BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING...

28
Join SA’s no.1 purification company as an H 2 O International SA franchisee and become a leader in the growing water and air purification industry. BE PART OF SA’s no.1 purification company

Transcript of BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING...

Page 1: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

1 Be part of SArsquos no1 purification company

Join SArsquos no1 purification company as an H2O International SA franchisee and become a leader in the growing

water and air purification industry

BE PART OF SArsquos no1 purification company

2 Be part of SArsquos no1 purification company

REASONS WHY WErsquoRE SArsquos no1 purification company

Over 20 yearsrsquo

experience in improving

the health amp well-being of all

South Africans

Exclusive internationally-

renowned purification

systems

Over 450 products for the home

office hospitality and agricultural

industries

Dedicated service teams

committed to all our customers

More than 65 franchisees

across Southern Africa

We 100 guarantee

the purity of every drop

you drink

3 Be part of SArsquos no1 purification company

4 Be part of SArsquos no1 purification company

H2O International SA has the longest proven track

record and over 20 years experience in providing South

Africans with the very best water and air purification

systems We have been tried and tested by families

businesses the hospitality and agricultural industry and

all agree ndash when it comes to clean pure water and air

H2O is the company to turn to

JOIN A WIDE NETWORK OF EXPERIENCE AND SUPPORT

H2O International SA has more than 65 franchisees

throughout South Africa and Kenya Namibia Zimbabwe

Lesotho Swaziland Zambia and Nigeria

As an H2O International SA franchisee yoursquoll be joining an

established company and a leading brand Whatrsquos more

you will be supported by a wide range of expertise

to help you ride the wave of success to great financial

rewards while selling products that enhance peoplersquos lives

WHAT IT MEANS TO BECOME AN H2O INTERNATIONAL SA FRANCHISEE

ITrsquoS WHATrsquoS INSIDE THAT COUNTS

H2O International SArsquos payoff line itrsquos whatrsquos inside that

counts lies at the very heart of the business and all the

products As leaders at the forefront of the purification

industry we are committed to providing South Africans

with the very best water and air and we have the products

to do this

We provide over 450 purification products to the home

office hospitality and agricultural industries including

Water Purifiers Water Dispensers Coolers and Boilers

Air Purifiers Coffee Machines Shower Filters Ice

Makers Food Waste Disposers Cartridges Spares amp

Services So whatever your customers need ndash from

drinking pure water to showering in chlorine-free water

to drinking excellent coffee and breathing clean air ndash we

have the product for them

5 Be part of SArsquos no1 purification company

A typical day involves motivating and managing your sales team and internal staff manning your state-of-the-art water bar or water station servicing existing customers ordering stock for more sales and rentals matching a challenging water problem to our diverse range of solutions putting smiles on customers faces and looking forward to the next day

YOUR H2O FRANCHISEE Depending on what level you want to join H2O International SA you have a choice of two business models that you can choose from These are

Whichever one you choose H2O International SA offers great scope for growth and freedom to determine how you want to progress

So if you are passionate about health self-motivated organized financially and ethically sound and love dealing with people then we are interested in you

A DAY IN THE LIFE OF AN H2O INTERNATIONAL SA

FRANCHISEE

H2O WATER BAR

H2O WATER STATION

RECEIVE SUPPORT FROM A DEDICATED EXPERIENCE TEAMOperational support comes from a well tried and tested H2O International SA business system to assist you from step one and all the way from there You never need to face a challenge alone Our administration technical support and training are unequalled in the South African water purification industry

MAKING AN IMPACT WITH MARKETINGThe marketing team is headed-up by Tony Marchesini and Alessandro De Grandis and they have implemented a multi-media marketing and advertising strategy to drive customers to the franchise stores and the company website

The marketing levy contributed by franchisees pays for appropriate advertorials in selected magazines and google adwords campaigns H2O International SArsquos

unique integrated marketing system employing both

online and offline-marketing strategies automatically

generates leads which are passed directly to

franchisees This marketing system combined with our

superior after-sales service sets H2O International SA

apart from its competitors and underscores our position

as an undisputed industry leader

All of this is consolidated every year at an AGM where we

present a 3-day long workshop to feed new information

to you from our in-house experts and professionals in

the water purification industry Most importantly we

get to socialise with you brainstorm new ideas and get

face-to-face feedback from you

6 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoMy 20 years as a Franchisee with H2O International and Tony Marchesini has produced a comfortable living a heck of a lot of fun and countless meetings with great people ndash called customers - and a sound platform so that I can pull back at age 66 and enjoy

what I want to do when I want to do itrdquo

Chris Le MesurierCAPE TOWN CBD

ATLANTIC SEABOARD amp OVERBERG

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 2: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

