine 3 4807 6765 8635 10505
Total Sales (Rands) 14421 20295 25905 31515
Less cost of sales (snacks & drinks at 60% - Rands) 8652.6 12177 15543 18909
OPERATING PROFIT (per month in Rands) 5768.4 8118 10362 12606
RETURN ON INVESTMENT (%) 41 59 75 91
Purchase Price Based on R165 000 incl. VAT
or a deposit of R33 000 and R3750 per month for 48 months (subject to credit approval)
Please note: Actual machines may vary in branding
Terms and Conditions:
Deposit required with finance application. Financing is subject to credit approval. Delivery
and installation outside Gauteng will cost R2 000.00 per machine. E&OE.
* Bear in mind that these fi gures are only an indication of potential fi nancial viability and may 
not be achieved. Your management style and overall commitment are crucial to success.
Making more than just centS... for you!
call us on 0861 656 055 and visit www.pkvending.co.za for more information