BSM 780: Energy Efficiency Plan for Marriott Hotels in Switzerland

This report examines sustainability planning for Marriott Hotels in Switzerland, focusing on energy efficiency. It begins by highlighting the environmental impact of the hospitality industry and the importance of sustainable practices. The literature review covers various sustainability initiatives in the hospitality sector worldwide, including technological improvements for energy efficiency. The methodology involves a qualitative analysis of peer-reviewed journals to understand global sustainability practices and a review of Marriott's official website to assess their current sustainability efforts. The report emphasizes the significance of energy efficiency in reducing carbon footprint and discusses energy-saving practices such as modifying properties, implementing green technologies, and using energy from greener sources. Marriott's sustainability goals and targets, including reducing energy and water consumption by 20% by 2020, are also analyzed. The report suggests energy-efficient sustainability practices to promote responsible tourism and contribute to environmental development by reducing the carbon footprint and impact on the environment.

Running head: SUSTAINABILITY PLANNING
SUSTAINABILITY PLANNING
Name of the Student
Name of the University
Author Note

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Introduction
The human impact on environment is the most concerning issue of the day and all
industries that are engaged with environment add to the degradation of the environment. The
hospitality industry like any other industry is responsible for impacting the environment owing to
their nature of business. It is a known fact that the entire hospitality sector has a negative impact
in the environment due to their mode of operation and may not directly affect the environment
but can contribute greatly to the degradation of the environment with the associated impacts of
stakeholders, the consumers, the shareholders and the associated industries that provide support
to the hospitality. The resolution of the environmental impacts can be associated with the
sustainable practices that can be implemented to lessen the impact on the environmental and
allow responsible growth for both the hotels and the environment. Looking at the nature of the
functioning of the hotels, these industries are huge consumers of several resources including
food, energy and water and human resources which have their respective footprints in the
environment and add up to the environmental impact. This paper will look into the various
possibilities of sustainable practices that can be implemented with respect to the energy
efficiency and implementation of energy efficient policies. The paper will review peer journals
that provide information about sustainable practices in the industry and the way they can be
implemented (Deale, Nichols and Jacques 2009). The paper will analyse the scenario of the
Marriott hotels in Switzerland and suggest energy efficient sustainability practices to promote
responsible tourism and contribute to the environmental development by reducing the carbon
footprint and impact on the environment. The following sections will include the methodology
that has been adopted to get an understanding of the energy usage of the hospitality industries

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across the world. The methodology used will be qualititative analysis to evaluate the current
trends in energy usage of the Marriott hotels and thereafter the recommendations will be made in
the form of an action plan to be implemented to ensure efficient energy usage in the hotel.
Literature Review
The literature reviewed for the paper reflects on the various sustainability practices and
that are implemented across the hospitality industry worldwide. The journals will also include
reviewing of the several technological improvements that have been made in order to ensure
energy efficiency. The article “Sustainability in tourism destinations: Exploring the boundaries
of eco-efficiency and green communications” was reviewed to get an understanding of the
relationship between sustainability and its associated environmental costs in the tourism industry.
The author, J.N Holleran has tried to understand the impacts of the tourism industry with regards
to hospitality and the various factors that are attached to it that contribute to the environmental
sustainability. Along with the most important aspect of transport and other allied service that is
attached to the industry. The author has brought the context of tourism sustainability in this paper
and the article gives an insight into the sustainability practices of the industry (Holleran, 2008).
The article being published in the journal of Hospitality and leisure marketing provide the
background for the paper by indentifying the concept of sustainability with respect to the
hospitality and tourism sector. The paper also brings into its purview the necessity of Life Cycle
Management in determining and measuring sustainability with respect to the hospitality and
tourism.
The next article that has been reviewed include the paper by J.S Horng et al. (2016) which
outlines the “The role of sustainable service innovation in crafting the vision of the hospitality

