June 2004

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Table of Contents
1.0 Executive Summary.............................................................................................................................1 1.1 Objectives ...................................................................................................................................1 1.2 Mission........................................................................................................................................2 1.3 Keys to Success ........................................................................................................................2 2.0 Company Summary.............................................................................................................................2 2.1 Company Ownership .................................................................................................................2 2.2 Start-up Summary ......................................................................................................................2 3.0 Services................................................................................................................................................5 4.0 Market Analysis Summary..................................................................................................................5 4.1 Market Segmentation ................................................................................................................5 4.2 Target Market Segment Strategy.............................................................................................6 4.3 Service Business Analysis........................................................................................................7 4.3.1 Competition and Buying Patterns .........................................................................................7 5.0 Strategy and Implementation Summary ............................................................................................7 5.1 Marketing Strategy.....................................................................................................................8 5.2 Sales Strategy............................................................................................................................8 5.2.1 Sales Forecast........................................................................................................................8 5.3 Milestones ................................................................................................................................10 5.4 Competitive Edge....................................................................................................................11 6.0 Web Plan Summary ..........................................................................................................................11 6.1 Website Marketing Strategy...................................................................................................12 6.2 Development Requirements ...................................................................................................12 7.0 Management Summary ....................................................................................................................12 7.1 Personnel Plan.........................................................................................................................13 8.0 Financial Plan ....................................................................................................................................13 8.1 Important Assumptions............................................................................................................13 8.2 Break-even Analysis................................................................................................................14 8.3 Projected Profit and Loss .......................................................................................................14 8.4 Projected Cash Flow ...............................................................................................................17 8.5 Projected Balance Sheet ........................................................................................................19 8.6 Business Ratios .......................................................................................................................20

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1.0 Executive Summary
Pizzeria del Causamali is a new player in the restaurant industry. The restaurant is in a comfortable, familiar, small town that has a strong need for additional dining options. Bolstered by the need for more choices in family-oriented dining experiences, combined with the option for home-delivery, the restaurant is positioned to take advantage of the market need and serve the families in the Deauville area. The Deauville's population is rapidly growing with new subdivisions and young families moving to the rural suburb of the Hewgton area. It is Pizzeria del Causamali's strategy to exploit the firstmover opportunity and establish itself as the preferred pizza provider to the area. We believe a loc ally-owned restaurant is the best option to serve the rapidly growing population with a fresh, unique menu as opposed to a national chain franchise. This business plan calls for an exciting, profitable start-up year ahead with future forec asted growth as we meet the demands of the community. In all, this plan describes a healthy company with good growth prospec ts, looking to manage its orderly growth in the near future.

1.1 Objectives
The objec tives for Pizzeria del Causamali are: To establish the market presence needed to support marketing and sales goals and to attrac t customers. To reach healthy monthly sales by the end of 2004, and average monthly sales increasing modestly by steadily through FY 2007. To ac hieve double digit profit margins. To develop top-rated relationships with 2-4 well-respec ted, all encompassing distributors.

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1.2 Mission
Pizzeria del Causamali creates a friendly and pleasant atmosphere for customers in a welldesigned, and productive environment in which people can work happily. We are sensitive to the look and taste of good pizza as well as to high-quality ingredients. We look to provide the best possible value to our customers who desire great tasting pizza and to provide customers with the satisfac tion of rec eiving a great value, both tangibly and intangibly. Additionally, we are the first home-deliverer of pizzas in our area. Our customers are our neighbors as we are residents of our market area. We will also create and nurture a healthy, creative, respec tful, and fun working environment, in which our employees are fairly compensated and encouraged to respec t the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their investment and risk.

1.3 Keys to Success

The keys to success in this business are: Delivering the customer value proposition. Marketing: promoting a new company, product, and delivery channels to a rural community. Product quality and consistency. Pricing effec tively with respec t to the projec t quality and customer value proposition. Family-oriented atmosphere with occasional nights of family entertainment. Management: products delivered on time, costs controlled, marketing budgets managed. There is a temptation to fixate on growth at the expense of profits. Reporting and controls in plac e for inventory and financials.

2.0 Company Summary

Pizzeria del Causamali is a privately-owned pizza restaurant offering a product menu that does not currently exist in the area and first to offer home delivery. Our customers are many of the young families and students in the area.

2.1 Company Ownership

Pizzeria del Causamali will be established as a limited liability company (LLC) with Marion E. and Marianne K. Bruxellesprot as the sole owners.

2.2 Start-up Summary

Our start-up costs cover the renovation of the oc cupied store space, professional fees, and expenses associated with opening our first loc ation. The start-up costs are to be financed by direc t owner investment, financial institutions, and private investors. The assumptions are shown in the following table and illustration.