2 Be part of SArsquos no1 purification company

REASONS WHY WErsquoRE SArsquos no1 purification company

Over 20 yearsrsquo

experience in improving

the health amp well-being of all

South Africans

Exclusive internationally-

renowned purification

systems

Over 450 products for the home

office hospitality and agricultural

industries

Dedicated service teams

committed to all our customers

More than 65 franchisees

across Southern Africa

We 100 guarantee

the purity of every drop

you drink

3 Be part of SArsquos no1 purification company

4 Be part of SArsquos no1 purification company

H2O International SA has the longest proven track

record and over 20 years experience in providing South

Africans with the very best water and air purification

systems We have been tried and tested by families

businesses the hospitality and agricultural industry and

all agree ndash when it comes to clean pure water and air

H2O is the company to turn to

JOIN A WIDE NETWORK OF EXPERIENCE AND SUPPORT

H2O International SA has more than 65 franchisees

throughout South Africa and Kenya Namibia Zimbabwe

Lesotho Swaziland Zambia and Nigeria

As an H2O International SA franchisee yoursquoll be joining an

established company and a leading brand Whatrsquos more

you will be supported by a wide range of expertise

to help you ride the wave of success to great financial

rewards while selling products that enhance peoplersquos lives

WHAT IT MEANS TO BECOME AN H2O INTERNATIONAL SA FRANCHISEE

ITrsquoS WHATrsquoS INSIDE THAT COUNTS

H2O International SArsquos payoff line itrsquos whatrsquos inside that

counts lies at the very heart of the business and all the

products As leaders at the forefront of the purification

industry we are committed to providing South Africans

with the very best water and air and we have the products

to do this

We provide over 450 purification products to the home

office hospitality and agricultural industries including

Water Purifiers Water Dispensers Coolers and Boilers

Air Purifiers Coffee Machines Shower Filters Ice

Makers Food Waste Disposers Cartridges Spares amp

Services So whatever your customers need ndash from

drinking pure water to showering in chlorine-free water

to drinking excellent coffee and breathing clean air ndash we

have the product for them

5 Be part of SArsquos no1 purification company

A typical day involves motivating and managing your sales team and internal staff manning your state-of-the-art water bar or water station servicing existing customers ordering stock for more sales and rentals matching a challenging water problem to our diverse range of solutions putting smiles on customers faces and looking forward to the next day

YOUR H2O FRANCHISEE Depending on what level you want to join H2O International SA you have a choice of two business models that you can choose from These are

Whichever one you choose H2O International SA offers great scope for growth and freedom to determine how you want to progress

So if you are passionate about health self-motivated organized financially and ethically sound and love dealing with people then we are interested in you

A DAY IN THE LIFE OF AN H2O INTERNATIONAL SA

FRANCHISEE

H2O WATER BAR

H2O WATER STATION

RECEIVE SUPPORT FROM A DEDICATED EXPERIENCE TEAMOperational support comes from a well tried and tested H2O International SA business system to assist you from step one and all the way from there You never need to face a challenge alone Our administration technical support and training are unequalled in the South African water purification industry

MAKING AN IMPACT WITH MARKETINGThe marketing team is headed-up by Tony Marchesini and Alessandro De Grandis and they have implemented a multi-media marketing and advertising strategy to drive customers to the franchise stores and the company website

The marketing levy contributed by franchisees pays for appropriate advertorials in selected magazines and google adwords campaigns H2O International SArsquos

unique integrated marketing system employing both

online and offline-marketing strategies automatically

generates leads which are passed directly to

franchisees This marketing system combined with our

superior after-sales service sets H2O International SA

apart from its competitors and underscores our position

as an undisputed industry leader

All of this is consolidated every year at an AGM where we

present a 3-day long workshop to feed new information

to you from our in-house experts and professionals in

the water purification industry Most importantly we

get to socialise with you brainstorm new ideas and get

face-to-face feedback from you

6 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoMy 20 years as a Franchisee with H2O International and Tony Marchesini has produced a comfortable living a heck of a lot of fun and countless meetings with great people ndash called customers - and a sound platform so that I can pull back at age 66 and enjoy

what I want to do when I want to do itrdquo

Chris Le MesurierCAPE TOWN CBD

ATLANTIC SEABOARD amp OVERBERG

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 3: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

3 Be part of SArsquos no1 purification company

4 Be part of SArsquos no1 purification company

H2O International SA has the longest proven track

record and over 20 years experience in providing South

Africans with the very best water and air purification

systems We have been tried and tested by families

businesses the hospitality and agricultural industry and

all agree ndash when it comes to clean pure water and air

H2O is the company to turn to

JOIN A WIDE NETWORK OF EXPERIENCE AND SUPPORT

H2O International SA has more than 65 franchisees

throughout South Africa and Kenya Namibia Zimbabwe

Lesotho Swaziland Zambia and Nigeria

As an H2O International SA franchisee yoursquoll be joining an

established company and a leading brand Whatrsquos more

you will be supported by a wide range of expertise

to help you ride the wave of success to great financial

rewards while selling products that enhance peoplersquos lives

WHAT IT MEANS TO BECOME AN H2O INTERNATIONAL SA FRANCHISEE

ITrsquoS WHATrsquoS INSIDE THAT COUNTS

H2O International SArsquos payoff line itrsquos whatrsquos inside that

counts lies at the very heart of the business and all the

products As leaders at the forefront of the purification

industry we are committed to providing South Africans

with the very best water and air and we have the products

to do this

We provide over 450 purification products to the home

office hospitality and agricultural industries including

Water Purifiers Water Dispensers Coolers and Boilers

Air Purifiers Coffee Machines Shower Filters Ice

Makers Food Waste Disposers Cartridges Spares amp

Services So whatever your customers need ndash from

drinking pure water to showering in chlorine-free water

to drinking excellent coffee and breathing clean air ndash we

have the product for them

5 Be part of SArsquos no1 purification company

A typical day involves motivating and managing your sales team and internal staff manning your state-of-the-art water bar or water station servicing existing customers ordering stock for more sales and rentals matching a challenging water problem to our diverse range of solutions putting smiles on customers faces and looking forward to the next day

YOUR H2O FRANCHISEE Depending on what level you want to join H2O International SA you have a choice of two business models that you can choose from These are

Whichever one you choose H2O International SA offers great scope for growth and freedom to determine how you want to progress

So if you are passionate about health self-motivated organized financially and ethically sound and love dealing with people then we are interested in you

A DAY IN THE LIFE OF AN H2O INTERNATIONAL SA

FRANCHISEE

H2O WATER BAR

H2O WATER STATION

RECEIVE SUPPORT FROM A DEDICATED EXPERIENCE TEAMOperational support comes from a well tried and tested H2O International SA business system to assist you from step one and all the way from there You never need to face a challenge alone Our administration technical support and training are unequalled in the South African water purification industry

MAKING AN IMPACT WITH MARKETINGThe marketing team is headed-up by Tony Marchesini and Alessandro De Grandis and they have implemented a multi-media marketing and advertising strategy to drive customers to the franchise stores and the company website

