RAM Resort Hotels Corporation

Projected Balance Sheet

2007 2008 2009 2010 2011 2012
ASSETS

CURRENT ASSESTS
Cash and cash equivalent
Accounts Receivable 0 270,000 676,000 1,183,000 2,103,000 2,196,000
Inventories 250,000 261,000 272,000 284,000 296,000
Prepaid expenses and other current assets

Total current assets 0 520,000 937,000 1,455,000 2,387,000 2,492,000

NON-CURRENT ASSETS
Plant and Property
Plant and Property
Building 20,300,000 41,493,000 63,619,000 63,619,000 218,619,000 218,619,000
Land and Improvement 47,819,000 47,819,000 47,819,000 47,819,000 47,819,000 47,819,000
Airstrip 0 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Landing Dock & Beach Roadway 2,500,000
Room Furnishings 4,147,000 8,473,000 12,986,000 13,061,000 27,648,000
Equipment
Computer Equipment 2,243,000 2,243,000 4,583,000 7,026,000 9,534,000 9,534,000
Transportation Equipment 11,200,000 11,200,000 11,200,000 11,200,000 11,200,000
Communications Equipment 111,000 111,000 111,000 133,000 133,000 133,000
Telephone Equipment
Office Equipment 0 103,000 229,000 361,000 361,000 361,000
Power Generation Equipment 405,000 405,000 405,000 405,000 405,000 405,000
Water Supply Equipment 160,000 160,000 326,000 499,000 845,000 845,000

Kitchen Equipment 2,500,000 5,110,000 7,835,000 10,680,000 13,650,000 16,751,000

Sports & Gym Equipment 1,529,000 1,529,000 3,125,000 3,125,000 4,792,000 4,792,000
Fire Fighting Equipment 1,000,000

Other Facilities and Equipment

Medical Facility and Equipment
Beach Kiosks 100,000 204,000 313,000 313,000 313,000 313,000
Waste Management Facility 600,000 600,000 1,226,000 1,880,000 2,563,000 2,563,000

Total Current Assets 79,267,000 125,124,000 159,264,000 170,046,000 333,295,000 350,983,000

Other Non-Current Assets

Pre-Operating Charges

Total Non-Current Assets 0 0 0 0 0 0

TOTAL ASSETS 79,267,000 125,124,000 159,264,000 170,046,000 333,295,000 350,983,000

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Advances from Shareholders 75,767,000
Interest bearing loans
Income tax payables
Due to affiliates

Total Current Liabilities 75,767,000 0 0 0 0 0

NON-CURRENT LIABILITY
Reserve for replacement of assets

Total Liabilities 0 0 0 0 0 0

STOCKHOLDERS' EQUITY
Capital stock 6,250,000 0 0 0 0 0
Additional paid-in capital 0 0 0 0 0
Total Stockholders' Equity 6,250,000 0 0 0 0 0

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 82,017,000 0 0 0 0 0

RAM Resort Hotels Corporation
Projected Income Statement

2008 2009 2010 2011 2012

REVENUES
Room Sales 15,111,000 37,862,000 66,259,000 117,793,000 122,975,892 0.64
F&B Sales 6,476,000 16,227,000 28,397,000 50,483,000 52,704,000 0.27
Other Revenues 2,159,000 5,409,000 9,466,000 16,828,000 17,568,000 0.09

Total Revenues 23,746,000 59,498,000 104,122,000 185,104,000 193,248,000 1.00

COSTS AND EXPENSES

Cost of Room Sales 4,533,000 11,359,000 19,878,000 35,338,000 36,893,000 0.19
Cost of F&B Sales 2,590,400 6,491,000 11,359,000 20,193,000 21,082,000 0.11
Other Operating Expenses 11,107,000 13,263,000 14,143,000 16,236,000 20,677,000 0.11

Total Costs and Expenses 18,230,000 31,113,000 45,380,000 71,767,000 78,652,000 0.41

INCOME BEFORE TAX 5,516,000 28,385,000 58,742,000 113,337,000 114,596,000 0.59

INCOME TAX EXPENSE (BENEFIT)

Corporate Tax (35%) 1,931,000 9,935,000 20,560,000 39,668,000 40,109,000 0.21
Accreditation 100,000 100,000 100,000 100,000 100,000 0.00
Other Taxes 161,000 168,000 175,000 175,000 183,000 0.00
2,192,000 10,203,000 20,835,000 39,943,000 40,392,000 0.21

