Footsteps Preschool

Investment Opportunity

https://footstepsfamily.business.site/ October 2022

 Executive Summary

https://footstepsfamily.business.site/ October 2022

 INVETSMENT OPORTUNITY

OPPORTUNITY  Total ASK: PKR 39 Mn | USD 175,000| BHD 65,000 as growth capital for expansion to a purpose-built facility

 Mergers &BHD
Minimum Investment: PKR 3.9 Mn | USD 17,500| Acquisitions
6,500 analysis

 Stake on Offer: 25% Total | 2.5% Minimum Investment

 Key Financial Positives: Cash Accretive Business | Attractive Dividend Yield | Franchising / Expansion Possibility |
Breakeven within 18 months | 10 year Lease Agreement Signed | Civil Work financed by Landlord at no cost to School

CAMPUS  New Campus: Purpose Built | Plot Size: 920 m2 | Playground: 280 m2 | Total Built Area: 1026 m2 - over 2 floors. Further,
there is an expansion opportunity with plot D-48 next door(same landlord), also sized at 920 m2
Mergers & Acquisitions analysis

 Spaces: Rooms: 12 ( with extension possibility) | Office Rooms: 5 | Bathrooms: 7 | Kitchenette: 1 | Storage Spaces: 2

 Management & Track Record: Founder and Directress a renowned educationist | Experienced Team | School in
business for last 5 years | Growing Brand | Strong Social Media Presence | Current Premises running to capacity

 Current: Farhana (Founder & Directress) : 40% | Rehan (Strategy & Financial): 47% | Current Investor : 13%
SHAREHOLDING
 Proposed: Farhana (Founder & Directress) : 40% | Rehan (Strategy & Financial): 27.4% | Current Investor : 7.6% | New
Investor : 25%

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EXISTING OPERATIONS AND EXPANSION PLANS

Karachi based preschool located in Clifton Block 2 on a 600 yards residential house

Caters to an age group of 15 months to 7+ years: Toddlers to Grade 2 (With plans to expand till Grade 6)

Focuses on social, emotional, motor, and cognitive development of the students

Curriculum based on a combination of Montessori methodology and Early Childhood Education (ECE) for
building a strong academic foundation in young learners

Operating since 2017, with a capacity of 80 children. Current student strength is 75.

Expanding to a purpose-built premises at a 1,026 sq. yard property. The new premises shall have a
capacity of 350 students, with a possibility for further expansion on adjacent plot.

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The Founders / Senior Management

Maha Jamal Qazi serves as the Operations

Farhana Hussain is the Founder and Principal,
Director of Footsteps. Maha obtained her LLB
heart, and soul behind the very foundation of
from the University of Buckingham in England
Footsteps. With over 20 years of experience
and began her career in the legal field. Upon
in teaching preschool students and a
relocation to Pakistan, Maha joined Farhana to
background in Montessori, Farhana
launch Footsteps and took charge of the
established Footsteps from a humble
administration, marketing, and outreach
environment, cultivating and nurturing the
departments. Creative classroom modules,
school to great provenance and repute. Each
admin and admission offices, school events,
member of her exceptional team is hand-
and parent workshops are imagined,
picked to contribute their unique skill sets in
managed, and executed under Maha’s
making the school an unparalleled institute.
direction.

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Strong Executive Management Team

Sadia Sheraz serves as the Inclusion Head at Footsteps and has completed her Bachelors in Business Administration from
IBA. Being passionate about helping children with differences, she completed her Masters in Special Education and is
qualified as an Orton Gillingham Dyslexia Therapist. Additionally, she holds various certifications on child and adolescent
mental health, trauma recognition in children, and dealing with severe to profound intellectual disabilities.

Mojgan Rustami is the Building Head at Footsteps, as well as the coordinator for toddlers, pre-nursery and nursery classes.
An Iranian national, Mojgan completed her Bachelors in Science from Tehran University, and worked with the British
Council for three years. She relocated to Pakistan and completed her Montessori certification. With over 22 years of
experience, Mojgan holds numerous certificates in effective teaching strategies and pedagogies and has received countless
awards in teaching. Her forte lies in curriculum implementation, developing learning resources, and training teachers in
phonics and Montessori discipline.

Riffat Ishaq serves as the Facility Manager at Footsteps. She completed Bachelors in Fine Arts and received her
Montessori certification from LMI, continuing into an illustrative teaching career spanning 27 years. She has topped off her
accreditations with certifications from NESA in Bangkok and HighScope teaching methods, as well as a diploma in Fine Arts
from Indus Valley School of Art and Architecture. In her previous employment, Riffat has served as Curriculum Coordinator
and Art Coordinator. At Footsteps, Riffat is responsible for coordination between teachers and management, parent
satisfaction, and ensuring facility functionality.