The marketing levy contributed by franchisees pays for appropriate advertorials in selected magazines and google adwords campaigns H2O International SArsquos

unique integrated marketing system employing both

online and offline-marketing strategies automatically

generates leads which are passed directly to

franchisees This marketing system combined with our

superior after-sales service sets H2O International SA

apart from its competitors and underscores our position

as an undisputed industry leader

All of this is consolidated every year at an AGM where we

present a 3-day long workshop to feed new information

to you from our in-house experts and professionals in

the water purification industry Most importantly we

get to socialise with you brainstorm new ideas and get

face-to-face feedback from you

6 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoMy 20 years as a Franchisee with H2O International and Tony Marchesini has produced a comfortable living a heck of a lot of fun and countless meetings with great people ndash called customers - and a sound platform so that I can pull back at age 66 and enjoy

what I want to do when I want to do itrdquo

Chris Le MesurierCAPE TOWN CBD

ATLANTIC SEABOARD amp OVERBERG

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 4: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

4 Be part of SArsquos no1 purification company

H2O International SA has the longest proven track

record and over 20 years experience in providing South

Africans with the very best water and air purification

systems We have been tried and tested by families

businesses the hospitality and agricultural industry and

all agree ndash when it comes to clean pure water and air

H2O is the company to turn to

JOIN A WIDE NETWORK OF EXPERIENCE AND SUPPORT

H2O International SA has more than 65 franchisees

throughout South Africa and Kenya Namibia Zimbabwe

Lesotho Swaziland Zambia and Nigeria

As an H2O International SA franchisee yoursquoll be joining an

established company and a leading brand Whatrsquos more

you will be supported by a wide range of expertise

to help you ride the wave of success to great financial

rewards while selling products that enhance peoplersquos lives

WHAT IT MEANS TO BECOME AN H2O INTERNATIONAL SA FRANCHISEE

ITrsquoS WHATrsquoS INSIDE THAT COUNTS

H2O International SArsquos payoff line itrsquos whatrsquos inside that

counts lies at the very heart of the business and all the

products As leaders at the forefront of the purification

industry we are committed to providing South Africans

with the very best water and air and we have the products

to do this

We provide over 450 purification products to the home

office hospitality and agricultural industries including

Water Purifiers Water Dispensers Coolers and Boilers

Air Purifiers Coffee Machines Shower Filters Ice

Makers Food Waste Disposers Cartridges Spares amp

Services So whatever your customers need ndash from

drinking pure water to showering in chlorine-free water

to drinking excellent coffee and breathing clean air ndash we

have the product for them

5 Be part of SArsquos no1 purification company

A typical day involves motivating and managing your sales team and internal staff manning your state-of-the-art water bar or water station servicing existing customers ordering stock for more sales and rentals matching a challenging water problem to our diverse range of solutions putting smiles on customers faces and looking forward to the next day

YOUR H2O FRANCHISEE Depending on what level you want to join H2O International SA you have a choice of two business models that you can choose from These are

Whichever one you choose H2O International SA offers great scope for growth and freedom to determine how you want to progress

So if you are passionate about health self-motivated organized financially and ethically sound and love dealing with people then we are interested in you

A DAY IN THE LIFE OF AN H2O INTERNATIONAL SA

FRANCHISEE

H2O WATER BAR

H2O WATER STATION

RECEIVE SUPPORT FROM A DEDICATED EXPERIENCE TEAMOperational support comes from a well tried and tested H2O International SA business system to assist you from step one and all the way from there You never need to face a challenge alone Our administration technical support and training are unequalled in the South African water purification industry

MAKING AN IMPACT WITH MARKETINGThe marketing team is headed-up by Tony Marchesini and Alessandro De Grandis and they have implemented a multi-media marketing and advertising strategy to drive customers to the franchise stores and the company website

The marketing levy contributed by franchisees pays for appropriate advertorials in selected magazines and google adwords campaigns H2O International SArsquos

unique integrated marketing system employing both

online and offline-marketing strategies automatically

generates leads which are passed directly to

franchisees This marketing system combined with our

superior after-sales service sets H2O International SA

apart from its competitors and underscores our position

as an undisputed industry leader

All of this is consolidated every year at an AGM where we

present a 3-day long workshop to feed new information

to you from our in-house experts and professionals in

the water purification industry Most importantly we

get to socialise with you brainstorm new ideas and get

face-to-face feedback from you

6 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoMy 20 years as a Franchisee with H2O International and Tony Marchesini has produced a comfortable living a heck of a lot of fun and countless meetings with great people ndash called customers - and a sound platform so that I can pull back at age 66 and enjoy

what I want to do when I want to do itrdquo

Chris Le MesurierCAPE TOWN CBD

ATLANTIC SEABOARD amp OVERBERG

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 5: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

5 Be part of SArsquos no1 purification company

A typical day involves motivating and managing your sales team and internal staff manning your state-of-the-art water bar or water station servicing existing customers ordering stock for more sales and rentals matching a challenging water problem to our diverse range of solutions putting smiles on customers faces and looking forward to the next day

YOUR H2O FRANCHISEE Depending on what level you want to join H2O International SA you have a choice of two business models that you can choose from These are

Whichever one you choose H2O International SA offers great scope for growth and freedom to determine how you want to progress

So if you are passionate about health self-motivated organized financially and ethically sound and love dealing with people then we are interested in you

A DAY IN THE LIFE OF AN H2O INTERNATIONAL SA

FRANCHISEE

H2O WATER BAR

H2O WATER STATION

RECEIVE SUPPORT FROM A DEDICATED EXPERIENCE TEAMOperational support comes from a well tried and tested H2O International SA business system to assist you from step one and all the way from there You never need to face a challenge alone Our administration technical support and training are unequalled in the South African water purification industry

