CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline

TeamName:___________________________ ProjectTitle:____________________________
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CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline
These notes are provided as a guide only for business plan submission (Stage2ofthecompetition).Participantsmaychoosetoprovideadditional information that they consider not being covered in this template. The emphasisshouldhoweverbeonthepresentationofaconciseandcredible plan that can be easily interpreted by investors who may not be fully familiarwiththemarket/technology/risks.Plansshouldnotexceedthe suggestedlengthasoutlinedbelow. 1. Introduction(1Page)
Thisbusinessplanshouldbestructuredasaninvestmentproposal.Hence,the introductionshouldincludesignificantportionsofthebusinessplansuchasmarket opportunity,businessobjectivesandbenefits,theinvestmentrequiredandthe returnspossible.

2. BusinessStrategy(7Pages) a. DetailedBusinessPlan
TheBusinessplanshouldincludethephaseof1)DevelopmentPhasefinancial closuretillthestartofbusinessproper,2)Phase2:Startofbusinessonward, 3)Phase3:ExitStrategy

b. OperationsPlanning
Runningofthedaytodaybusinessincludingmoremicroleveloperations managementdetails.

c. ExpansionStrategy
Thisdependsonthemanagementsdiscretiontoeitherrunthisbusinessasa cashcoworagrowthcentre.Ifthelatterischosen,theexpansionplanshould beincludedinthissectionofthebusinessplan.TheScenarioanalysisandthe financialanalysisshouldreflectthesedetails.

CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline
Ifthebusinessstrategyinvolvesasellingofaproduct/service,theteammust elaborateonhowthemarketingfunctionwillbestructuredanditsoperations carriedout.Thismightincludeeffortstoconvincepotentialbuyers,offtakers, authorities,investorsorthegeneralpublicofyourbusinessoffering.

d. MarketingStrategy

3. ManagementandManpowerStructure(3Pages) a. CompanyStructure
TheproposedCompanyManagementStructureshouldbeclearlydefinedinthe businessplanincluding,wherepossible,thenamesofpersonnelselectedand theallocationofcompanypositions. .

b. ManagementExpertiseandCredentials
Thepurposeofaddingtheexpertiseandcredentialsofthecompany managementistoconvinceinvestorsofthemanagementscapabilityand potential.Thereforedetailedattentionshouldbepaidtoemphasisrelevant workexperience,contributionsandskillsetscriticaltothebusiness.

c. ManpowerDistribution
Businesseswithcomplexoperationsorlargemanpowerrequirementsshould bewellthoughtthroughandpresentedinaconcisemanner.Itisimportantto ensurethatassumptionsforthissectionarerealisticandachievable.

d. Partnerships
Partnerscouldincludejointventurefirms,suppliers,offtakersoffinished goods,developmentpartners,technologysuppliers,contractorsorothers aidinginoutsourcedfunctionsofthebusiness.Agreements,ongoing discussions,contractsorMOUswithanyofthesepartiesshouldbehighlighted inthebusinessplan.Businessplansthatrequirecriticalarrangementswith potentialpartnersshouldseektosecurethesearrangementsbeforesubmitting the 3

CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline
businessplan.Thesefactorscontributetotheoverallbusinessimplementation readiness.

4. IndustryAnalysis(5Pages)
ExpandingonIndustryAnalysispresentedintheexecutivesummary,judgeswillbe lookingoutforaccuratemarketinformation,analysisandwhereitispossible quantitativeforecast.

a. Externalmarketanalysis
Thebusinessplanshouldcoverallgroundsinlookingatfactorsthatmight impactthefuturebusiness.Asuggestedframeworktouseistheportersfive forcesortheSWOTanalysis.

b. CompetitionAnalysis
Thissectionshouldprovideananalysisofcompanieswithsimilaror competitiveofferingsastheproposedbusinessplan.Conversely,other companiesthatcomplementthebusinessplancanbeelaboratedupon.

c. CompetitiveAdvantageAnalysis
Teamsshouldhighlightthecompetitiveadvantageoftheirbusinessas comparedtoexistingorfuturemarketcompetition.Thiscouldalsoinclude competitivestrategiesthecompanymightadopttocreatebarriersofentry.

