1062THE BUSINESS PLAN FOR ESTABLISHING TOYOTA 3S DEALER OF SAVICO IN DA NANG CITY

TR NG I H C M TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBAVB3 LE THI QUY THE BUSINESS PLAN FOR ESTABLISHING TOYOTA 3S DEALER OF SAVICO IN DA NANG CITY MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART – TIME) Tutor’s name: TRINH THUY ANH Da Nang City (2012) i UNDERTAKING By this letter, I would like to confirm that, for “The business plan for establishing Toyota 3S Dealer of Savico in Da Nang City” I myself studied the project’s issued, applied the academic knowledge obtained from MBA program, and discussed with my professors I undertake that this is my own project All information and data are true and never announced in any other research project Da Nang City 10th October 2012 Le Thi Quy MBA VB3 Le Thi Quy ii ACKNOWLEDGEMENTS First of all, I would like to express my deepest gratitude to my tutor Dr Trinh Thuy Anh who give me dedicated guidances, invaluable sugesstions I also would like to thank to The Professors, The Board of Coordinators of the Université Libre de Bruxelles - Solvay Brussels School and Ho Chi Minh City Open University, who provided me a chance to follow this MBA program and help me to broaden the view and enrich my knowledge In addition, I am delighted to express my heartiest thanks to all of my classmates, especially members of Group who support me during my study at Solvay – OU Finally, my honest gratitute to all members in my family for their helping and encouragement through my studies MBA VB3 Le Thi Quy iii COMMENT OF TUTOR Comment for the business plan for establishing Toyota 3S Dealer of Savico in Da Nang City by Le Thi Quy The author has applied what has been learned and the practical experiences for the establishment of this business plan The topic is practical and the approach is appropriate for the purpose of the plan The structure of the plan is logical and cohesion The author has made efforts in the search and analysis of the market and consideration of several assumption situations and factors that affect the feasibility of the project This makes the project be more persuasive I confirm that as the supervisor I approve this plan for the final presentation Ho Chi Minh City, 13 Nov 2012 MBA VB3 Le Thi Quy iv TABLE OF CONTENT Undertaking………………………………………………………………………………i Acknowledgement……………………………………………………………………….ii Comment of Tutor……………………………………………………………………….iii Table ofcontents…………………………………………………………………………iv Acronyms……………………………………………………………………………… vi List of figure&tables……………………………………………………………………vii Executivesummary……………………………………………………………………viii CHAPTER – INTRODUCTION 1.1Rationale of the project ………………………………………………………………1 1.2Objective of the project……………………………………………………………… 1.3Trading area of the project………………………………………………………… 1.4Data collection ……………………………………………………………………….2 1.5Project process ……………………………………………………………………….2 CHAPTER – LITERATURE REVIEW 2.1 Business plan ……………………………………………………………………… 2.2 Financial appraisal ………………………………………………………………… 2.2.1 Net present value (NPV) ……………………………………………………4 2.2.2 Internal rate of return (IRR) ……………………………………………… 2.2.3 Pay Back Period (PBP) …………………………………………………….5 CHAPTER – ENVIRONMENT AND MARKET ANALYSIS 3.1 Market overview …………………………………………………………………… 3.1.1 The Vietnam’s economy in 2011 and 0f the months of 2012…………… 3.1.2 Overview of Da Nang City …………………………………………………6 3.2 Market segmentation …………………………………………………………… .8 3.2.1 The Vietnam’s auto market analysis ……………………………………… 3.2.2 Market share……………………………………………………………… 10 3.3 The Danang’s auto market analysis ……………………………………………… 11 3.3.1 The market share of Toyota in Da Nang City …………………………… 11 3.3.2 The market forecast ……………………………………………………… 12 3.4 SWOT and Porter analysis …………………………………………………………13 3.4.1 SWOT analysis ……………………………………………………………13 3.4.2 Porter Five Forces analysis ………………………………………………14 MBA VB3 Le Thi Quy v CHAPTER – BUSINESS PLAN 4.1 Overview about Savico …………………………………………………………….18 4.2 Strategy …………………………………………………………………………… 19 4.2.1 The sales strategy………………………………………………………… 19 4.2.2 The business strategy of service and spare parts………………………… 19 4.3 Objective, Vision, Mission, Commitmen ………………………………………… 19 4.3.1 Objective ………………………………………………………………… 19 4.1.2 Vision …………………………………………………………………… 19 4.1.3 Mission ……………………………………………………………………19 4.1.4 Commitment……………………………………………………………… 20 4.4 Product and Service ……………………………………………………………… 20 4.5 Financial analysis ………………………………………………………………… 20 4.6 Risk analysis ……………………………………………………………………… 26 4.6.1 About the Government’s policies related to the auto sector ………………26 4.6.2 The financial and monetary policy……………………………………… 27 4.6.3 The differential factor of the exchange rate ……………………………….28 4.7 The action plan …………………………………………………………………… 28 4.7.1 The location for dealer establishment …………………………………… 29 4.7.2 The detailed investment plan …………………………………………… 31 4.7.3 Capital structure ………………………………………………………… 31 4.7.4 The marketing plan ……………………………………………………… 31 4.7.5 Human resources plan …………………………………………………… 32 CHAPTER – CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion ………………………………………………………………………….34 5.2 Recommendations ………………………………………………………………….34 Appendix …………………………………………………………………………… 37 Appendix …………………………………………………………………………… 39 Appendix …………………………………………………………………………… 44 Appendix …………………………………………………………………………… 48 Appendix …………………………………………………………………………… 50 MBA VB3 Le Thi Quy vi ACRONYMS Savico Saigon General Service Corporation TMV Toyota Motor Vietnam, Co., LTD ers A Vietnam Auto Manufacturers Association (VAMA) Vama 3S Dealer Sale, Service, Spare part Dealer NPV Net present value IRR Internal rate of return (IRR) PBP Pay-back period USD United States dollar VND Vietnam dong MBA VB3 Le Thi Quy vii LIST OF FIGURE & TABLES Figure 2.1 Business Plan Structure ………………………………………………………3 Figure 4.7.5.2 Organization Structure Table 3.2.2.1 The consumption of cars from 2010 to 2011 in Vietnam……………… 11 Table 3.2.3.1: Market share of VAMA of the first months of 2012………………… 12 Table 3.3.1.1 The sale volume in the Central market from 2008 -2011……………… 12 Table 3.3.1.1 The quantity of Toyota vehicles sold at Central of Viet Nam………… 12 Table 3.3.2.1 The forecast of viet nam automobile market…………………………… 12 Table 3.4.2.1: Product market share………………………………………………………………… 17 Table 4.4.1 The price of the product………………………………………………… 20 Table 4.7.2.1 The detail investment plan……………………………………………… 30 Table 4.7.2.2 Total investment plan…………………………………………………… 31 Table 4.7.5.1 The number of human resources for the project……………………… 33 Appendix Table 1.1: P&L …………………………………………………………… 38 Appendix Table 2.1: Balance Sheet…………………………………………………… 40 Appendix Table 2.2: P&L…………………………………………………………… 41 Appendix Table 3: Cash flow ……………………………………………………….43 Appendix Table 3.1: P&L…………………………………………………………… 45 Appendix Table 4.1: P&L…………………………………………………………… 48 Appendix Table 4.5: P&L…………………………………………………………… 51 MBA VB3 Le Thi Quy viii EXECUTIVE SUMMARY Saigon General Service Corporation (Savico) is a Joint Stock Company established in 1982 and listed on the stock exchange in Ho Chi Minh City from 2009 Savico has a system of 09 subsidiaries, 15 joint ventures and associated companies The total assets of Savico is 1,500 