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RED CONSULTING KOLESAROVA | MAISONNEUVE | RUBIO MALDONADO

PROBLÈME & MANDAT AGENDA ANALYSE DES ÉCRATS STRATÉGIE FINANCES : RSI 12.29% ANALYSE MISE EN OEUVRE CONCLUSION RED 3

PROBLÈME APN recherche une stratégie de croissance qui lui permettra de maintenir, au minimum, sa croissance historique de 20% RED 4

MANDAT RED Consulting doit élaborer une avenue de croissance pour APN en assurant de rester en lien avec les valeur de l’entreprise selon un plan SMaC RED 5

GAP ANALYSIS RED 6

Historical & targeted growth rate of 20% DESIRED GAP ANALYSIS CURRENT RED 7

Historical & targeted growth rate of 20% DESIRED CAGR of 30% over the next 5 years GAP ANALYSIS CURRENT RED 8

Historical & targeted growth rate of 20% DESIRED CAGR of 30% over the next 5 years Revenues of $12M in 2015 GAP ANALYSIS CURRENT RED 9

Historical & targeted growth rate of 20% DESIRED CAGR of 30% over the next 5 years Revenues of $12M in 2015Revenues reaching $32M in 2021 GAP ANALYSIS CURRENT RED 10

Historical & targeted growth rate of 20% DESIRED CAGR of 30% over the next 5 years Revenues of $12M in 2015Revenues reaching $32M in 2021 Manufacturing presence in 3 countries GAP ANALYSIS CURRENT RED 11

Historical & targeted growth rate of 20% DESIRED CAGR of 30% over the next 5 years Revenues of $12M in 2015Revenues reaching $32M in 2021 Manufacturing presence in 3 countriesManufacturing presence in 4 countries GAP ANALYSIS CURRENT RED 12

WHERE?HOW?WHEN? RED 13

France Aerospace Valley WHERE France, Toulouse Over 500 affiliated companies Global outreach RED 14

France Aerospace Valley Greenfield Investment WHERE HOW France, Toulouse Over 500 affiliated companies Global outreach Build your own manufacturing plan Later acquisition of Excel Carbide RED 15

France Aerospace Valley Greenfield Investment Starting 2016 WHERE HOW WHEN France, Toulouse Over 500 affiliated companies Global outreach 5 years to implement ROI of 12.29% Build your own manufacturing plan Later acquisition of Excel Carbide RED 16

ANALYSIS RED 17

CLUSTER PRESENCE LABOUR FORCE LEGAL & FINANCIAL INFRASTRUCTURE MARKET ANALYSIS FRANCESINGAPOREU.S.A. Large Well developed Stable Well developed Low TECHNOLOGICAL INFRASTRUCTURE CULTURAL BARRIERS Medium Developed Stable Developed High Large (spread) Well developed Stable Well developed Medium RED 18

CLUSTER PRESENCE LABOUR FORCE LEGAL & FINANCIAL INFRASTRUCTURE MARKET ANALYSIS FRANCESINGAPOREU.S.A. Large Well developed Stable Well developed Low TECHNOLOGICAL INFRASTRUCTURE CULTURAL BARRIERS Medium Developed Stable Developed High Large (spread) Well developed Stable Well developed Medium RED 19

COST RISK CONTROL MODE OF ENTRY ANALYSIS ACQUISITION High POTENTIAL RETURN High Medium High GREENFIELD High High (mitigated) High RED 20

COST RISK CONTROL MODE OF ENTRY ANALYSIS ACQUISITION High POTENTIAL RETURN High Medium High GREENFIELD High High (mitigated) High RED 21

CLUSTER PRESENCE LABOUR FORCE LEGAL & FINANCIAL INFRASTRUCTURE MARKET ANALYSIS FRANCESINGAPOREU.S.A. Large Well developed Stable Well developed Low TECHNOLOGICAL INFRASTRUCTURE CULTURAL BARRIERS Medium Developed Stable Developed High Large (spread) Well developed Stable Well developed Medium RED 22

CLUSTER PRESENCE LABOUR FORCE LEGAL & FINANCIAL INFRASTRUCTURE MARKET ANALYSIS FRANCESINGAPOREU.S.A. Large Well developed Stable Well developed Low TECHNOLOGICAL INFRASTRUCTURE CULTURAL BARRIERS Medium Developed Stable Developed High Large (spread) Well developed Stable Well developed Medium RED 23

COST RISK CONTROL MODE OF ENTRY ANALYSIS ACQUISITION High POTENTIAL RETURN High Medium High GREENFIELD High High (mitigated) High RED 24

COST RISK CONTROL MODE OF ENTRY ANALYSIS ACQUISITION High POTENTIAL RETURN High Medium High GREENFIELD High High (mitigated) High RED 25

MARKET ANALYSIS Competitive prices Quality of products Custom parts Fast turnaround RED 26 Customer service

STRATEGY RED 27

OPERATIONS TECHNOLOGY MARKETING & SALES HUMAN RESOURCES RED 28

Leverage partnership with Excel Carbide  use distribution network Build contacts and knowledge Build manufacturing plant in the Aerospace Valley in Toulouse, France Prepare ERP system to include France operations New plant = greater capacity OPERATIONS TECHNOLOGY MARKETING & SALES HUMAN RESOURCES Perfection Expanded RED 29

Continue R&D into the IT software Build internal ‘Think Tanks’ Involve qualified employees Maintain innovation on software Conduct semi-annually within company External discussions within the clusters  indirect and direct non competitors Innovation = increase in efficiency OPERATIONS TECHNOLOGY MARKETING & SALES HUMAN RESOURCES Perfection Innovated RED 30