NET INCOME 3,324,000 18,182,000 37,907,000 73,394,000 74,204,000 0.38

Number of Rooms
Premium 50 20 40 60 80 80
Regular 40 20 40 60 140 140
Occupancy Rate 0.50 0.60 0.70 0.70 0.70
Dollar Rate 46.00
Inflation Rate 0.044
Rooms Sales:F&B Sales Ratio 70/30
F&B Cost 0.40
Room Sales Cost 0.30
Sales Commission 0.05
Loans Interest 0.08
RAM Resort Hotels Corporation
Projected Cash Flow Statement
2008 2009 2010 2011 2012

Beginning Balance 1,000,000 -4,326,000 33,356,000 176,714,000 301,371,000

Cash In
Income before tax 5,516,000 28,385,000 58,742,000 113,337,000 114,596,000
Accounts Receivable
Loan Proceeds
Cash Sales 21,587,000 54,089,000 94,656,000 168,276,000 175,679,892
Other Income 2,159,000 5,409,000 9,466,000 16,828,000 17,568,000

Total Cash Inflows 29,262,000 87,883,000 162,864,000 298,441,000 307,843,892

Available Cash 30,262,000 83,557,000 196,220,000 475,155,000 609,214,892

Cash Out
Marketing and Promotions 4,138,000 4,175,000 2,234,000 2,400,000 2,458,000
Office Supplies 50,000 52,000 54,000 57,000 59,000
Food and Beverage 41,000 62,000 79,000 87,000 133,000
Sales Commissions 356,000 893,000 1,562,000 2,777,000 2,899,000
Transportation 0 0 0 0 0
Taxes and Licenses 20,000 21,000 22,000 23,000 24,000
Training 350,000 0 0 0 0
Salaries and Wages 5,448,000 7,200,000 9,156,000 9,792,000 13,668,000
Interests 0 0 0 0 0
Licenses and Fees 20,000 21,000 22,000 23,000 24,000
Fuel and Utilities 0 0 0 0 0
Repairs and Maintenance 250,000 261,000 272,000 284,000 297,000
Insurance 0 0 0 0 0

Sub-Total - Cash Out 6,535,000 8,510,000 11,167,000 13,043,000 17,104,000

Other Cash Outflows

Capital Purchases
Room Furnishings 4,147,000 4,326,000 4,513,000 75,000 14,587,000
Kitchen Equipment 2,610,000 2,725,000 2,845,000 2,970,000 3,101,000
Communications Equipment 0 0 22,000 0 0
Sports & Gym Equipment 0 1,596,000 0 1,667,000 0
Building Construction 21,193,000 22,126,000 0 155,000,000 0
Other Construction Expenses
Airstrip 10,000,000
Water Supply 0 166,000 173,000 346,000 0
Waste Management Facility 0 626,000 654,000 683,000 0

Decorating
Fixtures and Equipment
Office Equipment 103,000 126,000 132,000 0 0
Loan Principal
Accounts Payable
Other

Sub-Total - Other Cash Outflows 28,053,000 41,691,000 8,339,000 160,741,000 17,688,000

Total Cash Outflows 34,588,000 50,201,000 19,506,000 173,784,000 34,792,000

Ending Balance -4,326,000 33,356,000 176,714,000 301,371,000 574,422,892

 STATEMENT OF CHANGES IN EQUITY

2008 2009 2010 2011 2012

CAPITAL STOCK -P100 par value
Authorized, issued and outstanding - 6,250,000
1,000,000shares
ADDITIONAL PAID-IN CAPITAL

RETAINED EARNINGS (DEFICIT)

Balance at beginning of year: 6,250,000 9,574,000 27,756,000 65,663,000 139,057,000

Net Income 3,324,000 18,182,000 37,907,000 73,394,000 74,204,000

Balance at end of year 9,574,000 27,756,000 65,663,000 139,057,000 213,261,000

TOTAL EQUITY 15,824,000 27,756,000 65,663,000 139,057,000 213,261,000

Pesos Shares
Number of Rooms Author 100,000,000 100,000,000
Premium 50 Subscribed 25,000,000
Regular 40 Paid Up 6,250,000
 2007 2008 2009 2010 2011 2012
Building sqm
Room Size
Building cost
Cost per room 20000 1015 20,300,000 21,193,200 22,125,701