billion dongs, it is in the list of 500 companies with the biggest total assets in Vietnam Savico is the leading automobile trading and distribution company in Vietnam, accounting for 8,1% of the market share of VAMA with the system of distribution dealers spreading throughout the North, the Central and the South We have a team of experienced managers, sales executives and mechanics Every year, in the competitions about the sales skill, the repair techniques of major car manufacturers such as Toyota, Ford, GM Deawoo, Savico always participates and achieves high rank The year 2012 is a year full of difficulties and challenges to the companies in general and Savico in particular Due to the impact of the economic recession, the situation of car consumption in the entire system of Savico is reduced However, we still believe that the development potential of the automobile industry is huge because the people’s living standard is increasingly high and the demand for using cars becomes a necessity in life In the common difficult situation of the automobile market of Vietnam, Toyota is still the leading brand about the revenue and market share And the Central region is the potential market with crowded population, rapid development infrastructure, the life and income of people in recent years have highly increased In Da Nang market, Savico is a company with the leading market share of Ford and Hyndai With the desire to expand the market and market share, Savico carries out leasing the land plot of 3000 m2 in Da Nang City to prepare for the plan to build 3S Dealer for car products and accessories & spare parts bearing Toyota brand We focus on the market segment of 4WD vehicles, multi purpose vehicles and provision of other utility services to the buyers We anticipate the revenue growth rate and the growth rate of customers with repair service will be more than 10% for every year MBA VB3 Le Thi Quy ix We organize the sales at the automobile showroom and deliver the products directly to the retail buyers and wholesale companies (fleet buyers) In addition to the use of the traditional advertisement and marketing channels, we also focus on the e -marketing: use the google add word search engine to approach the customers in the fastest and most effective way One of the differences in the products that we supply is the Toyota used cars with the process of maintenance and warranty policy as the new products This is the results basing on the surveys of customers Because the general psychology of the buyers when buying used cars is the origin of the cars and the warranty policy In Vietnamese market, only Savico is entrusted by Toyota Viet Nam (TMV) to implement the sales policies to the used cars as mentioned above In the short term, we focus on the sales in Da Nang market, from the second year onwards, we will expand the sales network to the neighboring provinces such as Binh Dinh, Quang Ngai Because of the characteristics of the automobile trading industry, we face the main risks from the Government’s regulations related to the industry like: the tax policy, fee policy, the changes in the exchange rate between Vietnam dong and U.S dollar because the Company must sign contract to receive cars and pay in U.S dollar to the supplier that is Toyota Vietnam In addition, the interest rate from the bank also affects the project’s efficiency The most affect is the instability of the policies of the Government The Government often issues the regulations to increase the taxes and fees for the automobile industry These policies affect the consumption of the automobile market in general and of Savico in particular To ensure the feasibility to the project, we have analyzed the market situation, market share, considered the risk factors, analyzed the business plans, and prepared the human resources plan In addition, the financial plan is also carefully considered with several situations about the bank’s interest rates, the differential of foreign currency exchange rate, the revenue growth rate, the repair service growth We have also thoroughly considered and analyzed the revenue, profits, cash flow, NPV, IRR to have an overall view of the project The results show the positive considerations of the construction plan of Toyota 3S Dealer in Da Nang City MBA VB3 Le Thi Quy MBA Final Project Production expenses 4,118,453,806 Personnel expenses 1,262,516,832 4,443,734,972 1,388,768,515 Raw materials, fuel expenses 18,000,000 Tools expenses 582,643,056 Depreciat ion expenses 1,529,073,732 Rental service expenses 245,580,000 Other expenses 480,640,186 Sales expenses 3,676,041,888 + Personnel expenses 1,831,300,000 5,819,760,730 6,450,985,044 7,163,549,025 7,968,319,226 8,948,702,090 1,597,083,792 1,836,646,361 2,112,143,315 2,428,964,812 2,793,309,534 3,212,305,964 3,694,151,859 4,248,274,638 31,482,113 36,204,430 39,824,873 43,807,360 48,188,096 53,970,668 1,418,002,991 1,559,803,290 1,746,979,685 23,805,000 670,039,514 770,545,441 886,127,257 1,019,046,346 1,171,903,298 1,529,073,729 1,529,073,729 1,523,324,000 1,523,324,000 722,000,000 722,000,000 722,000,000 722,000,000 722,000,000 282,417,000 324,779,550 373,496,483 429,520,955 493,949,098 543,344,008 597,678,409 657,446,250 736,339,800 966,739,092 1,063,413,001 1,169,754,301 1,286,729,731 1,441,137,299 6,134,445,479 6,715,998,800 7,369,307,453 8,105,346,972 9,012,599,137 2,795,912,268 3,079,912,268 3,405,912,268 3,781,912,268 4,213,912,268 199,124,362 219,036,798 240,940,478 265,034,526 296,838,669 1,217,323,522 1,339,055,874 1,499,742,579 363,000,000 363,000,000 363,000,000 27,375,750 730,993,643 840,642,689 4,951,218,861 5,502,708,451 635,646,646 4,171,258,505 4,527,749,653 2,104,611,735 2,205,912,268 2,335,912,268 113,850,000 130,927,500 150,566,625 575,213,780 661,495,847 760,720,224 874,828,258 1,006,052,497 365,376,000 365,376,000 365,376,000 365,376,000 363,000,000 284,379,996 327,036,995 376,092,544 432,506,426 497,382,390 595,799,996 685,169,995 787,945,494 906,137,318 2,549,912,268 173,151,619 1,289,093,628 1,106,657,747 363,000,000 571,989,749 629,188,724 692,107,596 761,318,356 852,676,559 1,042,057,916 1,198,366,603 1,318,203,263 1,450,023,589 1,595,025,948 1,786,429,062 3,012,978,041 3,442,252,148 3,884,544,001 4,387,890,033 4,960,919,414 5,641,664,604 2,966,807,562 3,411,828,696 1,834,326,708 2,029,825,629 2,312,950,874 1,166,029,800 1,282,632,780 1,475,027,697 1,696,281,852 1,950,724,130 2,243,332,750 2,579,832,663 34,500,000 39,675,000 45,626,250 52,470,188 60,340,716 66,374,788 232,028,796 266,833,115 306,858,082 352,886,794 388,175,473 142,324,000 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 141,000,000 141,000,000 176,324,684 202,773,387 233,189,395 268,167,804 308,392,975 339,232,273 373,155,500 410,471,050 459,727,576 369,928,804 Raw materials, fuel expenses 30,000,000 Tools expenses 175,447,104 Depreciat ion expenses 142,323,996 153,325,812 201,764,170 167,199,996 13,233,184,719 Financial income 36,000,000 Profit before tax 1,629,461,396 Corporat e income tax 407,365,000 Profit after tax 5,956,159,418 552,736,214 , đ dùng Tools expenses 500,185,896 Depreciat ion expenses 365,376,000 Rental service expenses Other expenses Financial expenses 5,377,963,494 20,700,000 