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industry” and the study identifies the key characteristics of the sustainable service in the
hospitality sector. The study identifies the attributes of the hospitality sector that could be
innovated to create sustainable services in the industry. The paper takes into account the way
human resources can be used sustainably to initiate sustainable work practices in the industry.
This paper gives an understanding of effective management of the employees in a sustainable
way in the hospitality sector.
The next article that has been reviewed by the paper outlines and reviews the
applicability of energy efficient retrofits in hotels using energy performance contracting. The
article “ANP model for sustainable Building Energy Efficiency Retrofit (BEER) using Energy
Performance Contracting (EPC) for hotel buildings in China” has been authored by P. Xu and
E.H Chan provides a concrete background for implementation of retrofits in the hotels for
ensuring energy efficiency (Xu and Chan 2013).
This paper reviews and evaluates the energy efficiency of the retrofits and the sustainable
resolution of the energy consumption of hotels and hospitalities with reference to China. The
findings and the implications of this paper can be implemented to various contexts including
Switzerland with modification according the requirements of the region. This paper is a credible
support for the article. The implication of the Analytic Network Process as stated in the article in
implementing “Building Energy Efficient Retrofits” provides a basic framework that can be used
to understand the context of sustainability with respect to energy efficiency in hospitality.
The next article reviewed for the analysis of the paper includes “Energy saving
supporting tourism sustainability: A case study of hotel swimming pool heat pump” and has been
authored by W.W Chan and J.C Lam and provides another context of energy efficient practices

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and the way these can be implemented. The paper outlines energy consumption and energy
efficient practice through the context of thermal performance, energy saving, indirect emissions
and financial feasibility of using heat pumps for outdoor pools and provides a context of
sustainable energy usage through the implementing energy efficient appliances. The article has
been evaluated on the basis of the energy measurements calculated form a rooftop pool of a city
hotel and the average coefficient of performance was analysed to get an understanding of the
energy consumption and thereby implement sustainable practices.
The article by L.A Pace titled “How do tourism firms innovate for sustainable energy
consumption? A capabilities perspective on the adoption of energy efficiency in tourism
accommodation establishments” gives an understanding of the necessity to initiate energy
efficient technologies and appliances to promote sustainable tourism. The paper allows us to
understand the recent trends in sustainable practices and thereby create certain practices that
promote sustainability with regards to energy consumption in tourist accommodations to
understand the capabilities of the industry in promoting energy efficient practices. The article is a
credible source and contributes to the research of this paper.
The article by H. Tooman et al. (2009) researches the case studies of the best practices in
sustainability in the hospitality in Germany and Estonia. The article looks into the challenges that
are faced while implementing green technologies and green credentials and reviews the myths
that are attached with the adaptability of the staffs to environment friendly practices yielding
negligible results altogether. The paper reviews the sustainability practices that are followed by
the Estonian and German Hotels and how these practices are managed to bring about sustainable
changes across the hospitality industry. The article will give insight into best practices that can

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be implemented for the hotels in Switzerland to foster the growth of sustainable practices in
energy efficiency.
Methodology
The qualititative analyses have been adopted as the methodology of the paper.
Qualititative analyses of peer journals were done as a part of the literature review of the article to
have a basic understanding of the sustainable practices in the hospitality industry across the
world. Articles on the basis of energy efficiency has been reviewed to get an understanding of
the energy consumption of the hospitality industries and several other aspects, The official
website of the Marriott group of Hotels were reviewed to get an understanding about the
sustainability practices that are followed in the organisation and to get a clear idea about the
energy consumption of the hotel.
Energy efficiency and sustainability practices in the Marriott, Zurich
Importance of sustainability in Hospitality:
The hospitality industry is one of the major consumers of resources and contributes
largely towards the carbon footprint of the world. The importance of implementing the
sustainability practices ensures that environmental degradation is reduced from the resultant
implementation. With the growing concern for global warming and climate change scenarios, it
is essential that these industries take responsibility of their action and initiate the pioneering steps
towards sustainable practices (Becken, Frampton and Simmons, 2001) .

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Energy Efficiency
Energy consumption is one of the major requirements for any industry and the carbon
footprint generated due the consumption of energy is one of the greatest when compared to other
resources. The implementation of sustainable practices in the environment therefore reduces the
impact on the environment and practicing sustainability in energy consumption through
modification of property, implementation of green technologies and consumption of energy
produced from greener sources enable the environmental preservation and sustainable usage of
the resources.
Energy efficiency practices include several management practices, procedures, and
inclusion of technologies that allow efficient management of energy by either reducing
consumption of energy, optimum usage of energy based appliances and by practicing effective
management techniques to ensure that wastage of energy is avoided (Kuščer et al. 2017). The
hospitality industries have huge consumption of energy to maintain the huge property and
requirement luminaries consuming a major portion of the energy, the chillers and other
associated heavy industrial appliances that contribute to the high energy consumption in the
hotel. The energy usage for the rooms and the various decorative locations require luminaries
which end up consuming a huge amount of energy (Cingoski and Petrevska 2018).
Energy Consumption: The Marriott scenario
The Marriott Group of hotels publishes their annual energy consumption reports to
provide information to their stake holders, and state their stand on the energy consumptions and
sustainable practices to ensure compliance with the environmental policies. The Marriott
International report gives an account of the aims and objectives of the Marriott group of hotels
with respect to their environmental sustainability policies. A review at the Marriott

