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Company Andrews C61400 Quarterly Meeting April 30 th , 2014 Executives: Randi Camhi, Greg Haller, Liz Rotiroti, Brittany Manski, Asiana Gilchrist
26

RTS Andrews

Jan 22, 2015

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Page 1: RTS Andrews

Company AndrewsC61400

Quarterly MeetingApril 30th, 2014

Executives:Randi Camhi, Greg Haller,

Liz Rotiroti, Brittany Manski, Asiana Gilchrist

Page 2: RTS Andrews
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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

• Strong financials lead to secured profitability

• Company strengths provide for a promising future

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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

- Strategy- Mission Statement- SWOT- Porter’s Five Forces

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Broad Differentiator Strategy• Maintain a presence in all segments of the sensor market

• Competitive advantage gained by distinguishing products with excellent design, high awareness, and easy accessibility

• R&D capability to keep designs fresh and exciting

• Improved size and performance

• Prices are above average

www.capsim.com

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Our Mission

“Premium products for the industry.Our brands withstand the test of

time”

www.capsim.com

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Porter’s Five Forces

Competitive Rivalry

within the Industry

Bargaining power of

Customers

Threat of New

Entrants

Threat of Substitute Products

Bargaining power of Suppliers

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SWOT AnalysisStrengths (Internal factors) Weaknesses (Internal factors)

- High contribution margin

- Low age of product

- High performance of product

- High product accessibility

-Among current market leaders

-Strong financial position

-High cost to produce

- R&D funds (expensive to modify

product)

- Cost of constant marketing funds

Opportunities (External factors) Threats (External factors)

-High industry growth rate

-Market is available for capture

-Customers are willing to pay for quality

-Potential market share of competitors

-Competitors price cutting unexpectedly

www.capsim.com

Page 9: RTS Andrews

9www.capsim.com

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Weaknesses (Internal factors)

-High cost to produce

- R&D funds (expensive to modify

product)

- Cost of constant marketing funds

www.capsim.com

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11www.capsim.com

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12www.capsim.com

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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

• Strong financials lead to secured profitability

• Company strengths provide for a promising future

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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

• Strong financials lead to secured profitability-Profit Margin

-Return on Equity-Cash on Hand

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Profit Margin

1 2 3 4 5 6 7 8

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

5.30%

8.60%

11.40% 11.60%

Profit Margin

Andrews

Digby

Erie

Year

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Return on Equity

1 2 3 4 5 6 7 8

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

11.8%

23.4%

28.8%

18.3%

Return on Equity

AndrewsDigbyErie

Year

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Easy and Accessible Financing

Andrews Baldwin Chester Digby Erie0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Amount of Cash on Hand, Round 8

$

Companies in Industry

$96,626

Bond Rating: AAA CC DDD A AAwww.capsim.com

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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

• Strong financials lead to secured profitability

• Company strengths provide for a promising future

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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

• Strong financials lead to secured profitability

• Company strengths provide for a promising future– Sales Growth– Contribution Margin– Production Capacity– Future Plans

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Annual Sales

1 2 3 4 5 6 7 8 9 10 11 12 130

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Year

Dolla

rs*

($)

* Dollar value in thousands

15% average growth

www.capsim.com

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Contribution Margin

1 2 3 4 5 6 7 8 90%5%

10%15%20%25%30%35%40%

Andrews Industry Average

Year

CM % TQM Cost Reductions:

Direct Labor: 13.94 % Direct Materials: 11.35%

31%

www.capsim.com

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Value for YOU

Many users of financial statements, including investors, want to know what is the value of the

firm?

Value for shareholders is the income from operating and financing activities

Andrews Baldwin Digby

Operating $79,651 $51,523 $70,552

Financing 0 (48,495) 0

Value $79,651 $3,028 $70,552

www.highered.mcgraw-hill.com

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Year 8 Production Capacity

Erie

Digby

Andrews

0 5000 10000 15000 20000 25000

Capacity Analysis (w/2nd Shift)

Production

Capacity

Units (Thousands)

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Future Plans

• Competitive Pricing– Capture additional market share

• TQM Investments– Administration Expenses

• Improve Forecast Accuracy– Reduce inventory

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Company Andrews is a Low Risk, Strong Buy for Investors

• Low risk factors provide confidence to management, consumers, and shareholders

• Strong financials lead to secured profitability

• Company strengths provide for a promising future

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Questions?