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Furthermore the downturn was accompanied by large swings in
foreign exchange rates placing pressure on our costs and brought
additional instability onto the investment climate.

Our challenge in 2009: BALANCING SHORT-TERM RESULTS AND
LONG-TERM GROWTH

We made two critical choices to deal with these challenges: (1) we
focused on cash and costs to protect the financial foundation of
our businesses. (2) We slightly reduce prices to reflect movement
into the value for money segment in the northern and southern
markets.

With our financials in order, we focused on brand-building and
consumer
insights. We identified and funded product innovation and large
scale marketing initiatives across the business. Lastly we
recognized our role in the society as one of the leading
corporations for body care. This responsibility is expressed by our
unique social campaign in the southern market where we make
both monetary and value based long-term contributions.

Our path of growth
We’ve continued to make strategic investments to generate strong
growth in future years. We are investing heavily into new
manufacturing capacity to support future growth. Over the next
five years, we will add 20 new type A machines. These
investments will serve our consumers by lowering costs and
Financial Summary: Increase in the Company’s
                                                                        Fair Market Value
   In the last two years the net worth of the
    Company has increased by nearly 160%                        £18,000,000


Company Valuation                                               £16,000,000

Slix 6                                     Q0 4
                                            Q              Q8
Share Market Value                     £31.00          £80.16   £14,000,000
Number of Shares                      200,000         200,000
Market Capitalization              £6,200,000     £16,032,000
                                                                £12,000,000                  Market Capitalization

+ Control Premium           20%    £1,240,000      £3,206,400
                                                                                             Fair Market Value of
                                                                £10,000,000                  100% Equity
Fair Market Value of 100% Equity   £7,440,000     £19,238,400

                                                                 £8,000,000
             » P/E = 6.19x
             » EBITDA multiple = 3.11x                           £6,000,000

             » Sales multiple = 0.88x
                                                                 £4,000,000

                                                                              Q0    Q8
Financial Summary by Year                       Debt-to-Equity Ratio
                                                   100%
$20,000,000


                                                   80%
                                                                                    33%

$15,000,000                                                     57%
                                                   60%
                                        £21.8M
                     £19.7M
$10,000,000
                                                   40%
                                                                                    67%
 $5,000,000
                                                   20%          43%

                      15.7%             14.2%
        $0                                          0%

                       Y1                 Y2                    Y1                   Y2

              Net income (loss)   Total revenues     Shareholders equity   Interest Bearing debt
Proportion of sales, by product line            Profit Contribution, by product line


                                                            Y2
                                                          (11%)
                                                                    Y1
     Y2                                                            (3%)
   (28%)     Y1
           (22%)



                   Deodorants                                     Deodorants
                   Razors                                         Razors


                                  Y1
                                (78%)     Y2
                                        (72%)                          Y1
                                                                     (97%)
                                                                               Y2
                                                                             (89%)
Deodorants’ Profit Contribution                                                  Razors’ Profit Contribution
£2,500,000   44%                                                       45%                                                                         20%
                         40%
                                                                       40%   £350,000                                                        16%
£2,000,000         31%            34%           33%
                                         31%                           35%                                                                         15%
                                                              31%
                                                       30%
                                                                                                                                   12%
                                                                       30%
                                                                             £250,000
£1,500,000
                                                                       25%                                      9%                                 10%

                                                                       20%                                                  6%
£1,000,000                                                                                            6%
                                                                             £150,000
                                                                       15%                                           3%                            5%


                                                                       10%
 £500,000
                                                                             £50,000
                                                                       5%                                                                          0%


       £0                                                              0%
                                                                                        Q1      Q2     Q3      Q4    Q5      Q6     Q7        Q8
              Q1   Q2     Q3      Q4     Q5     Q6     Q7         Q8
                                                                             -£50,000   -3%    -3%                                                 -5%


                    Profit Contibution         Operating Margin                                 Profit Contibution        Operating Margin
Mission:   Maintain highest share price     Market relevance from revenue stream
           throughout the game                          (Deodorants)
Objective: Focus on profit leadership

South:
» Target upper price segment                      Export             North
                                                   25%                29%
» Gain market share through Marketing Mix
» Gain brand recognition through A&P
North:
» Target upper price segment
» Focus on profitabiltiy
» Grow through marketing mix
Export:
                                                           South
» Very little A&P                                           46%
» Maintain competitive prices
» Be among the top-sellers
Market relevance from revenue stream
                                                          (Razors)
Mission:   Maintain highest share price
           throughout the game
Objective: Focus on profit leadership
                                                                North
                                                                 11%
Export:
» Be among the top-sellers
» Maintain competitive prices
» Very little A&P
                                                                        South
South:                                                                   28%
» Gain market share through Marketing Mix
                                               Export
» Little A&P                                    61%
North:
» Grow through marketing mix
» Focus on profitabiltiy
» Little A&P
Slix 6’s Share Price Vs Industry Average
» Share price above the industry
  average for two years            £120

                                   £100

                                    £80

                                    £60

                                    £40

                                    £20

                                    £0
                                          Q1    Q2    Q3      Q4       Q5      Q6     Q7   Q8

                                                     SLIX 6        Industry Average
Slix 6’s Share Price Vs Selected Competitors’

» Share price above the industry
                                           £120
  average for two years
» Highest share price for 5 quarters in    £100

  a row                                    £80
» Decline in share price during Y2 due
                                           £60
  to a couple of factors:
    » Lack of response from                £40
        consumers to the A&P
                                           £20
        campaigns during the
        recessionary environment            £0
    » Successive price cuts which                 Q1   Q2     Q3   Q4     Q5   Q6        Q7   Q8

        lowered our profitability ratios                EGO         FRE         SLIX 6
» Share price will grow when the
  economy recovers
Slix 6’s Revenues Vs Selected Competitors’
Revenues
                                        £22,000,000
» No. 1 in revenue generation for two
  years in a row
                                        £21,000,000
» Our revenues grew 11% in Y2

                                        £20,000,000



                                        £19,000,000
                                                                                           SLIX 6

                                        £18,000,000
                                                                                           FRE
                                                                                           EGO

                                        £17,000,000



                                        £16,000,000



                                        £15,000,000

                                                         Y1               Y2
Total Revenues Over the Last Two Years
Revenues
» No. 1 in revenue generation for two
                                        £40,000,000
  years in a row
» Our revenues grew 11% in Y2           £35,000,000
» Total revenues for the last two
                                        £30,000,000   £41.5M   Y2
  years sum £41.5million                                            £40.1M   Y2