Raw materials, fuel expenses 99,000,000 Rental service expenses Other expenses Management + Allocation expenses Personnel expenses 4,880,934,158 1,222,096,3 96 2,638,544,905 73,012,267 426,993,020 80,313,494 469,692,322 3,923,603,000 89,951,113 526,055,401 192,279,995 221,121,994 254,290,293 292,433,837 336,298,913 10,610,063,297 11,574,339,351 12,620,664,213 13,702,794,146 14,805,384,650 41,400,000 47,610,000 62,964,225 72,408,859 79,649,745 5,409,645,019 6,705,469,748 8,679,092,705 11,495,244,062 15,728,010,959 19,421,262,853 23,791,946,235 28,952,760,361 34,831,240,529 1,676,367,000 2,169,773,000 2,873,811,000 3,932,003,000 4,855,316,000 5,947,987,000 7,238,190,000 8,707,810,000 5,029,102,748 6,509,319,705 8,621,433,062 11,796,007,959 14,565,946,853 17,843,959,235 21,714,570,361 1,352,411,000 4,057,234,019 MBAVB3 54,751,500 page 39 of 53 15,977,725,991 406,921,684 447,613,852 17,192,400,637 18,441,030,160 87,614,720 96,376,192 Le Thi Quy 501,327,514 19,742,462,326 107,941,335 26,123,430,529 MBA Final Project Appendix Scenario Assumption: Exchange rate: USD/1 VND = 21.420 Interest rate: 1.25%/month (15%/year) Year The growth rate of car sales The growth rate of service customers % 5% 5% 0% 5% 5% The growth rate of parts sales 0% 6% 6% The growth rate of service sales The growth rate of personal expenses 0% 6% 10 % 10 % 10 % 15 % The growth rate of other expenses 10 % 15 % 15 % 15 % 15 % 6% 10 % 12 % 12 % 15 % 18 % 18 % 15 % 18 % 18 % 10 % 12 % 12 % 10 % 12 % 12 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 15 % 10 % 15 % 10 % 10 15% 15% 10% 10% 12% 12% 12% 12% 15% 15% 10% 12% Appendix Table 2.1: ASSETS BALANCE OF THE FIRST 10 YEARS OF THE PROJECT Norm Y2 Y1 Y3 Y4 Y5 Y6 Y7 y8 Y9 Y 10 ASSETS 218,828,067 247,535,884 280,412,374 319,670,338 364,777,413 409,696,123 450,334,657 496,308,515 555,903,179 Current assets 155,789,665,813 108,124,151,266 124,288,717,813 142,871,839,073 164,362,455,464 189,087,900,726 217,343,516,661 239,142,666,065 263,130,817,339 294,706,553,062 Cash Car customer receivables Service customer receivables Prepay to the seller Car inventory 191,716,562 218,828,067 247,535,884 280,412,374 319,670,338 78,482,614,392 54,142,897,996 62,264,332,695 71,603,982,600 82,344,579,990 1,082,631,789 1,017,035,310 1,139,079,547 1,275,769,093 1,505,407,530 364,777,413 409,696,123 450,334,657 94,696,266,988 108,900,707,036 119,790,777,740 1,776,380,885 1,989,546,591 2,228,292,182 - - - 496,308,515 555,903,179 131,769,855,514 147,582,238,175 2,495,687,244 2,795,169,713 - - - - - - - 75,343,309,817 51,977,182,076 59,773,759,388 68,739,823,296 79,050,796,790 689,393,249 647,623,028 725,337,792 812,378,327 958,606,425 1,131,155,582 1,266,894,252 1,418,921,562 1,589,192,149 1,779,895,207 120,584,789 138,672,507 159,473,383 183,394,391 210,903,549 231,993,904 255,193,294 280,712,624 314,398,139 90,908,416,309 104,544,678,755 114,999,146,630 126,499,061,293 141,678,948,649 Parts inventory Equipment Other current assets Fixed assets - - - - - - - - - - 18,797,595,466 16,812,821,737 14,828,048,008 12,849,024,008 10,870,000,008 9,696,000,008 8,522,000,008 7,348,000,008 6,174,000,008 5,000,000,008 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 20,782,369,186 Cost of asset Depreciation (1,984,773,720) (3,969,547,449) (5,954,321,178) (7,933,345,178) (9,912,369,178) (13,434,369,178 (11,086,369,178) (12,260,369,178) ) 174,587,261,279 124,936,973,003 139,116,765,821 155,720,863,081 175,232,455,472 198,783,900,734 225,865,516,669 246,490,666,073 269,304,817,347 299,706,553,070 (15,782,369,178 ) (14,608,369,178) Total assets LIABILITIES Payables 143,334,078,486 90,223,995,487 99,824,290,797 110,451,703,990 121,944,200,374 134,367,313,793 147,648,506,327 151,487,139,325 154,057,511,535 160,239,624,497 130,394,140,533 80,299,314,202 88,190,431,007 96,840,363,109 105,904,314,291 115,280,235,959 125,370,873,351 126,441,325,574 125,908,570,223 128,197,279,347 12,695,096,953 8,792,388,285 10,107,360,790 11,619,112,881 Short term loan Payables to the seller MBAVB3 13,366,854,083 15,377,633,834 17,677,491,976 page 40 of 53 19,450,308,751 21,401,015,312 23,969,137,150 Le Thi Quy MBA Final Project Corporate income tax Owner’s equity 244,841,000 1,132,293,000 1,526,499,000 1,992,228,000 2,673,032,000 3,709,444,000 4,600,141,000 5,595,505,000 31,253,182,794 34,712,977,516 39,292,475,024 45,269,159,091 53,288,255,098 64,416,586,941 78,217,010,342 95,003,526,748 30,770,322,623 30,770,322,623 30,770,322,623 30,770,322,623 30,770,322,623 30,770,322,623 30,770,322,623 30,770,322,623 30,770,322,623 482,860,171 3,942,654,893 8,522,152,401 14,498,836,468 22,517,932,475 33,646,264,318 47,446,687,719 64,233,204,125 84,476,983,190 108,696,605,950 198,783,900,734 225,865,516,669 246,490,666,073 269,304,817,348 299,706,553,070 6,747,926,000 8,073,208,000 115,247,305,813 139,466,928,573 Charter capital Retained earnings Total Liabilities 174,587,261,280 124,936,973,003 139,116,765,821 155,720,863,081 175,232,455,472 30,770,322,623 Appendix Table 2.2: P&L OF THE FIRST 10 YEARS OF THE PROJECT Norm Car quantity Cars with service Sales Car sales Toyota parts sales Rental parts sales Accessories sales Repair sales Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y 10 590 620 682 750 863 992 1,141 1,312 1,509 1,735 14,625 16,819 19,342 21,276 23,404 11,510 12,086 13,295 25,744 28,318 485,199,817,765 556,684,509,611 639,729,520,163 735,176,362,391 846,026,912,841 973,608,383,155 1,118,850,269,230 1,231,332,160,130 1,355,133,863,798 1,517,749,927,452 470,807,808,660 541,428,979,959 622,643,326,953 716,039,825,996 823,445,799,895 946,962,669,879 1,089,007,070,361 1,197,907,777,397 1,317,698,555,137 1,475,822,381,753 6,778,844,868 7,185,575,561 8,047,844,628 9,013,585,983 10,636,031,460 12,550,517,123 14,056,579,178 15,743,368,679 17,632,572,920 19,748,481,670 104,289,921 110,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 242,205,672 271,270,353 303,822,795 3,545,857,316 3,758,608,755 4,209,641,806 4,714,798,823 5,563,462,611 6,564,885,881 7,352,672,187 8,234,992,849 9,223,191,991 10,329,975,030 2,264,580,000 2,400,454,800 2,688,509,376 3,011,130,501 3,553,133,991 4,192,698,109 4,695,821,882 5,259,320,508 5,890,438,969 6,597,291,645 Welding sales 905,832,000 960,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 Painting sales 792,605,000 840,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903 Rescue sales - - - - - - - - - - Car care sales - - - - - - - - - - 459,420,306,765 527,663,319,839 606,576,072,843 697,297,329,400 802,188,901,703 922,867,664,973 1,060,884,309,663 1,167,281,491,071 1,284,355,440,674 1,438,478,093,554 451,975,496,315 519,771,820,762 597,737,593,876 687,398,232,957 790,507,967,900 909,084,163,085 1,045,446,787,548 1,149,991,466,303 1,264,990,612,934 1,416,789,486,486 4,745,191,408 5,029,902,893 5,633,491,240 6,309,510,189 7,445,222,023 8,785,361,987 9,839,605,426 11,020,358,077 12,342,801,046 13,823,937,171 104,289,921 110,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 242,205,672 271,270,353 303,822,795 2,482,100,121 2,631,026,128 2,946,749,264 3,300,359,176 3,894,423,828 4,595,420,117 5,146,870,531 5,764,494,994 6,456,234,393 7,230,982,520 Cost of sales Car cost of sales Toyota parts cost