1

RED CONSULTINGKOLESAROVA | MAISONNEUVE | RUBIO MALDONADO

RED 3

PROBLÈME & MANDAT

AGENDA

ANALYSE DES ÉCRATS

STRATÉGIE FINANCES :RSI 12.29%ANALYSE

MISE EN OEUVRE

CONCLUSION

RED 4

PROBLÈMEAPN recherche une stratégie

de croissance qui lui permettra de maintenir, au

minimum, sa croissance historique de 20%

RED 5

MANDATRED Consulting doit

élaborer une avenue de croissance pour APN en

assurant de rester en lien avec les valeur de

l’entreprise selon un plan SMaC

RED 6

GAP ANALYSIS

RED 7

Historical & targeted growth rate of 20%

DESIRED

GAP ANALYSISCURRENT

RED 8

Historical & targeted growth rate of 20%

DESIRED

CAGR of 30% over the next 5 years

GAP ANALYSISCURRENT

RED 9

Historical & targeted growth rate of 20%

DESIRED

CAGR of 30% over the next 5 years

Revenues of $12M in 2015

GAP ANALYSISCURRENT

RED 10

Historical & targeted growth rate of 20%

DESIRED

CAGR of 30% over the next 5 years

Revenues of $12M in 2015 Revenues reaching $32M in 2021

GAP ANALYSISCURRENT

RED 11

Historical & targeted growth rate of 20%

DESIRED

CAGR of 30% over the next 5 years

Revenues of $12M in 2015 Revenues reaching $32M in 2021

Manufacturing presence in 3 countries

GAP ANALYSISCURRENT

RED 12

Historical & targeted growth rate of 20%

DESIRED

CAGR of 30% over the next 5 years

Revenues of $12M in 2015 Revenues reaching $32M in 2021

Manufacturing presence in 3 countries

Manufacturing presence in 4 countries

GAP ANALYSISCURRENT

RED

WHERE? HOW? WHEN?

13

RED

France

Aerospace Valley

WHERE

• France, Toulouse

• Over 500 affiliated companies

• Global outreach14

RED

France

Aerospace Valley

Greenfield

Investment

WHERE HOW

• France, Toulouse

• Over 500 affiliated companies

• Global outreach

• Build your own manufacturing plan

• Later acquisition of Excel Carbide

15

RED

France

Aerospace Valley

Greenfield

Investment

Starting 2016

WHERE HOW WHEN

• France, Toulouse

• Over 500 affiliated companies

• Global outreach

• 5 years to implement

• ROI of 12.29%

• Build your own manufacturing plan

• Later acquisition of Excel Carbide

16

RED 17

ANALYSIS

RED 18

CLUSTER PRESENCE

LABOUR FORCE

LEGAL & FINANCIAL INFRASTRUCTURE

MARKET ANALYSIS

FRANCE SINGAPORE U.S.A.

• Large

• Well developed

• Stable

• Well developed

• Low

TECHNOLOGICAL INFRASTRUCTURE

CULTURAL BARRIERS

• Medium

• Developed

• Stable

• Developed

• High

• Large (spread)

• Well developed

• Stable

• Well developed

• Medium

RED 19

CLUSTER PRESENCE

LABOUR FORCE

LEGAL & FINANCIAL INFRASTRUCTURE

MARKET ANALYSIS

FRANCE SINGAPORE U.S.A.

• Large

• Well developed

• Stable

• Well developed

• Low

TECHNOLOGICAL INFRASTRUCTURE

CULTURAL BARRIERS

• Medium

• Developed

• Stable

• Developed

• High

• Large (spread)

• Well developed

• Stable

• Well developed

• Medium

RED 20

COST

RISK

CONTROL

MODE OF ENTRY ANALYSIS

ACQUISITION

High

POTENTIAL RETURN

High

Medium

High

GREENFIELD

High

High (mitigated)

High

High

RED 21

COST

RISK

CONTROL

MODE OF ENTRY ANALYSIS

ACQUISITION

High

POTENTIAL RETURN

High

Medium

High

GREENFIELD

High

High (mitigated)

High

High

RED 22

CLUSTER PRESENCE

LABOUR FORCE

LEGAL & FINANCIAL INFRASTRUCTURE

MARKET ANALYSIS

FRANCE SINGAPORE U.S.A.

• Large

• Well developed

• Stable

• Well developed

• Low

TECHNOLOGICAL INFRASTRUCTURE

CULTURAL BARRIERS

• Medium

• Developed

• Stable

• Developed

• High

• Large (spread)

• Well developed

• Stable

• Well developed

• Medium

RED 23

CLUSTER PRESENCE

LABOUR FORCE

LEGAL & FINANCIAL INFRASTRUCTURE

MARKET ANALYSIS

FRANCE SINGAPORE U.S.A.