                                        £25,000,000                               £34.1M   Y2

                                        £20,000,000


                                        £15,000,000


                                        £10,000,000            Y1            Y1
                                                                                           Y1
                                         £5,000,000


                                                £0

                                                      SLIX 6        FRE           EGO
Slix 6’s Profits Vs Selected Competitors’
Revenues                                £3,500,000

» No. 1 in revenue generation for two
  years in a row
                                        £3,250,000
» Our revenues grew 11% in Y2
» Total revenues for the last two
  years sum £41.5million                £3,000,000



Net Profits                             £2,750,000
                                                                                            SLIX 6
» Managed to keep the same profit                                                           FRE
  level during the recession                                                                EGO
                                        £2,500,000




                                        £2,250,000




                                        £2,000,000

                                                          Y1                Y2
Total Profits Over the Last Two Years
Revenues
» No. 1 in revenue generation for two   £6,000,000
  years in a row
» Our revenues grew 11% in Y2
                                        £5,000,000
» Total revenues for the last two                         £6.20M   Y2
                                                                        £6.16M   Y2
  years sum £41.5million
                                        £4,000,000
                                                                                      £4.89   Y2
Net Profits
                                        £3,000,000
» Managed to keep the same profit
  level during the recession
» Net Profits for the last two years    £2,000,000

  totaled £6.2million                                              Y1
                                                                                 Y1           Y1
» No. 1 in net profit generation for    £1,000,000

  two years in a row
                                               £0
                                                          SLIX 6         FRE          EGO
Product Portfolio




Available in all 3 Markets: NORTH, SOUTH, EXPORT
Overall Goal:       Become a substantial player in all 3 markets & Maximize profitability in each market
                    over the long-term.

North:                                  South:                                 Esport:
Overall Descritpion:                    Overall Descritpion:                   Overall Descritpion:
1. Dominant MNCs                        1. Dominant MNCs                       1. NO MNCs
2. High responsiveness to A&P           2. High per capita income  medium 2. Reliance on few large customers
3. Medium price sensitivity             price sensitivity                  3. High price sensitivivity
Growth Strategy:                        Growth Strategy:                   4. Low A&P responsiveness
Gain substantial market Share           Gain susbtaintial market share         Growth Strategy:
through large A&P Investm.              through A&P investm.                   1. Offer high quality at medium price
Recession:                              Recession:                             2. No A&P investments.
Maintain market share                   Maintain market share                  3. Investments in Salesforce.
Ensure Profitability of both products   Remian profitable with both products 4. Push strategy (surplus supply)
Product
                                                    High Quality
                                                  ingredients and
                                                     packaging
» High quality products                               D and R




» Profitability
                                Place            Marketing                    Price

» Long-Term Investment       Availability in
                          North, South, Export        Mix
                                                                       Upper price segment
                                                                       Use of Price brackets




                                                  Promotion
                                                 Substantial use of
                                                 Above and Below
                                                 the line activities
Relative Market
                                                              Share


                                               Stars                       undefined
Growth Strategy from BCG Analysis
Deodorant:
» Growth phase: Large Investments
  for growth in North and South
» Recession: Move towards cash
  cow by stabilizing market share
                                    Market
  and reducing investments          Growth
                                     Rate
Razors:
» Avoid losses!
» Sensitive pricing strategy
» Push excess demand into market
  to create demand
» Move towards cash cow in Export
                                             Cash Cows                       Dogs
Market Segmentation & Positioning
        North                              South                                 Export




                                                                                                  Quality
                         Quality




                                                            Quality
          Price                             Price                                   Price

» SLIX 6 positioned in             » SLIX 6 positioned in             » SLIX 6 positioned in
  upper segment                      upper segment                      lower price segment
» Medium Price                     » Medium/High Price                » High Price pressure
  pressure                           pressure
                                                                      EGO                   FRE
                                                                      Multi National Cos    SAUDI PRO
Pricing Strategy for Deodorants in the North             Pricing Strategy for Razors in the North
£0.98                                            £0.56
                                                                                          Excluding
                                                                                          Vertigo’s
£0.96                                            £0.54                                    Q8 price


£0.94                                            £0.52
                                      Industry                                                Industry
                                      Average                                                 Average
£0.92                                 Slix 6     £0.50                                        Slix 6


£0.90                                            £0.48




£0.88                                            £0.46

        Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8                           Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
Pricing Strategy for Deodorants in the South                          Pricing Strategy for Razors in the South
£1.00                                                         £0.56



£0.98
                                                                                                           Excluding
                                                              £0.54
                                                                                                           Vertigo’s
                                                                                                           Q8 price
£0.96


                                                              £0.52
£0.94

                                           Industry Average                                                 Industry Average
£0.92                                      Slix 6                                                           Slix 6
                                                              £0.50


£0.90

                                                              £0.48
£0.88



£0.86                                                         £0.46
        Q2   Q3   Q4   Q5   Q6   Q7   Q8                                Q2   Q3   Q4   Q5   Q6   Q7   Q8
Pricing Strategy for Deodorants in Export                       Pricing Strategy for Razors in Export
£0.90                                                      £0.54



£0.86
                                                           £0.52


£0.82

                                                           £0.50
                                                Industry                                                   Industry
£0.78                                           Average                                                    Average
                                                Slix 6                                                     Slix 6
                                                           £0.48
£0.74



£0.70                                                      £0.46



£0.66
                                                           £0.44
        Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8
                                                                   Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8
Demand Forecast & Budget planning
                                                                      Determine
» All Markets:                                                         Target
   » Extra salesmen = 0.3% market share gain                         Market share

   » Price reduction: 2-3 pence = 0.3% market
      share gain
                                                                                            Calculate
» North:                                         Determine
                                                                                          required total
                                                commission
   » 0.5% Growth MS = 50.000 investment A&P                                                   A&P
   » Limit of salesmen: 7
» South:
   » 0.5% Growth MS = 75.000 investment A&P
   » Limit of salesmen: 11
» Export:                                                                            Allocate
                                                        Determine                   Resources
  » Price determining force for Market                  number of                   between D
                                                        sales reps                  &R and as
     performance                                                                       A&P
  » Limit of salesmen: 7
A&P Budget, by year and product line         Proportion of units sold by product line

£3,000,000


£2,500,000
                                    £2.9M

£2,000,000    £2.8M
                                                               Y1
                                                       Y2    (36%)
                                                     (42%)
£1,500,000                                                           Deodorants
                                                                     Razors
£1,000,000                                                                                  Y2
                                                                                    Y1    (58%)
                                                                                  (64%)
 £500,000              £0.7M                £0.7M