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Table: Start-up Funding
Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $25,850 $54,650 $80,500

$31,550 $23,100 $0 $23,100 $54,650

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Investor 1 Owners Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital

$0 $25,000 $9,500 $0 $34,500

$15,000 $30,000 $1,000 $46,000 ($25,850) $20,150

Total Capital and Liabilities Total Funding

$54,650 $80,500

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Table: Start-up
Start-up Requirements Start-up Expenses Professional Fees (Legal, Accounting, Consulting) Placemats, Stationery, Business Cards Renovation Marketing Rent Expensed Equipment Insurance Website Development Misc Expense Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements

$1,800 $1,100 $8,300 $2,500 $2,000 $5,000 $350 $1,000 $3,800 $25,850

$23,100 $6,000 $5,250 $20,300 $54,650 $80,500

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3.0 Services
Pizzeria del Causamali offers high quality pizza to a growing community that currently has limited availability of restaurants and no availability to delivery. At start up we will be open for dinner 4 p.m. to 10 p.m. Sunday - Thursday and 3 p.m. to 11 p.m. Friday and Saturday. We will consider opening earlier and serving lunch if there is a demand, and if forec ast and financial analysis can justify the increased costs. Our menu will include 4 sizes of pizzas with various combinations of toppings. Predefined, highmargin pizzas will be highlighted on the menu. Additionally, breadsticks, beer, and soda will be included in the initial menu offerings.

4.0 Market Analysis Summary

Our primary target market is people who desire a comfortable, family-oriented environment for dine-in pizza. Our secondary target market also desires a delivery service for pizza, or a take-out approach. There is overlap of these segments. Deauville and its surrounding communities are a growing middle-class area with nearly 14,000 residents. A majority of these residents are families of four or more. The boom in the area is primarily in response to an exodus of families moving out of the over-populated areas and into a more rural setting. Ac cording to a Growth Plan Deauville conducted in 2001, population within Deauville is expec ted to increase. However, the number of persons per household is expec ted to dec line, meaning the need for additional housing in Deauville will continue to grow. From the same plan, population is listed as being evenly distributed by age groupings, with approximately 33% of the population being minors. Another 40% are less than 54 years of age, indicating a major concentration of the Deauville population being families. The report forec asts there being nearly 1,900 households in the Deauville by 2005. This is driving the need for more quality, family-oriented restaurants. Additionally, Deauville residents frequently visit the building in which Pizzeria del Causamali is loc ated. Tanning and video rental businesses are adjac ent to the restaurant, so we are providing a new convenience for families to selec t a movie and pick up a pizza. With the expec ted continued growth in the area, estimated at 7% annually, opportunities to serve Deauville and its surrounding communities will increase. The company will sell predominantly to individuals, but it will also ac cept some catering jobs to individual parties, sc hools, and company functions in the Deauville area.

4.1 Market Segmentation

Those residents of neighboring communities of Deauville, including Doughbuoy, d'Ohtown, and Doe Valley are included in the Market Segmentation. Only those residents of Deauville are included in the delivery, as delivery radius is limited to a 5-mile radius in the city of Deauville. An estimated 53% of Deauville residents live within the Sanitary District, or within this 5-mile radius.

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Table: Market Analysis
Market Analysis 2004 Potential Customers Dine-In or Take-Out Delivery Total Growth 7% 7% 7.00% 13,860 5,000 18,860 2005 14,830 5,350 20,180 2006 15,868 5,725 21,593 2007 16,979 6,126 23,105 2008 18,168 6,555 24,723 CAGR 7.00% 7.00% 7.00%

4.2 Target Market Segment Strategy

Including Deauville and its surrounding areas, no pizza establishments exist. In Deauville one to two restaurants serve pizza, but not as a primary menu item. These pizza outlets are in taverns which are not conducive to family-type atmosphere. No eating establishments in the Deauville area provide home-delivery service.

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4.3 Service Business Analysis
Other family-oriented restaurants in the area include: Subway(R), What's Cookin' diner, and Colonial House supper club. Subway serves sandwiches, wraps, and salads, none of which are direc t competition to the pizza establishment. The diner is open until 2 p.m. eac h day and foc uses on the breakfast crowd, with a limited sandwich availability for lunch. The supper club has a Chicken and Pizza buffet once a week for approximately $6; the pizza served as part of the buffet are frozen pizzas. Other restaurants in Deauville are taverns and are not conducive to family ac tivities. One of the bars in Deauville serves a homemade pizza. In c onversations with an independent pizza operator in Lakeshore Haven, an hour's drive away, he indicated pizza sales in his community are thriving despite competition from 4 other pizza establishments, including Pizza Hut(R). While exac t figures were not shared, he indicated a high level of penetration into the pizza market in his area with profitable margins. He also provided suggestions and tips to minimize costs, and components of his restaurant he would do differently, including payroll handling, vendors, and layout.

