Abri Co. MD&A Presentation
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Transcript of Abri Co. MD&A Presentation
![Page 1: Abri Co. MD&A Presentation](https://reader034.fdocuments.in/reader034/viewer/2022051621/55cf91d4550346f57b911782/html5/thumbnails/1.jpg)
![Page 2: Abri Co. MD&A Presentation](https://reader034.fdocuments.in/reader034/viewer/2022051621/55cf91d4550346f57b911782/html5/thumbnails/2.jpg)
Abri Co.’s Executive Team
President - Florian Zunino
Vice President - Meghan Carpenter
Chief Financial Officer - James Fordham
Chief Marketing Officer - Gautier Villette
Chief Operating Officer - Celeste Underwood
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Abri Co.Designs, manufactures, markets & sells personal computers
Segments: CostCutter, Work Horse, Traveller & Innovator
Positioning Statements:
✦ Providing high-quality products at competitive prices to our customers (Traveler & Innovator)
✦ Providing equal value products at lower costs to our customers (CostCutter & Work Horse)
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Position in the MarketCostCutter Work Horse Traveler Innovator
ABRI CO. COMPETITORS’ AVERAGE ABRI CO. COMPETITORS’
AVERAGE ABRI CO. COMPETITORS’ AVERAGE ABRI CO. COMPETITORS’
AVERAGE
Total Cost $1,532 $1,904 $1,909 $2,171 $1,758 $2,321 $2,654 $3,030
Price $1,569 $2,555 $2,579 $2,967 $3,359 $2,700 $3,777 $3,625
Brand Judgement 66 63 64 54 84 55 86 80
Ad Judgment 58 47 67 33 72 27 64 69
Reliability Judgement 76 69 76 69 76 69 76 70
Market Share 41% - Leading Second 40% - Segment Leader 83% - Segment Leader 37% - Leading Second
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Abri Co.’s Revenue
$0
$15,0
00,00
0
$30,0
00,00
0
$45,0
00,00
0
$60,0
00,00
0
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
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Gross Margin
15%
30%
45%
60%
17.6%
57.4%53.9%
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Market Share
Industry Market Share
0%
12.5%
25%
37.5%
50%
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Abri Co.Tungsten Tech LLCAlpha Cyber TechnologiesBalsam TechnologyPrestige Technologies
Quarter 11
7%4%
20%
37%
32%
Quarter 12
4%15%
34%
46%
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Headline NewsInitial investment: $5 million - Current estimated value $26.2 million
Investors’ ownership: 16.9%
• Stratification: Feature-focused & cost-focused models for Traveler & Innovator segments
• Redesigned lines: Sapphire, Plymouth, Columbus & Fjord
• Opening of sales offices in Chicago, Paris, Montreal & Rome
• Required breakeven units surpassed by 10,925 units
• $7 million conventional loan repaid
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Net Revenue AnalysisQ12 Q11
Total Revenue $51,724,237 $42,442,892
Revenue change due to price 3,128,572 177,366
Revenue change due to volume 14,036,284 3,461,074
Revenue change due to sales mix (7,883,511) 2,729,955
Total Revenue Change 9,281,345 6,368,395
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Segment Profitability
Profit Per Unit
$500
$1,000
$1,500
$2,000
Cost Cutter Workhorse Innovator Traveler
$1,805
$1,381$1,218
$415
$1,935
$1,743
$1,033
$423
Average Price
$1,000
$2,000
$3,000
$4,000
Cost Cutter Workhorse Innovator Traveler
$3,242$3,518
$2,608
$1,584
$3,383
$3,910
$2,598
$1,577
Q12Q11
Units Sold
1,750
3,500
5,250
7,000
Cost Cutter Workhorse Innovator Traveler
6,066
2,404
663
1,535
6,1785,889
976
2,637
Gross Margin by Segment
17.50%
35.00%
52.50%
70.00%
Cost Cutter Workhorse Innovator Traveler
63%
46.7%
57.4%
42.5%
64.8%
51.5%55.5%
40.5%
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Advertising Expenses
Q12
Q11
$450
,000
$900
,000
$1,35
0,000
$1,80
0,000
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Sales Offices & Web CentersSales Offices
Abri Co. Tungsten Tech LLC Balsam Technology Alpha Cyber Technologies Prestige Technologies
Number of Units Sold 7,762 14,117 2,269 2,072 0
Sales Offices Expenses $1,165,000 $1,059,000 $308,000 $261,000 $630,000
Sales Force Expenses $1,463,343 $4,816,186 $974,115 $546,113 $240,510
Total Expenses $2,628,343 $5,875,186 $1,282,115 $807,113 $870,510
Expense per Unit Sold $339 $416 $565 $390 N/A
Web Centers
Abri Co. Tungsten Tech LLC Balsam Technology Alpha Cyber Technologies Prestige Technologies