Multi-story 3 stories 155,000,000

Footprint - 7,730 23190
120 rooms
4m x 5m

Total - Building Cost 20,300,000 21,193,200 22,125,701 0 155,000,000 0

20,300,000 41,493,000 63,619,000 63,619,000 218,619,000 218,619,000

Rooms Furnishings 4,147,000 4,326,000 4,513,000 75,000 14,587,000

4,147,000 8,473,000 12,986,000 13,061,000 27,648,000

Computers Qty UC
Server 1 250000 250,000 261,000 272,000 284,000
Terminals 10 30000 300,000 313,000 327,000 313,200
Cabling 100,000 104,000 109,000 104,400
Tables 10 2500 25,000 26,000 27,000 26,100
Chairs 10 1750 17,500 18,000 19,000 18,270
UPS - 500VA 9 2500 22,500 23,000 24,000 23,490
UPS - 10kVA 1 10000 10,000 10,000 10,000 10,440
Software 1,518,000 1,585,000 1,655,000 1,727,820

Total - Computers 2,243,000 0 2,340,000 2,443,000 2,507,720 0

2,243,000 2,243,000 4,583,000 7,026,000 9,534,000 9,534,000
Training $1,000.00 a day $ 25,000.00
Roll Out 25 days
License $ 200.00 per room $ 8,000.00

Communications Equipment
Base - Motorola GP338 1 45000 45,000
Handheld Radios - Motorola GP2000 6 8800 52,800 18,374
License
Base - Motorola GP338 1 4500 4,500
Handheld Radios - Motorola GP2000 6 1500 9,000 3,900

Total - Communications 111,300 22,274

111,000 111,000 111,000 133,000 133,000 133,000

Telephone Equipment
0 0 0 0 0

Transportation Equipment
Toyota Grandia 1 1500000 1,500,000
Golf Carts 2 350000 700,000
Buses 2 4000000 8,000,000
 2007 2008 2009 2010 2011 2012
Speed Boats 2 500000 1,000,000

Total - Vehicles 11,200,000

11,200,000 11,200,000 11,200,000 11,200,000 11,200,000
Power Generation
Distribution Lines 0
Generator Sets (12kVA) 2 200000 400,000
Power Room 1 5000 5,000

Total - Power Generation 405,000

405,000 405,000 405,000 405,000 405,000 405,000
Water Supply
Tower 1 50000 50,000 52,000 54,000 108,000
Storage Tanks 3 100,000 104,000 109,000 218,000
Deep Well 2 10,000 10,000 10,000 20,000

Total - Water Supply 160,000 166,000 173,000 346,000 0

160,000 160,000 326,000 499,000 845,000 845,000

Sports & Gym Equipment

Stationary Bike 3 8000 24,000 25,056 26,158
Treadmill 1 25000 25,000 26,100 27,248
Weights 0 0 0
Nautilus 0 0 0
Jet Ski 500cc 4 120000 480,000 501,120 523,169
Speed Boats 70 hp 2 500000 1,000,000 1,044,000 1,089,936

Total - Gym Equipment 1,529,000 1,596,276 0 1,666,512 0

1,529,000 1,529,000 3,125,000 3,125,000 4,792,000 4,792,000

Clinic
Beds 2 0
Office Furniture
Desk 2 3000 6,000
Chair 6 1750 10,500
Sphygmomanometer 1 2500 2,500

Total - Clinic 19,000

19,000 19,000 19,000 19,000 19,000

Office Equipment
Tables
Senior Executive 1 10000 10,000 10,440 10,899
Clerical Tables 13 5000 65,000 67,860 70,846
Chairs
Senior Executive 1 3000 3,000 3,132 3,270
Clerical Chairs 13 1750 22,750 23,751 24,796
Visitors Chairs 2 1000 2,000 2,088 2,180
Filing Cabinets 6 3000 18,000 18,792 19,619
30
 2007 2008 2009 2010 2011 2012
Total - Office Equipment 0 102,750 126,063 131,610
0 103,000 229,000 361,000 361,000 361,000

Fire Fighting Equipment 1,000,000

1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Kitchen Equipment 2,500,000 2,610,000 2,724,840 2,844,733 2,969,901 3,100,577