of sales Rental parts cost of sales Accessories cost of sales Repair cost of sales Net margin Car net margin Toyota parts net margin Rental parts net margin Accessories net margin Repair net margin Welding net margin Painting net margin Rescue net margin 113,229,000 120,022,740 134,425,469 150,556,525 177,656,699 209,634,905 234,791,094 262,966,025 294,521,948 329,864,582 25,779,511,000 29,021,189,772 33,153,447,320 37,879,032,991 43,838,011,138 50,740,718,182 57,965,959,567 64,050,669,059 70,778,423,124 79,271,833,898 18,832,312,345 21,657,159,197 24,905,733,077 28,641,593,039 32,937,831,995 37,878,506,794 43,560,282,813 47,916,311,094 52,707,942,203 59,032,895,267 2,033,653,460 2,155,672,668 2,414,353,388 2,704,075,794 3,190,809,437 3,765,155,136 4,216,973,752 4,723,010,602 5,289,771,874 5,924,544,499 - - - - - - - - - 1,063,757,195 1,127,582,627 1,262,892,542 1,414,439,647 1,669,038,783 1,969,465,764 2,205,801,656 2,470,497,855 2,766,957,598 3,098,992,510 2,151,351,000 2,280,432,060 2,554,083,907 2,860,573,976 3,375,477,292 3,983,063,204 4,461,030,788 4,996,354,483 5,595,917,021 6,267,427,063 905,832,000 960,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 792,605,000 840,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903 - - - - - - - - - - MBAVB3 page 41 of 53 Le Thi Quy MBA Final Project Car care net margin Operating expenses Direct labor expenses Basic salary Wages Social insurance, Accident insurance, Unemployme nt insurance Production expenses Personnel expenses Raw materials, fuel expenses Tools expenses Depreciat ion expenses Rental service expenses Other expenses Sales expenses + Personnel expenses Raw materials, fuel expenses , đ dùng Tools expenses Depreciat ion expenses Rental service expenses Other expenses Management + Allocation expenses Personnel expenses Raw materials, fuel expenses Tools expenses Depreciat ion expenses Rental service expenses Other expenses Financial expenses Financial income - - - - - - - - - - 25,087,809,828 24,533,418,051 27,095,060,812 29,964,872,424 33,208,847,356 35,975,351,198 39,645,044,911 41,756,262,373 43,883,094,251 47,086,944,473 1,508,673,000 1,734,973,950 1,995,220,043 2,294,503,050 2,638,678,507 3,034,480,283 3,489,652,325 3,838,617,557 4,222,479,313 4,729,176,831 1,365,189,000 1,569,967,350 1,805,462,453 2,076,281,821 2,387,724,094 2,745,882,708 3,157,765,114 3,473,541,625 3,820,895,788 4,279,403,283 - - - - - - - - - - 143,484,000 165,006,600 189,757,590 218,221,229 250,954,413 288,597,575 331,887,211 365,075,932 401,583,525 449,773,548 4,066,453,798 4,454,860,814 4,901,528,877 5,409,447,421 6,000,165,934 5,878,168,224 6,525,953,662 7,111,549,028 7,755,703,931 8,605,988,404 1,262,516,832 1,451,894,357 1,669,678,511 1,920,130,288 2,208,149,831 2,539,372,306 2,920,278,152 3,212,305,967 3,533,536,564 3,957,560,952 18,000,000 20,700,000 23,805,000 27,375,750 31,482,113 36,204,430 39,824,873 43,807,360 48,188,096 53,970,668 582,643,056 670,039,514 770,545,441 886,127,257 1,019,046,346 1,171,903,298 1,289,093,628 1,418,002,991 1,559,803,290 1,746,979,685 1,477,073,724 1,477,073,729 1,477,073,729 1,471,324,000 1,471,324,000 670,000,000 670,000,000 670,000,000 670,000,000 670,000,000 245,580,000 282,417,000 324,779,550 373,496,483 429,520,955 493,949,098 543,344,008 597,678,409 657,446,250 736,339,800 480,640,186 552,736,214 635,646,646 730,993,643 840,642,689 966,739,092 1,063,413,001 1,169,754,301 1,286,729,731 1,441,137,299 3,676,041,888 4,210,559,038 4,589,749,653 5,019,218,861 5,582,708,451 6,226,445,479 6,821,998,800 7,452,006,920 8,206,046,439 9,149,018,817 1,831,300,000 2,143,912,268 2,267,912,268 2,403,912,268 2,629,912,268 2,887,912,268 3,185,912,268 3,488,611,735 3,882,611,735 4,350,331,948 99,000,000 113,850,000 130,927,500 150,566,625 173,151,619 199,124,362 219,036,798 240,940,478 265,034,526 296,838,669 500,185,896 575,213,780 661,495,847 760,720,224 874,828,258 1,006,052,497 1,106,657,747 1,217,323,522 1,339,055,874 1,499,742,579 365,376,000 365,376,000 365,376,000 365,376,000 365,376,000 363,000,000 363,000,000 363,000,000 363,000,000 363,000,000 284,379,996 327,036,995 376,092,544 432,506,426 497,382,390 571,989,749 629,188,724 692,107,596 761,318,356 852,676,559 595,799,996 685,169,995 787,945,494 906,137,318 1,042,057,916 1,198,366,603 1,318,203,263 1,450,023,589 1,595,025,948 1,786,429,062 1,834,326,708 2,088,127,119 2,379,997,588 2,715,648,626 3,101,647,320 3,544,221,818 4,001,809,121 4,387,890,032 4,812,579,035 5,373,168,519 1,166,029,800 1,340,934,270 1,542,074,411 1,773,385,573 2,039,393,409 2,345,302,420 2,697,097,783 2,966,807,561 3,263,488,317 3,655,106,915 30,000,000 34,500,000 39,675,000 45,626,250 52,470,188 60,340,716 66,374,788 73,012,267 80,313,494 89,951,113 175,447,104 201,764,170 232,028,796 266,833,115 306,858,082 352,886,794 388,175,473 426,993,020 469,692,322 526,055,401 142,323,996 142,324,000 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 141,000,000 141,000,000 153,325,812 176,324,684 202,773,387 233,189,395 268,167,804 308,392,975 339,232,273 373,155,500 410,471,050 459,727,576 167,199,996 192,279,995 221,121,994 254,290,293 292,433,837 336,298,913 369,928,804 406,921,684 447,613,852 501,327,514 14,002,314,434 12,044,897,130 13,228,564,651 14,526,054,466 15,885,647,144 17,292,035,394 18,805,631,003 18,966,198,836 18,886,285,533 19,229,591,902 36,000,000 41,400,000 47,610,000 54,751,500 62,964,225 72,408,859 79,649,745 87,614,720 96,376,192 107,941,335 MBAVB3 page 42 of 53 Le Thi Quy MBA Final Project Profit before tax Corporat e income tax Profit after tax 727,701,172 4,529,171,721 6,105,996,508 7,968,912,067 10,692,128,007 14,837,775,843 18,400,564,401 22,382,021,406 26,991,705,065 32,292,830,760 181,925,000 1,132,293,000 1,526,499,000 1,992,228,000 2,673,032,000 3,709,444,000 4,600,141,000 5,595,505,000 6,747,926,000 8,073,208,000 545,776,172 3,396,878,721 4,579,497,508 5,976,684,067 8,019,096,007 11,128,331,843 13,800,423,401 16,786,516,406 20,243,779,065 24,219,622,760 Appendix Table 2.3: CASH FLOW Ch tiêu Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y 10 I.Cash flow from the business activities Profits before tax 727,701,172 4,529,171,721 6,105,996,508 7,968,912,067 10,692,128,007 14,837,775,843 18,400,564,401 22,382,021,406 26,991,705,065 32,292,830,760 1,984,773,720 1,984,773,729 1,984,773,729 1,979,024,000 1,979,024,000 1,174,000,000 1,174,000,000 1,174,000,000 1,174,000,000 1,174,000,000 14,002,314,434 12,044,897,130 13,228,564,651 14,526,054,466 15,885,647,144 17,292,035,394 18,805,631,003 18,966,198,836 18,886,285,533 19,229,591,902 16,714,789,326 18,558,842,580 21,319,334,888 24,473,990,533 28,556,799,151 33,303,811,237 38,380,195,404 47,051,990,598 52,696,422,662 Increase, decrease of receivables (79,565,246,181) 24,405,312,875 (8,243,478,936) (9,476,339,451) (10,970,235,827) (12,622,660,353) (14,417,605,754) (11,128,816,295) (12,246,472,836) (16,111,865,130) Increase, decrease of inventory (76,032,703,070) 23,287,313,177 (7,892,379,794) (9,073,905,319) (10,481,122,600) (12,057,677,834) (13,793,091,471) (10,629,694,575) (11,695,704,580) (15,404,275,929) 12,695,096,953 (3,902,708,668) 1,314,972,505 1,511,752,091 1,747,741,202 2,010,779,751 2,299,858,142 1,772,816,775 1,950,706,561 