PROJECTED Y10 PERFORMANCE → Scoring Other Measures Measures Year 10 Investor Expect. Net Revenues Year 10 414,215 Change from Y9 -1.2% Earnings Per $0.78 $5.50 (5000s) Share Net Profit ($000s) 15,683 Return On Equity 6.3% 35.0% Ending Cash 149,052 n/a% -2,819 Credit Rating A- A- (S000s) Image Rating 86 75 North America Europe-Africa Asia-Pacific Latin America Average Wholesale Price to Retailers ($/unit) Buyer Appeal Variables Generated from Product $ 350 $ 300 $ 276 $ 275 P/Q Rating 6.0 6.0 6.0 6.0 Design Decisions Retailer Support Budget (5000s) No. Of Models 4 models 4 models 4 models 4 models $ 1,71 $ 1,44 $ 1,11 $ 760 Projected Support Expenditures Per Unit Sold $9.36 per unit $8.02 per unit $6.40 per unit $6.66 per unit Advertising Budget ($000s) $ 2,50 $ 1,40 $ 1,00 $ 750 Website Displays/Info ($000s) Sales Promotions (number of weeks | % discount) Warranty Period (60 days, 90 days, 120 days, 180 days, 1 year) Expected Claim Rate (%) | Repair Cost (3000s) $ 1,50 $ 1,20 $ 900 $ 600 1 wk 1 wk 10% ✓ 10% 1 wk 10% 1 wk 10% 1 year 180 day 120 da V 90 day! ▼ 40.8% $3,725 18.8% $1,690 13.3% $1,155 9.3% $530 Year 9 Year 10 Year 9 Year 10 Year 9 Market Segment Statistics AC Camera Demand and Market Share Actual Proj. Actual Proj. Actual Year 10 Proj. Year 9 Year 10 Actual Proj. Unit Demand (000s) 148.5 182.6 150.1 179.6 149.8 173.4 93.1 114.1 Market Share (%) 10.5% 12.3% 11.5% 13.3% 12.9% 13.9% 10.6% 12.1% Year 9 Year 10 Year 9 Year 10 Year 9 Year 10 Year 9 Year 10 Retail Outlets Multi-Store Chains 41 32 35 30 38 26 24 18 (number willing to carry Online Retailers 88 66 77 60 73 55 45 35 the company's product line) Local Retail Shops 3,563 2,760 3,219 2,500 3,123 2,236 1,270 996 Price-Cost-Profit Breakdown Revenue Projections $ Per Unit $ Per Unit Wholesale Price 350.00 300.00 $ Per Unit 276.00 $ Per Unit 275.00 - Promotional Discounts -0.67 -0.58 -0.53 -0.53 + Exchange Rate Adjustment Net Revenues -11.23 -21.09 -16.96 -28.33 338.09 278.34 258.51 246.15 Operating Cost Projections Cost of Units Assembled 213.31 202.32 199.58 197.57 Delivery Cost (shipping/import 6.00 18.00 22.55 22.51 duties) Marketing Costs Administrative Expenses Total Operating Costs Operating Profit Operating Profit Margin (operating profit + net revenues) Competitive Assumptions Anticipated Industry Average Marketing Efforts in Year 10 31.27 22.49 17.36 18.49 11.68 11.67 11.67 11.67 262.26 254.49 251.16 250.25 75.83 22.4% 23.85 7.34 -4.09 8.6% 2.8% -1.7% North America Europe-Africa Asia-Pacific Latin America Price to Retailers 466 > per unit $451 per unit $446 per unit 438 ✓ per unit P/Q Rating 5.9 < ☆ 5.9 く ☆ 5.9 < ☆ 5.9 Number of Models 4.4 く models 4.4 ✓ models 4.4 models 4.4 models Retailer Support Advertising Budget Website Displays Sales Promotions Warranty Period 7 wks 15.0% $18.00 per unit $18.50 per unit $19.40 per unit $ 24.30 per unit 5,300 (5000s) $3,075 (5000) $4,363 ($000s) $2,638 (5000) $3,863 (5000s) $2,76✔ 3,681 (3000s) (5000s) 2,344 (5000s) 7 wks 7 wks 15.0% 15.4% 8 wks 14.8% 250 days 200 days 190- days 180 days