MAKING AN IMPACT WITH MARKETINGThe marketing team is headed-up by Tony Marchesini and Alessandro De Grandis and they have implemented a multi-media marketing and advertising strategy to drive customers to the franchise stores and the company website

The marketing levy contributed by franchisees pays for appropriate advertorials in selected magazines and google adwords campaigns H2O International SArsquos

unique integrated marketing system employing both

online and offline-marketing strategies automatically

generates leads which are passed directly to

franchisees This marketing system combined with our

superior after-sales service sets H2O International SA

apart from its competitors and underscores our position

as an undisputed industry leader

All of this is consolidated every year at an AGM where we

present a 3-day long workshop to feed new information

to you from our in-house experts and professionals in

the water purification industry Most importantly we

get to socialise with you brainstorm new ideas and get

face-to-face feedback from you

6 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoMy 20 years as a Franchisee with H2O International and Tony Marchesini has produced a comfortable living a heck of a lot of fun and countless meetings with great people ndash called customers - and a sound platform so that I can pull back at age 66 and enjoy

what I want to do when I want to do itrdquo

Chris Le MesurierCAPE TOWN CBD

ATLANTIC SEABOARD amp OVERBERG

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 6: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

6 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoMy 20 years as a Franchisee with H2O International and Tony Marchesini has produced a comfortable living a heck of a lot of fun and countless meetings with great people ndash called customers - and a sound platform so that I can pull back at age 66 and enjoy

what I want to do when I want to do itrdquo

Chris Le MesurierCAPE TOWN CBD

ATLANTIC SEABOARD amp OVERBERG

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 7: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

7 Be part of SArsquos no1 purification company

WHERE WE ARE LOOKING FOR A

FRANCHISEEWe are looking for new franchisees that are dynamic positively minded go-getter-type people with a great sense of business ethics who place a high value on health and will be willing to join and work within a structured franchisee system in H2O International SA

VascoGoodwoodWorcester

OUTSIDE SA AngolaBotswana GhanaLusaka - ZambiaMozambique Zimbabwe Uganda

EASTERN CAPE Beacon Bay East London Framesby PE Graaf Reinet Port Elizabeth Umtata

GAUTENG Akasia Alberton Atteridgeville Benoni Boksburg Brakpan Eldoraigne EdenvaleForesthillHatfield Highlands Kempton ParkKenilworthLenasia

Lynwood Montana Moreleta Park Northcliff Odendaalsrus Riebeeckstad Silverton Soweto Main Vereeniging Waverley

KWAZULU-NATAL Amanzimtoti Bluff ChatsworthGlennwoodKokstad LadysmithNewcastle Pietermaritzburg Pinetown Queensburgh

Umlazi Westville

LIMPOPO GroblersdalLephalaleMachado (Louis Trichardt) Mokopane Musina Phalaborwa Polokwane (Pietersburg) Thabazimbi Tzaneen Thohoyandou

MPUMULANGA Burgersfort Ermelo Piet Retief TrichardtSecunda

NORTH WEST BloemhofKrugersdorp Mafikeng Potchefstroom Rustenburg

ORANGE FREE STATE Bethlehem Kroonstad Welkom

WESTERN CAPE Athlone Brackenfell Gordons Bay Kuilsriver PaarlPinelands Strand

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 8: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

8 Be part of SArsquos no1 purification company

ABOUTH2OH2O International SA is SArsquos no1 purification company dedicated to increasing public awareness about the importance of purified water and air in maintaining good health

HUMBLE BEGINNINGS

H2O International SA was founded in 1994 by Tony Marchesini Today we have over 60 franchises and stockists and have emerged as the leading force in water purification on the African continent Our well established network of branches now span the entire African continent with Franchises as far as Kenya and Nigeria Tonyrsquos dedication to providing South Africans with only the purist water and air is what the companyrsquos position statement Itrsquos whatrsquos inside that counts encompasses

UNIQUE PRODUCTS

H2O International SA is the exclusive distributor in South Africa of the unique KDF reg Process Media which guarantees the finest quality water and great taste by

removing all the harmful unwanted contaminants from tap water H2Orsquos sole distributorship status is directly as a result of our experience and extensive knowledge in

applying the KDF reg Process Media technology correctly

Inside all H2Orsquos water filters is a unique Multi Stage Water Purification System which contains the unique Riolyte reg KDF reg and GAC media bed which removes all impurities and retains natural occurring minerals found in the water

INNOVATIVE CONCEPTS

Tony introduced the unique Water Bar concept to the H2O International SA Franchise in 1997 A Water Bar is like a trendy sidewalk cafeacute situated in high traffic shopping malls H2O International SArsquos core range of 450 products are on display in a very small store using a novel display LCD Screen display concept

Seeing the huge need for purified water supplied to the middle income group in refillable bottles H2O International SA launched the Water Station concept in 2009 A Water Station outlet is situated in a strip mall close to an anchor tenant like the local Spar supermarket Cars must be able to drive up to the outlet to load up their refillable bottles filled with sweet pure H2O which they can buy from as little as R100 per litre

ESCALATING GROWTH

Over the past few years H2O International SA has grown rapidly It has embraced the direct selling ethos with the franchise concept as the blueprint for its business operation H2O International SA is well represented in many of SArsquos major shopping centres and has over 65 individually owned branches that are run by Franchisees

Each Franchisee has a dedicated team of sales consultants who participate in exhibitions telesales and other direct selling marketing activities

IN TOUCH WITH THE FUTURE

Consistent with trends in Europe and other parts of the world H2O International SA has moved towards the Home and Office (HOD) Delivery Service market Although this trend is not as well developed in South Africa as in other parts of the world H2O International SA has already positioned itself at the forefront of this market