2,568,121,838 (14,002,314,434) (12,044,897,130) (13,228,564,651) (14,526,054,466) (15,885,647,144) (17,292,035,394) (18,805,631,003) (18,966,198,836) (18,886,285,533) (19,229,591,902) (181,925,000) (1,132,293,000) (1,526,499,000) (1,992,228,000) (2,673,032,000) (3,709,444,000) (4,600,141,000) (5,595,505,000) (6,747,926,000) (9,024,693,218) (9,330,814,593) (10,045,718,682) (1,029,813,689) 578,729,210 (2,229,114,461) 2.Depreciation Fixed assets depreciation - Interest rate 3.Profits from the business activities before the change of working capital Increase, decrease of payables (excluding borrowing interest, corporate income tax) Paid borrowing interest Paid corporate income tax Net cash flow from the business activities (140,190,377,406 ) MBAVB3 50,121,937,834 (7,862,408,988) (8,617,055,612) page 43 of 53 42,522,220,242 Le Thi Quy MBA Final Project II Cash flow from the investment activities Expenditures for procurement, construction of fixed assets, other long term assets (20,782,369,186) - - - - - - - - - Cash flow from investment (20,782,369,186) - - - - - - - - - 30,770,322,623 - - - - - - - - - - (50,094,826,331) - - - - - - (532,755,352) - 161,164,463,156 (50,094,826,331) 7,891,116,805 8,649,932,102 9,063,951,181 9,375,921,668 10,090,637,392 1,070,452,224 (532,755,352) 2,288,709,125 191,716,564 27,111,503 28,707,817 32,876,490 39,257,963 45,107,075 44,918,710 40,638,535 45,973,858 59,594,664 Cash and assimilated of period beginning - 191,716,564 218,828,067 247,535,884 280,412,374 319,670,337 364,777,412 409,696,122 450,334,657 496,308,515 Cash and assimilated of period ending 191,716,564 218,828,067 247,535,884 280,412,374 319,670,337 364,777,412 409,696,122 450,334,657 496,308,515 555,903,179 III Cash flow from Financing acitivities Cash form stock Payable of the dept Net cash flow from the financial activities Net cash flow in the period NPV= VND 16,104,082,413 IRR = 24.68% Payback period = year 10 months MBAVB3 page 44 of 53 Le Thi Quy MBA Final Project Appendix Scenario Assumption: Exchange rate: USD/1 VND = 21.000 Interest rate: 1.33%/month (16%/year) The growth rate of service customers % % % % 0% % % % % 0% The growth rate of parts sales The growth rate of service sales The growth rate of personal expenses The growth rate of other expenses % 0% 2% 2% 5% 0% 0% 2% 2% 5% 5% 5% 8% 8% 5% 5% 5% 8% 8% 5% 5% 0% 2% 2% 5% 5% 0% 2% 2% 5% 5% 0% 2% 2% 5% 5% 0% 2% 2% 5% Appendix Table 3.1: P&L OF THE FIRST 10 YEARS OF THE PROJECT Norm Y1 Car quantity Cars with service Y2 590 620 11,510 12,086 Y3 Y4 651 13,295 Y5 716 14,625 Y6 823 Y7 946 16,819 19,342 Y8 1,088 21,276 Y9 1,251 23,404 475,968,292,105 989,440,952 600,980,191,205 690,614,634,089 794,780,925,294 914,675,497,476 1,051,077,450,699 Car sales Toyota parts sales Rental parts sales Accessories sales 461,576,283,000 733,911,300 583,893,997,995 671,478,097,694 772,199,812,348 888,029,784,200 1,021,234,251,830 1,174,419,389,605 6,778,844,868 85,575,561 8,047,844,628 9,013,585,983 10,636,031,460 12,550,517,123 14,056,579,178 15,743,368,679 104,289,921 10,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 3,545,857,316 58,608,755 4,209,641,806 4,714,798,823 5,563,462,611 6,564,885,881 Repair sales Sales Y 10 1,439 25,744 1,655 28,318 1,388,017,606,707 1,595,097,188,452 1,350,582,298,046 1,553,169,642,753 17,632,572,920 19,748,481,670 242,205,672 271,270,353 303,822,795 7,352,672,187 8,234,992,849 9,223,191,991 10,329,975,030 1,207,843,772,338 2,264,580,000 00,454,800 2,688,509,376 3,011,130,501 3,553,133,991 4,192,698,109 4,695,821,882 5,259,320,508 5,890,438,969 6,597,291,645 Welding sales 905,832,000 60,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 Painting sales 792,605,000 40,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903 Rescue sales - - - - - - - - - Car care sales - - - - - - - - - Cost of sales Car cost of sales Toyota parts cost of sales Rental parts cost of sales Accessories cost of sales Repair cost of sales Net margin Car net margin Toyota parts net margin Rental parts net margin Accessories net margin Repair net margin 450,558,042,130 316,053,925 569,376,717,042 654,518,070,229 752,992,753,657 866,292,094,720 995,822,403,872 443,113,231,680 424,554,848 560,538,238,075 644,618,973,786 741,311,819,854 852,508,592,832 980,384,881,757 1,127,442,614,021 4,745,191,408 29,902,893 5,633,491,240 6,309,510,189 7,445,222,023 8,785,361,987 104,289,921 10,547,316 123,812,994 138,670,553 163,631,253 193,084,879 216,255,064 2,482,100,121 31,026,128 2,946,749,264 3,300,359,176 3,894,423,828 4,595,420,117 5,146,870,531 1,512,731,464,111 1,296,559,006,124 1,491,042,857,043 12,342,801,046 13,823,937,171 242,205,672 271,270,353 303,822,795 5,764,494,994 6,456,234,393 7,230,982,520 1,144,732,638,789 113,229,000 20,022,740 134,425,469 150,556,525 177,656,699 209,634,905 234,791,094 25,410,249,975 673,387,027 31,603,474,163 36,096,563,860 41,788,171,637 48,383,402,756 55,255,046,827 18,463,051,320 309,356,452 23,355,759,920 26,859,123,908 30,887,992,494 35,521,191,368 40,849,370,073 46,976,775,584 2,033,653,460 55,672,668 2,414,353,388 2,704,075,794 3,190,809,437 3,765,155,136 - - - - - - - 1,315,923,833,864 9,839,605,426 11,020,358,077 4,216,973,752 - 262,966,025 63,111,133,549 4,723,010,602 - 294,521,948 329,864,582 72,093,772,843 82,365,724,341 54,023,291,922 62,126,785,710 5,289,771,874 5,924,544,499 - - 1,063,757,195 27,582,627 1,262,892,542 1,414,439,647 1,669,038,783 1,969,465,764 2,205,801,656 2,470,497,855 2,766,957,598 3,098,992,510 2,151,351,000 80,432,060 2,554,083,907 2,860,573,976 3,375,477,292 3,983,063,204 4,461,030,788 4,996,354,483 5,595,917,021 6,267,427,063 MBAVB3 page 45 of 53 Le Thi Quy MBA Final Project Welding net margin Painting net margin Rescue net margin Car care net margin Operating expenses Direct labor expenses Basic salary 905,832,000 60,181,920 1,075,403,750 1,204,452,200 1,421,253,596 1,677,079,243 1,878,328,752 2,103,728,202 2,356,175,586 2,638,916,656 792,605,000 40,161,300 940,980,656 1,053,898,335 1,243,600,035 1,467,448,041 1,643,541,806 1,840,766,823 2,061,658,842 2,309,057,903 Raw materials, fuel expenses Tools expenses Depreciat ion expenses Rental service expenses Other expenses Sales expenses + Personnel expenses Raw materials, fuel expenses , đ dùng Tools expenses Depreciat ion expenses Rental service expenses Other expenses Management + Allocation expenses Personnel expenses Raw materials, fuel expenses Tools expenses Depreciat ion expenses - - - - - - - - - - - - - - - - - - - 25,695,181,060 423,802,783 27,055,211,218 30,036,680,956 33,409,637,204 36,331,488,279 1,508,673,000 59,540,300 1,908,471,345 2,194,742,047 2,523,953,354 2,902,546,357 3,337,928,310 1,365,189,000 01,707,900 1,726,964,085 1,986,008,698 2,283,910,003 2,626,496,503 3,020,470,978 Wages Social insurance, Accident insurance, Unemployme nt insurance Production expenses Personnel expenses - - - - - - - 40,189,528,026 44,454,589,917 - 49,168,771,769 54,588,163,188 3,838,617,557 4,414,410,191 5,076,571,719 3,473,541,625 3,994,572,869 4,593,758,799 - - - 143,484,000 57,832,400 181,507,260 208,733,349 240,043,351 276,049,854 317,457,332 365,075,932 419,837,322 482,812,920 4,066,453,798 91,734,972 4,828,934,158 5,325,963,494 5,904,159,418 