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Environmental Report 2015 gives an understanding of the projected targets that Marriott has set
for themselves.
The report on sustainability outlines the strategy that supports business growth by
reducing impact on the environment and by implementing practices that help to protect the
planet. The sustainability practices and social impact strategy of the Marriott is driven by several
initiatives that promote and support the core values of the Marriott and include a wide range of
sustainability practices, returning to community through CSR and best practice implementation.
The organisation has adopted the 2025 sustainability and Social Impact Goals that have
been developed throughout the adoption of the policy. In order to monitor the sustainable
developments and practices the organisation has developed the Platform “Serve 360: Doing
Good in Every Direction” which focuses on four major areas to implement its sustainability
programmes to ensure the development along with sustainable platforms. The nurturing of the
goal depends upon the sustainable operational practices to ensure reduction of energy wastage
and promote responsible use of energy resources. The organisation claims that they have started
formal programs as a part of sustainable goals since 2007 and has evolved gradually into an
environment friendly programme. The Marriott International has stated that these sustainable
goals are instrumental in the growth of the organisation and therefore enable them to ensure
environmental sustainability.
Goals and Targets
The goals and targets of the Marriott hotels across the world include best practices on all
of their franchises. The Marriott Zurich also abides with the similar goals and the vision to

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achieve their target to ensure energy efficiency and resource management. The goals and targets
can be identified as follows:
 Reduction of energy and water consumption by twenty percent by the year 2020
 Empowering the stakeholders and hotel Partners to build and develop green hotels.
 To create green supply chain for all procurements.
 Educate and inspire the associates as well as the guests to conserve and preserve the
environment.
 To address the persisting environmental challenges through innovative conservation
initiatives that ensures rainforest protection and water conservation.
The goals of the Marriot in ensuring energy efficiency in their property and are based on
sustainability goals. The reduction in the energy consumption an the implementation of energy
efficient appliances and technologies will help Marriott, Zurich o achieve its goal. In order to
bring about a change and achieve energy efficiency in the property, it is important to bring
technological changes coupled with organizational changes to ensure the effective management
of energy along with the creating scope for improvement through sustainable implementation
(Marriott.com 2019).
The Findings
The Marriott reports that they have globally reduced energy intensity by 9.4 % against
the 2007 baseline consumption. In 2014 the Marriott has adopted retrofitting of luminaries and
have reported that Marriott properties have reduced over 40 million KW/h of electricity globally
and Marriott Zurich has contributed notably. The Marriott also reports that they have reduced
30,000 metric tons of Greenhouse Gas Emissions annually. The Chiller Diagnostic tool has

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helped to save 28 million kw/h in 2014 globally. The kitchens have been redesigned with
intelligent ventilation and have helped the organisation to reduce energy consumption in
electrical ventilators.
The Marriott Zurich has specially implemented energy efficient and environmental action
plans through various effective measures that are described as follows:
Action Plan
Energy and Environmental Action Plans
The Energy and Environmental Action Plans have been implemented to evaluate return
on investment of their projects and to prioritize the owner investments.
Signature Projects: The Marriott is implementing Signature projects that are designed with
accordance to LEED certification. The new properties are being developed keeping in mind the
LEED certification and promote environmental sustainability through the energy efficient
buildings as part of this programme. This includes lighting upgrades, installation of variable
frequency pumps to save energy. The most important part of the task includes the up gradation of
the old and power consuming appliances with energy saving appliances including the lighting
and luminaries, the chillers and boilers and air handling appliances, the laundries and kitchen and
outdoor facilities (Marriott.com 2019).
The retro commissioning is one of the major initiatives of the Marriott globally to
minimise energy consumption and promote efficient energy consumption. The Marriott Retro
commissioning is a major drive across the Marriott Properties including the Marriott, Zurich.
This initiative aims at reducing energy consumption and foster energy efficient appliances

