(a) Investment Proposal

i) Please provide details of the total funding requirements, and how these will be met, under the following headings:

	Ł
i) Capital expenditure
(including capital value of leases)	295,000.00
ii) Other pre-operational expenditure	373,000.00
iii) Working capital (at on-air date)	198,000.00

TOTAL:	866,000.00
	Ł	Ł
i) Share Capital	1,000,000.00
ii) Loan stock/medium term borrowing	nil
iii) Leasing/HP facilities (capital value)	236,000.00
iv) Bank overdraft	nil
v) Grants and donations	nil
vi) Other (please specify)	nil
TOTAL:	1,236,000.00

i) Sources of Funding - Detail the sources of funding outlined at (ii) above and set out the timeframe for capitalisation of the company.

There will be an open offer in Jazz FM Ltd., shortly after the award of the licence at which time the share capital as detailed in section 4 (b) ii) will be raised and the leasing facility arranged and drawn against the acquisition of assets specified.

(a) Projections

The financial projections should bring together in numerical format the various quantitative assumptions, analyses and predictions made in the application. Revenue and costs data should be brought together in a summarised format.

This section must include:-

i) Detailed projected income and expenditure accounts for the first three years;

ii) Detailed projected balance sheets for the first three years;

iii) Detailed projected monthly cash-flow statements showing gross inflows and outflows for the first three years;

iv) A full listing of the underlying assumptions on which the financial projections are based, relating such assumptions clearly to other sections of the application.

Jazz FM
Projected Profit & Loss Account
For the 5 Years Ended 31 March 2006
Summary

	2002	2003	2004	2005	2006
	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000
Turnover	542,087	1,962,116	2,524,237	2,728,399	3,008,062

Wages and saleries	461,391	901,923	1,064,021	1,149,636	1,255,235

Depreciation	59,000	59,000	59,000	59,000	59,000

Overheads	745,505	890,657	985,684	1,042,224	1,108,903








Total Expenses	1,265,896	1,851,580	2,108,705	2,250,860	2,423,139


Operating Profit	(723,809)	110,536	415,532	477,539	584,923

Interest & similar charges	(29,691)	(27,530)	(8,075)	0	0

Profit before Tax	(753,500)	83,006	407,458	477,539	584,923

Tax	0	0	0	14,803	95,543

Profit after Tax	(753,500)	83,006	407,458	462,737	489,380

Jazz FM
Projected Cash Flow
For the 5 Years Ended 31 March 2006
Summary

	2002	2003	2004	2005	2006
	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000

Inflows
Debtor Receipts	436,360	2,186,864	2,943,172	3,250,695	3,560,560
Loan Drawdown	0	0	0	0	0
Other	0	0	0	0	0
Receipts from sales of tangible fixed assets	0	0	0	0	0
Receipts from issue of shares	1,000,000	0	0	0	0

	1,436,360	2,186,864	2,943,172	3,250,695	3,560,560

Outflows
Creditor Payments	751,173	1,021,155	1,134,754	1,204,759	1,279,268
Salaries & Wages	308,130	665,501	799,772	864,198	915,745
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Loan Repayments	0	0	0	0	0
Lease Repayments	98,400	98,400	98,400	0	0
Vat remittance	(26,957)	223,188	332,526	373,688	414,932
Paye/Prsi	136,275	233,414	262,358	283,822	287,589
Corporation tax	0	0	0	0	14,803
Bank Interest	0	6,096	0	0	0

	1,326,021	2,247,754	2,627,809	2,726,467	2,912,337

Opening Balance	0	110,339	49,449	364,812	889,041

Movement	110,339	(60,890)	315,363	524,229	648,223

Closing Balance	110,339	49,449	364,812	889,041	1,537,263

Jazz FM
Projected Balance Sheet
Summary
For the 5 Years Ended 31 March 2006

	2002	2003	2004	2005	2006
	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000

Fixed Assets
Tangible Assets	236,000	177,000	118,000	59,000	0
	236,000	177,000	118,000	59,000	0

Current Assets
Debtors & Prepaids	215,086	382,761	468,673	492,057	541,170
Stock
Bank	110,339	49,449	364,812	889,041	1,537,263
	325,425	432,211	833,485	1,381,098	2,078,434

Creditors falling due within one year
Creditors & Accruals	115,477	129,711	140,816	147,641	157,473
VAT	15,172	39,675	51,822	54,453	60,936
Paye/Prsi	16,986	19,993	21,885	23,501	24,399
Corporation Tax	0	0	0	14,803	95,543
Bank Overdraft	0	0	0	0	0
Bank Loan	0	0	0	0	0
Leasing Liability	98,400	90,325	0	0	0
	246,035	279,705	214,523	240,398	338,351