       £0

                  Y1                    Y2
                      Dehodorants      Razors
A&P Spending Vs Market Share
North:                                                  in the Northern Market
» Marketing spending in line with overall
                                               £800,000                                                              16%
  market performance.
» During Q5 a storm hit the northern region    £700,000                                                              14%

  affecting the Company’s capacity to supply
                                               £600,000                                                              12%
  its products which resulted in a reduction
  in market share.                             £500,000                                                              10%


                                               £400,000                                                              8%


                                               £300,000                                                              6%


                                               £200,000                                                              4%


                                               £100,000                                                              2%


                                                    £0                                                               0%
                                                          Q1      Q2    Q3      Q4     Q5      Q6     Q7     Q8

                                                     Deodorants        Razors        Market Share D        Market Share R
A&P Spending Vs Market Share
North:                                                       in the Southern Market
» Marketing spending in line with overall
                                                                                                                     16%
  market performance.                          £800,000
» During Q5 a storm hit the northern region                                                                          14%
                                               £700,000
  affecting the Company’s capacity to supply
                                                                                                                     12%
  its products which resulted in a reduction   £600,000
  in market share.                                                                                                   10%
                                               £500,000
South:
                                                                                                                     8%
» Significantly overspent in deodorants’       £400,000

  publicity during Q2, otherwise Marketing                                                                           6%
                                               £300,000
  spending in line with overall market
                                                                                                                     4%
  performance.                                 £200,000


                                               £100,000                                                              2%


                                                    £0                                                               0%
                                                          Q1      Q2    Q3      Q4     Q5      Q6     Q7     Q8

                                                     Deodorants        Razors        Market Share D        Market Share R
A&P Spending Vs Market Share
North:                                                        in the Export Market
» Marketing spending in line with overall      £800,000
  market performance.                                                                                                16%
                                               £700,000
» During Q5 a storm hit the northern region                                                                          14%
  affecting the Company’s capacity to supply   £600,000
  its products which resulted in a reduction                                                                         12%

  in market share.                             £500,000
                                                                                                                     10%
South:                                         £400,000
                                                                                                                     8%
» Significantly overspent in deodorants’
  publicity during Q2, otherwise Marketing     £300,000
                                                                                                                     6%

  spending in line with overall market         £200,000                                                              4%
  performance.
Export:                                        £100,000                                                              2%

» Little spending in the Export market              £0                                                               0%
» A&P spending has no relation with overall                Q1     Q2    Q3      Q4     Q5      Q6     Q7     Q8
  market performance                                 Deodorants        Razors        Market Share D        Market Share R
Corporate Social Responsibility

  SLIX 6: Recognizing our Responsibility

» Creation of a scholarship fund for children’s
  education in Saudi America.

» Quarterly donations on qualified college-age
  students who meet Slix 6’s high scholastic standards.

» £0.01 of every purchase of Slix 6 deodorants in the
  Southern Market of Saudi America, will be donated
  to the scholarship fund.
Corporate Social Responsibility                           CSR Spending Q1-Q8
                                           £160,000


                                           £140,000
                                                                                                                 +£17K
  SLIX 6: Recognizing our Responsibility
                                           £120,000
                                                                                                         +£18K
» On average £20,000 per Quarter donated
                                           £100,000
  to education fund.                                                                             +£21K


                                            £80,000
                                                                                         +£23K
» Total of £142,504 donated over two                                                                                     £143K

  years.                                    £60,000
                                                                           £23K

                                            £40,000
» 140 academic scholarships awarded to                                            £64K
                                                                   +£21K
  children ranging age 6-18 in southern     £20,000
  SaudiAmerica                                             +£20K
                                                £0
                                                      Q1    Q2      Q3     Q4     Y1      Q5      Q6      Q7      Q8      Y2
Sample of
Deodorant and
  Razor Ads
Number of employees by position               Number of machines used in the production
       (as of the end of Y2)                               process, by quarter
                                                 30

            3%
                                                 25
      13%


                                                 20

10%                          Workers (144)
                                                                                              M rented
                             Supervisors (19)    15
                                                                                              A Type
                             Salesmen (25)
                                                                                              M owned
                             Directors (7)       10

                   74%
                                                  5



                                                  0
                                                      Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8
Cost of Technology: M Type Vs A Type

                        1,800,000


                        1,600,000
Labour + Machine Cost




                        1,400,000


                        1,200,000


                        1,000,000


                         800,000


                         600,000
                                    Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8   Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24
                                                                                     M             A
Profit Contribution per Unit Sold                                         Profit Contribution per Unit Sold
          (Deodorants / BEQ8 = £0.60)                                                  (Razors / BEQ8 = £0.40)
£1.00
                                                                          £1.00




£0.80                                                                     £0.80




£0.60                                                                     £0.60
                                                Profit Contribution                                                       Profit Contribution
                                                Other Costs per unit                                                      Other Costs per unit
                                                Marketing Cost per unit                                                   Marketing Cost per unit
£0.40                                                                     £0.40
                                                Unit Cost                                                                 Unit Cost



£0.20                                                                     £0.20




                                                                          £0.00
£0.00
                                                                                  Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8
        Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8
Standard Unit cost & the Production
Analysis                                                     Variation Deodorants
                                            £0.4000
» Allocation of owned and rented machines
  between Deodorants and Razors
                                            £0.3800
» Allocation of new employees, and hence
  training costs between Deodorants and
  Razors                                    £0.3600

                                                                                            AUC - D
» Efficient use of raw materials                                                            SUC - D
                                            £0.3400

» Employee count in the double shift
» Shift premiums for supervisors            £0.3200


» Supervisor training costs
                                            £0.3000
                                                        1     2   3   4   5   6   7   8



                                                            Average Variation = + 2 cents
Standard Unit cost & the Production
Analysis                                                   Variation Razors
» Allocation of owned and rented machines   £0.4000

  between Razors and Deodorants
                                            £0.3800
» Allocation of new employees, and hence
  training costs between Razors and
  Deodorants                                £0.3600

                                                                                         AUC - R
» Efficient usage of raw material
                                                                                         SUC - R
                                            £0.3400
» Employee count in the double shift
» Shift premiums for supervisors            £0.3200

» Supervisor training cost
                                            £0.3000
» Making employees redundant, hence                   1     2   3   4   5   6   7   8
  redundancy cost allocated to Razors
                                                          Average Variation = - 1 cent
Standard Unit cost & the Production
                                                               Variation Razors
Bid price:                                    £0.50
» Deodorants:    £ 0.46
» Razors :       £ 0.41
                                              £0.40
Profit if won:
» Deodorants:    £ 1.38M - £1.29M = £0.09M
» Razors:        £ 0.82M - £0.80 M = £0.02M   £0.30                                 Profit
                                                                                    Factory Space
                                                                                    Redundancy Cost