5,767,760,730 6,398,985,044 7,111,549,025 7,916,319,226 8,896,702,090 1,262,516,832 88,768,515 1,597,083,792 1,836,646,361 2,112,143,315 2,428,964,812 2,793,309,534 3,212,305,964 3,694,151,859 4,248,274,638 18,000,000 20,700,000 23,805,000 27,375,750 31,482,113 36,204,430 39,824,873 43,807,360 48,188,096 53,970,668 582,643,056 70,039,514 770,545,441 886,127,257 1,019,046,346 1,171,903,298 1,289,093,628 1,418,002,991 1,559,803,290 1,746,979,685 1,477,073,724 77,073,729 1,477,073,729 1,471,324,000 1,471,324,000 670,000,000 670,000,000 670,000,000 670,000,000 670,000,000 245,580,000 82,417,000 324,779,550 373,496,483 429,520,955 493,949,098 543,344,008 597,678,409 657,446,250 736,339,800 480,640,186 52,736,214 635,646,646 730,993,643 840,642,689 966,739,092 1,063,413,001 1,169,754,301 1,286,729,731 1,441,137,299 3,676,041,888 71,258,505 4,527,749,653 4,951,218,861 5,502,708,451 6,134,445,479 6,715,998,800 7,369,307,453 8,105,346,972 9,012,599,137 1,831,300,000 04,611,735 2,205,912,268 2,335,912,268 2,549,912,268 2,795,912,268 3,079,912,268 3,405,912,268 3,781,912,268 4,213,912,268 99,000,000 13,850,000 130,927,500 150,566,625 173,151,619 199,124,362 219,036,798 240,940,478 265,034,526 296,838,669 500,185,896 75,213,780 661,495,847 760,720,224 874,828,258 1,006,052,497 1,106,657,747 1,217,323,522 1,339,055,874 1,499,742,579 365,376,000 65,376,000 365,376,000 365,376,000 365,376,000 363,000,000 363,000,000 363,000,000 363,000,000 363,000,000 284,379,996 27,036,995 376,092,544 432,506,426 497,382,390 571,989,749 629,188,724 692,107,596 761,318,356 852,676,559 595,799,996 85,169,995 787,945,494 906,137,318 1,042,057,916 1,198,366,603 1,318,203,263 1,450,023,589 1,595,025,948 1,786,429,062 1,834,326,708 29,825,629 2,312,950,874 2,638,544,905 3,012,978,041 3,442,252,148 3,884,544,001 4,387,890,033 4,960,919,414 5,641,664,604 1,166,029,800 82,632,780 1,475,027,697 1,696,281,852 1,950,724,130 2,243,332,750 2,579,832,663 2,966,807,562 3,411,828,696 3,923,603,000 30,000,000 34,500,000 39,675,000 45,626,250 52,470,188 60,340,716 66,374,788 73,012,267 80,313,494 89,951,113 175,447,104 01,764,170 232,028,796 266,833,115 306,858,082 352,886,794 388,175,473 426,993,020 469,692,322 526,055,401 142,323,996 42,324,000 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 141,000,000 141,000,000 MBAVB3 page 46 of 53 Le Thi Quy MBA Final Project Rental service expenses Other expenses Financial expenses Financial income Profit before tax 153,325,812 76,324,684 233,189,395 268,167,804 308,392,975 339,232,273 373,155,500 406,921,684 167,199,996 92,279,995 221,121,994 254,290,293 292,433,837 336,298,913 369,928,804 14,609,685,665 171,443,377 13,477,105,188 14,926,211,649 16,465,837,940 18,084,483,565 19,852,071,871 36,000,000 41,400,000 47,610,000 54,751,500 62,964,225 72,408,859 79,649,745 (248,931,084) 90,984,244 4,595,872,945 6,114,634,404 8,441,498,658 12,124,323,336 22,746,000 1,148,968,000 1,528,659,000 2,110,375,000 3,031,081,000 (248,931,084) 68,238,244 3,446,904,945 4,585,975,404 6,331,123,658 9,093,242,336 Corporat e income tax Profit after tax 202,773,387 - 21,747,225,849 87,614,720 15,145,168,546 18,744,158,352 3,786,292,000 4,686,040,000 11,358,876,546 14,058,118,352 410,471,050 447,613,852 501,327,514 23,771,775,966 25,960,625,638 96,376,192 107,941,335 23,021,377,266 27,885,502,488 5,755,344,000 6,971,376,000 17,266,033,266 20,914,126,488 NPV = 7,184,529,899 IRR =20.68% Payback period = years months MBAVB3 page 47 of 53 459,727,576 Le Thi Quy MBA Final Project Appendix Scenario Assumption: Exchange rate: USD/1 VND = 21.000 Interest rate: 1.5%/month (18%/year) Year The growth rate of car sales The growth rate of service customers The growth rate of parts sales The growth rate of service sales The growth rate of personal expenses The growth rate of other expenses 10 % 10% 10% 15 % 15% 15% 15% 15% 15% 15% 0% 10% 10% 20 % 20% 20% 10% 10% 10% 10% 0% 12% 12% 24 % 24% 24% 12% 12% 12% 12% 0% 12% 12% 24 % 24% 24% 12% 12% 12% 12% 10% 10% 10% 10 % 10% 10% 10% 10% 10% 10% 10% 10 % 10% 10% 10% 10% 10% 10% 10% 10% NPV = VND 3,833,646,716 IRR = 20.47% Payback period = year months Appendix Table 4.1: P&L OF THE FIRST 10 YEARS OF THE PROJECT Norm Car quantity Cars with service Y1 Y4 Y5 Y6 Y7 Y8 Y9 Y 10 649 714 821 944 1,086 1,249 1,436 1,651 1,899 11,510 12,661 13,927 16,712 20,054 24,065 26,472 29,119 32,031 35,234 523,852,961,499 576,560,638,652 636,744,169,588 703,552,645,716 777,794,143,657 856,261,976,505 942,659,202,856 1,037,788,675,286 1,142,534,721,217 Car sales 461,576,283,000 507,733,911,300 Toyota parts sales 6,778,844,868 7,592,306,253 Rental parts sales 104,289,921 116,804,712 Accessories sales 3,545,857,316 3,971,360,194 Repair sales Y3 590 475,968,292,105 Sales Y2 558,507,302,430 614,358,032,673 675,793,835,940 743,373,219,534 817,710,541,487 899,481,595,636 989,429,755,200 1,088,372,730,720 8,503,383,003 10,544,194,924 13,074,801,706 130,821,277 162,218,383 201,150,795 4,447,923,417 5,515,425,037 6,839,127,046 8,480,517,537 16,212,754,115 18,158,284,609 20,337,278,762 22,777,752,213 25,511,082,479 312,881,211 350,426,956 392,478,191 9,498,179,641 10,637,961,198 11,914,516,542 13,344,258,527 249,426,986 279,358,224 2,264,580,000 2,536,329,600 2,840,689,152 3,522,454,548 4,367,843,640 5,416,126,114 6,066,061,248 6,793,988,598 7,609,267,230 8,522,379,298 Welding sales 905,832,000 1,014,531,840 1,136,275,661 1,408,981,820 1,747,137,457 2,166,450,447 2,426,424,501 2,717,595,441 3,043,706,894 3,408,951,721 Painting sales 792,605,000 887,717,600 994,243,712 1,232,862,203 1,528,749,132 1,895,648,924 2,123,126,795 2,377,902,010 2,663,250,251 2,982,840,281 MBAVB3 page 48 of 53 Le Thi Quy MBA Final Project Rescue sales Car care sales 450,558,042,130 Cost of sales - - - - - - - - - - - - - - - - - - 495,762,742,553 545,505,780,562 601,363,786,450 663,121,375,606 731,443,814,201 804,944,306,090 885,837,580,425 974,868,043,440 1,072,855,157,354 Car cost of sales 443,113,231,680 487,424,554,848 Toyota parts cost of sales 4,745,191,408 5,314,614,377 Rental parts cost of sales 104,289,921 116,804,712 Accessories cost of sales 2,482,100,121 2,779,952,136 Repair cost of sales 113,229,000 126,816,480 25,410,249,975 Net margin 28,090,218,946 Car net margin 18,463,051,320 20,309,356,452 Toyota parts net margin 2,033,653,460 2,277,691,876 Rental parts net margin Accessories net margin 1,063,757,195 1,191,408,058 Repair net margin 2,151,351,000 2,409,513,120 Welding net margin 905,832,000 1,014,531,840 Painting net margin 792,605,000 887,717,600 Rescue net margin Car care net margin Operating expenses Direct labor expenses Basic salary Wages Social insurance, Accident insurance, Unemployme nt insurance Production expenses Personnel expenses 5,952,368,102 7,380,936,447 9,152,361,194 11,348,927,880 130,821,277 162,218,383 201,150,795 3,113,546,392 3,860,797,526 4,787,388,932 5,936,362,276 142,034,458 176,122,728 218,392,183 270,806,307 31,054,858,090 35,380,383,138 40,431,270,110 22,340,292,097 24,574,321,307 2,551,014,901 12,710,799,226 249,426,986 279,358,224 6,648,725,749 14,236,095,133 15,944,426,549 17,857,757,735 312,881,211 350,426,956 392,478,191 7,446,572,839 8,340,161,580 9,340,980,970 303,303,064 339,699,432 380,463,364 426,118,968 51,317,670,415 