Through its well-established franchise network credible brand name and proven business formula H2O International SA is now able to include the HOD service in its offering to clients Businesses can rent water coolers and have water delivered to them in 189 litre bottles to ensure that their staff has access to pure water close to their work stations Where practical we encourage businesses to install a water purifier in front of their water cooler and have a mains fed system rather than have water delivered to their premises This saves time money and the environment

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 9: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

9 Be part of SArsquos no1 purification company

WIDE RANGE OF PRODUCTS

In its early days H2O International SA primarily distributed the winning range of H2O International SA water purifiers Progressively more water related types of products were added Today H2O International SA

has positioned itself as a multi-faceted distributor of water related products The range currently includes H2O International SArsquos tried and tested water purifier range Rio-Vita and Cosmetal Water Coolers Scotsman and Manitowoc Ice Machines the well known Supreme Water Boilers Sprada and Saeco Coffee Machines and now Air Purifiers

RAISING THE LEVEL ON QUALITY

As South Africarsquos water quality continues to worsen and as people become more health conscious H2O International SA plays an active a role in educating people about water We are keenly dedicated to creating awareness about the importance of purified water as part of a healthy lifestyle through our advertising and publicity campaign

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 10: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

10 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquoS OPERATING PHILOSOPHY

H2O INTERNATIONAL SArsquoS MISSION H2O International SArsquos Mission is

ldquoTO IMPROVE THE HEALTH AND WELL-BEING OF ALL SOUTH AFRICANSrdquo

H2O International SA currently has over 60 direct outlets that market and sell the range of H2O International SA water purifiers and water dispensers and are structured as a Direct Selling franchise businesses

Apart from these outlets each Franchisee appoints their own sales consultants who market and sell the range of products through in-home presentations and exhibitions

By training and motivating an established network of committed consultants marketing possibilities and opportunities within the territory are explored and in full

We truly believe

ldquoItrsquos whatrsquos inside that countsrdquoand are committed to making each and every South African aware of the importance of pure water and pure air in their daily lives

We encourage all South Africans to drink more pure water and less of the commercially available soft drinks which contain caffeine sugar colorants and other preservatives WE also encourage all South Africans to clean the air in their homes offices and motor vehicles

We educate the public making them aware that indoor air quality is up to 5 times more polluted than outdoor air

Our ultimate aim is to improve the health well-being

and the quality of the lives of all that are touched by H2O

International SA rsquos quality water and air

Our mission is also to continue to build H2O International

SA into a brand that will compete with and be matched by other beverage companies like Coca-Cola and Nestle

and build H2O International SA into a household name associated with quality health and prompt service

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 11: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

11 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos CEOTONY MARCHESINI

Tony has always been a believer in empowering his co-workers and offering them

opportunities to advance innovate and reach their full potential

Prior to starting the H2O International SA operation he worked for Italtile Ltd and

developed the Ceramic Tile Market (CTM) retail concept and set up the franchise

He became the Executive Director of Italtile Pretoria in 1984 and was responsible

for marketing the companyrsquos products in what was known as the Northern

Transvaal

He was later appointed as the Group Marketing Executive of Italtile before

resigning in 1992 to focus on his real passion - providing all South Africans with

the most advanced technology in water and air purification Tony was inspired

to start H2O International SA 20 years ago when he became aware of the huge

difference a water purifier could make not only to the taste and colour of the water

but to the health and well-being of the family drinking this water His dedication to

providing South Africans with only the finest water and air is what the companyrsquos

positioning statement Itrsquos whatrsquos inside that counts encompasses

Tony completed his BBusSci (Hons) MBA (Cum Laude) degree in 1994 The

phenomenal growth of H2O International SA from just one store in Rondebosch

to over 60 franchisees across South Africa Kenya Namibia Lesotho Swaziland

Zambia and Nigeria is testimony to Tonyrsquos business acumen integrity Christian

values and stewardship From humble beginnings he has ensured H2O International

SA is company that places its people and customers first and is the leading force

in water purification on the African continent

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 12: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

12 Be part of SArsquos no1 purification company

H2O INTERNATIONAL SArsquos FINANCIAL AND OPERATIONS DIRECTORKEN LISTER

Ken holds a BCom degree majoring in accounts from the University of Stellenbosch

and over 25 years in the retail industry Prior to joining H2O International SA in

2006 Ken was the Financial Manager and Co-Shareholder of WC Water Comfort

(Pty) Ltd

Ken has known Tony Marchesini since 1996 and was attracted to the H2O

business ethos and the quality of life it offered As a committed family man he is

passionate about H2Orsquos products and the huge health benefits purified water and

air brings to all South Africans

Ken is dedicated to the challenge of maintaining H2Orsquos position as SArsquos no1

purification company and taking it to even greater success

He also currently sits on the board of trustees of the Wishing Well International

Foundation (WWIF) of SA which is a registered PBO that supplies clean safe

drinking water to developing communities across southern Africa His passion

for people and health has him actively involved at ground level in the deployment

of water purifiers in various areas

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 13: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

13 Be part of SArsquos no1 purification company

FRANCHISEE

BENEFITS OF BECOMING AN

bull You immediately become part of a going concern

bull You have the H2O International SA brand name which is recognized as the market leader and readily accepted by loyal as well as potential customers

bull You start your own business step by step with the support expertise and know-how of the H2O International SA management team

bull You benefit from continuing guidance and management support

bull You are equipped with marketing and sales support and administrative procedures to ensure maximum sales results

bull You receive the benefits of co-operative national advertising campaign

bull You benefit from the constant interplay of new ideas resulting from franchisee interaction

bull You receive the benefits of store layout 1113088 You benefitfrom H2O International SArsquos expertise in setting up and managing shows

bull You benefit from H2O International SArsquos products which are tried tested trusted and known internationally

H2O International SA

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 14: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