     We make (least)                          £0.20                                 Training Cost
                                                                                    Production Cost


     profit or no one                         £0.10



        else does!                            £0.00
                                                         Deodorants     Razors
Raw Material Closing Stock
                                                      300,000                                                 2,000,000
Raw Materials:
» Suppliers:
    » “S” - Price                                     250,000
                                                                                                              1,600,000
    » “A1” - Better Quality at lower cost during
       Q7 & Q8                                        200,000
» No shortages of raw material during the last                                                                1,200,000
  two years
» Substantial reduction of raw material utilization   150,000

  due to continuous investments in R&D during                                                                 800,000
  Q3 & Q5                                             100,000




 Inventory Turnover:                                   50,000
                                                                                                              400,000




       » 4 days of production                              0                                                  0

       » 2 days of sales                                        Q1    Q2   Q3   Q4     Q5      Q6   Q7   Q8

                                                                 Chemicals           Plastic         Metal
Finalized Goods Closing Stock
                                                       1,000,000
Finalized Goods:
» (D) Over-produced in Q3 for full capacity
   machine utilization                                  800,000
» Accumulation of unsold stock (D) during the
   recessionary period is an indication of a loss of
   market share, which occurred in the export           600,000
   market
» Good demand forecasting for R during Y2
                                                        400,000




                                                        200,000

 Inventory Turnover:
                                                              0
       » 12 days of production                                     Q1   Q2   Q3   Q4   Q5   Q6   Q7   Q8
       » 5 days of sales
                                                                         Deodorants    Razors
Financial Summary by Quarter
» During Y1, revenue growth was                     36%
                                      £10,000,000
  supported by the entrance into                                                                                  35%
                                                           32%
  the export (Q1) & southern (Q2)      £9,000,000

  markets                              £8,000,000                           30%
                                                                                    31%
                                                                                                      29%   29%   30%
» EBITDA Margin averaged 29%           £7,000,000
                                                           28%
                                                                      28%          29%
                                                                                          27%
                                                                                                29%

  from Q2 onwards                                                            28%
                                                                                                26%
                                       £6,000,000                                         24%
» The gap between the EBITDA &                                       25%                              24%   24%   25%

  operating margins widens as the      £5,000,000

  hired machines were replaced         £4,000,000
                                                    22%
                                                                                                                  20%
  by owned ones
                                       £3,000,000
» Operating margin fell from 29%                           16%              16%     16%
                                                                                                15%
                                                                     14%
  (Q4) to 24% due to a                 £2,000,000
                                                    13%
                                                                                          13%         14%   14%   15%

  combination of a reduction in        £1,000,000
  D’s selling price & the
                                              £0                                                                  10%
  continuation of Y1’s level of A&P                  Q0        Q1     Q2     Q3     Q4    Q5    Q6    Q7    Q8
  expenditure strategy                        Total revenues         Operating Margin     EBITDA Margin     Net margin
Profitability Ratios
» By the end of Y2 the ROE indicator was 68%                                       200.0%

  - way beyond Saudiamerica’s risk free
  rate, Slix 6’s cost of debt & most certainly*                                    160.0%
  the Company’s Cost of Capital (CAPM &
  WACC)
                                                                                   120.0%
» The Return on Assts (ROA) is also significant
  reaching 46% by the end of Y2.
                                                                                   80.0%




                                                                                   40.0%




                                                                                     0.0%
                                                                                            Q0   Q1   Q2    Q3    Q4   Q5     Q6   Q7   Q8

                                                                                                           ROA (annualized)
                                                                                                           ROE (annualized)
»   *Neither the CAPM nor the WACC can be properly calculated due to the lack of
    information (betas, coutry risk premiums etc.)
Liquidity ratios
» By the end of Y2 the ROE indicator was 68%      3.5x

  - way beyond Saudiamerica’s risk free
  rate, Slix 6’s cost of debt & most certainly*   3.0x

  the Company’s Cost of Capital (CAPM &
  WACC)                                           2.5x


» The Return on Assets (ROA) is also              2.0x
  significant reaching 46% by the end of Y2.
» Liquidity ratios indicate that the Company      1.5x

  has always been able to cover its current
                                                  1.0x
  liabilities.
                                                  0.5x
                                                         Q0   Q1    Q2    Q3   Q4     Q5   Q6    Q7   Q8



                                                              Current assets / Current liabilities
                                                              Acid test
Leverage Ratios
» By the end of Y2 the ROE indicator was 68%      250%

  - way beyond Saudiamerica’srisk-free
  rate, Slix 6’s cost of debt & most certainly*   200%
  the Company’s Cost of Capital (CAPM &
  WACC)
                                                  150%
» The Return on Assets (ROA) is also
  significant reaching 46% by the end of Y2.
                                                  100%
» Liquidity ratios indicate that the Company
  has always been able to cover its current
                                                  50%
  liabilities.
» Leverage ratios in Q8 were significantly         0%
  reduced compared to Q1’s; due to a long                Q0   Q1      Q2    Q3    Q4    Q5    Q6      Q7   Q8

  term debt refinancing & repayment scheme
  executed throughout Y2.                                          Total liabilities / Total assets
                                                                   Total liabilities / Equity
Cash Flow Management
» Management’s strategy throughout the last
  couple of years has been to substitute hired
  machines with owned ones, preferring the       £1,200,000

  purchase of A type machines over the M
  type
                                                  £800,000
» During Y1 the Company financed its CAPEX
  by contracting several loans.
» As a result Company’s cash flows were tight     £400,000
  in those periods in which machines were
  purchased
» Cash requirements were covered by making              £0
  use of the overdraft allowance                              Q1   Q2      Q3     Q4    Q5    Q6      Q7   Q8

» There were no machines purchased in
  Q4, Q6 & Q8                                    -£400,000

» Debentures issued in Q4 & Q5 were used to                             Deventures
                                                                        Ending Cash Balance
  refinance the long term debt                                          Overdraft
» The Company NEVER went into the mafia                                 Maximum Overdraft Allowance
more machines:

                                                                       » 4 A machines
                                                                       » 10 M machines
                                                                                                                    » Stronger balance sheet with




                                            £0
                                                                                                  £3,000,000




                                                          £1,000,000
                                                                             £2,000,000
                                                                                                                         £4,000,000
                                                                                                                                               £5,000,000