56,821,622,431 62,920,631,846 69,679,563,863 27,031,753,438 29,734,928,782 32,708,421,660 35,979,263,826 39,577,190,209 43,534,909,230 3,163,258,477 3,922,440,512 4,863,826,235 5,447,485,383 6,101,183,629 6,833,325,664 7,653,324,744 - - - - - - - - 1,334,377,025 1,654,627,511 2,051,738,114 2,544,155,261 2,849,453,892 3,191,388,359 3,574,354,962 4,003,277,557 2,698,654,694 3,346,331,820 4,149,451,457 5,145,319,807 5,762,758,184 6,454,289,166 7,228,803,866 8,096,260,330 1,136,275,661 1,408,981,820 1,747,137,457 2,166,450,447 2,426,424,501 2,717,595,441 3,043,706,894 3,408,951,721 994,243,712 1,232,862,203 1,528,749,132 1,895,648,924 2,123,126,795 2,377,902,010 2,663,250,251 2,982,840,281 46,350,329,456 - - - - - - - - - - - - - - - - - - - - 27,562,584,492 26,524,845,667 28,362,667,362 30,164,313,381 31,788,183,977 32,287,846,321 33,478,087,951 34,434,723,828 35,072,858,697 35,289,558,885 1,508,673,000 1,659,540,300 1,825,494,330 2,008,043,763 2,208,848,139 2,429,732,953 2,672,706,249 2,939,976,874 3,233,974,561 3,557,372,018 1,365,189,000 1,501,707,900 1,651,878,690 1,817,066,559 1,998,773,215 2,198,650,537 2,418,515,591 2,660,367,150 2,926,403,865 3,219,044,252 - - - - - - - - 173,615,640 190,977,204 210,074,924 231,082,416 254,190,658 279,609,724 307,570,696 338,327,766 4,066,453,798 4,325,391,811 4,610,223,620 4,917,788,881 5,262,435,369 4,840,222,506 5,257,244,757 5,715,969,233 6,220,566,157 6,775,622,773 1,262,516,832 1,388,768,515 1,527,645,367 1,680,409,904 1,848,450,894 2,033,295,983 2,236,625,581 2,460,288,139 2,706,316,953 2,976,948,648 21,780,000 23,958,000 26,353,800 28,989,180 31,888,098 35,076,908 38,584,599 42,443,059 704,998,098 775,497,908 853,047,699 938,352,469 1,032,187,716 1,135,406,488 1,248,947,137 1,373,841,851 1,477,073,729 1,471,324,000 1,471,324,000 670,000,000 670,000,000 670,000,000 670,000,000 670,000,000 245,580,000 270,138,000 297,151,800 326,866,980 359,553,678 395,509,046 435,059,951 478,565,946 526,422,541 579,064,795 480,640,186 528,704,205 581,574,626 639,732,089 703,705,298 774,075,828 851,483,411 936,631,752 1,030,294,927 1,133,324,420 3,676,041,888 4,155,290,213 4,448,020,462 4,841,023,736 5,283,927,337 5,782,145,297 6,346,398,653 6,982,477,345 7,700,763,905 8,513,879,122 1,831,300,000 2,162,611,735 2,292,611,735 2,506,611,735 2,752,611,735 3,036,611,735 3,362,611,735 3,736,611,735 4,166,611,735 4,662,611,735 119,790,000 131,769,000 144,945,900 159,440,490 175,384,539 192,922,993 212,215,292 233,436,821 - - 143,484,000 157,832,400 Raw materials, fuel expenses 18,000,000 19,800,000 Tools expenses 582,643,056 640,907,362 Depreciat ion expenses 1,477,073,724 1,477,073,729 Rental service expenses Other expenses Sales expenses + Personnel expenses 536,167,010,333 589,783,711,366 648,762,082,502 713,638,290,752 785,002,119,827 863,502,331,810 949,852,564,991 1,044,837,821,490 Raw MBAVB3 99,000,000 108,900,000 page 49 of 53 Le Thi Quy MBA Final Project materials, fuel expenses , đ dùng Tools expenses Depreciat ion expenses Rental service expenses Other expenses Management + Allocation expenses Personnel expenses 500,185,896 550,204,486 605,224,935 665,747,429 732,322,172 365,376,000 365,376,000 365,376,000 365,376,000 365,376,000 284,379,996 312,817,996 344,099,796 378,509,776 416,360,754 457,996,829 595,799,996 655,379,996 720,917,996 793,009,796 872,310,776 1,834,326,708 2,003,526,983 2,189,647,281 2,394,379,610 1,166,029,800 1,282,632,780 1,410,896,058 Raw materials, fuel expenses 30,000,000 33,000,000 Tools expenses 175,447,104 192,991,814 Depreciat ion expenses 142,323,996 142,324,000 Rental service expenses Other expenses Financial expenses 974,720,811 1,072,192,892 1,179,412,181 363,000,000 363,000,000 363,000,000 363,000,000 363,000,000 503,796,512 554,176,163 609,593,779 670,553,157 959,541,854 1,055,496,039 1,161,045,643 1,277,150,207 1,404,865,228 2,619,585,172 2,865,987,290 3,138,486,019 3,438,234,622 3,767,958,084 4,130,653,892 1,551,985,664 1,707,184,230 1,877,902,653 2,065,692,918 2,272,262,210 2,499,488,431 2,749,437,274 36,300,000 39,930,000 43,923,000 48,315,300 53,146,830 58,461,513 64,307,664 70,738,430 212,290,995 233,520,095 256,872,105 282,559,316 310,815,248 341,896,773 376,086,450 413,695,095 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 141,000,000 141,000,000 185,524,232 204,076,655 224,484,321 246,932,753 271,626,028 298,788,631 328,667,494 361,534,243 168,658,393 167,199,996 183,919,996 202,311,996 222,543,196 244,797,516 269,277,268 296,204,995 325,825,495 358,408,045 394,248,850 14,381,096,360 15,289,281,669 16,003,077,391 16,413,387,960 16,369,758,275 16,063,252,273 15,358,065,754 14,149,595,990 12,312,031,080 39,600,000 43,560,000 47,916,000 52,707,600 57,978,360 63,776,196 70,153,816 77,169,198 84,886,118 1,604,973,279 2,735,750,728 5,263,985,757 8,695,793,733 14,120,461,495 17,903,358,660 22,457,052,419 27,924,942,347 34,474,891,096 401,243,000 683,938,000 1,315,996,000 2,173,948,000 3,530,115,000 4,475,840,000 5,614,263,000 6,981,236,000 8,618,723,000 1,203,730,279 2,051,812,728 3,947,989,757 6,521,845,733 10,590,346,495 13,427,518,660 16,842,789,419 20,943,706,347 25,856,168,096 16,477,089,098 36,000,000 (2,116,334,516) Corporat e income tax Profit after tax 886,109,828 153,325,812 Financial income Profit before tax 805,554,389 (2,116,334,516) MBAVB3 page 50 of 53 Le Thi Quy MBA Final Project APPENDIX Scenario Assumption: Exchange rate: USD/1 VND = 21.420 Interest rate: 1.42%/month (17%/year) Year The growth rate of service customers The growth rate of parts sales The growth rate of service sales The growth rate of personal expenses The growth rate of other expenses % 5% 10% 10% 15% 15% 15% 15% 15% 15% 0% 10% 10% 10% 15% 15% 10% 10% 10% 10% 0% 12% 12% 12% 18% 18% 12% 12% 12% 12% 0% 12% 12% 12% 18% 18% 12% 12% 12% 12% 10% 10% 15% 15% 15% 15% 15% 15% 15% 15% 10% 15% 15% 15% 15% 15% 10% 10% 10% 12% Appendix Table 5.1: P&L OF THE FIRST 10 YEARS OF THE PROJECT Norm Car quantity Cars with service Sales Y1 Y2 590 620 11,510 485,199,817,765 Y3 12,661 Y4 682 13,927 15,320 613,625,214,177 705,127,396,215 470,807,808,660 517,888,589,526 595,571,877,955 6,778,844,868 7,592,306,253 8,503,383,003 Repair sales 2,264,580,000 104,289,921 3,545,857,316 905,832,000 Painting sales 792,605,000 750 534,007,639,725 Car sales Toyota parts sales Rental parts sales Accessories sales Welding sales Y5 116,804,712 3,971,360,194 2,536,329,600 130,821,277 4,447,923,417 2,840,689,152 1,014,531,840 863 Y7 992 17,618 20,261 Y8 1,141 22,287 811,503,097,743 933,944,341,079 1,073,191,373,404 684,907,659,648 787,643,808,595 905,790,379,884 1,041,658,936,867 9,523,788,963 11,238,070,976 13,260,923,752 14,852,234,602 1,312 1,509 1,735 24,516 26,968 1,233,224,106,319 1,417,148,232,399 1,197,907,777,397 1,377,593,944,007 16,634,502,754 18,630,643,084 1,584,233,035,608 20,866,320,254 5,878,375,588 6,936,483,194 7,768,861,177 8,701,124,518 9,745,259,460 10,914,690,595 3,754,254,783 4,430,020,644 4,961,623,121 5,557,017,896 6,970,723,249 1,313,992,489 2,222,807,158 1,736,572,473 2,489,544,017 1,944,961,170 2,178,356,510 2,788,289,299 887,717,600 994,243,712 - - - - - - - - - - Car care sales - - - - - - - - - - page 51 of 53 1,550,511,137 1,984,649,248 6,223,860,044 