Net Current Assets	79,390	152,505	618,962	1,140,700	1,740,082

Total Assets less Current Liabilities	315,390	329,505	736,962	1,199,700	1,740,082


Creditors falling due after one year
Bank Loan	0	0	0	0	0
Leasing Liability	68,891	0	0	0	0
	68,891	0	0	0	0


	246,499	329,505	736,962	1,199,700	1,740,082


Financed By
Ordinary Share Capital	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
Revenue reserves	(753,501)	(670,495)	(263,038)	199,700	740,083

	246,499	329,505	736,962	1,199,700	1,740,083

Jazz FM
Reconciliation of operating profit to
net cash inflow from operating activities
Summary

	2002	2003	2004	2005	2006
	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000

Operating Profit	(723,810)	110,536	415,532	477,539	635,926
Depreciation charges	59,000	59,000	59,000	59,000	59,000
(Increase)/Decrease in debtors	(215,086)	(167,675)	(85,912)	(23,384)	(49,113)
Increase/(Decrease) in creditors	115,477	14,234	11,105	6,825	9,832
Increase/(Decrease) in VAT	15,172	24,503	12,147	2,631	6,483

Net cash inflow/(outflow)
from operating activities	(749,247)	40,598	411,871	522,612	662,128

Returns on investments and
servicing of finance
Interest received	0	0	0	0	0
Interest paid	29,691	27,530	8,075	0	0

	29,691	27,530	8,075	0	0

Taxation
Corporation tax	0	0	0	0	(14,803)

Capital expenditure and
financial investment
Payments to acquire tangible fixed assets	(295,000)	0	0	0	0
Receipts from sales of tangible fixed assets	0	0	0	0	0

	(295,000)	0	0	0	0
Financing
Receipts from issue of shares	1,000,000	0	0	0	0
Increase in Lease Liability	236,000	0	0	0	0
Repayments of bank loan	0	0	0	0	0
Repayment of finance leases	(68,709)	(76,966)	(90,323)	0	0

	1,167,291	(76,966)	(90,323)	0	0

Increase/(Decrease) in cash	152,735	(8,837)	329,623	522,612	647,325


Reconciliation of net cash flow
to movement in net debt
Increase/(Decrease) in cash for the period	152,735	(8,837)	329,623	522,612	647,325

Net debt at beginning of period	0	110,339	49,449	364,812	889,041
Net funds at end of period	152,735	101,502	379,072	887,424	1,536,366

Jazz FM
Projected Wages and Saleries
Summary
For the 5 Years Ended 31 March 2006

	2002	2003	2004	2005	2006
	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000

Wages and Salaries
Breakfast show staff	40,000	64,800	69,984	75,583	81,629
Morning show presenter	20,000	32,400	34,992	37,791	40,815
Afternoon show presenter	12,000	19,440	20,995	22,675	24,489
Drivetime Show presenter	20,000	32,400	34,992	37,791	40,815
Night moves presenter	12,000	19,440	20,995	22,675	24,489
Head of news	13,333	21,600	23,328	25,194	27,210
Head of sport	12,000	19,440	20,995	22,675	24,489
News reporter	10,000	16,200	17,496	18,896	20,407
Sales & Marketing manager	0	0	0	0	0
Station Manager	50,000	54,000	58,320	62,986	68,024
Head of Music	30,000	32,400	34,992	37,791	40,815
Programme manager	27,500	32,400	34,992	37,791	40,815
Accountant department	15,000	16,200	17,496	18,896	20,407
Sound Engineer	18,333	21,600	23,328	25,194	27,210
Part time engineer	0	0	0	0	0
Freelance Presenters	8,750	16,200	17,496	18,896	20,407
Saturday/Sunday morning presenters	0	0	0	0	0
Commissions paid to sale people	108,417	392,423	504,847	545,680	601,612
Secretarial staff	18,333	21,600	23,328	25,194	27,210
	415,667	812,543	958,577	1,035,708	1,130,843

Er Prsi	45,723	89,380	105,443	113,928	124,393

Total Employment costs	461,391	901,923	1,064,021	1,149,636	1,255,235

Jazz FM
Projected Overheads
Summary
For the 5 Years Ended 31 March 2006

	2002	2003	2004	2005	2006
	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000	IRŁ'000