                    Net Fixed Assets (Q0)
                                                 £0.63M




                + Y1 Capital Expenditures
                                                                                     +£3.3M




               - Y1 Machine Depreciation
                                                                                                               -£0.44M




Net Fixed Assets (Q4) & Advance Payments
           on Machines (£1M)
                                                                 £2.5M
                                                                                                  £1.0M




                + Y2 Capital Expenditures
                                                                                                                                      +£2.2M
                                                                                                                                                                 Capital Expenditures




               - Y2 Machine Depreciation
                                                                                                                                                       -£0.86M




                    Net Fixed Assets (Q8)
                                                                                          £4.8M
Dividend Policy
                                              £500,000                                                           250%
» Dividend payments during Y1 totaled
  £0.81M.                                                       200%

» During Y2 the Company paid £1.4M in         £400,000                                                           200%

  dividends, 70% more than the previous
  year.                                       £300,000                                                           150%
» The increase in dividend payments serve
  as a partial compensation to our            £200,000                                                           100%
  shareholders for the reduction in the
  company’s share price during Y2.                                                              53%
                                              £100,000                                                           50%
» The current dividend payout ratio will be                                                                21%
                                                                                          11%
  sustained during the next year & until                                46%   5%
                                                                                   -10%
                                                                                                      2%

  Saudi America’s economy has fully                  £0                                                          0%
                                                           Q0    Q1     Q2    Q3   Q4     Q5    Q6    Q7   Q8
  recovered.
                                              (£100,000)                                                         -50%

                                                            Dividends                   Percentual Change
Esteban Lecumberri
                           CEO


Hamid Houshmand                      Alexandra Kniewasser
PR & CSR Director                      Marketing Director


 Alexander Gocke                     Vasumathi Arumugam
 Finance Director                     Operations Director


OsayomoreOssuetta                         CaseyCorry
    HR Director                          R&D Director
» Leadership is cohesive in that decisions are
  agreed upon before any actions were
  carried out; which has been proven to be
  effective in strategic decision making

» The board of directors share a collective
  vision of the company’s objectives

» Overall performance as a team was
  necessary to achieve our ranking

» There was an understanding in each other’s
  capabilities and how each one functioned
  to carry along each teammate
Leadership Formations
                         Strengths                                   Weakness
          ¤ All roles were clearly defined from the   ¤ We became too comfortable with our
            start                                        strategy and marketing mix as it kept
          ¤ We brainstormed our opinions & made          us at the top for a long time
            decisions as a team                       ¤ We were a risk averse team
          ¤ We were mutually answerable


                                                  SWOT

                      Opportunities                                    Threats
          ¤ The export market can be used to          ¤ Our competitors in the 3 markets
            increase our profits in that more sales     were willing to take more risks
            occur here with less marketing
          ¤ Add products to our product portfolio
            to penetrate into various markets
Demand forecast Q8-Q10


Export




                                           Quarter 10
South                                                         We’re going global not postal!
                                           Quarter 9
                                           Quarter 8    Our large marketing budget has created a brand
                                                        identity that will carry over to our new markets
                                                          3 year plan to cover the East & West (Saudi
                                                                             America)
North

                                                          CRM software has indentified these two regions as
                                                           significant buyers presently Approached by five
                                                        undisclosed firms in the East/West to sell our products
         8   10   12   14   16   18   20
Body Lotion
               Tooth Paste
           Deodorants for women




The Future is product diversification!
March ‘10 Study Findings:
» Bathing more than once per week is becoming
  the norm among SaudiAmericans.
» They are also starting to wash their teeth three
  times a day.
» In   response,    partnering    with     Slix6
  marketing, R&D has come out with new
  products to complement the current portfolio.
» Free trial size will be promoted through
  purchase of a Slix 6 razor or deodorant with the
  added product line, we were able to negotiate
  a 5% discountthrough our supplier.
» The advertising campaign for Dfem has already
  been planned and will be launched in Y3.
Slix 6 Annual Report