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 The Ask- Expansion Capital

Details Amount (PKR)

Interiors & Equipment (PKR) 17,290,000

Advance Rent for 14 Months @ 700,000 (PKR) 9,800,000

Total Expenditure (PKR) 27,090,000

Working Capital (PKR) 12,500,000

Total Requirement (PKR) 39,590,000

Equity Stake
PKR /USD 230

Total Requirement (USD) 172,130 25%

Total Requirement (BHD) USD to BHD @ 0.377 64,890 25%

Minimum Investment Required (BHD) 6,500 2.5%

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New Investor - Return Analysis

Particulars 2023 2024 2025 2026 2027 2028 2029 2030

WACC - 25.7%

Value of 2.5% Stake (in PKR

3.9 6.1 7.7 9.7 12.2 15.3 19.2 24.2 30.4
millions)

Value of 2.5% stake (in BHD) 6,500 9,642 10,575 12,182 14,815 18,037 21,980 26,810 32,729

Cumulative return (CAGR %) 22.6% 22.5% 22.4% 22.4%

Share of profits (in PKR ‘000’) 273 661 1,064 1,552 1,795 2,075 2,399

Share of profits (in BHD) - 299 664 1,035 1,463 1,641 1,841 2,067

Dividend yield (80% payout ratio) 4.6% 10.2% 15.9% 22.5% 25.2% 28.3% 31.8%

Cash payback period in PKR Terms 4.2 years

Cash payback period in BHD Terms 6.8 years

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 Details on the Opportunity

https://footstepsfamily.business.site/ October 2022

Footsteps - The Best Preschool

 Clients: Young families with children aged 0-7 years

 Mergers
Location: Easily accessible via arterial roads & Acquisitions
of Main Sea View,analysis
Khayaban-e-Saadi (Boat Basin) and 26th Street.
PRIME LOCATION
The preschool is in the upscale district of Clifton, on the edge of a secure, quiet residential zone

 Address: D-47, Clifton Block 1, Karachi, Pakistan

 Condition: Being a new development, the building has pristine flooring, tiling, fixtures, and fittings. Rooms are
naturally lit and ventilated by large windows. All indoor spaces are fitted with air-conditioners
Mergers & Acquisitions analysis
INFRASTRUCTURE
 Campus: Plot Size: 920 m2 | Playground: 280 m2 | Total Built Area: 1026 m2 - over 2 floors. Further, there is an
expansion opportunity with plot D-48 next door, also sized at 920 m2

 Spaces: Rooms: 12 ( with extension possibility) | Office Rooms: 5 | Bathrooms: 7 | Kitchenette: 1 | Storage Spaces: 2

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Our Vision (Current and New Campus)

Visual Today Visual (Architectural Depiction)

Currently operating in a 600 Yard property with a successful A purpose built 1200 yards new premises entails state-of-the-art
track record of more than 5 yeas structure, larger area, greater capacity
Property rented and 80% of external work completed

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New Campus (cont….)

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New Campus – Construction Progress Status (cont….)

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Competition in the Local Market and Pricing Trends

Admission Fee Monthly Fee Student Establishment No. of

School Name Website Inclusion Grade Levels
(in PKR) (in PKR) Strength Year Campuses

Footsteps- Current 90,000 22,000 75 www.footstepsfamily.business.site 2017 1 Yes, charged separate Till Grade 2

After Proposed To be Expanded to

120,000 26,000 175* (by 2024) Break even within 2 years Jan 2023 1 Yes, charged separate
Expansion Grade 6

Competitors *Capacity 350

VLC 250,000 30,000 800 www.vlc.org.pk 2016 3 Yes, charged separate Till Grade 6
Bayview High 290,000 39,480 500 www.bayviewhighschool.edu.pk 1994 2 No Till O Levels
Ivy 325,000 32,690 200 www.ivy.edu.pk 2016 1 No Till Grade 5
Kids and Co 220,000 30,000 65 www.kidsandcopreschool.com 1998 1 No Only Preschool
The Learning Tree 225,000 24-27,000 300 www.tlt.edu.pk 2000 1 Yes, charged separate Till O Levels

Best Schools
Preschool Plus 125,000 21,000 160 www.preschoolplus.com.pk 2002 1 No Only Preschool
Bayview Academy 420,000 37,000 1500 www.bva.edu.pk 1990 2 No Till O Levels
Civitas 350,000 32,500 600 www.academiacivitas.com 2012 1 No Till Grade 6