Number of Units Sold 7,918 1,691 - 5,381 0
Web Center Expenses $770,000 $270,000 - $580,000 $270,000
Sales Force Expenses $427,865 $296,051 - $561,767 $56,101
Total Expenses $1,197,865 $566,051 - $1,141,767 $326,101
Expense per Unit Sold $151 $335 - $212 N/A
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Cost of ProductionQuarter 12
Units Produced Labor Cost Changeover Cost Sales Mix
CostCutter 2,891 $163 $15 17.37%
Work Horse 1,165 163 14 7.02%
Innovator 5,669 163 21 34.07%
Traveler 6,912 163 17 41.54%
Quarter 11
Units Produced Labor Cost Changeover Cost Sales Mix
CostCutter 1,732 $171 $47 12.55%
Work Horse 778 171 3 5.71%
Innovator 2,428 171 44 17.6%
Traveler 6,103 171 36 44.25%
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Materials Cost
Traveler
$300
$600
$900
$1,200
$865$891
$1,164
$961
$1,115
Innovator
$600
$1,200
$1,800
$2,400$2,390
$1,469
$2,044$1,799$1,843
Work Horse
$300
$600
$900
$1,200
$886
$1,032$1,111
$988
CostCutter
$250
$500
$750
$1,000
$786$802
$965$866
Balsam
Balsam
ACT
Balsam
ACT
Balsam
ACTTu
ngste
n
Columbus
Fjord
Sapphire
Plymouth
FjordFjord
Plymouth
Columbus
Columbus
Sapphire
Affordab
le
BeepBoo
pInd
ustria
l
R2D2B
Gold X2
Serenit
yLLC2
OutIV 5.0 5.1
2.0II 3.0
III 4.14.0
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Reliability Judgment
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Research & Development
Uninterruptible Power Supply (UPS)
Windows Upgrade for Professionals with High Security Protection
High Speed Wireless Network/Internet Connection Plug & Play (Easy Setup)
Ultra High Performance Power/Speed Long-Life Battery for Portable
Office Software-Word, Spreadsheets-New Release Miniaturized Circuitry
Available Features
Under Development
Brand Judgement
Sapphire 53
Sapphire 2.0 64
Plymouth II 55
Plymouth 3.0 64
Columbus IV 79
Columbus 5.1 83
Fjord III 82
Fjord 4.1 85
Investment Component Cost per Unit
$1.2 million $34
2.8 million 10
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Financial Headline News
• Net profit up 14.7%
• Total liabilities down 66.7%
• Net additional capital up 58.7%
• Gross margin per unit down 33%
• Breakeven units up 72%
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Glimpse Into the Financials
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Breakeven
Quarter 12 Quarter 11 $ Change % Change
Gross Margin Per Unit $1,268.00 $1,897.00 -$628.00 -33%
Fixed Expenses $14,253,869 $12,425,560 $1,828,309 15%
Breakeven Revenues $26,225,746 $21,314,590 $4,911,156 23%
Actual Revenues $51,724,237 $42,442,892 $9,281,345 22%
Total Overhead $654,406 $593,356 $61,050 10%
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Balance Sheet Quarter 12 Quarter 11 $ Change % Change
Total Assets $33,467,900 $30,835,129 $2,632,771 8.5%
Total Liabilities $3,500,000 $10,500,000 $7,000,000 -66.7%
Total Equity $29,967,900 $20,335,129 $9,632,771 47.4%
Total Equity and Liabilities $33,467,900 $30,835,129 $2,632,771 8.5%
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Flows & Liquidity Quarter 12 Quarter 11 $ Change % Change
Beginning Cash Balance $19,052,076 $6,270,414 $12,781,662 203.8%
Cash Generated by Operating Activities $10,890,647 $7,056,663 $3,833,984 54.3%
Ending Cash Balance $21,667,723 $19,052,076 $2,615,647 13.7%
Net Additional Capital Available $78,103,523 $49,222,334 $28,881,189 58.7%
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Business OutlookMarket Development Strategy
✦ Sales Offices in Chicago, Paris, Montreal,& Rome operational Quarter 13
✦ All offices in USA, Europe, Canada, China & Brazil operational by the end of Year 4
✦ Expansion in India, Australia, Middle Eastern Countries by the end of Year 8
Product Development Strategy
✦ Segment Stratification: feature-focused & cost-focused models
✦ 10 models by the end of Year 4 - two per segment
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$0$4
50,00
0,000
$900
,000,0
00$1,35
0,000
,000$1
,800,0
00,00
0
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
$82,561,500
$334,500,000
$549,300,000
$803,800,000
$1,100,000,000
$1,700,000,000
Projected Revenue Projected Revenue Actual Revenue
8 Year ProjectionsQuarter 13
✦ 20% increase of demand
✦ Revenue $62.1 million
✦ Net income $11 million
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Lessons Learned