Musk corporation

AhmedZayedColeVanLeuvenMohammedAbdelmageedRahulShaha

TheMUSKcorporation

AGENDA

Company Management and StrategyPerformance Review and Analysis

Key Decisions - Good and BadStatus and Future Outlook

COMPANY MANAGEMENT AND STRATEGY

- By Rahul Shaha

When we took over…• Took charge 8 periods ago

in April 2016

• Balance sheet of €86 million with a D/E ratio of 1.4 and current ratio ~1

• Undervalued stock at P/B ratio of 0.39

Copyfix Inc.Industry: Copiers

manufacturerProducts: P1-old(ablack

andwhitecopier)

Markets: M1(domestic)

Competition:3directcompetitors

MUSK CORP.Rebranding

EqualityEthical Practices

Customer centricityShareholder centricity

Open platform governance

Core Values

Executive Management

MUSK Corp.

Rahul ShahaProduction, Strategic Controlling

Mohammed AbdelmageedFinance and Accounting

Ahmed HassanProcurement, R&D

Cole van LeuvenSales and Advertising

LEAN MANAGEMENTCore Strategy

Why Lean?• Leverage strengths of

executive board

• Single product, predictable demand

• Pricing Strategy: Cost+

DEPARTMENTAL STRATEGIES

ResponsibilitiesStrategies

Departmental Strategies

Production•Increase productivity•Maximum use of lines•Maintain workers utilization ~95%

Procurement•Buy more to get cheaper price

•Eye on inventory

Sales & Advertising•Keep track of regressive curve (use curve-fitting tools)

•Link Advertising and sales volume closely

R & D•Maintain indexes above 100

•Scenario-driven investments

Finance•Excel-based simulation

•Precise costing•Thorough and continuous optimization

STRATEGIC ADAPTATIONS

Strategic Adaptations

P1 P8P2 P3 P4 P5 P6 P7

Cost+ pricing model

Market-driven pricing within limits defined

by cost+

Product 2 investments covered partly by Product 1 profits

Market share enhancements

KEY DECISIONS- By Cole Van Leuven

BEST DECISIONS

Data Driven Decision-Making

Overtime Penalty Avoidance (P7)

New Line vs Overtime

No Long-term loans

9/3/16 MuskCorp- ShareholderMeet 14

WORST DECISIONS

Layoff Limit

Capacity Planning

Overdraft Penalties

9/3/16 MuskCorp- ShareholderMeet 15

MUSK FACTS AND FIGURES- By Mohammed Abdelmageed

Facts and figures

100%102%

105%107% 107% 108%

105%107%

117%

100% 101% 102%

108%

90%

95%

100%

105%

110%

115%

120%

0 1 2 3 4 5 6 7 8

TEC

HN

OLO

GY

IND

EX %

Technology indices

P1 index P2 index

60%

70%

80%

90%

100%

110%

0 1 2 3 4 5 6 7 8

Utilization rates

Lines CU Personnel U

Facts and figures

1548 1577 1564 15381716

19011784

18571686

400

782925

1840

0

400

800

1200

1600

2000

0 1 2 3 4 5 6 7 8

MAR

GIN

IN E

UR

Contribution margin

P1 margin P2 margin

Facts and figures

129

157.9

189.5

149.4

181.2

223.9

186.4

245.4 253.2

0

50

100

150

200

250

300

0 2 4 6 8

REV

ENU

ES M

ILLI

ON

EU

R

Company revenues

20%

27% 27%

21%

31%32%

27%28%

25%

0%

10%

20%

30%

40%

0 2 4 6 8M

ARKE

T SH

ARE

%

Total market share

11.30%

13.90%14.30%

2.60%

-0.60%

17.00%

5.40%

13.60%13.90%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0 1 2 3 4 5 6 7 8R

OS

%

Return on Sales %

Facts and figures

60%

70%

80%

90%

100%

1 2 3 4 5 6 7 8

CGM PLANNING QUALITY

CGM quality P1 CGM quality P2

17%

11%

Facts and figures

2.6

30.4

87

122.9134

112.3122.1

150.9

169.4

0

20

40

60

80

100

120

140

160

180

0 1 2 3 4 5 6 7 8

MVA

MIL

LIO

N E

UR

Cumulative MVA

Facts and figures

34.3

69.9

110

83.9

0

68.9

125

152.4165

0

20

40

60

80

100

120

140

160

180

0 1 2 3 4 5 6 7 8

VALU

E IN

M E

UR

Company value

Facts and figures

1.1

1.7

2.1

1.7

0.0

0.8

1.31.2

1.1

0.0

0.5

1.0

1.5

2.0

2.5

0 1 2 3 4 5 6 7 8

Price to Book value

COMPANY STATUS AND FUTURE OUTLOOK

- By Ahmed Hassan

Company StatusFactor Period 0 Period 8 ChangeEquity capital 31.6 146.4 4.6

Declared dividends 0 11.2 11.2

Return on sales 11.3 13.9 1.2

Corporate image 63.8 104.8 1.6

Equity-Debt ratio 0.7 9.76 13.4

Price-Book ratio 0.4 1.1 2.8

Value Of The Company(m Euro) 34.3 165 4.8

9/3/16 MuskCorp- ShareholderMeet 25

Future Outlook

0.7

3.01.8

1.0-0.1

1.3 1.42.6

9.8

11.7

16.2

-2

0

2

4

6

8

10

12

14

16

18

0 1 2 3 4 5 6 7 8 9 10

Equi

ty-D

ebt r

atio

Period

Equity-Debt Ratio outlook

Future Outlook

34.3

69.9

11083.9

0

68.9

125

152.4165

204.2

248.5

0

50

100

150

200

250

300

0 1 2 3 4 5 6 7 8 9 10

Com

pany

Val

ue

period

Company Value outlook

What would we change?• Increasing the production capacity, targeting higher market share

with a competitive price to cover all markets.• Use different strategy for hiring and dismissing the man-power to be

gradually hiring, laying off and/or hiring again without any severedifference.

• Be more concerned regarding the environmental damage indicatorrating.

Thank You.