Overhead Expenses
Marketing	450,000	350,000	367,500	385,875	405,169
IMRO / MCPS/ PPL/ IRTC	65,089	227,257	290,214	313,081	344,403
Program Expenses	14,583	26,250	27,563	28,941	30,388
Transmission Site	30,917	55,650	58,433	61,354	64,422
Inn Service	24,500	44,100	46,305	48,620	51,051
Rent and Rates	15,000	15,750	16,538	17,364	18,233
Program purchases	11,667	21,000	22,050	23,153	24,310
Legal and Professional Fees	20,000	21,000	22,050	23,153	24,310
Wire Services	13,333	21,000	22,050	23,153	24,310
Telephone	15,000	15,750	16,538	17,364	18,233
Repairs/Maintenance	5,833	10,500	11,025	11,576	12,155
Insurance (All types)	10,000	10,500	11,025	11,576	12,155
Entertainment Expenses	8,750	5,000	5,250	5,513	5,788
Stationary & Postage	5,000	5,250	5,513	5,788	6,078
Magazines/Periodicals	5,000	5,250	5,513	5,788	6,078
Electricity	5,000	5,250	5,513	5,788	6,078
Staff Training	10,000	5,000	5,250	5,513	5,788
Audit fees	5,000	5,250	5,513	5,788	6,078
IBEC Membership	5,000	5,250	5,513	5,788	6,078
Music Library	3,000	3,150	3,308	3,473	3,647
Jingle Package	3,000	3,150	3,308	3,473	3,647
Travel expenses	3,000	3,150	3,308	3,473	3,647
Mini Discs/Tapes etc	2,000	2,100	2,205	2,315	2,431
Licenses (TV etc)	1,000	1,050	1,103	1,158	1,216
NAB Membership	1,000	1,050	1,103	1,158	1,216
JNLR	12,833	22,000	22,000	22,000	22,000

	745,505	890,657	985,684	1,042,224	1,108,903

Projections for the 5 Years ended 31 March 2006

Assumptions

(i) Income

All income generated by the company is derived from advertising income. It has been assumed for the purpose of the projections that the station would commence broadcasting in September 2001.

The advertising income is based on a proposed rate card. The rate card is based on 30 second advertising spots and qoutes two rates, the rate used is realted to the programme times, the higher rate applies to peak listening times while the lower rate applies to off peak listening times.

The advertising income has been calculated based on the following 3 factors;

(a) The number of 30 second spots available to advertisers

(b) The percebtage of these spots sold

The projected advertising income for the 5 years ended 31 March 2006 based on the projected advertising rate card included in the appendix is as follows;

	2002	2003	2004	2005	2006
	IRŁ’000’s	IRŁ’000’s	IRŁ’000’s	IRŁ’000’s	IRŁ’000’s

Income	542,087	1,962,116	2,524,237	2,728,399	3,008,062

The base rates are expected to increase 3% per annum.

The effective utilisation levels for each year are as follows:

	2002	2003	2004	2005	2006

Utilisation	23%	46%	57%	58%	61%

Cash receipts have been calculated on the basis of 100% of sales being received within 60 days of the invoice being issued.

(i) Overheads

Marketing

The cost for marketing in year1 is projected at IRŁ450,000 which allows for a large promotioanl campaign for the launch of the station. Costs in the following year are budgeted at IRŁ350,000 per annum with a 5% increase p.a. thereafter.

Irish Music Rights Organisation (IMRO)
Charges by IMRO are based on advertising receipts (net of VAT). The charge is based on progressive percentages of the advertisising receipts ranging from 4% to 5.5%. It is assumed that the percenatge rates applicable will not change in the future.

Phonographic Performance Industries (PPI)
As with IMRO charges, PPI charges are based on progressive percentages of advertising receipts (net of VAT). The rates used range from 4.2% to 4.5%. It is assumed that the percenatge rates applicable will not change in the future. MCPS A rate of 3% of advertising receipts (net of VAT) has been applied.

Salaries and Wages
Salaries and wages costs are based on personal required by the company and market rates applicable for suitable candidates. The company plans to have 13 full time employees initially together with 12 part time staff. Employers PRSI has been included at 11% per annum.

Other Assumptions
The figure for rent is based on the assumption that the premesis detailed elsewhere in this application is available at a preferential rate for Jazz FM.

Section 8 Transmission proposal 106.8mHz

It is proposed to provide comprehensive coverage to Dublin City and County using the Rock Solid Transmission Limited transmission site on Three Rock for the transmission of the 106.8mHz signal.