1. Year-end Report

2. Mission Statement “To exceed customer expectations in quality and excellent custom design at different levels of comfort with an outstanding service”

3. Our Products Boat A: simple model, very few fittings, three wooden benches, targeted at the fishing market. Boat B: more specialised, two wooden benches & platform, targeted to the pleasure boat market for sea, estuary and canals. Boat C: larger boat, more luxurious, equipped with three cabins and a solarium, targeted for pleasure cruising.

4. The Initial Strategy Product: stocks and raw materials where produced in sufficient amount to use full production capacity. Price: penetration pricing, offering a low price in order to penetrate and gain market share. Debtors collection period – 30 days, Creditors collection period – 60 days Promotion: little focus on advertising due to limited information on the market. People: no increase in work force due to uncertainty regarding the sales index.

5. Changes Adopted Production - No additional work posts in Quarter 1 - Adding workposts in the other quarters to raise production Advertising Invest more in advertising to increase Production & Sales Pricing - Price penetration strategy - Lower down prices to be in line with our strategy

6. Changes Adopted (Cont.) Raw materials and boats - Started buying from other companies due to cheaper prices than those of supplier. Loans - No initial loans - In Quarters 2, 3 & 4 loans were taken to finance the needed resources. Terms of payment - Changed our terms of payment from 30 to 45 days to be more competitive.

7. Overview of Company Performance Quarter 1Quarter 2Quarter 3Quarter 4 Production (Units) Boat A 213512061 Boat B 24606462 Boat C 6607191 Cash Flow €228,464.53€446,631.48€88,435.8€273,584.33 Market Share 13.06 %----- 11.31 % Net Worth €1,937,891.11€1,786,702.7€1,798,409.45€1,783,127.87

8. Successful Policies Production strategy: - High rate of stock turnover - Optimal amount of boats produced - Operating at full capacity and maximum efficiency Cash management strategy: - Good amount of cash available - Small loans taken to finance workposts - Current expenses paid with monthly earnings

9. Successful Policies (Cont.) Debt management strategy: - Low-geared and risk averse strategies - Company remained stable - Most liquid company Therefore ‘Crystal Waters’ had a competitive edge over the other companies.

10. Policies Having Adverse Impact Too stable Constant net worth Risk averse Price takers not price makers Advertising not given the deserved importance No substantial amounts of loans for investing Few sales representatives recruited Limited production capacity - few workposts

11. Areas of Improvement Take more risks Less priority towards stability Increase prices and company’s mark up More aggressive advertising Increase sales force Invest in more work posts Take out more loans No need for Contingency Planning

12. Our Name & Logo Components: - The name: Crystal Waters - The Compass - The colour Light Blue - The colour Dark Blue

13. Our Name & Logo (Cont.) Crystal Waters - A desire to be as transparent as possible. - Customers being involved with and belong to the company. Compass - The company has a sense of direction. - Helps in “exceeding customer expectations with the utmost and excellent designs for all levels of comfort at reasonable prices.” - Encourage customers to purchase boats from the company.

14. Our Name & Logo (Cont.) Light Blue Colour - Signifies stability in the market. - Confident with the sufficient % of the market gained, even if not a large share. - Eventually the company will grow, but by investing wisely it will manage to remain stable. Dark Blue Colour - Signifies loyalty. - Transparent means the company strives to be loyal to all stakeholders by the use of consistency and best quality.

15. Business Plan for the Upcoming Year The following changes will occur: - Investment and Cash Flow - Pricing Strategy - Production Mix - Advertising and Sales Force

16. Explanation of Business Plan Investment and Cash Flow - Investing in 6 more workposts - Continuously monitoring cash flow Pricing Strategy - Follow the Price Penetration strategy - Be competitive but still profitable

17. Explanation of Business Plan (Cont.) Production Mix - Based on “potential market” study - Produce at full capacity Advertising and Sales Force - Increase number of Sales Force - Improve Advertising Methods

18. Mission Statement “Our mission is to exceed customer expectations in quality and excellent custom design at different levels of comfort with an outstanding service.” Changes to Mission Statement - No need for changes - Only our Aims have changed - Will still follow the same objectives

19. Thank You © 2009 Crystal Waters Plc