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Slix 6 Annual Report

  • 1.
  • 2. Furthermore the downturn was accompanied by large swings in foreign exchange rates placing pressure on our costs and brought additional instability onto the investment climate. Our challenge in 2009: BALANCING SHORT-TERM RESULTS AND LONG-TERM GROWTH We made two critical choices to deal with these challenges: (1) we focused on cash and costs to protect the financial foundation of our businesses. (2) We slightly reduce prices to reflect movement into the value for money segment in the northern and southern markets. With our financials in order, we focused on brand-building and consumer insights. We identified and funded product innovation and large scale marketing initiatives across the business. Lastly we recognized our role in the society as one of the leading corporations for body care. This responsibility is expressed by our unique social campaign in the southern market where we make both monetary and value based long-term contributions. Our path of growth We’ve continued to make strategic investments to generate strong growth in future years. We are investing heavily into new manufacturing capacity to support future growth. Over the next five years, we will add 20 new type A machines. These investments will serve our consumers by lowering costs and
  • 3. Financial Summary: Increase in the Company’s Fair Market Value In the last two years the net worth of the Company has increased by nearly 160% £18,000,000 Company Valuation £16,000,000 Slix 6 Q0 4 Q Q8 Share Market Value £31.00 £80.16 £14,000,000 Number of Shares 200,000 200,000 Market Capitalization £6,200,000 £16,032,000 £12,000,000 Market Capitalization + Control Premium 20% £1,240,000 £3,206,400 Fair Market Value of £10,000,000 100% Equity Fair Market Value of 100% Equity £7,440,000 £19,238,400 £8,000,000 » P/E = 6.19x » EBITDA multiple = 3.11x £6,000,000 » Sales multiple = 0.88x £4,000,000 Q0 Q8
  • 4. Financial Summary by Year Debt-to-Equity Ratio 100% $20,000,000 80% 33% $15,000,000 57% 60% £21.8M £19.7M $10,000,000 40% 67% $5,000,000 20% 43% 15.7% 14.2% $0 0% Y1 Y2 Y1 Y2 Net income (loss) Total revenues Shareholders equity Interest Bearing debt
  • 5. Proportion of sales, by product line Profit Contribution, by product line Y2 (11%) Y1 Y2 (3%) (28%) Y1 (22%) Deodorants Deodorants Razors Razors Y1 (78%) Y2 (72%) Y1 (97%) Y2 (89%)
  • 6. Deodorants’ Profit Contribution Razors’ Profit Contribution £2,500,000 44% 45% 20% 40% 40% £350,000 16% £2,000,000 31% 34% 33% 31% 35% 15% 31% 30% 12% 30% £250,000 £1,500,000 25% 9% 10% 20% 6% £1,000,000 6% £150,000 15% 3% 5% 10% £500,000 £50,000 5% 0% £0 0% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 -£50,000 -3% -3% -5% Profit Contibution Operating Margin Profit Contibution Operating Margin
  • 7. Mission: Maintain highest share price Market relevance from revenue stream throughout the game (Deodorants) Objective: Focus on profit leadership South: » Target upper price segment Export North 25% 29% » Gain market share through Marketing Mix » Gain brand recognition through A&P North: » Target upper price segment » Focus on profitabiltiy » Grow through marketing mix Export: South » Very little A&P 46% » Maintain competitive prices » Be among the top-sellers
  • 8. Market relevance from revenue stream (Razors) Mission: Maintain highest share price throughout the game Objective: Focus on profit leadership North 11% Export: » Be among the top-sellers » Maintain competitive prices » Very little A&P South South: 28% » Gain market share through Marketing Mix Export » Little A&P 61% North: » Grow through marketing mix » Focus on profitabiltiy » Little A&P
  • 9. Slix 6’s Share Price Vs Industry Average » Share price above the industry average for two years £120 £100 £80 £60 £40 £20 £0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 SLIX 6 Industry Average
  • 10. Slix 6’s Share Price Vs Selected Competitors’ » Share price above the industry £120 average for two years » Highest share price for 5 quarters in £100 a row £80 » Decline in share price during Y2 due £60 to a couple of factors: » Lack of response from £40 consumers to the A&P £20 campaigns during the recessionary environment £0 » Successive price cuts which Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 lowered our profitability ratios EGO FRE SLIX 6 » Share price will grow when the economy recovers
  • 11. Slix 6’s Revenues Vs Selected Competitors’ Revenues £22,000,000 » No. 1 in revenue generation for two years in a row £21,000,000 » Our revenues grew 11% in Y2 £20,000,000 £19,000,000 SLIX 6 £18,000,000 FRE EGO £17,000,000 £16,000,000 £15,000,000 Y1 Y2
  • 12. Total Revenues Over the Last Two Years Revenues » No. 1 in revenue generation for two £40,000,000 years in a row » Our revenues grew 11% in Y2 £35,000,000 » Total revenues for the last two £30,000,000 £41.5M Y2 years sum £41.5million £40.1M Y2 £25,000,000 £34.1M Y2 £20,000,000 £15,000,000 £10,000,000 Y1 Y1 Y1 £5,000,000 £0 SLIX 6 FRE EGO
  • 13. Slix 6’s Profits Vs Selected Competitors’ Revenues £3,500,000 » No. 1 in revenue generation for two years in a row £3,250,000 » Our revenues grew 11% in Y2 » Total revenues for the last two years sum £41.5million £3,000,000 Net Profits £2,750,000 SLIX 6 » Managed to keep the same profit FRE level during the recession EGO £2,500,000 £2,250,000 £2,000,000 Y1 Y2
  • 14. Total Profits Over the Last Two Years Revenues » No. 1 in revenue generation for two £6,000,000 years in a row » Our revenues grew 11% in Y2 £5,000,000 » Total revenues for the last two £6.20M Y2 £6.16M Y2 years sum £41.5million £4,000,000 £4.89 Y2 Net Profits £3,000,000 » Managed to keep the same profit level during the recession » Net Profits for the last two years £2,000,000 totaled £6.2million Y1 Y1 Y1 » No. 1 in net profit generation for £1,000,000 two years in a row £0 SLIX 6 FRE EGO
  • 15. Product Portfolio Available in all 3 Markets: NORTH, SOUTH, EXPORT
  • 16. Overall Goal: Become a substantial player in all 3 markets & Maximize profitability in each market over the long-term. North: South: Esport: Overall Descritpion: Overall Descritpion: Overall Descritpion: 1. Dominant MNCs 1. Dominant MNCs 1. NO MNCs 2. High responsiveness to A&P 2. High per capita income  medium 2. Reliance on few large customers 3. Medium price sensitivity price sensitivity 3. High price sensitivivity Growth Strategy: Growth Strategy: 4. Low A&P responsiveness Gain substantial market Share Gain susbtaintial market share Growth Strategy: through large A&P Investm. through A&P investm. 1. Offer high quality at medium price Recession: Recession: 2. No A&P investments. Maintain market share Maintain market share 3. Investments in Salesforce. Ensure Profitability of both products Remian profitable with both products 4. Push strategy (surplus supply)
  • 17. Product High Quality ingredients and packaging » High quality products D and R » Profitability Place Marketing Price » Long-Term Investment Availability in North, South, Export Mix Upper price segment Use of Price brackets Promotion Substantial use of Above and Below the line activities
  • 18. Relative Market Share Stars undefined Growth Strategy from BCG Analysis Deodorant: » Growth phase: Large Investments for growth in North and South » Recession: Move towards cash cow by stabilizing market share Market and reducing investments Growth Rate Razors: » Avoid losses! » Sensitive pricing strategy » Push excess demand into market to create demand » Move towards cash cow in Export Cash Cows Dogs