2,500,000 5,110,000 7,835,000 10,680,000 13,650,000 16,751,000

Airstrip 10,000,000
10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Kioks 20 5000 100,000 104,400 108,994

100,000 204,000 313,000 313,000 313,000 313,000

Waste Management Facility 4 150000 600,000 626,400 653,962 682,736

600,000 600,000 1,226,000 1,880,000 2,563,000 2,563,000
Land and Improvements
Land 290000 10 2,900,000
Clearing and Grabbing includes equipment use (Phase 1)
11 hectares 110000 330 36,300,000
21 hectares 26000 330 8,580,000
Landscaping (Phase 1)
Coconut trees 100 300 30,000
Other ornamental plants 30 300 9,000

Total - Lot 47,819,000

47,819,000 47,819,000 47,819,000 47,819,000 47,819,000 47,819,000

TOTAL - CAPEX 75,767,000 116,143,000 150,283,000 161,065,000 324,314,000 342,002,000

 2008 2009 2010 2011 2012
Size UC Qty
Print Ads 3 col x 10 4,333 13,000 312,000
Flyers 1/4 sheet 0 30,000
Flyer Dist 5,000 1 60,000
Tarps 8 x 10 25 10 20,000
Posters 11x17 30 500 15,000
Misc 5,000

Print Ads 3 col x 25 c 75 4,333 12 3,900,000 4,072,000 2,126,000 2,219,544 2,317,204

Brochures
C2S 80gsm 2-fold 8.5x11 3.50 10,000 35,000 36,540 38,148 39,826 41,579
C2S 80gsm 3-fold 8.5x13 4.00 10,000 40,000 41,760 43,597 45,516 47,518
Prospectus 45 500 22,500 23,490
Production
Photography 20,000 20,880
2-fold 10,000 10,440
3-fold 10,000 10,440
Prospectus 25,000 26,100

Website 75,000 25,000 26,100 27,248 28,447

4,138,000 4,175,000 2,234,000 2,400,000 2,458,000

 2008 2009 2010 2011 2012

Salaries and Wages 5,448,000 7,200,000 9,156,000 9,792,000 13,668,000

13th Month Pay 454,000 600,000 763,000 816,000 1,139,000
Depreciation and amortization
Advertising and Promotion 4,138,000 4,175,000 2,234,000 2,400,000 2,458,000
Fuel and Utilities
Food and Beverage 40,500 61,560 78,960 87,000 133,200
Repairs and Maintenance
Office Supplies 50,000 52,200 54,497 56,895 59,398
Transportation
Taxes and Licenses 20,000 20,880 21,799 22,758 23,759
Representation and Entertainment
Software Maintenance 250,000 261,000 272,484 284,473 296,990
Insurance
Sales Commission 356,170 892,500 1,561,850 2,776,550 2,898,750
Training 350,000
Interest 0 0 0 0 0
Others

Total 11,107,000 13,263,000 14,143,000 16,236,000 20,677,000

MRATE
Manager 50000 50,000 52,000 54,000 56,000 58,000
Assistant Manager/Duty Manager 40000 80,000 84,000 125,000 131,000 167,000
Exec Housekeeper 20000 20,000 42,000 63,000 66,000 84,000
FOS 20000 60,000 63,000 63,000 66,000 63,000
Rooms Attendant 9750 39,000 81,000 122,000 127,000 224,000
Reservations 9750 19,500 31,000 31,000 41,000 43,000
Telephone 9750 9,750 20,000 20,000 31,000 32,000
Security 9750 58,500 61,000 61,000 64,000 152,000
Maintenance 9750 29,250 41,000 41,000 43,000 82,000
Lifeguards 9750 19,500 41,000 61,000 64,000 67,000
Doctor 25000 25,000 26,000 52,000 54,000 56,000
 Nurse 12000 24,000 38,000 50,000 52,000 72,000
Marketing Personnel 9750 19,500 20,000 20,000 21,000 39,000