4.3.1 Competition and Buying Patterns

There is minimal competition for pizza in the Deauville area, besides the bar establishments previously mentioned. The closest loc ales for pizza to the Deauville area are Bolingbrooke, Avro, and de Havilland. None of these competing pizza loc ations deliver to the Deauville area. Additionally, Pizzeria del Causamali would be the only family-oriented, non-smoking restaurant in Deauville.

5.0 Strategy and Implementation Summary

Our strategy is based on delivering a strong c ustomer value proposition in a niche market. The world is full of small, family-oriented towns that do not have endless opportunities for dining out. We are looking to offer the Deauville and its surrounding areas a new choice in food options. Also: What begins as a need to satisfy a need in the community, can eventually turn into a mainstay in the small town c ommunity. We are building our marketing infrastructure so that we can eventually reach additional towns with the same offering. We foc us on satisfying the needs of small towns.

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5.1 Marketing Strategy
To drive customers to Pizzeria del Causamali, we will employ several techniques outlined below. Advertising in Bolingbrooke Post, de Havilland Buyer's Guide, Deauville Register, and Deauville Shopping News will be used to promote the Grand Opening of Pizzeria del Causamali. As part of the advertising, a coupon will be available to customers. Intermittent newspaper advertisements will continue throughout the year to promote upcoming events. Most initiatives will foc us on the loc al Deauville papers as the target of these papers is specifically the Deauville residents. Additional marketing efforts will come in the form of on-box coupons for future purchases. Additionally, family-oriented events will be hosted by Pizzeria del Causamali to attrac t customers such as trivia nights, birthday parties, and prize giveaways. Frequent buyer cards will be employed to entice repeat customers. Pizzeria del Causamali will also sponsor a loc al Little League baseball team, and a bowling team to publicize the restaurant within the community events. Future plans of working in c oordination with the adjac ent video store to offer "bundle savings" if both pizza and video rentals are purchased will be pursued within the second year of operation.

5.2 Sales Strategy

The Deauville area has expressed its need for additional restaurants, specifically a desire for pizza. Bec ause of this, there is pent-up demand for pizza in this area. We will expec t a high rate of sales growth within the first 3 months as this customer desire is met. For the next year, we continue to foc us on a growing presence in the community and advertising heavily throughout the community. As a major convention center and water park open in nearby Fairchild, we will foc us our attention on bec oming the rec ognized provider of pizza to that establishment.

5.2.1 Sales Forecast

Our sales forec ast assumes a modest change in annual costs to ac commodate new entry into the market. We are expec ting to increase sales modestly but steadily over the next year, which is a respec table growth rate. The growth forec ast is assumed given this is a new product for the area using new channels of availability. We are not projec ting significant change in the product line, or in the proportion between different lines. Based on industry averages and the absence of competition for pizza in the Deauville area, we are predicting an average of 25 pizzas sold eac h week night (Sunday - Wednesday). On the weekends (Thursday - Saturday), we are estimating 40 pizzas are sold eac h day. Of those pizzas ordered, we are expec ting approximately 1/3 to be dine-in c ustomers. Those customers dining in will most likely order drinks and/or beer (on average 4 for each family). Additionally, we are estimating that approximately one-third of the pizza orders will be ac companied by an order for breadsticks. Our estimated average prices for eac h item are as follows: Pizza: $12 Breadsticks: $2.50 Beer: $2.50/pint Drinks: $1.70 refillable Page 8

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Table: Sales Forecast
Sales Forecast FY 2005 Sales Pizza Breadsticks Beer Drinks Total Sales Direct Cost of Sales Pizza Breadsticks Beer Drinks Subtotal Direct Cost of Sales $133,900 $18,667 $37,333 $50,773 $240,673 FY 2005 $42,848 $3,733 $7,467 $2,539 $56,587 FY 2006 $143,808 $19,973 $39,947 $54,327 $258,055 FY 2006 $44,990 $3,920 $7,840 $2,666 $59,416 FY 2007 $153,875 $21,371 $42,743 $58,130 $276,120 FY 2007 $47,240 $4,116 $8,232 $2,799 $62,387

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5.3 Milestones
The following table lists important program milestones, with dates and managers in c harge, and budgets for eac h. The milestone sc hedule indicates our emphasis on planning for implementation.