5. Technology(4Pages)
Relevanttechnologiesthatconstituteheavilytotherevenue/costofthebusiness shouldbediscussedinthissection.

a. TechnologySuppliersConsidered
Technologydeveloped,procuredorleasedshouldbedescibedinan understandablemannerinrelationtothevaluechainofthe

CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline
business.Availablechoicesofthesetechnologiesshouldbediscussedand compared.

b. TechnologyProviderchoosen
Thedecisiononthechoiceoftechnologyshouldreflectthetechnology comparisionsmadeintheprevioussection.

6. FinancialAnalysis(6Pages)
Thepurposeofthissectionistohighlighttheprofitabilityofthebusiness.Relevant linesofprofitincludesales/revenueofgoodsandservicesandpossiblecarbon emissionsrevenues.Theevaluationshouldbecrediblewithconservativeestimates beingusedthroughoutthissection.

a. FinancialAssumptions
Asaguide,financialassumptionsshouldentailbutarenolimitedtothe followingcategories:1)RevenueAssumptions,2)ExpenseAssumptions,3) CAPEXassumptions,4)Projectoperatingassumptions.

b. BusinessCashflows
TheCashflowsfromtheprojectwillbebuiltontheassumptionsdefinedinthe previoussection.Inturn,theprojectedcashflowswillformthebasisforthe financialresultsinthenextsection.Thecashflowscanbeaugmentedbyother statementssuchastheincomestatement,thebalancesheetandother relevantfinancialstatements.

c. BusinessReturns
Thissectionshouldincludethepossibleeconomicreturnsandtherelevant ratiosthatwillbeimportantinevaluatingtheeconomicfeasibilityofthe business.

7. Investment(3Pages)
Closelytiedtothefinancialanalysis,potentialdebtandequityinvestorswillbe interestedintheriskandreturnspossibletothemspecifically.Thesereturnsforequity

CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline
anddebtholdersdependwillontheinvestmentstructureandinthecaseoftheequity holder,dividendpaymentstructure.

a. InvestmentStructure
Therefore,theproposedinvestmentstructuredetailsshouldbeclearlyspeltout inthissection,withreferencetothedebt/equityholdersobligationandstake holdandduties.Inthissection,estimatesandassumptionsshouldalsobe madeconservatively.

b. EquityCashflows
EquityCashflowsreflectthecashflowsattributabletoequityinvestors.This sectionwillformthebasisoftheinvestorstakeholdaswellastheinvestor returnsfromthebusiness.

c. ExitStrategy
Theproposedtimelineofthebusinessinvestmentisanimportantpieceof informationforinvestors.Similarly,theexitstrategyfortheinvestorshouldbe clearlyconstructionaroundthistimeline.Toincreasetheflexibilityofthe businessplan,possiblemultipleexitpointscanbesuggested.

8. RiskAnalysis(5Pages)
Theriskinvolvedinrunningthebusinessshouldentailbutisnotlimitedto1)Business specificrisk,2)Cost/Pricerisk,3)Technologyrisk,4)CountrySpecificrisk,5)Industry wideriskand6)Financialrisk.

9. ScenarioandUpsideAnalysis(3Pages)
Theimpactsofdownsideriskandupsidepotentialsthatcouldaffectthereturnsofthe businessinthefutureshouldbepresentedandfinanciallymodeledifpossible.

CTI PFAN Asia Forum for Clean Energy Financing

Business Plan Guideline

10.Conclusion(1Page)

Important:
1. Theguidelineprovideslistedsectionsthatthejudgeswilllookoutfor. Nonetheless,deviationsandadditionsareallowed.

2. Keepthebusinessplanunder40Pagesincludingthecoverpage, charts,financialsandallnecessaryAnnexes.

3. Pagesetup,spacing,wordsizesshouldbereasonableforyourselfand fortheappreciationoftheJudges.

4. ConvertyourfileintoPDFbeforesending.

5. Sourcesofinformationshouldbecitedandareferenceshouldbe providedforjudgingpurposes.