14 Be part of SArsquos no1 purification company

bull Top class customer service in a pleasant atmosphere

bull Smart work of excellent quality

bull Well organised and neatly laid out direct sales outlets

bull Competent management and personnel

bull Well planned and organised business management

bull Tight control of staff administration and finances

bull Never take unfair advantage of suppliers or customers but conduct business in a fair and ethical manner

bull Maintain excellent payments records with all suppliers landlords and other creditors

bull Full marketing support including internet advertising

bull Brilliant expertise in Telesales and Exhibitions

H2O International SArsquos RECIPE FOR SUCCESS

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 15: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

15 Be part of SArsquos no1 purification company

WHAT KIND OF A BUSINESS

WILL YOU BE RUNNINGSET UP COST R400000ndashR600000 excluding VAT

depending on the type of franchise location and the

quality of the source of the water to be bottled

The total set up cost provides you with a complete

turnkey operation

FRANCHISE FEEFROM R125 000 excluding VAT

(Included in the set up costs)

The Franchise Fee is a once-off payment for each

franchisee that is opened It secures the rights to

operate a franchise using The H2O International SA

trademarks and business systems This fee is included

in the set up costs

MANAGEMENT AND MARKETING FRANCHISE FEE Management Franchise fee 6 of turnover

Marketing Fee 3 of turnover

ASSISTANCE WITH FINANCE We can assist with financing through several major

banking institutions

WORKING CAPITALWe recommend +- R200000 (four monthrsquos expenses)

as an initial start up working capital This amount can

either be provided in the form of an overdraft or your own

funding can be used for this These funds will be used

to support your cash flow in the initial start up phase

Please note that support office will provide an account

to approved franchisees on a 30 day credit term

ESTABLISHMENT COSTGeneral Cost Franchise Fee

FROM R 125 000 plus VAT (per marketing area)

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 16: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

16 Be part of SArsquos no1 purification company

bull Assistance with your start-up programme and

identification of needs

bull Store layout specifications and advertising material

Assistance with the opening of accounts with

existing suppliers

bull Price lists and visual materials of the total range of

H2O International SA products

bull Training videos

bull Proven marketing and sales strategies

bull Advice and assistance

bull An annual three-day conference held in May at

which all franchisees are present Also present at

this conference is Guillermo Guzman President of

H2O International Inc

bull Once the franchise agreement has been signed

and the franchise fee has been paid staff training

and startup assistance will be provided

bull Franchise Operating Procedures Manual (On the

H2O Portal)

WHAT YOU GET FOR YOUR INVESTMENT

WHAT WE EXPECT OF YOUbull A commitment and determination to succeed

bull Hard work and dedication to the task

bull Hands-on management

bull Loyalty to H2O International SArsquos ideals and

objectives

bull A consistent standard of service in the areas of

service range customer relations and efficient

service

bull Compliance with the Franchise Agreement

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 17: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

17 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoWith H2O International SA it is great to be able to educate your customer rather than just sell them

another product to provide them with a lsquoneedrsquo not a lsquowantrsquo and see them walk away at ease that their

purchase has real value and contributes to the well-being of their familyrdquo

Liezel Maree (second Generation H2O Franchisee)

HELDERKRUIN

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 18: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

18 Be part of SArsquos no1 purification company

HOW SALESARE MADE

The majority of sales are made directly with sales consultants calling on prospective customers in their area by telephone and making appointments to discuss and sell products to those who are interested Sales also come from consumers responding directly to the advertising contacting the 0800 number and consumers responding to our website

Customers also come in and buy their water in refillable bottles Those customers soon realize that to purchase a water purifier would make more economic sense and switch to installing their own one in their home

H2O INTERNATIONAL SArsquoS DIRECT SELLING ETHOS The direct selling concept is the very core of H2O

International SArsquos mode of operation Each franchise

operates independently with its own team of sales

consultants marketing and selling the product range at

exhibitions and in-house presentations to businesses

and homes

Each franchise has its own outlet where the public

can view the products purchase and obtain technical

support

TRAINING

Franchisee and Sales Consultant training is constantly

being conducted by Vivian Bruni the National Sales

Manageress She has an excellent sales track record

and travels the country to conduct training sessions and

assisting franchisees

H2O International SA offers an intensive in-house

training course for new franchisees and managers for

one week followed by on-the-job training on one or

more sites Other training courses are also available

at various times during the year and will be run on an

ongoing basis

Our training courses contain the following modules

bull Product Knowledge

bull Technical Knowledge

bull Administration and Financial Procedures

bull Equipment Use and Maintenance

bull Water Bottling Procedure

bull Management Functions and Responsibilities

bull Industrial Relations

bull Staff Management and Training

bull Sales Training

bull How to do Professional Installations

BACKUP SERVICE H2O International SA places strong emphasis on the quality of installations Installations of Purifiers Coolers and Water Boilers can only be carried out by qualified plumbers but most installers arenrsquot plumbers And the training includes how to install professionally We offer customers a 48-hour call-back service

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 19: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

19 Be part of SArsquos no1 purification company

SALES FORCE PROFILETHE H2O INTERNATIONAL SA SENIOR FRANCHISEE H2O International SA is particularly interested in people

who possess some or all of the following attributes

bull You must be able to work with the public and have a

pleasant positive caring nature

bull You must have very good selling skills experience

in direct selling is preferable

bull You must be a self motivated and organised person

who wants to succeed and be prepared to work as

part of a team

bull You must be a financially and ethically sound person

who is genuine with customers suppliers and the

H2O International SA Support Office

bull You must have the cash required of approximately

50 percent of the total set-up costs including 6

months personal living expenses while the franchise

outlet is being established

A Franchisee is the key figure heshe is described as

follows

1 The Franchisee owns and operates hisher own

business

2 The Franchisee has demonstrated the ability to set

up an outlet and a network of distributors executive

distributors Heshe manages the business

efficiently and has built a solid business track

record

3 Heshe identifies and develops key people for future

management positions in the business

4 Heshe has the ability to purchase adequate

amounts of stock run a profitable business and

continues to build the business motivate teams

and constantly seeks new opportunities to grow the

network of people who supports hisher network

THE FRANCHISEErsquoS DEDICATED NETWORK OF SALES STAFF Each Franchisee has a network of dedicated sales

people Starting as a consultant these people work their

way up through hard work and a proven track record

with the company

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 20: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