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Table: Milestones
Milestones Milestone Business Plan Secure Start-up Funding Site Selection Architect Designs/Redesign Technology Design Personnel Plan Accounting Plan Renovation Equipment Installation Marketing Plans Grand Opening Totals Start Date 1/8/2004 2/1/2004 1/8/2004 2/15/2004 3/15/2004 3/1/2004 3/1/2004 4/1/2004 5/1/2004 3/4/2004 5/1/2004 End Date 1/31/2004 3/1/2004 2/1/2004 3/1/2004 4/1/2004 3/15/2004 3/31/2004 5/15/2004 5/15/2004 4/30/2004 5/15/2004 Budget $0 $0 $0 $500 $5,000 $0 $400 $7,800 $2,000 $2,500 $2,500 $20,700 Manager Marianne Bruxellesprot Marianne Bruxellesprot Marion Bruxellesprot Marion Bruxellesprot Marianne Bruxellesprot Marianne Bruxellesprot Marianne Bruxellesprot Marion Bruxellesprot Marion Bruxellesprot Marianne Bruxellesprot Marianne Bruxellesprot Department Management Management Operations Operations Technical Management Management Operations Operations Marketing Marketing

5.4 Competitive Edge

Our competitive edge is to be first-to-the-market with pizza in a friendly, non-smoking, familyoriented dine-in experience, and first-to-the-area with food delivery. Additionally, the loc ation of Pizzeria del Causamali is crucial as a convenience model to customers. Deauville residents frequent the video rental store adjac ent to the restaurant. This loc ation is direc tly in the center of ac tivity in this rural community--it is within walking distance of the middle and high sc hools, the loc al church, and within 2 miles of the existing large subdivisions and apartment complexes in the area.

6.0 Web Plan Summary

The Pizzeria del Causamali website will be the virtual business card and portfolio for the company, as well as its online "home." It will showcase the history, product information, and offers for Pizzeria del Causamali. Spec ial online-only offers will be made available on the website, along with c ustomer's opportunity to sign-up for email news and offers. The Pizzeria del Causamali website needs to be a simple yet classy and well designed website that, at the same time, is in keeping with the latest trends in user interfac e design. Customers will be coming to the site for product information, history, and offers. Future elements of the site can contain online ordering, if customers express an interest in this functionality.

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6.1 Website Marketing Strategy
Our Internet marketing ac tivities will be foc used on product information and offers. Future opportunities exist in offering online ordering.

6.2 Development Requirements

The Pizzeria del Causamali website will be initially developed with few tec hnical resources. A simple hosting provider, Yahoo! Web services, will host the site and provide the technical bac k end. The owner's expertise in professional Web development will lead this effort. The user interfac e designer will work with a graphic artist to come up with the website logo, and the website graphics. The maintenance of the site will be done by the owners. If the website rolls out future development such as newsletters and online ordering, the internal staff at Pizzeria del Causamali will design, implement, and exec ute the technology.

7.0 Management Summary

We are a small company owned and operated by Marion and Marianne Bruxellesprot, husband and wife, as a partnership. Management style reflec ts the participation of the owners. The company respec ts its community of co-workers and treats all workers well. Marianne Bruxellesprot is a 1998 graduate of University Sc hool of Business with High Honors and Distinction in Business. Her experience with general business, tec hnology, and operations is a great asset to this venture. Additionally, Otho Colderobby is an advisor to the owners. Otho is a 1991 graduate of State College with a degree in Economics. Furthermore, Otho graduated in 1995 with a Masters in Business Administration from University Sc hool of Business with emphases in Marketing and Finance. Otho held a senior finance management position with Frito Lay for 5 years. Otho is currently a managing consultant with a marketing strategy firm. He also spent 5 years in a strategic services consulting prac tice.

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7.1 Personnel Plan
The personnel table assumes a level need of employees, and 5% per annum pay raises. Staffing for a 7-day a week restaurant necessitates two shifts. In addition to the hours open for serving we anticipate an additional hour before opening for prep and as much as an hour after closing for cleanup. This is approximately 8 hours of staffing necessary Sunday - Thursday and 10 hours on both Friday and Saturday. The two kitchen lead positions are part-time, earning $9/hr. The kitchen leads will serve as the shift leaders of the kitchen/wait staff. Kitchen staff will serve as the wait staff. There will be one dedicated dishwashing position per shift. Wages for kitchen/wait staff, dishwashers, and delivery drivers, who are all part-time, are $6/hr, with opportunities for all to share the combined earn tips. It is imperative the people serving as the kitchen lead are over 21 and can legally serve alcohol. Hourly part-time positions as kitchen/wait, dishwashing, and delivery staff average out to be approximately 30 hours per week each. Delivery staff will work 5 hour shifts each night, with an extra delivery staff member added on Thursdays, Fridays, and Saturdays. During the week if this person is not delivering, they will work in the kitchen as needed, direc ted by the kitchen lead.