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mostly lights that are now converted to retrofit LEDs. The energy efficiency of LEDs is nearly
7-8 times efficient when compared to standard lightings. Apart from these, retro commissioning
of ventilators, heaters, ventilation and air conditioning or HVAC have been done to initiate
energy efficient practices. Simultaneously, the Chiller and Boiler systems have been integrated
with automation and intelligent digitization to promote efficient energy practices. Lighting
retrofits have been the most largest reforming programme to reduce energy consumption and
promote greener and cleaner means of energy production (Marriott.com 2019).
The Building Automaton Systems is one of the initiatives undertaken by Marriott, Zurich
to include and integrate building automation systems with other automated controls to increase
the efficiency of the buildings. The automation has allowed the Marriott to install smart,
‘integrated occupancy thermostat systems’ that are coupled with entry doors to prevent wastage
of energy when guest are not occupied and at the same time they allow the property management
systems to deliver responsive ‘temperature setback efficiency’ without affecting comfort of the
guest and their preferences.
The Marriott has also initiated the renewable energy concepts to promote environmental
sustainability and efficient energy practices. Several properties have been installed with self
integrated energy units to produce its own power. The properties in India harness nearly 37
percent of their energy from local wind and solar sources thus contributing to greener and
cleaner environment (Marriott.com 2019). The properties California installed 536 Kilowatt Solar
PV panels to generate their own energy. Marriott has ensured that the properties globally
contribute to cleaner environment and get 70% of their energy requirement met from renewable
resources.

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Conclusion
The necessity to implement sustainable practices in hospitality is the need of the day and
it is a priority that cannot be avoided. The way to sustainable development can not only be
achieved through efficient energy usage but needs to be done through an overall approach. The
sustainability in hospitality can be achieved only when all the stakeholders, investors, suppliers
and associates have been included in the process and sustainable practices are followed through
and managed throughout the process. The efficient management of energy resources will not
ensure saving of energy but at the same time will enable the organisations to reduce their carbon
footprint and contribute to the sustainable development by helping the growth of the
environment as well. The hospitality as clearly noted consume up huge resources of energy apart
from water and other resources. A systematic operational practice is therefore required to ensure
that these industries contribute back to the environment to balance their impact on the
environment. The application of advanced technologies will definitely help to reduce the impact
of the industry on the environment and ensure efficient energy management, it is equally
important to implement sustainable practices and initiatives to guarantee the long term
effectiveness of sustainable practices. Without regular programs and practices it has to be
understood that the environmental practices should be developed with the most
Recommendation
The recommendations include the several practices that have been implemented across
the other properties of the Marriott, Zurich. Most importantly it has to be understood that the
sustainability of the environment depends on the effective usage of energy. The energy
efficiency of the environment is an important aspect and efficient management of the practices

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can be implemented through installation of the rooftop pools and the of self supporting energy
systems. The installation of retrofits for lighting is already in the plan of the Marriott, Zurich.
The most important factor that would increase sustainability in the Marriott, Zurich is the
employee engagement in sustainable practices which would make effective change and in
achieving the end results. The energy efficient replacement of the appliances will help them
bring about a change and lower down their consumption of the energy. It is to be recommended
that the hotel creates ways to lessen their carbon footprint and energy efficiency is one of the
methods. The energy efficiency can also be effectively practiced by monitoring the wastage of
other resources that require energy consumption. For example the water for swimming pool can
be recycled and reused by managing it through structural modification. The heat pumps that are
to employed can be replaced with a central heating system that would provide heating of the
water for all of the property therefore reducing the individual energy consumption. The cost
effectiveness of the energy consumption must also be initiated to ensure sustainability. Using
greener and cleaner source of energy will also ensure sustainability with respect to energy
efficiency. The modification of the property with efficient energy management systems will also
enhance sustainability by checking wastage of energy.

