bits and bytes data center BBDC Brenda.byers@usask.ca

Peace of mind knowing your technology is in the hands of experts! BBDC Services What do we do? In February 2017 SaskTel just announced a partnership with the Federal Government to bring faster internet to 26 northern Sask. Communities. Source: https://www.sasktel.com/about-us/news/2017/northern-saskatchewan-benefitting-from-faster-internet Peace of mind knowing your technology is in the hands of experts!

Capital BUDGET Total $140,000 $680,500 $47,000 $23,500 Capital Budget YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Land $0 $60,000 Site Prep / Landscaping $70,000 $25,000 Data Center Construction $625,000 $35,000 $7,000 Computer Equipment $76,500 $10,000 $30,500 $12,000 $16,500 Total $140,000 $680,500 $47,000 $23,500

Bits and Bytes Data Center Services BBDC Value PROPOSITION Bits and Bytes Data Center Services BBDC

Financing

Marketing Strategy – YEAR 1 – Hitting the HighWays of Saskatchewan… 36 First Nations Admin Centers Over 1000 Businesses Only 6 IT Companies No Data Centers http://muskodayfn.ca/wp-content/uploads/2016/09/Band-Logos1.png Myself and one other Technical Specialist: setup meetings with Indigenous Band offices and schools travel to the communities for face to face technology assessments Resources – Northern Saskatchewan Business Directory; Saskatchewan Metis Business Directory

Number of customer contracts SUCCESS FACTORS Number of customer contracts YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 No. of Contracts/month 15 23 29 37 40 Est. Purchase/contract $1,250 $1,275 $1,301 $1,327 $1,353 Total Annual Sales $225,000 $344,250 $456,476 $582,006 $653,011 Gross Profit Margin 72% 81% 86% 88% Approximately 10,000 target businesses, 1% 100 contracts, by year 5 possible to attract, but have very conservative estimates. - Growth Rate Growth Rate - No. of Contracts 50% 30% 25% 10%

5 Year Profitability and CASH FLOW Average 5 year Net Income = $58,827 Could certainly pay more dividends; Pay down debt; or Pay out Equity Investors in Year 5

BREAK EVEN and Business Risk

Saskatchewan’s NORTH will succeed! WITH THE HELP OF BBDC Services brenda.byers@usask.ca

Detailed Financing table Detailed Financing Estimates Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Equity Investments - B. Byers 30,000 - - Hardware Specialist 10,000 - Virtualization Specialist - Angel Investors 20,000 - Venture Capital 50,000 Bank Loans (Personal collateral) Bank Loans (Business collateral) 550,000