Table: Personnel
Personnel Plan Kitchen Leads Kitchen/Wait Dishwasher Owner Delivery Total People Total Payroll FY 2005 $28,080 $37,440 $15,600 $9,000 $15,600 12 $105,720 FY 2006 $29,484 $39,312 $16,380 $9,450 $16,380 12 $111,006 FY 2007 $30,958 $41,278 $17,199 $9,923 $17,199 12 $116,556

8.0 Financial Plan

The financial picture is quite encouraging. We will be slow to take on debt and heavily investing our own assets, but with our increase in sales we do expec t to apply for a credit line with the bank, to a limit of $50,000. The credit line is supported by assets.

8.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are: We assume a fairly high-growth economy for pizza in the Deauville area, given the lac k of competition and interest in having a pizza restaurant available in the area and pent-up demand. We assume, of course, that there are no unforeseen changes in technology to make our products immediately obsolete. We assume ac cess to equity capital and financing sufficient to maintain our financial plan as shown in the tables.

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Table: General Assumptions
General Assumptions FY 2005 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 6.00% 5.00% 30.00% 0 2 6.00% 5.00% 30.00% 0 FY 2006 3 6.00% 5.00% 30.00% 0 FY 2007

8.2 Break-even Analysis

Our break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing. The essential insight here is that our sales level seems to be running comfortably above breakeven.

Table: Break-even Analysis

Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost $16,283

24% $12,454

8.3 Projected Profit and Loss

We expec t to be profitable in the first year, with profits increasing over the next two years, as we establish a loyal customer base. Page 14

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Table: Profit and Loss
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Goods Total Cost of Sales Gross Margin Gross Margin % FY 2005 $240,673 $56,587 $0 $56,587 $184,087 76.49% FY 2006 $258,055 $59,416 $0 $59,416 $198,639 76.98% FY 2007 $276,120 $62,387 $0 $62,387 $213,733 77.41%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Rent Utilities Insurance Payroll Taxes Website Hosting and Maintenance Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$105,720 $7,250 $2,040 $14,400 $7,200 $4,200 $8,042 $600 $0 $149,452 $34,635 $36,675 $1,088 $10,064 $23,483 9.76%

$111,006 $7,250 $1,836 $14,400 $7,200 $4,500 $8,444 $50 $0 $154,686 $43,954 $45,790 $700 $12,976 $30,278 11.73%

$116,556 $7,500 $1,652 $14,400 $7,200 $4,800 $8,866 $50 $0 $161,024 $52,709 $54,361 $225 $15,745 $36,739 13.31%

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8.4 Projected Cash Flow

The following table and chart is the projec ted cash flow for three years.

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Table: Cash Flow
Pro Forma Cash Flow FY 2005 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance FY 2006 FY 2007

$240,673 $240,673

$258,055 $258,055

$276,120 $276,120

$0 $0 $0 $0 $0 $0 $0 $240,673 FY 2005

$0 $0 $0 $0 $0 $0 $0 $258,055 FY 2006

$0 $0 $0 $0 $0 $0 $0 $276,120 FY 2007

$105,720 $105,383 $211,103

$111,006 $114,835 $225,841

$116,556 $120,750 $237,306

$0 $0 $0 $6,000 $0 $0 $0 $217,103 $23,570 $46,670

$0 $0 $0 $10,000 $0 $0 $0 $235,841 $22,214 $68,884

$0 $0 $0 $9,000 $0 $0 $0 $246,306 $29,813 $98,698

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8.5 Projected Balance Sheet
As shown in the balance sheet in the following table, we expec t a healthy growth in net worth. The monthly projec tions are in the appendices.

Table: Balance Sheet

Pro Forma Balance Sheet FY 2005 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth FY 2006 FY 2007

$46,670 $1,720 $5,250 $53,640

$68,884 $1,806 $5,250 $75,940

$98,698 $1,896 $5,250 $105,844

$20,300 $2,040 $18,260 $71,900 FY 2005

$20,300 $3,876 $16,424 $92,364 FY 2006

$20,300 $5,528 $14,772 $120,616 FY 2007

$9,267 $0 $0 $9,267 $19,000 $28,267 $46,000 ($25,850) $23,483 $43,633 $71,900 $43,633

$9,454 $0 $0 $9,454 $9,000 $18,454 $46,000 ($2,367) $30,278 $73,911 $92,364 $73,911

$9,967 $0 $0 $9,967 $0 $9,967 $46,000 $27,911 $36,739 $110,649 $120,616 $110,649

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8.6 Business Ratios
Standard business ratios are included in the following table. Industry profile ratios are shown for comparison, and are based on Standard Industrial Classification (SIC) code 5812.0600, Pizza Restaurants. The ratios show a plan for balanced, healthy growth. Our return on sales and return on assets remain strong in percentage terms.

