Page 71 - HSCR Slides - delegate version_Neat

Capex vs Opex :

Improving the Financial Model
3

3 2.5

2.5 2

2 1.5

1.5 1

1 0.5
0.5
Cashflow Out 0 Cashflow Out
0 Cashflow In -0.5 Cashflow In
-0.5
-1
-1
-1.5 -1.5

-2 -2 Year Year Year Year
0 1 2 3
Year 0 Year 1 Year 2 Year 3 Total Total

Cashflow Out -1.2 -0.1 -0.1 -0.1 -1.5 Cashflow Out -0.2 -0.2 -0.2 -0.3 -0.9

Cashflow In 0 0.4 0.7 1.3 2.4 Cashflow In 0 0.4 0.7 1.3 2.4

Capex: Opex:

• Supplier takes majority of revenue up front • Supplier takes risk, and works on
• Customer carries risk of investment future revenue streams

• Customer gets benefits without
risking capital