20 Be part of SArsquos no1 purification company

H2O International SArsquos

STEPS OF OPPORTUNITY3

1

3

2

SALES CONSULTANT You have completed all aspects of training and have great product knowledge You know how to build value when demonstrating the products and how to get the customer to commit to purchasing the product You have received instructions on generating leads and organizing appointment schedules

EXECUTIVE CONSULTANT You have become highly efficient in all aspects of presentation product knowledge generating leads setting appointments and recruiting You have written and passed the Executive Consultants Qualifying exam You will also learn to become more proficient in training and are appointed by your Franchisee if you show leadership qualities and are able to assist a team of at least five consultants

FRANCHISEE You have performed well as an Executive Consultant and you have become familiar with all facets of the H2O International SA business the products procedures and values

You have the necessary infrastructure to handle the management of an office customer relations financing sales meetings and training You will also become more skilled in the training and in motivating new consultants to grow their business You own and operate your own business within a Water Bar or Water Station outlet approved by the Franchisor

You have demonstrated the ability to set up an outlet and a network of consultants and executive consultants You manage the business efficiently and have built a solid customer base You identify and develop key people for future management positions in the business

You have the ability to purchase adequate amounts of stock run a profitable business and continue to build the business motivate teams and constantly seek new opportunities to grow the network of people who support your business

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 21: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

21 Be part of SArsquos no1 purification company

OF THE H2O International SAFRANCHISING AGREEMENT ARETHE HEADS

H2O WATER BAR

H2O WATER STATION

OR

CONCEPT Either an H2O International SA WATER BAR or an H2O International WATER STATION

H2O International SA (Pty) Ltd is a member of the Water Quality Association since 1998

H2O International SA (Pty) Ltd is a Full Member of THE FRANCHISE ASSOCIATION of SA since 1999

TERM5 years with the option to renew for a further 5 years

FRANCHISE FEEFROM R125 000 + VAT

TRAINING FEER5 000 + VAT Venue Head Office Tokai Duration 5 Days

R10 000 + VAT Venue On site after openingDuration 10 Days

SETTING UP COSTS R400 000 ndash R600 000 depending on the type of franchise

MANAGEMENT SERVICE FEE6 percent of turnover

ADVERTISING LEVY3 percent of turnover

MINIMUM MONTHLY ROYALTY R3 600 + VAT MINIMUM PURIFIER STOCK holding required

SET UP OF A NETWORK of sales consultants

OWNER OPERATED

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 22: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

22 Be part of SArsquos no1 purification company

FRANCHISEESCURRENT H2O International SArsquos

WESTERN CAPEAtlantic Seaboard amp Cape Town CBD Chris Le Mesurier

Blouberg amp West Coast Mike OosthuyzenMac OosthuyzenAdien Oosthuyzen

Brackenfell Neil amp Debbie Christie

Bredasdorp amp Overberg Chris Le Mesurier

Century CityMike Oosthuiyzen Mac OosthuyzenAdien Oosthuyzen

Constantia amp Kenilworth Trish HohmannMike Hohmann

Longbeach amp Fish Hoek Michael CoramRondebosch Emmanuel Clifford

Somerset West Nick Groves

Stellenbosch Monica le Roux

Head Office amp Tokai Tony amp Rosa Marchesini Ken Lister

Tygervalley Tracy Hurwitz

George Hettie GoosenAndre Goosen

Knysna Louis NelMossel Bay Hettie GoosenAndre Goosen

Langebaan Peter Crees

Hermanus Chris Le Mesurier

EASTERN CAPENewton Park - Port Elizabeth Roger White

FREE STATEBloemfontein Brandwag Nick Visagie

Bloemfontein Sleurval Nick Visagie

Bloemfontein North Nick Visagie

Harrismith Morne Bothma

NORTH WESTBotswanaMolefe amp Sophie Petros

Ganyesa amp Vryburg Ian Frylink

Hartbeespoort Martie Bezuidenhout

Klerksdorp Yolandi Beukes

Brits Andri Bezuidenhout

GAUTENGBedfordview Leejay amp Lani Carrozzo

Centurion Cheryl Kennedy

Fourways Mike Gird

Helderkruin Liezel Maree

Midrand Tjaart amp Amanda Venter

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 23: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

23 Be part of SArsquos no1 purification company

GAUTENG contOlivedalePierre Lundberg

Pretoria Tommy Dent

RandburgAndrea AmbrogioniRoger Van Doorn

SandtonLiezel Maree

Wanderers David Methven

Retail Crossing West Rand Liezel Maree

KWA-ZULU NATALBallito North Coast Louise Elliot

Durban North Adrian Schoeman

Hibiscus Coast Neven Jestin

Hillcrest Highway Victor amp Sandra Ferreira

Shelly Beach Neven Jestin

Umhlanga Adrian Schoeman

Water Dispensers amp Rentals Phillip Inggs

MPUMALANGAMiddelburg Morne Truter

Nelspruit Peter KellarIgnatius Ferreira

Witbank Morne Truter

NORTHERN CAPE Kimberley Vincent Madibane

KENYA NiarobiDavid Maina

LESOTHO Mochete amp Mosa Makara

MOZAMBIQUE Hendrik Niehaus

NAMIBIA Anticor Thomas Duncan

NIGERIA Jabi Abuja Ugo Ibedu

SWAZILAND Stuart Donaldson

ZAMBIARob amp Helena Coombes

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 24: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

24 Be part of SArsquos no1 purification company

NEW LOOK STORESH2O INTERNATIONAL SArsquos

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 25: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