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Table: Ratios
Ratio Analysis Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0.30 13% 5.60 5.52 0.00 0.36 10% 7.84 3.49 0.00 0.44 8% 10.43 2.50 0.00 n.a n.a n.a n.a n.a FY 2005 0.00% FY 2006 7.22% FY 2007 7.00% Industry Profile 5.24%

2.39% 7.30% 74.60% 25.40% 100.00% 12.89% 26.43% 39.31% 60.69%

1.96% 5.68% 82.22% 17.78% 100.00% 10.24% 9.74% 19.98% 80.02%

1.57% 4.35% 87.75% 12.25% 100.00% 8.26% 0.00% 8.26% 91.74%

3.54% 34.82% 43.85% 56.15% 100.00% 20.80% 28.42% 49.22% 50.78%

100.00% 76.49% 39.83% 0.00% 14.39%

100.00% 76.98% 39.27% 0.00% 17.03%

100.00% 77.41% 38.77% 0.00% 19.09%

100.00% 61.18% 38.56% 2.28% 1.44%

5.79 5.60 39.31% 76.88% 46.66% FY 2005 9.76% 53.82%

8.03 7.84 19.98% 58.52% 46.83% FY 2006 11.73% 40.97%

10.62 10.43 8.26% 47.43% 43.51% FY 2007 13.31% 33.20%

0.99 0.67 52.80% 2.77% 5.88%

n.a n.a

31.29 11.35 30 3.35

33.70 12.17 30 2.79

33.70 12.17 29 2.29

n.a n.a n.a n.a

0.65 0.33

0.25 0.51

0.09 1.00

n.a n.a

$44,373 31.85

$66,487 62.79

$95,877 234.26

n.a n.a

Page 21

Appendix
Table: Sales Forecast
Sales Forecast Jun Sales Pizza Breadsticks Beer Drinks Total Sales Direct Cost of Sales Pizza Breadsticks Beer Drinks Subtotal Direct Cost of Sales 32% 20% 20% 5% 0% 0% 0% 0% $7,200 $1,000 $2,000 $2,720 $12,920 Jun $2,304 $200 $400 $136 $3,040 Jul $12,600 $1,750 $3,500 $4,760 $22,610 Jul $4,032 $350 $700 $238 $5,320 Aug $11,160 $1,550 $3,100 $4,216 $20,026 Aug $3,571 $310 $620 $211 $4,712 Sep $12,000 $1,667 $3,333 $4,533 $21,533 Sep $3,840 $333 $667 $227 $5,067 Oct $11,460 $1,592 $3,183 $4,329 $20,564 Oct $3,667 $318 $637 $216 $4,839 Nov $11,340 $1,575 $3,150 $4,284 $20,349 Nov $3,629 $315 $630 $214 $4,788 Dec $11,820 $1,642 $3,283 $4,465 $21,210 Dec $3,782 $328 $657 $223 $4,991 Jan $11,160 $1,550 $3,100 $4,216 $20,026 Jan $3,571 $310 $620 $211 $4,712 Feb $11,320 $1,642 $3,283 $4,465 $20,710 Feb $3,622 $328 $657 $223 $4,831 Mar $11,640 $1,617 $3,233 $4,397 $20,887 Mar $3,725 $323 $647 $220 $4,915 Apr $10,560 $1,467 $2,933 $3,989 $18,949 Apr $3,379 $293 $587 $199 $4,459 May $11,640 $1,617 $3,233 $4,397 $20,887 May $3,725 $323 $647 $220 $4,915

Page 1

Appendix
Table: Personnel
Personnel Plan Kitchen Leads Kitchen/Wait Dishwasher Owner Delivery Total People Total Payroll 0% 0% 0% 0% 0% Jun $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Jul $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Aug $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Sep $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Oct $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Nov $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Dec $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Jan $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Feb $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Mar $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 Apr $2,340 $3,120 $1,300 $750 $1,300 12 $8,810 May $2,340 $3,120 $1,300 $750 $1,300 12 $8,810