  • 19. Market Segmentation & Positioning North South Export Quality Quality Quality Price Price Price » SLIX 6 positioned in » SLIX 6 positioned in » SLIX 6 positioned in upper segment upper segment lower price segment » Medium Price » Medium/High Price » High Price pressure pressure pressure EGO FRE Multi National Cos SAUDI PRO
  • 20. Pricing Strategy for Deodorants in the North Pricing Strategy for Razors in the North £0.98 £0.56 Excluding Vertigo’s £0.96 £0.54 Q8 price £0.94 £0.52 Industry Industry Average Average £0.92 Slix 6 £0.50 Slix 6 £0.90 £0.48 £0.88 £0.46 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 21. Pricing Strategy for Deodorants in the South Pricing Strategy for Razors in the South £1.00 £0.56 £0.98 Excluding £0.54 Vertigo’s Q8 price £0.96 £0.52 £0.94 Industry Average Industry Average £0.92 Slix 6 Slix 6 £0.50 £0.90 £0.48 £0.88 £0.86 £0.46 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 22. Pricing Strategy for Deodorants in Export Pricing Strategy for Razors in Export £0.90 £0.54 £0.86 £0.52 £0.82 £0.50 Industry Industry £0.78 Average Average Slix 6 Slix 6 £0.48 £0.74 £0.70 £0.46 £0.66 £0.44 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 23. Demand Forecast & Budget planning Determine » All Markets: Target » Extra salesmen = 0.3% market share gain Market share » Price reduction: 2-3 pence = 0.3% market share gain Calculate » North: Determine required total commission » 0.5% Growth MS = 50.000 investment A&P A&P » Limit of salesmen: 7 » South: » 0.5% Growth MS = 75.000 investment A&P » Limit of salesmen: 11 » Export: Allocate Determine Resources » Price determining force for Market number of between D sales reps &R and as performance A&P » Limit of salesmen: 7
  • 24. A&P Budget, by year and product line Proportion of units sold by product line £3,000,000 £2,500,000 £2.9M £2,000,000 £2.8M Y1 Y2 (36%) (42%) £1,500,000 Deodorants Razors £1,000,000 Y2 Y1 (58%) (64%) £500,000 £0.7M £0.7M £0 Y1 Y2 Dehodorants Razors
  • 25. A&P Spending Vs Market Share North: in the Northern Market » Marketing spending in line with overall £800,000 16% market performance. » During Q5 a storm hit the northern region £700,000 14% affecting the Company’s capacity to supply £600,000 12% its products which resulted in a reduction in market share. £500,000 10% £400,000 8% £300,000 6% £200,000 4% £100,000 2% £0 0% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Deodorants Razors Market Share D Market Share R
  • 26. A&P Spending Vs Market Share North: in the Southern Market » Marketing spending in line with overall 16% market performance. £800,000 » During Q5 a storm hit the northern region 14% £700,000 affecting the Company’s capacity to supply 12% its products which resulted in a reduction £600,000 in market share. 10% £500,000 South: 8% » Significantly overspent in deodorants’ £400,000 publicity during Q2, otherwise Marketing 6% £300,000 spending in line with overall market 4% performance. £200,000 £100,000 2% £0 0% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Deodorants Razors Market Share D Market Share R
  • 27. A&P Spending Vs Market Share North: in the Export Market » Marketing spending in line with overall £800,000 market performance. 16% £700,000 » During Q5 a storm hit the northern region 14% affecting the Company’s capacity to supply £600,000 its products which resulted in a reduction 12% in market share. £500,000 10% South: £400,000 8% » Significantly overspent in deodorants’ publicity during Q2, otherwise Marketing £300,000 6% spending in line with overall market £200,000 4% performance. Export: £100,000 2% » Little spending in the Export market £0 0% » A&P spending has no relation with overall Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 market performance Deodorants Razors Market Share D Market Share R
  • 28. Corporate Social Responsibility SLIX 6: Recognizing our Responsibility » Creation of a scholarship fund for children’s education in Saudi America. » Quarterly donations on qualified college-age students who meet Slix 6’s high scholastic standards. » £0.01 of every purchase of Slix 6 deodorants in the Southern Market of Saudi America, will be donated to the scholarship fund.
  • 29. Corporate Social Responsibility CSR Spending Q1-Q8 £160,000 £140,000 +£17K SLIX 6: Recognizing our Responsibility £120,000 +£18K » On average £20,000 per Quarter donated £100,000 to education fund. +£21K £80,000 +£23K » Total of £142,504 donated over two £143K years. £60,000 £23K £40,000 » 140 academic scholarships awarded to £64K +£21K children ranging age 6-18 in southern £20,000 SaudiAmerica +£20K £0 Q1 Q2 Q3 Q4 Y1 Q5 Q6 Q7 Q8 Y2
  • 31. Number of employees by position Number of machines used in the production (as of the end of Y2) process, by quarter 30 3% 25 13% 20 10% Workers (144) M rented Supervisors (19) 15 A Type Salesmen (25) M owned Directors (7) 10 74% 5 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 32. Cost of Technology: M Type Vs A Type 1,800,000 1,600,000 Labour + Machine Cost 1,400,000 1,200,000 1,000,000 800,000 600,000 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 M A
  • 33. Profit Contribution per Unit Sold Profit Contribution per Unit Sold (Deodorants / BEQ8 = £0.60) (Razors / BEQ8 = £0.40) £1.00 £1.00 £0.80 £0.80 £0.60 £0.60 Profit Contribution Profit Contribution Other Costs per unit Other Costs per unit Marketing Cost per unit Marketing Cost per unit £0.40 £0.40 Unit Cost Unit Cost £0.20 £0.20 £0.00 £0.00 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 34. Standard Unit cost & the Production Analysis Variation Deodorants £0.4000 » Allocation of owned and rented machines between Deodorants and Razors £0.3800 » Allocation of new employees, and hence training costs between Deodorants and Razors £0.3600 AUC - D » Efficient use of raw materials SUC - D £0.3400 » Employee count in the double shift » Shift premiums for supervisors £0.3200 » Supervisor training costs £0.3000 1 2 3 4 5 6 7 8 Average Variation = + 2 cents
  • 35. Standard Unit cost & the Production Analysis Variation Razors » Allocation of owned and rented machines £0.4000 between Razors and Deodorants £0.3800 » Allocation of new employees, and hence training costs between Razors and Deodorants £0.3600 AUC - R » Efficient usage of raw material SUC - R £0.3400 » Employee count in the double shift » Shift premiums for supervisors £0.3200 » Supervisor training cost £0.3000 » Making employees redundant, hence 1 2 3 4 5 6 7 8 redundancy cost allocated to Razors Average Variation = - 1 cent
  • 36. Standard Unit cost & the Production Variation Razors Bid price: £0.50 » Deodorants: £ 0.46 » Razors : £ 0.41 £0.40 Profit if won: » Deodorants: £ 1.38M - £1.29M = £0.09M » Razors: £ 0.82M - £0.80 M = £0.02M £0.30 Profit Factory Space Redundancy Cost We make (least) £0.20 Training Cost Production Cost profit or no one £0.10 else does! £0.00 Deodorants Razors
  • 37. Raw Material Closing Stock 300,000 2,000,000 Raw Materials: » Suppliers: » “S” - Price 250,000 1,600,000 » “A1” - Better Quality at lower cost during Q7 & Q8 200,000 » No shortages of raw material during the last 1,200,000 two years » Substantial reduction of raw material utilization 150,000 due to continuous investments in R&D during 800,000 Q3 & Q5 100,000 Inventory Turnover: 50,000 400,000 » 4 days of production 0 0 » 2 days of sales Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Chemicals Plastic Metal