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Reference
Becken, S., Frampton, C. and Simmons, D., 2001. Energy consumption patterns in the
accommodation sector—the New Zealand case. Ecological Economics, 39(3), pp.371-386.
Bohdanowicz, P., 2005. European hoteliers’ environmental attitudes: Greening the
business. Cornell hotel and restaurant administration quarterly, 46(2), pp.188-204.
Butler, D., 2008. Architecture: Architects of a low-energy future. Nature News, 452(7187),
pp.520-523.
Chan, W.W. and Lam, J.C., 2003. Energy-saving supporting tourism sustainability: A case study
of hotel swimming pool heat pump. Journal of Sustainable Tourism, 11(1), pp.74-83.
Chan, W.W., Mak, L.M., Chen, Y.M., Wang, Y.H., Xie, H.R., Hou, G.Q. and Li, D., 2008.
Energy saving and tourism sustainability: Solar control window film in hotel rooms. Journal of
Sustainable Tourism, 16(5), pp.563-574.
Cingoski, V. and Petrevska, B., 2018. Making hotels more energy efficient: the managerial
perception. Economic research-Ekonomska istraživanja, 31(1), pp.87-101.
Deale, C., Nichols, J. and Jacques, P., 2009. A descriptive study of sustainability education in the
hospitality curriculum. Journal of Hospitality & Tourism Education, 21(4), pp.34-42.
Holleran, J.N., 2008. Sustainability in tourism destinations: Exploring the boundaries of eco-
efficiency and green communications. Journal of Hospitality & Leisure Marketing, 17(3-4),
pp.373-394.

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Horng, J.S., Wang, C.J., Liu, C.H., Chou, S.F. and Tsai, C.Y., 2016. The role of sustainable
service innovation in crafting the vision of the hospitality industry. Sustainability, 8(3), p.223.
Kuščer, K., Mihalič, T. and Pechlaner, H., 2017. Innovation, sustainable tourism and
environments in mountain destination development: A comparative analysis of Austria, Slovenia
and Switzerland. Journal of Sustainable Tourism, 25(4), pp.489-504.
Liu, Z., 2003. Sustainable tourism development: A critique. Journal of sustainable
tourism, 11(6), pp.459-475.
Marriott.com (2019). [online] Marriott.com. Available at:
https://www.marriott.com/Multimedia/PDF/CorporateResponsibility/2014SustainRpt_FNL_hr.p
df [Accessed 11 Feb. 2019].
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web.com/static-files/971f8164-aad6-47e7-9221-5995e3bc62ff [Accessed 11 Feb. 2019].
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capabilities perspective on the adoption of energy efficiency in tourism accommodation
establishments. Journal of Cleaner Production, 111, pp.409-420.
Petrevska, B., Serafimova, M. and Cingoski, V., 2018. Managing sustainable tourism and hotel
industry in Macedonia: energy resources strategic approach.
Tooman, H., Sloan, P., Legrand, W. and Fendt, J., 2009. Case studies of best practices in
sustainability in German and Estonian Hotels.

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Xu, P. and Chan, E.H., 2013. ANP model for sustainable Building Energy Efficiency Retrofit
(BEER) using Energy Performance Contracting (EPC) for hotel buildings in China. Habitat
International, 37, pp.104-112.
Zografakis, N., Gillas, K., Pollaki, A., Profylienou, M., Bounialetou, F. and Tsagarakis, K.P.,
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in hotels in Crete. Renewable Energy, 36(5), pp.1323-1328.

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Appendix
1. Year-one revenue expectancy
Room 1
Room
type 2
Room
type 3
Room
Type 4
Number of units sold annually 250 280 200 200
Average sales price per unit Fr.800.00 Fr.550.00 Fr.600.00 Fr.900.00
Annual revenue per product
Fr.200,00
0
Fr.154,00
0
Fr.120,00
0
Fr.180,00
0
Total year 1 revenue
Fr.654,00
0
2. Year 1 cost of goods sold
Room 1
Room
type 2
Room
type 3
Room
Type 4
Expected gross margin per product 20.00% 25.00% 30.00% 40.00%
Annual cost of goods sold per product Fr.40,000 Fr.38,500 Fr.36,000 Fr.72,000
Total year 1 cost of goods sold
Fr.186,50
0
3. Annual maintenance, repair, and overhaul
Factor (%) on capital
equipment 10%
4. Number of years for straight-line
depreciation 5
5. Annual tax rate 30%
6. If long-term debt is being used to finance
operations, enter the total loan value.
1,000,
000
7. Account receivable and payable % 5%
Profit and Loss Account
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5