Page 2

Appendix
Table: General Assumptions
General Assumptions Jun Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 6.00% 5.00% 30.00% 0 2 6.00% 5.00% 30.00% 0 Jul 3 6.00% 5.00% 30.00% 0 Aug 4 6.00% 5.00% 30.00% 0 Sep 5 6.00% 5.00% 30.00% 0 Oct 6 6.00% 5.00% 30.00% 0 Nov 7 6.00% 5.00% 30.00% 0 Dec 8 6.00% 5.00% 30.00% 0 Jan 9 6.00% 5.00% 30.00% 0 Feb 10 6.00% 5.00% 30.00% 0 Mar 11 6.00% 5.00% 30.00% 0 Apr 12 6.00% 5.00% 30.00% 0 May

Page 3

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Goods Total Cost of Sales Gross Margin Gross Margin % Jun $12,920 $3,040 $0 $3,040 $9,880 76.47% Jul $22,610 $5,320 $0 $5,320 $17,290 76.47% Aug $20,026 $4,712 $0 $4,712 $15,314 76.47% Sep $21,533 $5,067 $0 $5,067 $16,467 76.47% Oct $20,564 $4,839 $0 $4,839 $15,726 76.47% Nov $20,349 $4,788 $0 $4,788 $15,561 76.47% Dec $21,210 $4,991 $0 $4,991 $16,220 76.47% Jan $20,026 $4,712 $0 $4,712 $15,314 76.47% Feb $20,710 $4,831 $0 $4,831 $15,880 76.68% Mar $20,887 $4,915 $0 $4,915 $15,973 76.47% Apr $18,949 $4,459 $0 $4,459 $14,491 76.47% May $20,887 $4,915 $0 $4,915 $15,973 76.47%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Rent Utilities Insurance Payroll Taxes Website Hosting and Maintenance Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$8,810 $500 $170 $1,200 $600 $350 $670 $50 $0 $12,350 ($2,470) ($2,300) $102 ($772) ($1,801) -13.94%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $4,690 $4,860 $100 $1,377 $3,213 14.21%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $2,714 $2,884 $98 $785 $1,831 9.14%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $3,866 $4,036 $96 $1,131 $2,639 12.26%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $3,125 $3,295 $94 $910 $2,122 10.32%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $2,961 $3,131 $92 $861 $2,008 9.87%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $3,619 $3,789 $90 $1,059 $2,471 11.65%

$8,810 $750 $170 $1,200 $600 $350 $670 $50 $0 $12,600 $2,714 $2,884 $88 $788 $1,838 9.18%

$8,810 $250 $170 $1,200 $600 $350 $670 $50 $0 $12,100 $3,779 $3,949 $85 $1,108 $2,586 12.49%

$8,810 $250 $170 $1,200 $600 $350 $670 $50 $0 $12,100 $3,872 $4,042 $83 $1,137 $2,652 12.70%

$8,810 $500 $170 $1,200 $600 $350 $670 $50 $0 $12,350 $2,140 $2,310 $81 $618 $1,441 7.61%

$8,810 $500 $170 $1,200 $600 $350 $670 $50 $0 $12,350 $3,622 $3,792 $79 $1,063 $2,480 11.87%

15% 15%

Page 4

Appendix
Table: Cash Flow
Pro Forma Cash Flow Jun Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $500 $0 $0 $0 $18,900 ($5,980) $17,120 $0 $0 $0 $500 $0 $0 $0 $12,231 $10,379 $27,499 $0 $0 $0 $500 $0 $0 $0 $18,619 $1,407 $28,906 $0 $0 $0 $500 $0 $0 $0 $18,347 $3,187 $32,093 $0 $0 $0 $500 $0 $0 $0 $19,326 $1,238 $33,331 $0 $0 $0 $500 $0 $0 $0 $18,691 $1,658 $34,989 $0 $0 $0 $500 $0 $0 $0 $18,669 $2,541 $37,530 $0 $0 $0 $500 $0 $0 $0 $19,116 $910 $38,440 $0 $0 $0 $500 $0 $0 $0 $18,423 $2,288 $40,728 $0 $0 $0 $500 $0 $0 $0 $18,499 $2,388 $43,116 $0 $0 $0 $500 $0 $0 $0 $18,564 $386 $43,501 $0 $0 $0 $500 $0 $0 $0 $17,719 $3,168 $46,670 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

