Final presentation for an MBA Business Execution course.

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

30. Sample of
Deodorant and
Razor Ads

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.