BY INVESTING IN OUR COMMUNITY SHARES YOU WILL HELP PUT WHISKY DISTILLING BACK AT THE HEART OF THE HISTORIC HIGHLAND TOWN OF DINGWALL. GlenWyvis Built on history… Powered by nature B A C Community Benefit Society www.glenwyvis.com Registration Number: 7305 K www.facebook.com/glenwyvis @glenwyvis A GlenWyvis Distillery Limited – Distillery Business Plan 1. Disclaimer and Explanatory Note ......................................................................................................... 1 2. Outline Case for Support ...................................................................................................................... 2 3. Introduction and Background .............................................................................................................. 6 4. Mission Statement and Objectives ....................................................................................................... 7 5. Legal structure and governance; Community Benefit Company ........................................................... 8 6. Vision: the Project in 5 years’ time ....................................................................................................... 9 7. Stakeholder support .......................................................................................................................... 10 7.1. Stakeholder Strategies and Action Plans ..................................................................................... 10 7.2. Community Support ................................................................................................................... 11 8. Rewards for Investors ........................................................................................................................ 12 9. Social, economic, and environmental benefits ................................................................................... 13 9.1. Community Benefits: .................................................................................................................. 13 9.2. Environmental benefits .............................................................................................................. 13 9.3. Economic benefits ...................................................................................................................... 13 10. Current trading position of GlenWyvis Distillery ............................................................................. 15 11. Glenwyvis: the Whisky USP ............................................................................................................ 16 12. Location ......................................................................................................................................... 17 13. Markets / demand ......................................................................................................................... 18 14. Products and Pricing ...................................................................................................................... 20 15. Marketing and Promotion .............................................................................................................. 21 16. Craft Whisky Production Processes ................................................................................................ 22 17. Green GlenWyvis: .......................................................................................................................... 23 17.1. Production and renewable energy .......................................................................................... 23 17.2. Distillery by-products ............................................................................................................. 24 18. The Growth Plan: Development costs & funding ............................................................................ 25 18.1. Development Costs ................................................................................................................ 25 18.2. Development Costs and Funding - Phasing overview .............................................................. 26 2) Initial working capital ..................................................................................................................... 28 3) Second funding round: 2019 .......................................................................................................... 28 4) Third funding round – 2021-2022 ................................................................................................... 29 5) Fourth funding round - 2024 .......................................................................................................... 30 6) Overall Funding Streams and Loan-To-Value .................................................................................. 31 19. Exit Strategies for Investors ............................................................................................................ 32 20. Summary income and expenditure over the 10-year period ........................................................... 33 20.1. Overall income and expenditure ............................................................................................. 33 GlenWyvis Distillery Limited – Distillery Business Plan 20.2. Volumes and Income .............................................................................................................. 34 20.3. Direct Production Costs .......................................................................................................... 36 20.4. Overhead Costs ...................................................................................................................... 37 20.5. Depreciation .......................................................................................................................... 37 20.6. Interest .................................................................................................................................. 38 20.7. Operating Losses .................................................................................................................... 38 21. Cash flow forecast.......................................................................................................................... 39 22. Balance Sheets ............................................................................................................................... 41 23. Founding Board of Directors .......................................................................................................... 43 24. Risk management .......................................................................................................................... 45 25. GlenWyvis – the History ................................................................................................................. 47 26. Visitor Centre Business Plan Executive Summary ............................................................................ 49 27. Detailed financial information ........................................................................................................ 51 27.1. Annual Sales by value 2017 - 2027 .......................................................................................... 51 27.2. Annual Cash Flow Forecast 2016 – 2027 £000s ....................................................................... 52 27.3. Annual Balance Sheet 2016 - 2027.......................................................................................... 53 GlenWyvis Distillery Limited – Distillery Business Plan 1. Disclaimer and Explanatory Note This business plan has been prepared from information provided by the Directors of GlenWyvis Distillery Ltd to assist potential community investors to consider buying community shares in the company. This document is not a prospectus nor investment advertisement, financial promotion or offer under the Financial Services and Markets, Act 2000 nor is it intended for use by members of the public. While the content of this business plan is believed to be accurate in all material respects it has been verified to external evidence only to the extent stated in the body of this report. Projections are subject to market forces and to force majeure outside the control of management. Consequently, neither the Directors nor the company’s advisers can accept responsibility for any losses arising to persons acting or refraining from action on the material contained in this business plan. Persons considering a financial commitment of any kind should conduct such investigations as they consider necessary to satisfy themselves as to the appropriateness of the financial commitment and the risk of loss or some or all of any financial commitment. 20/04/2016 1 GlenWyvis Distillery Limited – Distillery Business Plan 2. Outline Case for Support This Business Plan is for a new community-owed distillery in Dingwall, Ross-shire, producing a deep- flavoured Highland malt with traditions in centuries of distilling in the Ross-shire and Inverness-shire area, and using innovative use of renewable energy at the distillery. The distillery, its associated Visitor Centre (which is explained through a separate Business Plan) are at the core of a wider plan to recreate Dingwall as the Craft Distillery Town of Scotland, and to work in partnership with others to establish Dingwall as a quality tourism destination on the North Coast 500 route, providing opportunities to address Dingwall’s areas of multiple social and economic deprivation. The distillery