454,000 600,000 763,000 816,000 1,139,000

Desks
Manager 1 1 1 1 1 1
Assistant Manager/Duty Manager 1 2 2 3 3 4
Exec Housekeeper 1 1 2 3 3 4
FOS 1 3 3 3 3 3
Rooms Attendant 4 8 12 12 22
Reservations 2 2 3 3 4 4
Telephone 2 1 2 2 3 3
Security 1 6 6 6 6 12
Maintenance 1 3 4 4 4 8
Lifeguards 2 4 6 6 6
Doctor 1 1 1 2 2 2
Nurse 1 2 3 4 4 6
Marketing Personnel 2 2 2 2 3 4
14

27 38 47 50 74

Meal Allowance 125 135 140 145 150

Notes:
1 The number of employees stated is the minimum needed to operate.
2 Food and Beverage here refers to the meal ticket of the hotel staff on duty.
3 Marketing personnel will initially be based in Manila
4 Training will be done for 25 days on site.
5 Taxes and Licenses covers local taxes and business permits and DOT accreditation.
DOT - P20,000
Food 3,120 143,520 0.06
NonFood 1,300 59,800 0.03
Towels/Linens 3,000 138,000 0.06
Insurance 3,200 147,200 0.06
Workers' Compensation 1,800 82,800 0.04
Auto Insurance 1,500 69,000 0.03
Electric 4,000 184,000 0.08
Water 500 23,000 0.01
Cable 1,000 46,000 0.02
Phone 2,500 115,000 0.05
Seasonal Employee 6,000 276,000 0.12
Legal 1,000 46,000 0.02
Seminars 1,300 59,800 0.03
Marketing 3,500 161,000 0.07
Transportation/Travel 1,200 55,200 0.02
Office Supplies 500 23,000 0.01
Business Meals 750 34,500 0.01
Landscaping 1,400 64,400 0.03
Repairs and Maintenance 1,000 46,000 0.02
Gas for Vehicles 500 23,000 0.01
Salaries & Wages 780 454,000 0.20
Miscellaneous 1,200 55,200 0.02

Total 2,306,420 1.00

Property Taxes 3,500 161,000 0.07

Size UC Qty
Print Ads 3 col x 10 4,333 13,000 312,000
Flyers 1/4 sheet 0 30,000
Flyer Dist 5,000 1 60,000
Tarps 8 x 10 25 10 20,000
Posters 11x17 30 500 15,000
Misc 5,000
 2008 2009 2010 2011 2012
Beds 400,000 417,600 435,974 0 1,425,553
Beddings 200,000 208,800 217,987 0 712,776
Side Table 200,000 208,800 217,987 0 712,776
Desk 720,000 751,680 784,754 0 2,565,995
Mini Bar 120,000 125,280 130,792 0 427,666
Table Lamp 148,000 154,512 161,311 0 527,454
Chairs 280,000 292,320 305,182 0 997,887
Art Work/s 1,200,000 1,252,800 1,307,923 0 4,276,658
Shower/Head 8,000 8,352 8,719 0 28,511
Airconditioning Unit 556,000 580,464 606,004 0 1,981,518
Piped-in Music 0 0 0 0 0
TV 21 inches 240,000 250,560 261,585 0 855,332
Lighting Fixtures 0 0 0 0 0
Miscellaneous 75,000 75,000 75,000 75,000 75,000

4,147,000 4,326,168 4,513,219 75,000 14,587,125

QUANTITY
Beds 80 80 80 240
Beddings 40 40 40 120
Side Table 80 80 80 240
Desk 80 80 80 240
Mini Bar 40 40 40 120
Table Lamp 40 40 40 120
Chairs 80 80 80 240
Art Work/s 80 80 80 240
Shower/Head 40 40 40 120
Airconditioning Unit 40 40 40 120
Piped-in Music
TV 21 inches 40 40 40 120
Lighting Fixtures 80 80 80 240
Miscellaneous

UNIT COST
Beds 5000 5220 5450 5689 5940
Beddings 5000 5220 5450 5689 5940
Side Table 2500 2610 2725 2845 2970
Desk 9000 9396 9809 10241 10692
Mini Bar 3000 3132 3270 3414 3564
Table Lamp 3700 3863 4033 4210 4395
Chairs 3500 3654 3815 3983 4158
Art Work/s 15000 15660 16349 17068 17819
Shower/Head 200 209 218 228 238
Airconditioning Unit 13900 14512 15150 15817 16513
Piped-in Music 0 0 0 0
TV 21 inches 6000 6264 6540 6827 7128
Lighting Fixtures 0 0 0 0