25 Be part of SArsquos no1 purification company

SUPPLIERS WATER PURIFIERS - USA The H2O International SA range of countertop under sink in-line appliance cartridges shower systems and whole-house units are TRIED TESTED and TRUSTED in over 54 countries worldwide H2O International SA uses the latest in cutting-edge technology in water purification The main line of products uses the latest KDF (Kinetic Degradation Fluxion) technology a patented purification medium in combination with the finest GAC (Granular Activated Carbon) In addition to these components H2O International SA recently added a unique patented Riolyte formula to some of its products Riolyte contains specially formulated mineral components that are mixed into the media bed Riolyte gently releases these minerals into the water making the water more palatable

WATER COOLERS H2O International SArsquos fine range of Rio Vita hot amp cold water coolers are manufactured in Seoul Korea by Clover Corporation and are imported directly All products carry the TUV and SABS Certification

WATER COOLERS - CHINA We have recently added economy coolers and countertop machines to our range to win the price war with competitors who have been trying to undercut H2O International SA While top quality products at premium prices keep H2O International SA the leader in the field we need to remain competitive on all fronts The

economy range is requested from our upper middle and lower market and it is easy to sell up once the customer is delighted with our services

COSMETAL ndash WATER COOLERS AND WATER FOUNTAINS ndash ITALY Started in 1963 Cosmetal has adapted its activities over time in order to answer to emerging markets and has managed to become the international award winning leader in the manufacturing of water coolers and water fountains for more than twenty years

Initially this was a handicraft entrepreneurship but thanks to determination and a clear goal it quickly developed and grew in size creating an organisation and a team of well-pre- pared managers which together enable the company to be successful in markets on a world-wide scale

These days Cosmetal is the only company in the sector which can pride itself on offering such a wide and complete range of products capable of meeting the requirements of users from some of the most diverse countries in the world

Over and above their popular range of elegantly designed products for home and office they have developed an exceptional range of products ideally suited for restaurants large canteens and schools where large quantities of chilled water need to be dispensed quickly

ICE MAKING SYSTEMS H2O International SA have been appointed as designated distributor of the famous Scotsman brand of ice making systems made in Italy as well as the top selling brand of Ice Machines in the USA MANITOWOC

WATER BOILERS FRANKE ndash SA amp eBOILManufactured in SA Franke and eBoil produce reliable and hard working units with various models in their range

GRAVITY FEED FILTERS - INDIA We also import a range of gravity feed stainless steel water purifiers which are ideal for those homeowners who do not have water piped into their homes or where the water pressure supply is not reliable It is a great inexpensive way to start purifying your water and ensuring great health for the whole family

AIR PURIFIERS ADA - China ADA Air Purifier amp Air Cleaner (Xiamen) CoLtd has been the manufacturer of Airdow air purifiers since 1997 Their products are of excellent quality and safety and have received international approval ADArsquos products are being sold in over 30 countries worldwide Airdow purifiers range in size and function and are specifically designed to purify the indoor air environment of homes bedrooms offices cars and even refrigerators The benefits being cleaner safer fresher and healthier air for the user

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 26: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

26 Be part of SArsquos no1 purification company

ldquowhat our franchisees say

ldquoItrsquos always satisfying when clients and friends take the time to let me know the

difference itrsquos made in their livesldquoThis water now tastes like Evianrdquo heard recently after installing an H2O

Undercounter systemrdquo

Dave MethvenWANDERERS GAUTENG

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 27: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

27 Be part of SArsquos no1 purification company

to stay young

JOIN SArsquos no 1 purification companyamp CATCH THE WAVE OF SUCCESSWith the deteriorating water and air quality in South

Africa and the increased awareness of the harmful

effects of chemicals used in municipally treated water

interest in the water purification market is growing at a

rapid pace

In an age when people are tasting and challenging the

assumption that South Africans have the best quality

drinking water in the world water purification is fast

becoming a necessity in South Africa

H2O International SA has benefited from the publicrsquos

increasing awareness of health and environmental

issues Continual media coverage indicates that people

throughout the country are becoming more concerned

about issues like industrial pollution of dam water

and the harmful effects of chemicals used in municipal

water supplies on our health

THE WATER BUSINESS IS BOOMING NOW IS THE TIME TO JUMP IN WITH THE LEADER - H2O INTERNATIONAL SA

We invite you to join our winning team and become part of our success story by starting your own H2O International SA outlet Your outlet will be backed and supported by the management and dedicated staff of H2O International SA

H2O INTERNATIONAL SA (PTY) LTD 37 Bell CrescentWestlake Business Park Tokai Cape Town South Africa7945

Tel +27 21 702-3262 Fax +27 21 702-3270 E-mail infoh2ocoza

wwwh2ocoza

H2O International SA (Pty) Ltd is a Level 6 BBBEE Contributor

PUBLIC LIABILITY Santam Multiplex Commercial Policy no 245631081586950M

YOUR BODY IS

75 WATER

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME

Page 28: BE PART OF SA’s no.1 purification company7 e r SA’s .1 purification company WHERE WE ARE LOOKING FOR AFRANCHISEE We are looking for new franchisees that are dynamic, positively

28 Be part of SArsquos no1 purification company

INTELLECTUAL PROPERTY RIGHTS CONFIDENTIALITY AGREEMENTThis letter serves to confirm that I am in receipt of an

H2O International SA Prospectus Document

I acknowledge the confidentiality of the Disclosure Document and Franchise Agreement which I will receive following signature of the confirmation I agree not to copy reproduce or duplicate any part portion or section of these documents nor will I provide these documents to any third party not advising me on terms of the franchise Should I decide not to proceed with

the franchise I agree to return these documents to H2O

International SA within a period of seven (7) days

Signed this day of 20

Signature

Print Name

THANK YOUFOR YOUR TIME