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Annual cumulative price (revenue)
increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation
(expense) increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash
balance 0.50% 0.50% 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue
Fr.654,00
0
Fr.667,08
0
Fr.693,76
3
Fr.735,38
9
Fr.794,22
0
Cost of goods sold
Fr.186,50
0
Fr.190,23
0
Fr.197,83
9
Fr.209,71
0
Fr.226,48
6
Gross margin
Fr.467,50
0
Fr.476,85
0
Fr.495,92
4
Fr.525,67
9
Fr.567,73
4
Other revenue [source] Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Interest income Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Total revenue
Fr.467,50
0
Fr.476,85
0
Fr.495,92
4
Fr.525,67
9
Fr.567,73
4
Operating expenses
Sales and marketing Fr.12,500 Fr.12,750 Fr.13,260 Fr.14,056 Fr.15,180
Payroll and payroll taxes
Fr.120,00
0
Fr.122,40
0
Fr.127,29
6
Fr.134,93
4
Fr.145,72
8
Depreciation
Fr.209,40
0
Fr.213,58
8
Fr.217,77
6
Fr.221,96
4
Fr.226,15
2
Maintenance, repair, and
overhaul Fr.47,700 Fr.48,654 Fr.49,608 Fr.50,562 Fr.51,516
Total operating expenses
Fr.389,60
0
Fr.397,39
2
Fr.407,94
0
Fr.421,51
5
Fr.438,57
7
Operating income Fr.77,900 Fr.79,458 Fr.87,984
Fr.104,16
4
Fr.129,15
7
Interest expense on long-
term debt Fr.35,984 Fr.28,599 Fr.20,919 Fr.12,931 Fr.4,624
Operating income before
other items Fr.41,916 Fr.50,859 Fr.67,065 Fr.91,233
Fr.124,53
4
Loss (gain) on sale of assets Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Other unusual expenses
(income) Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Earnings before taxes Fr.41,916 Fr.50,859 Fr.67,065 Fr.91,233
Fr.124,53
4

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Taxes on income
30
% Fr.12,575 Fr.15,258 Fr.20,120 Fr.27,370 Fr.37,360
Net income (loss) Fr.29,341 Fr.35,601 Fr.46,946 Fr.63,863 Fr.87,174
Cumulative income Fr.29,341 Fr.64,942
Fr.111,88
8
Fr.175,75
2
Fr.262,92
5
Balance Sheet
Assets
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-
term
investments
Fr.9,505,
197
Fr.9,541,
037
Fr.9,571,
329
Fr.9,598,
101
Fr.9,623,
242
Fr.9,683,
220
Accounts
receivable
Fr.32,70
0
Fr.33,35
4
Fr.34,68
8
Fr.36,76
9
Fr.39,71
1
Fr.39,71
1
Total inventory
Fr.261,6
00.00
Fr.266,8
32.00
Fr.277,5
05.28
Fr.294,1
55.60
Fr.317,6
88.04
Fr.317,6
88
Prepaid
expenses 0 0 0 0 0 Fr.0
Deferred
income tax 0 0 0 0 0 Fr.0
Other current
assets 0 0 0 0 0 Fr.0
Total current
assets
Fr.9,799,
497
Fr.9,841,
223
Fr.9,883,
523
Fr.9,929,
026
Fr.9,980,
641
Fr.10,04
0,619
Buildings
Fr.450,0
00
Fr.450,0
00
Fr.450,0
00
Fr.450,0
00
Fr.450,0
00
Fr.450,0
00
Land 0 0 0 0 0 0
Capital
improvements
Fr.
120,000 120,000 120,000 120,000 120,000 120,000
Machinery and
equipment
Fr.
477,000 477,000 477,000 477,000 477,000 477,000
Less:
Accumulated
depreciation
expense 0 209,400 422,988 640,764 862,728
1,088,88
0
Net
property/equi
pment
Fr.1,047,
000
Fr.837,6
00
Fr.624,0
12
Fr.406,2
36
Fr.184,2
72
(Fr.41,88
0)
Goodwill Fr.0 Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Deferred
income tax 0 0 0 0 0 0
Long-term 0 0 0 0 0 0

