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Appendix I

Financial Forecasts relating to Unity Registry

SUMMARY ILLUSTRATIVE FINANCIAL INFORMATION

ANNUAL REGISTRATIONS:

YEAR 1    1,923,612
YEAR 2    1,784,484

ANNUAL PRICE PER REGISTRATION: US$5

ANNUAL REVENUE:

YEAR 1    US$ 5,597,226
YEAR 2    US$12,897,866

NET PROFIT BEFORE TAX: YEAR 1    US$(3,295,007)
YEAR 2    US$ 4,019,949

TOTAL START-UP COSTS:    US$ 4,549,510

CAPITAL EXPENDITURE INCLUDED WITHIN START-UP COSTS:    US$ 2,511,010

MAXIMUM INVESTMENT REQUIRED:    US$ 4,787,433

PRO-FORMA FINANCIAL PROJECTIONS

FINANCIAL FORECASTS IN THIS APPENDIX

Summary P&L forecast
Detailed P&L forecast
Detailed cashflow forecast
Registration forecasts
Revenue Forecasts
Detailed Cost of sales forecast
Salaries forecasts
Overheads forecast
Salary Assumptions
Overheads Assumptions
Detailed capital expenditure forecast

ANNUAL PROFIT AND LOSS

The annual P&L summary is derived from the detailed monthly P&L forecast.

The detailed P& L summary is derived from registrations, revenues and estimated costs.

An estimated amount of 10% will be set aside from retained earnings to fund the Community Activities Fund and Development Projects as described in document.

CASHFLOW

Revenue is assumed to be received 30 days after the month invoiced.

Salaries are assumed to be paid in the month they occur.

All other costs assumed to be paid 30 days after the month in which they occur.

No account of sales tax has been taken at this stage.

Maximum cash requirement in each scenario is indicated.

START- UP COSTS

Start-up costs covers the following expenditure:

Bid application fees - US$ 35,000

Insurance Bond - to cover costs incurred by third party delays to transition.

Salaries - cost of individuals involved with initial phase of project.

Travel, marketing and PR - based on events scheduled to propmote the Unity Registry application bid and, if successful, continuing promotional events throughout the pre-launch period.

Professional fees - covers legal fees, specialist consultancy fees and any other professional fees deemed necessary for the successful launch of .org.

Other staff costs - recruitment and training expenditure is based on the estimated number of new staff required to run the .org registry.

Capital Expenditure - see below.

REGISTRATION & REVENUE FORECASTS

For detailed information on monthly registration levels, please notes. Annual price per registration is based on that relating to volumes and associated price bands as set by ICANN. The assumed rate for forecasting purposes is US$ 5 per registration per annum.

It is assumed that on average domains are renewed every 18 months.

Revenue recognition is operated using the assumption of 18 month renewal periods.

COST OF SALES

ICANN operates both a fixed and variable fee charge.

Fixed fees are assumed to be at the rate of US$115,000 per annum as per ICANN note

Calculation of variable fees per registration equates to US$0.11 per registration.

OVERHEADS

Staffing levels are calculated on the estimated required number of staff in each department for an operation of the expected registration levels.

Staffing costs are based on known UK and Australian market rates adjusted to US$ using the rate of $1.45 to 1.

Marketing costs are based on projected global events and seminars as well as use of traditional marketing tools.

Office. The majority of costs have been estimated based existing UK and Australian budgeted costs per member of staff.

Finance. As registration payments will be received from Registrars, basic finance costs will be low. An estimate for a low level of loan financing cost has been assumed.

Legal, audit & accountancy. Estimated using existing UK and Australian budgets.

Technical - Operational infrastructure has been calculated from supplier contract proposals. Hardware and software maintenance is calculated using standard industry rates as percentage of cost.

Help Desk Costs - based on detailed report included.

Further detailed overhead calculations are available on request.

CAPITAL EXPENDITURE

Based on the specifications given in the Technical Plan.

Download Excell Spreadsheet

Appendices