$12,920 $12,920

$22,610 $22,610

$20,026 $20,026

$21,533 $21,533

$20,564 $20,564

$20,349 $20,349

$21,210 $21,210

$20,026 $20,026

$20,710 $20,710

$20,887 $20,887

$18,949 $18,949

$20,887 $20,887

0.00%

$0 $0 $0 $0 $0 $0 $0 $12,920 Jun

$0 $0 $0 $0 $0 $0 $0 $22,610 Jul

$0 $0 $0 $0 $0 $0 $0 $20,026 Aug

$0 $0 $0 $0 $0 $0 $0 $21,533 Sep

$0 $0 $0 $0 $0 $0 $0 $20,564 Oct

$0 $0 $0 $0 $0 $0 $0 $20,349 Nov

$0 $0 $0 $0 $0 $0 $0 $21,210 Dec

$0 $0 $0 $0 $0 $0 $0 $20,026 Jan

$0 $0 $0 $0 $0 $0 $0 $20,710 Feb

$0 $0 $0 $0 $0 $0 $0 $20,887 Mar

$0 $0 $0 $0 $0 $0 $0 $18,949 Apr

$0 $0 $0 $0 $0 $0 $0 $20,887 May

$8,810 $9,590 $18,400

$8,810 $2,921 $11,731

$8,810 $9,309 $18,119

$8,810 $9,037 $17,847

$8,810 $10,016 $18,826

$8,810 $9,381 $18,191

$8,810 $9,359 $18,169

$8,810 $9,806 $18,616

$8,810 $9,113 $17,923

$8,810 $9,189 $17,999

$8,810 $9,254 $18,064

$8,810 $8,409 $17,219

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet Jun Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $9,500 $0 $0 $9,500 $25,000 $34,500 $46,000 ($25,850) $0 $20,150 $54,650 $20,150 $2,611 $0 $0 $2,611 $24,500 $27,111 $46,000 ($25,850) ($1,801) $18,349 $45,460 $18,349 $9,008 $0 $0 $9,008 $24,000 $33,008 $46,000 ($25,850) $1,412 $21,562 $54,571 $21,562 $8,702 $0 $0 $8,702 $23,500 $32,202 $46,000 ($25,850) $3,243 $23,393 $55,595 $23,393 $9,703 $0 $0 $9,703 $23,000 $32,703 $46,000 ($25,850) $5,883 $26,033 $58,736 $26,033 $9,070 $0 $0 $9,070 $22,500 $31,570 $46,000 ($25,850) $8,005 $28,155 $59,725 $28,155 $9,031 $0 $0 $9,031 $22,000 $31,031 $46,000 ($25,850) $10,014 $30,164 $61,195 $30,164 $9,503 $0 $0 $9,503 $21,500 $31,003 $46,000 ($25,850) $12,484 $32,634 $63,637 $32,634 $8,806 $0 $0 $8,806 $21,000 $29,806 $46,000 ($25,850) $14,323 $34,473 $64,279 $34,473 $8,880 $0 $0 $8,880 $20,500 $29,380 $46,000 ($25,850) $16,909 $37,059 $66,439 $37,059 $8,975 $0 $0 $8,975 $20,000 $28,975 $46,000 ($25,850) $19,561 $39,711 $68,686 $39,711 $8,089 $0 $0 $8,089 $19,500 $27,589 $46,000 ($25,850) $21,003 $41,153 $68,742 $41,153 $9,267 $0 $0 $9,267 $19,000 $28,267 $46,000 ($25,850) $23,483 $43,633 $71,900 $43,633 $20,300 $0 $20,300 $54,650 $20,300 $170 $20,130 $45,460 Jun $20,300 $340 $19,960 $54,571 Jul $20,300 $510 $19,790 $55,595 Aug $20,300 $680 $19,620 $58,736 Sep $20,300 $850 $19,450 $59,725 Oct $20,300 $1,020 $19,280 $61,195 Nov $20,300 $1,190 $19,110 $63,637 Dec $20,300 $1,360 $18,940 $64,279 Jan $20,300 $1,530 $18,770 $66,439 Feb $20,300 $1,700 $18,600 $68,686 Mar $20,300 $1,870 $18,430 $68,742 Apr $20,300 $2,040 $18,260 $71,900 May Starting Balances Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

$23,100 $6,000 $5,250 $34,350

$17,120 $2,960 $5,250 $25,330

$27,499 $1,862 $5,250 $34,611

$28,906 $1,649 $5,250 $35,805

$32,093 $1,773 $5,250 $39,116

$33,331 $1,694 $5,250 $40,275

$34,989 $1,676 $5,250 $41,915

$37,530 $1,747 $5,250 $44,527

$38,440 $1,649 $5,250 $45,339

$40,728 $1,691 $5,250 $47,669

$43,116 $1,720 $5,250 $50,086

$43,501 $1,561 $5,250 $50,312

$46,670 $1,720 $5,250 $53,640

Page 6