321,020,310 Rescue sales MBAVB3 1,113,552,957 1,772,008,257 255,915,426 286,625,277 29,665 1,628,533,838,606 4,981,674,227 1,501,701,913 228,495,916 Y 10 172,893,399 1,272,628,740 204,014,211 Y9 146,519,830 3,181,571,850 1,136,275,661 Y6 Le Thi Quy 2,439,759,291 MBA Final Project Cost of sales Car cost of sales Toyota parts cost of sales Rental parts cost of sales Accessories cost of sales Repair cost of sales Net margin Car net margin Toyota parts net margin Rental parts net margin Accessories net margin Repair net margin Welding net margin Painting net margin Rescue net margin Car care net margin Operating expenses Direct labor expenses Basic salary 459,420,306,765 505,511,233,652 581,087,773,068 667,970,775,921 768,480,174,989 884,122,464,799 1,016,303,923,515 451,975,496,315 497,173,045,947 571,749,002,839 657,511,353,265 756,138,056,255 869,558,764,693 999,992,579,397 4,745,191,408 5,314,614,377 5,952,368,102 6,666,652,274 7,866,649,683 104,289,921 116,804,712 2,482,100,121 113,229,000 Raw materials, fuel expenses Tools expenses Depreciat ion expenses Rental service expenses Other expenses Sales expenses + Personnel expenses Raw materials, fuel expenses 126,816,480 25,779,511,000 28,496,406,073 130,821,277 146,519,830 172,893,399 3,113,546,392 3,487,171,959 4,114,862,912 142,034,458 159,078,593 32,537,441,109 37,156,620,294 4,855,538,236 228,495,916 5,438,202,824 221,501,033 49,821,876,280 11,644,151,927 13,041,450,158 255,915,426 286,625,277 6,090,787,163 248,081,157 56,887,449,889 277,850,896 64,963,934,600 - - 1,063,757,195 1,191,408,058 1,334,377,025 2,151,351,000 2,409,513,120 905,832,000 1,014,531,840 792,605,000 887,717,600 994,243,712 - - - - - - - - - - - - - - - - - - - - 1,508,673,000 1,659,540,300 1,365,189,000 - 4,455,670,381 - - - 348,536,164 84,753,860,347 1,494,502,268 1,763,512,676 3,022,493,257 3,566,542,043 1,272,628,740 2,330,658,353 4,208,519,611 1,772,008,257 1,501,701,913 1,113,552,957 2,080,944,958 1,313,992,489 1,550,511,137 4,713,541,964 1,984,649,248 1,736,572,473 47,916,311,090 55,103,757,754 63,369,321,417 4,990,350,827 6,259,896,077 5,589,192,926 - 2,923,577,838 3,274,407,178 5,279,167,000 5,912,667,040 6,622,187,085 2,222,807,158 2,489,544,017 1,944,961,170 2,178,356,510 35,739,269,554 39,024,893,769 43,299,775,406 1,908,471,345 2,194,742,047 2,523,953,354 2,902,546,357 3,337,928,310 3,838,617,557 4,414,410,191 1,501,707,900 1,726,964,085 1,986,008,698 2,283,910,003 2,626,496,503 3,020,470,978 3,473,541,625 - - 143,484,000 157,832,400 181,507,260 4,066,453,798 4,391,734,972 1,388,768,515 - - - 48,038,630,376 - 240,043,351 276,049,854 4,828,934,158 5,325,963,494 5,904,159,418 5,767,760,730 6,398,985,044 1,597,083,792 1,836,646,361 2,112,143,315 2,428,964,812 2,793,309,534 3,212,305,964 31,482,113 36,204,430 39,824,873 43,807,360 3,994,572,869 2,439,759,291 59,319,449,651 5,076,571,719 4,593,758,799 365,075,932 419,837,322 7,111,549,025 7,916,319,226 3,694,151,859 482,812,920 8,896,702,090 4,248,274,638 20,700,000 23,805,000 582,643,056 670,039,514 770,545,441 886,127,257 1,019,046,346 1,171,903,298 1,477,073,724 1,477,073,729 1,477,073,729 1,471,324,000 1,471,324,000 670,000,000 670,000,000 670,000,000 670,000,000 670,000,000 245,580,000 282,417,000 324,779,550 429,520,955 493,949,098 543,344,008 597,678,409 657,446,250 736,339,800 480,640,186 552,736,214 635,646,646 966,739,092 1,063,413,001 1,169,754,301 1,286,729,731 3,676,041,888 4,171,258,505 4,589,749,653 1,831,300,000 2,104,611,735 2,267,912,268 99,000,000 113,850,000 130,927,500 373,496,483 730,993,643 840,642,689 5,019,218,861 5,582,708,451 2,403,912,268 150,566,625 2,629,912,268 1,289,093,628 48,188,096 - 18,000,000 MBAVB3 27,375,750 53,289,920,767 2,788,289,299 - - 208,733,349 317,457,332 - 2,610,337,355 32,038,507,207 1,262,516,832 28,770,025,088 3,978,277,126 7,640,283,417 2,551,014,901 25,831,393,489 3,371,421,293 74,197,096,085 321,020,310 2,277,691,876 26,992,124,590 41,666,357,470 311,193,004 14,606,424,177 2,033,653,460 1,136,275,661 36,231,615,191 6,821,681,622 1,520,863,714,191 23,822,875,116 2,857,136,689 31,505,752,340 1,322,490,186,253 1,543,779,978,259 20,715,543,579 2,698,654,694 27,396,306,383 10,396,564,221 204,014,211 187,712,740 43,022,922,754 1,149,991,466,307 1,342,951,136,314 18,832,312,345 Wages Social insurance, Accident insurance, Unemployme nt insurance Production expenses Personnel expenses 2,779,952,136 9,282,646,626 1,168,260,171,719 1,418,002,991 1,559,803,290 6,226,445,479 6,821,998,800 7,491,307,453 8,245,346,972 2,887,912,268 3,185,912,268 3,527,912,268 3,921,912,268 199,124,362 219,036,798 240,940,478 173,151,619 page 52 of 53 265,034,526 Le Thi Quy 53,970,668 1,746,979,685 1,441,137,299 9,172,599,137 4,373,912,268 296,838,669 MBA Final Project , đ dùng Tools expenses Depreciat ion expenses Rental service expenses Other expenses Management + Allocation expenses Personnel expenses Raw materials, fuel expenses Tools expenses Depreciat ion expenses Rental service expenses Other expenses Financial expenses 500,185,896 575,213,780 661,495,847 760,720,224 874,828,258 1,006,052,497 1,106,657,747 1,217,323,522 1,339,055,874 1,499,742,579 363,000,000 363,000,000 363,000,000 363,000,000 365,376,000 365,376,000 365,376,000 365,376,000 365,376,000 284,379,996 327,036,995 376,092,544 432,506,426 497,382,390 595,799,996 685,169,995 787,945,494 906,137,318 571,989,749 629,188,724 692,107,596 1,042,057,916 1,198,366,603 1,318,203,263 1,450,023,589 3,012,978,041 3,442,252,148 3,884,544,001 5,641,664,604 2,966,807,562 3,411,828,696 3,923,603,000 1,282,632,780 1,475,027,697 1,696,281,852 1,950,724,130 2,243,332,750 2,579,832,663 30,000,000 34,500,000 39,675,000 45,626,250 52,470,188 60,340,716 66,374,788 175,447,104 201,764,170 232,028,796 266,833,115 306,858,082 352,886,794 388,175,473 142,324,000 142,324,000 142,324,000 142,324,000 141,000,000 141,000,000 141,000,000 176,324,684 202,773,387 233,189,395 268,167,804 308,392,975 339,232,273 167,199,996 192,279,995 221,121,994 254,290,293 15,906,629,195 13,579,034,083 15,129,919,058 16,860,037,900 41,400,000 47,610,000 54,751,500 292,433,837 18,715,470,290 336,298,913 369,928,804 20,685,889,055 22,856,319,251 62,964,225 72,408,859 79,649,745 36,000,000 Profit before tax (1,176,613,589) 2,706,412,584 3,815,026,021 5,172,864,587 7,346,617,425 10,869,391,370 13,667,324,228 - 676,603,000 953,757,000 1,293,216,000 1,836,654,000 2,717,348,000 (1,176,613,589) 2,029,809,584 2,861,269,021 3,879,648,587 5,509,963,425 8,152,043,370 Profit after tax 4,960,919,414 1,166,029,800 Financial income Corporat e income tax 4,387,890,033 2,312,950,874 153,325,812 73,012,267 80,313,494 426,993,020 page 53 of 53 89,951,113 469,692,322 526,055,401 141,000,000 141,000,000 373,155,500 410,471,050 459,727,576 406,921,684 25,209,266,308 87,614,720 447,613,852 27,752,924,964 96,376,192 501,327,514 30,531,912,101 107,941,335 17,012,918,944 21,003,551,510 25,542,352,031 3,416,831,000 4,253,230,000 5,250,888,000 6,385,588,000 10,250,493,228 12,759,688,944 15,752,663,510 19,156,764,031 NPV = VND 1,803,744,208 IRR = 18.30% Payback period = years 10 months MBAVB3 852,676,559 1,786,429,062 2,029,825,629 142,323,996 761,318,356 1,595,025,948 1,834,326,708 2,638,544,905 363,000,000 Le Thi Quy