  • 38. Finalized Goods Closing Stock 1,000,000 Finalized Goods: » (D) Over-produced in Q3 for full capacity machine utilization 800,000 » Accumulation of unsold stock (D) during the recessionary period is an indication of a loss of market share, which occurred in the export 600,000 market » Good demand forecasting for R during Y2 400,000 200,000 Inventory Turnover: 0 » 12 days of production Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 » 5 days of sales Deodorants Razors
  • 39. Financial Summary by Quarter » During Y1, revenue growth was 36% £10,000,000 supported by the entrance into 35% 32% the export (Q1) & southern (Q2) £9,000,000 markets £8,000,000 30% 31% 29% 29% 30% » EBITDA Margin averaged 29% £7,000,000 28% 28% 29% 27% 29% from Q2 onwards 28% 26% £6,000,000 24% » The gap between the EBITDA & 25% 24% 24% 25% operating margins widens as the £5,000,000 hired machines were replaced £4,000,000 22% 20% by owned ones £3,000,000 » Operating margin fell from 29% 16% 16% 16% 15% 14% (Q4) to 24% due to a £2,000,000 13% 13% 14% 14% 15% combination of a reduction in £1,000,000 D’s selling price & the £0 10% continuation of Y1’s level of A&P Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 expenditure strategy Total revenues Operating Margin EBITDA Margin Net margin
  • 40. Profitability Ratios » By the end of Y2 the ROE indicator was 68% 200.0% - way beyond Saudiamerica’s risk free rate, Slix 6’s cost of debt & most certainly* 160.0% the Company’s Cost of Capital (CAPM & WACC) 120.0% » The Return on Assts (ROA) is also significant reaching 46% by the end of Y2. 80.0% 40.0% 0.0% Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 ROA (annualized) ROE (annualized) » *Neither the CAPM nor the WACC can be properly calculated due to the lack of information (betas, coutry risk premiums etc.)
  • 41. Liquidity ratios » By the end of Y2 the ROE indicator was 68% 3.5x - way beyond Saudiamerica’s risk free rate, Slix 6’s cost of debt & most certainly* 3.0x the Company’s Cost of Capital (CAPM & WACC) 2.5x » The Return on Assets (ROA) is also 2.0x significant reaching 46% by the end of Y2. » Liquidity ratios indicate that the Company 1.5x has always been able to cover its current 1.0x liabilities. 0.5x Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Current assets / Current liabilities Acid test
  • 42. Leverage Ratios » By the end of Y2 the ROE indicator was 68% 250% - way beyond Saudiamerica’srisk-free rate, Slix 6’s cost of debt & most certainly* 200% the Company’s Cost of Capital (CAPM & WACC) 150% » The Return on Assets (ROA) is also significant reaching 46% by the end of Y2. 100% » Liquidity ratios indicate that the Company has always been able to cover its current 50% liabilities. » Leverage ratios in Q8 were significantly 0% reduced compared to Q1’s; due to a long Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 term debt refinancing & repayment scheme executed throughout Y2. Total liabilities / Total assets Total liabilities / Equity
  • 43. Cash Flow Management » Management’s strategy throughout the last couple of years has been to substitute hired machines with owned ones, preferring the £1,200,000 purchase of A type machines over the M type £800,000 » During Y1 the Company financed its CAPEX by contracting several loans. » As a result Company’s cash flows were tight £400,000 in those periods in which machines were purchased » Cash requirements were covered by making £0 use of the overdraft allowance Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 » There were no machines purchased in Q4, Q6 & Q8 -£400,000 » Debentures issued in Q4 & Q5 were used to Deventures Ending Cash Balance refinance the long term debt Overdraft » The Company NEVER went into the mafia Maximum Overdraft Allowance
  • 44. more machines: » 4 A machines » 10 M machines » Stronger balance sheet with £0 £3,000,000 £1,000,000 £2,000,000 £4,000,000 £5,000,000 Net Fixed Assets (Q0) £0.63M + Y1 Capital Expenditures +£3.3M - Y1 Machine Depreciation -£0.44M Net Fixed Assets (Q4) & Advance Payments on Machines (£1M) £2.5M £1.0M + Y2 Capital Expenditures +£2.2M Capital Expenditures - Y2 Machine Depreciation -£0.86M Net Fixed Assets (Q8) £4.8M
  • 45. Dividend Policy £500,000 250% » Dividend payments during Y1 totaled £0.81M. 200% » During Y2 the Company paid £1.4M in £400,000 200% dividends, 70% more than the previous year. £300,000 150% » The increase in dividend payments serve as a partial compensation to our £200,000 100% shareholders for the reduction in the company’s share price during Y2. 53% £100,000 50% » The current dividend payout ratio will be 21% 11% sustained during the next year & until 46% 5% -10% 2% Saudi America’s economy has fully £0 0% Q0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 recovered. (£100,000) -50% Dividends Percentual Change
  • 46. Esteban Lecumberri CEO Hamid Houshmand Alexandra Kniewasser PR & CSR Director Marketing Director Alexander Gocke Vasumathi Arumugam Finance Director Operations Director OsayomoreOssuetta CaseyCorry HR Director R&D Director
  • 47. » Leadership is cohesive in that decisions are agreed upon before any actions were carried out; which has been proven to be effective in strategic decision making » The board of directors share a collective vision of the company’s objectives » Overall performance as a team was necessary to achieve our ranking » There was an understanding in each other’s capabilities and how each one functioned to carry along each teammate
  • 48. Leadership Formations Strengths Weakness ¤ All roles were clearly defined from the ¤ We became too comfortable with our start strategy and marketing mix as it kept ¤ We brainstormed our opinions & made us at the top for a long time decisions as a team ¤ We were a risk averse team ¤ We were mutually answerable SWOT Opportunities Threats ¤ The export market can be used to ¤ Our competitors in the 3 markets increase our profits in that more sales were willing to take more risks occur here with less marketing ¤ Add products to our product portfolio to penetrate into various markets
  • 49. Demand forecast Q8-Q10 Export Quarter 10 South We’re going global not postal! Quarter 9 Quarter 8 Our large marketing budget has created a brand identity that will carry over to our new markets 3 year plan to cover the East & West (Saudi America) North CRM software has indentified these two regions as significant buyers presently Approached by five undisclosed firms in the East/West to sell our products 8 10 12 14 16 18 20
  • 50. Body Lotion Tooth Paste Deodorants for women The Future is product diversification!
  • 51. March ‘10 Study Findings: » Bathing more than once per week is becoming the norm among SaudiAmericans. » They are also starting to wash their teeth three times a day. » In response, partnering with Slix6 marketing, R&D has come out with new products to complement the current portfolio. » Free trial size will be promoted through purchase of a Slix 6 razor or deodorant with the added product line, we were able to negotiate a 5% discountthrough our supplier. » The advertising campaign for Dfem has already been planned and will be launched in Y3.