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investments
Deposits 0 0 0 0 0 0
Other long-
term assets 0 0 0 0 0 0
Total assets
Fr.10,84
6,497
Fr.10,67
8,823
Fr.10,50
7,535
Fr.10,33
5,262
Fr.10,16
4,913
Fr.9,998,
739
Liabilities
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts
payable Fr.9,325 Fr.9,512 Fr.9,892
Fr.10,48
5
Fr.11,32
4
Fr.11,32
4
Accrued
expenses 0 0 0 0 0 0
Notes
payable/short-
term debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current
liabilities
Total current
liabilities Fr.9,325 Fr.9,512 Fr.9,892
Fr.10,48
5
Fr.11,32
4
Fr.11,32
4
Long-term debt
from loan
payment
calculator
1,000,00
0
Fr.815,3
73
Fr.623,3
61
Fr.423,6
68
Fr.215,9
88 Fr.0
Other long-
term debt Fr.0 Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Total debt
Fr.1,009,
325
Fr.824,8
84
Fr.633,2
53
Fr.434,1
53
Fr.227,3
12
Fr.11,32
4
Other liabilities 0 0 0 0 0 0
Total
liabilities
Fr.1,009,
325
Fr.824,8
84
Fr.633,2
53
Fr.434,1
53
Fr.227,3
12
Fr.11,32
4
Equ
ity
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity
(common)
Fr.
10,000,0
00
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000
Paid-in capital 0 0 0 0 0 0
Preferred
equity 0 0 0 0 0 0
Retained
earnings 0 0 0 0 0 0
Total equity
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000
Fr.10,00
0,000

21
SUSTAINABILITY PLANNING
Total
liabilities and
equity
Fr.11,00
9,325
Fr.10,82
4,884
Fr.10,63
3,253
Fr.10,43
4,153
Fr.10,22
7,312
Fr.10,01
1,324
Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income Fr.29,341 Fr.35,601 Fr.46,946 Fr.63,863 Fr.87,174 Fr.262,925
Depreciation
Fr.209,40
0
Fr.213,58
8
Fr.217,77
6
Fr.221,96
4
Fr.226,15
2
Fr.1,088,8
80
Accounts
receivable (Fr.654)
(Fr.1,334
)
(Fr.2,081
)
(Fr.2,942
) Fr.0 (Fr.7,011)
Inventories
(Fr.5,232
)
(Fr.10,67
3)
(Fr.16,65
0)
(Fr.23,53
2) Fr.0
(Fr.56,088
)
Accounts payable Fr.187 Fr.380 Fr.594 Fr.839 Fr.0 Fr.1,999
Amortization 0 0 Fr.0 Fr.0 Fr.0 Fr.0
Other liabilities 0 0 Fr.0 Fr.0 Fr.0 Fr.0
Other operating
cash flow items 0 0 Fr.0 Fr.0 Fr.0 Fr.0
Total operating
activities
Fr.233,04
2
Fr.237,56
2
Fr.246,58
4
Fr.260,19
2
Fr.313,32
6
Fr.1,290,7
05
Fr.0
Investing activities Fr.0
Capital
expenditures Fr.0 Fr.0 Fr.0 Fr.0 Fr.0 Fr.0
Acquisition of
business 0 0 0 0 0 Fr.0
Sale of fixed
assets
(Fr.12,57
5)
(Fr.15,25
8)
(Fr.20,12
0)
(Fr.27,37
0)
(Fr.37,36
0)
(Fr.112,68
2)
Other investing
cash flow items 0 0 0 0 0 Fr.0
Total investing
activities
(Fr.12,57
5)
(Fr.15,25
8)
(Fr.20,12
0)
(Fr.27,37
0)
(Fr.37,36
0)
(Fr.112,68
2)
Financing activities
Long-term
debt/financing
(Fr.184,6
27)
(Fr.192,0
12)
(Fr.199,6
93)
(Fr.207,6
80)
(Fr.215,9
88)
(Fr.1,000,0
00)
Preferred stock 0 0 0 0 0 0
Total cash
dividends paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0

22
SUSTAINABILITY PLANNING
Other financing
cash flow items 0 0 0 0 0 0
Total financing
activities
(Fr.184,6
27)
(Fr.192,0
12)
(Fr.199,6
93)
(Fr.207,6
80)
(Fr.215,9
88)
(Fr.1,000,0
00)
Cumulative cash
flow Fr.35,840 Fr.30,292 Fr.26,771 Fr.25,142 Fr.59,978 Fr.178,023
Beginning cash
balance
Fr.9,505,
197
Fr.9,541,
037
Fr.9,571,
329
Fr.9,598,
101
Fr.9,623,
242
Ending cash balance
Fr.9,541,
037
Fr.9,571,
329
Fr.9,598,
101
Fr.9,623,
242
Fr.9,683,
220