### **Expanded Financial Projections (ETB)**

Below is a detailed breakdown of Boaz Trading PLC’s 3-year financial outlook, including revenue streams, expense drivers, and ROI assumptions tailored to Ethiopia’s market dynamics.

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#### **Year 1 (2024): Market Entry & Brand Building**

| **Metric** | **Amount (ETB)** | **Details** |

|-----------------------|------------------|-----------------------------------------------------------------------------|

| **Revenue** | 3,600,000 | - **Core Services**: 2,500,000 (70%: dry cleaning; 20%: alterations; 10%: traditional attire).
- **Premium Add-Ons**: 800,000 (fragrance infusion, express service).
- **Memberships**: 300,000 (300 members @ 1,000 ETB/month). |

| **Expenses** | 2,800,000 | - **Equipment Depreciation**: 1,000,000 (11.3M ETB over 10 years).
- **Salaries**: 800,000 (10 staff @ avg. 6,500 ETB/month).
- **Marketing**: 600,000 (yacht sponsorship, flyers, social media).
- **Utilities**: 200,000 (solar + grid power).
- **Maintenance**: 200,000. |

| **Net Cash Flow** | 800,000 | - Focus on breakeven by Month 6; reinvest profits into marketing. |

| **ROI** | 9% (2,034,000) | - Based on total project cost (22.6M ETB), not annual cash flow. Cumulative ROI over 3 years: ~27%. |

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#### **Year 2 (2025): Scaling & Efficiency**

| **Metric** | **Amount (ETB)** | **Details** |

|-----------------------|------------------|-----------------------------------------------------------------------------|

| **Revenue** | 7,200,000 | - **Core Services**: 4,500,000 (+80% from Year 1 due to kiosk expansion).
- **Premium Add-Ons**: 1,500,000 (express service demand).
- **Corporate Contracts**: 1,200,000 (hotels, Ethiopian Airlines). |

| **Expenses** | 4,500,000 | - **Salaries**: 1,500,000 (15 staff + delivery drivers).
- **Marketing**: 1,000,000 (lower reliance on sponsorships).
- **Utilities**: 300,000 (solar covers 40% of needs).
- **Maintenance**: 700,000 (scaling costs). |

| **Net Cash Flow** | 2,700,000 | - Improved margins from operational efficiency and recurring contracts. |

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#### **Year 3 (2026): Maturity & Expansion**

| **Metric** | **Amount (ETB)** | **Details** |

|-----------------------|------------------|-----------------------------------------------------------------------------|

| **Revenue** | 10,800,000 | - **Core Services**: 6,500,000 (50% market share in Addis).
- **Franchise Fees**: 2,000,000 (Hawassa/Bahir Dar pilots).
- **B2B Contracts**: 2,300,000 (NGOs, embassies). |

| **Expenses** | 6,200,000 | - **Salaries**: 2,200,000 (25 staff).
- **Franchise Setup**: 1,500,000.
- **Marketing**: 800,000 (brand dominance reduces spend).
- **Utilities**: 500,000 (solar covers 50% of needs). |

| **Net Cash Flow** | 4,600,000 | - Reinvest 50% into solar/e-bikes to cut long-term costs. |

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### **Key Assumptions**

1. **Market Penetration**:

- Year 1: 5% of Addis Ababa’s middle class (72,000 people).

- Year 3: 15% (216,000 people).

2. **Pricing Stability**: No inflation adjustment (Ethiopia’s 2023 inflation: 28% – mitigated via cost controls).

3. **Currency Risk**: ETB/USD volatility hedged via corporate contracts priced in USD.

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### **Revenue Stream Breakdown**

| **Source** | **Year 1** | **Year 2** | **Year 3** |

|------------------------|------------|------------|------------|

| Dry Cleaning | 2,500,000 | 4,500,000 | 6,500,000 |

| Premium Add-Ons | 800,000 | 1,500,000 | 1,500,000 |

| Memberships | 300,000 | 600,000 | 1,000,000 |

| Corporate Contracts | – | 1,200,000 | 2,300,000 |

| Franchise Fees | – | – | 2,000,000 |

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### **Expense Drivers**

| **Category** | **Year 1** | **Year 2** | **Year 3** |

|------------------------|------------|------------|------------|

| Salaries | 800,000 | 1,500,000 | 2,200,000 |

| Marketing | 600,000 | 1,000,000 | 800,000 |

| Equipment Depreciation | 1,000,000 | 1,000,000 | 1,000,000 |

| Utilities | 200,000 | 300,000 | 500,000 |

| Maintenance | 200,000 | 700,000 | 1,500,000 |

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### **ROI Clarification**

- **Total Investment**: 22,600,000 ETB.

- **Cumulative Net Cash Flow (3 Years)**: 8,100,000 ETB.

- **ROI Calculation**: (8.1M / 22.6M) × 100 = **35.8% over 3 years** (~12% annualized).

- **Discrepancy Note**: The stated 9% annual ROI likely refers to net profit (post-tax) vs. gross cash flow.

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### **Risk Mitigation & Sensitivity Analysis**

| **Risk** | **Impact** | **Mitigation** |

|-------------------------|-----------------------------|---------------------------------------------|

| **Currency Depreciation** | Increased equipment costs | Hedge via USD-denominated corporate contracts. |

| **Power Outages** | Operational delays | Solar expansion (60% coverage by Year 3). |

| **New Competitors** | Price erosion | Lobby for stricter environmental regulations. |

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### **Strategic Takeaways**

- **Conservative Growth**: Revenue targets align with Ethiopia’s urban middle-class expansion (5% CAGR).

- **Sustainability Focus**: Solar/e-bike investments reduce long-term OPEX.

- **ROI Realism**: 9% annual return accounts for Ethiopia’s high-risk environment; adjustments possible with franchise scaling.

By Year 3, Boaz Trading PLC aims to leverage its Addis Ababa success into a national franchise model, solidifying its position as Ethiopia’s garment care leader.