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Financials and Valuation

P&L (in PKR Mn) 2023 2024 2025 2026 2027 2028 2029 2030 Discounted cash flow valuation (in PKR Mn)
Total Revenue 39 64 100 135 178 204 235 269
Risk-free rate 15.0%
Salary expenses 23 28 33 40 48 55 63 73 Equity risk premium 10.7%
Rent 10 9 10 11 12 14 15 16 Beta 1.0
Depreciation 2 2 2 2 2 2 2 2 WACC 25.7%
Other expenses 10 13 15 18 21 24 28 32 Long term growth rate % 3.0%
Total expenses 45 52 60 71 83 95 108 123
2022 2023 2024 2025 2026 2027 2028 2029 2030
Profit/loss before taxes (6) 12 39 64 94 109 127 146
Discounted cash flows (35) 10 18 22 26 24 22 20
Taxes to be paid - 2 13 22 32 37 44 50
Sum of discounted cash
106
Profit/loss during the period (6) 11 26 43 62 72 83 96 flows
Terminal value 90
Value of Footsteps
Student Strength (no.) 125 175 250 300 350 350 350 350 195 246 309 388 487 612 770 967 1,215
Preschool (in PKR Mn)
Tuition Fee (PKR “000”) 22 26 28 32 36 42 49 56
Value of Footsteps Preschool (in BHD) 320,244
Admission Fee (PKR”000”) 90 120 160 180 207 238 274 315
Stake % 2.5%
Value of 2.5% Stake (in BHD) 8,006

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Social Media Presence

Visit Us: Contact Us:

Current Location: C-128 Clifton Block 2, Karachi Maha Jamal: +92 3223745855
New Premises: D-47 Clifton Block 2, Karachi Rehan Ashraf: +973 39935581

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 Final Thoughts

https://footstepsfamily.business.site/ October 2022

Why Footsteps is Guaranteed to be the Best Preschool in Karachi (1/3)

Purpose-built and Designed Environment: Gearing towards functional preschool planning, the facility is designed with interior scaled
to child height and usability. The custom-built design promotes independence and self-reliance in preschool children

Exclusive Curriculum: The school’s curriculum has been designed in collaboration with leading professionals in the field, exclusively for
Footsteps. The curriculum seamlessly combines features of Montessori and Early Childhood Education (ECE), promoting discipline,
creativity, and critical thinking among the learners. Moreover, the school employs qualified and experienced teachers and imports the
requisite resources to deliver the curriculum efficiently

Inclusion Program: The Inclusion program of Footsteps provides support for students with Special Educational Needs (SEN), including
gifted and talented students, in collaboration with hired experts in special education, psychologists, speech therapists, and remedial
teachers. This program provides the necessary supplemental aids, curriculum modifications, and other adaptations that are required
to help students with additional needs

Parent-Toddler Program: This program enables parents and their infants to adapt with the school environment whilst the children are
too young for enrollment. The program is led by a speech therapist from AKU and focuses on development of speech, vocabulary, and
fine & gross motor skills.

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Why Footsteps is Guaranteed to be the Best Preschool in Karachi (2/3)

Safe Indoors: The building is custom designed, and all rooms are air-conditioned. Each room has ventilators and large, sliding windows,
situated above child height, to allow natural light and breeze. All sharp corners have been rounded and all bannisters, walkways, and
staircases have been secured

Playground: All classroom windows open out to a large green playground, which is designed to host school events and multiple sports
activities. The playground engulfs two bathrooms, jungle gym, swings, slides, water table, sand box, gardening and an introduction to
the future of food with Aquaponics

Safety: Alongside a strict ID card policy and armed guards positioned at the school gates, the school has an extensive CCTV system,
providing coverage of the entire facility and adjoining roads. The PABX system allows for swift communication between offices

Roof Space: Large, accessible, and secure space, allowing for adult workshops, community events, and outreach programs. Can be
used for additional storage as well

Library: The library is the heart of the school, inculcating a love for reading in students through puppet shows, role plays, and
recreation performances. The library also doubles up as the audio-visual room, allowing students to watch short learning videos
related to the concepts taught in class.

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Why Footsteps is Guaranteed to be the Best Preschool in Karachi (3/3)

Stem and Computer Room: Allows older students to engage with age-appropriate science experiments, acquire motor skills, and
familiarize with computer basics

Inclusion Room: Equips multiple cubicles and materials for the therapists and behavior specialists who work with SEN students on-site

Learning Centers and Sensory Room: Custom designed imagination stations and soft play corners are built according to the
development and emotional needs of children. The room is fully stocked with age-appropriate toys and play materials to brighten up
any child’s day

Print Room: The school manages in-house printing and lamination as required

Staff Room: Enables teachers to collaborate and facilitates coordinator meetings. Computers and a wide range of resource books are
provided in this space. The staff room is situated across a kitchenette and bathroom for staff tea/lunch breaks

Extra Curriculars: Sports, Taekwondo, Yoga, Music and Movement, Vocal Training, Elocution, Stage Performances, Clay Works/Pottery,
Art and Crafts, Audio, Visual, Cooking, Sand Play, Water Play, Cooking, Gardening, Aquaponics, Storytime Magic, STEM, Sensory
Exploration, Imagination Stations, and Computers

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 Thank You

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