JAD BIKES Sean Graves & Julia Spriggs 2015 – 2017

FINANCIAL ANALYSIS  Profit after tax was $5,737,515 in 2015  Industry average of $411,125  From Profit after Tax grew 10%  SHV has grown 30% over the past year to $46.03  Industry average of $30.37  MKAB is the only one ahead of JAD at $93.26

OPERATIONS STRATEGY  In 2015 wastage peaked at 32%  Cuts in efficiency spending  Wastage in 2017 has dropped to 22%  Industry average of 23%  Target of 1%-10%  Idle time hit 64% in 2016  Overproduction of road bikes in 2015  In 2017 and 2015 idle time was 2% and 3%  Within the target of 1%-10%  Well below averages of 20% and 30%

MARKETING STRATEGY Mountain Bike – Adv1  Sales have increased from 27,000 to 28,028 from 2015 to 2017  Awareness rating has decreased slightly from 0.28 to 0.25 from  Public Relations rating has remained fairly constant over the past three years at 0.06, below the target of 0.10  Distribution rating increased slightly from 0.28 to 0.29 over the past 3 years

Road Bike – LiquidLightening_2014  Sales have decreased from 9,931 in 2015, to 8,863 in 2016, to 8,446 in 2017  Awareness Rating has increased from 0.16 to 0.21  Well under the competitor at 0.36, and over the target of 0.10  PR rating has remained constant over the past 3 years at 0.02  way below the target of 0.30, but consistent with industry average  Distribution rating from 2015 – 2017 has decreased from 0.70 to 0.57 MARKETING STRATEGY

INTERNAL FACTORS Strengths  Unmet demand of over 5,000 bikes in road bike industry  Failure of Everest Bikes, as they were JAD’s greatest competitor Weaknesses  MKAB is out performing JAD in both markets  Mikes Bikes might move into the road bike industry with a quality rating of 0.92

EXTERNAL FACTORS Opportunities  Unmet demand of over 5,000 bikes in road bike industry  Failure of Everest Bikes, as they were JAD’s greatest competitor Threats  MKAB is out performing JAD in both markets  Mikes Bikes might move into the road bike industry with a quality rating of 0.92

FUTURE PROJECTIONS Objectives  Capture more of the road bikes market  Decrease wastage by 10% over the next 2 years Recommendations  Increase spending on advertising and PR for the road bike  Increase efficiency spending to $500,000

Thank you for your time. CLOSING