Attend tradeshows in France and the cluster Promote brand Advertise through Content Marketing Revamp website to include manufacturing information Include video content Excel Carbide market presence = brand enhancement OPERATIONS TECHNOLOGY MARKETING & SALES HUMAN RESOURCES Perfection Communicated RED 31

Inform internal employees about expansion Hire employee for manufacturing plant in France Company culture with Excel Carbide Rotational program Specific qualifications Allows for mobility Builds loyalty OPERATIONS TECHNOLOGY MARKETING & SALES HUMAN RESOURCES Perfection Recruited RED 32

FINANCES RED 33

CASH FLOW ANALYSIS RED 34

CASH FLOW ANALYSIS RED 35

CASH FLOW ANALYSIS Total Adjusted Budget $5,165,901 Return on Investment 12.29% RED 36

BUDGET AGENTWEIGHTBUDGET ALLOCATED Operations50% $ 2,582,951 Human Resources20% $ 1,033,180 Marketing & Sales5% $ 258,295 Information Technology20% $ 1,033,180 Contingency Fund5% $ 258,295 Total100% $ 5,165,901 RED 37

ASSUMPTIONS Assumption 1Assumption 2Assumption 3Assumption 4 Cash Flow Reinvested YoYProfit Margin Exchange Rate CAD/EUR for Strategy Period Average Yearly Budget 2%8.40% $ 1,000,000 Assumption 5Assumption 6Assumption 7 Discount rateCAGRRevenues in %30% $ 12,000,000 RED 38

ASSUMPTIONS Assumption 1Assumption 2Assumption 3Assumption 4 Cash Flow Reinvested YoYProfit Margin Exchange Rate CAD/EUR for Strategy Period Average Yearly Budget 2%8.40% $ 1,000,000 Assumption 5Assumption 6Assumption 7 Discount rateCAGRRevenues in %30% $ 12,000,000 RED 39

SENSITIVITY ANALYSIS Profit Margin 12.29%8.00%8.20%8.40%8.60%8.80% CAGR 32%12.51%15.15%17.77%20.39%23.00% 31%9.86%12.44%15.01%17.57%20.12% 30%7.26%9.78%12.29%14.80%17.29% 29%4.71%7.18%9.63%12.08%14.52% 28%2.21%4.62%7.02%9.41%11.80% RED 40

SENSITIVITY ANALYSIS Profit Margin 12.29%8.00%8.20%8.40%8.60%8.80% CAGR 32%12.51%15.15%17.77%20.39%23.00% 31%9.86%12.44%15.01%17.57%20.12% 30%7.26%9.78%12.29%14.80%17.29% 29%4.71%7.18%9.63%12.08%14.52% 28%2.21%4.62%7.02%9.41%11.80% RED 41

IMPLEMENTATION RED 42

SHORT TERM MEDIUM TERM LONG TERM RED 43

SHORT TERM OPERATIONS Maintain partnership with Excel Carbide  leverage distribution and market knowledge Plan for manufacturing plant in Aerospace Valley cluster TECHNOLOGY Maintain ERP system and have control over all operations Plan for the ‘Think Tanks’ to be conducted MARKETING & SALES Revamp website with information Start creating content marketing initiatives HUMAN RESOURCES Job descriptions of France manufacturing employees Integrate the company culture to Excel Carbide RED 44

BUDGET - SHORT TERM RED 45 AGENTWEIGHTBUDGET ALLOCATED Operations50% $ 2,582,951 Human Resources20% $ 1,033,180 Marketing & Sales5% $ 258,295 Information Technology20% $ 1,033,180 Contingency Fund5% $ 258,295 Total100% $ 5,165,901

MEDIUM TERM OPERATIONS Build and launch operations of manufacturing plan in France Utilize the distribution network of Excel Carbide TECHNOLOGY Maintain ERP system and have control over all operations Implement ‘Think Tanks’ internally and externally Evaluate and update software MARKETING & SALES Revamp website with information Launch content marketing initiatives HUMAN RESOURCES Hire and train manufacture employees RED

BUDGET – MEDIUM TERM RED 47 AGENTWEIGHTBUDGET ALLOCATED Operations50% $ 2,582,951 Human Resources20% $ 1,033,180 Marketing & Sales5% $ 258,295 Information Technology20% $ 1,033,180 Contingency Fund5% $ 258,295 Total100% $ 5,165,901

LONG TERM OPERATIONS Maintain manufacturing plant operations and expand as needed Acquire Excel Carbide TECHNOLOGY Fully integrate Excel Carbide into operation on ERP systems Allow all IT software to be shared in operations MARKETING & SALES Maintain all marketing and brand activities HUMAN RESOURCES Expand employee base in France Promote student program RED 48

BUDGET – LONG TERM RED 49 AGENTWEIGHTBUDGET ALLOCATED Operations50% $ 2,582,951 Human Resources20% $ 1,033,180 Marketing & Sales5% $ 258,295 Information Technology20% $ 1,033,180 Contingency Fund5% $ 258,295 Total100% $ 5,165,901

CONCLUSION RED 50

Historical & targeted growth rate of 20% DESIRED CAGR of 30% over the next 5 years Revenues of $12M in 2015Revenues reaching $32M in 2021 Manufacturing presence in 3 countriesManufacturing presence in 4 countries OVERVIEW CURRENT RED 51

RED CONSULTING KOLESAROVA | MAISONNEUVE | RUBIO MALDONADO RED 52