• Large

• Well developed

• Stable

• Well developed

• Low

TECHNOLOGICAL INFRASTRUCTURE

CULTURAL BARRIERS

• Medium

• Developed

• Stable

• Developed

• High

• Large (spread)

• Well developed

• Stable

• Well developed

• Medium

RED 24

COST

RISK

CONTROL

MODE OF ENTRY ANALYSIS

ACQUISITION

High

POTENTIAL RETURN

High

Medium

High

GREENFIELD

High

High (mitigated)

High

High

RED 25

COST

RISK

CONTROL

MODE OF ENTRY ANALYSIS

ACQUISITION

High

POTENTIAL RETURN

High

Medium

High

GREENFIELD

High

High (mitigated)

High

High

RED 26

MARKET ANALYSIS

Competitive prices

Quality of products

Custom parts

Fast turnaround

Customer service

RED 27

STRATEGY

RED 28

OPERATIONS

TECHNOLOGY

MARKETING & SALES

HUMAN RESOURCES

RED 29

• Leverage partnership with Excel Carbide use distribution network• Build contacts and

knowledge• Build manufacturing plant in

the Aerospace Valley in Toulouse, France

• Prepare ERP system to include France operations

• New plant = greater capacity

OPERATIONS

TECHNOLOGY

MARKETING & SALES

HUMAN RESOURCES

Perfection Expanded

RED 30

• Continue R&D into the IT software

• Build internal ‘Think Tanks’ • Involve qualified

employees • Maintain innovation on

software• Conduct semi-annually

within company • External discussions within

the clusters indirect and direct non competitors

• Innovation = increase in efficiency

OPERATIONS

TECHNOLOGY

MARKETING & SALES

HUMAN RESOURCES

Perfection Innovated

RED 31

• Attend tradeshows in France and the cluster• Promote brand

• Advertise through Content Marketing• Revamp website to include

manufacturing information • Include video content

• Excel Carbide market presence = brand enhancement

OPERATIONS

TECHNOLOGY

MARKETING & SALES

HUMAN RESOURCES

Perfection Communicated

RED 32

• Inform internal employees about expansion

• Hire employee for manufacturing plant in France

• Company culture with Excel Carbide

• Rotational program • Specific qualifications• Allows for mobility• Builds loyalty

OPERATIONS

TECHNOLOGY

MARKETING & SALES

HUMAN RESOURCES

Perfection Recruited

RED 33

FINANCES

RED 34

CASH FLOW ANALYSIS

Year 0 (2016)

Year 1 (2017)

Year 2 (2018)

Year 3 (2019)

Year 4 (2020)

Year 5 (2021)

NPV

-$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000

$- $1,000,000 $2,000,000 $3,000,000 $4,000,000

$(5,000,000.

00)

$987,258.13

RED 35

CASH FLOW ANALYSIS

Year 0 (2016)

Year 1 (2017)

Year 2 (2018)

Year 3 (2019)

Year 4 (2020)

Year 5 (2021)

NPV

-$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000

$- $1,000,000 $2,000,000 $3,000,000 $4,000,000

$(5,000,000.

00)

$987,258.13

RED 36

CASH FLOW ANALYSIS

Year 0 (2016)

Year 1 (2017)

Year 2 (2018)

Year 3 (2019)

Year 4 (2020)

Year 5 (2021)

NPV

-$6,000,000 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000

$- $1,000,000 $2,000,000 $3,000,000 $4,000,000

$(5,000,000.

00)

$987,258.13

Total Adjusted Budget$5,165,901

Return on Investment12.29%

RED 37

BUDGETAGENT WEIGHT BUDGET ALLOCATED

Operations 50% $ 2,582,951

Human Resources 20% $ 1,033,180

Marketing & Sales 5% $ 258,295

Information Technology 20% $ 1,033,180

Contingency Fund 5% $ 258,295

Total 100% $ 5,165,901

RED 38

ASSUMPTIONS

Assumption 1Assumption

2 Assumption 3 Assumption 4Cash Flow

Reinvested YoY Profit MarginExchange Rate CAD/EUR for

Strategy PeriodAverage Yearly

Budget

2% 8.40% 0.6458 $

1,000,000

Assumption 5 Assumption 6 Assumption 7Discount rate CAGR Revenues in 2015

10% 30% $ 12,000,000

RED 39

ASSUMPTIONS

Assumption 1Assumption

2 Assumption 3 Assumption 4Cash Flow

Reinvested YoY Profit MarginExchange Rate CAD/EUR for

Strategy PeriodAverage Yearly

Budget

2% 8.40% 0.6458 $

1,000,000

Assumption 5 Assumption 6 Assumption 7Discount rate CAGR Revenues in 2015

10% 30% $ 12,000,000

RED 40

SENSITIVITY ANALYSIS

Profit Margin

12.29% 8.00% 8.20% 8.40% 8.60% 8.80%

CAGR

32% 12.51% 15.15% 17.77% 20.39% 23.00%31% 9.86% 12.44% 15.01% 17.57% 20.12%30% 7.26% 9.78% 12.29% 14.80% 17.29%29% 4.71% 7.18% 9.63% 12.08% 14.52%28% 2.21% 4.62% 7.02% 9.41% 11.80%

RED 41

SENSITIVITY ANALYSIS

Profit Margin

12.29% 8.00% 8.20% 8.40% 8.60% 8.80%

CAGR

32% 12.51% 15.15% 17.77% 20.39% 23.00%31% 9.86% 12.44% 15.01% 17.57% 20.12%30% 7.26% 9.78% 12.29% 14.80% 17.29%29% 4.71% 7.18% 9.63% 12.08% 14.52%28% 2.21% 4.62% 7.02% 9.41% 11.80%

RED 42

IMPLEMENTATION

RED 43

SHORT TERM2016-2018

MEDIUM TERM2018-2020

LONG TERM2020-2021

RED 44

2016-2018SHORT TERM

OPERATIONS• Maintain partnership with Excel Carbide leverage distribution

and market knowledge • Plan for manufacturing plant in Aerospace Valley cluster

TECHNOLOGY• Maintain ERP system and have control over all operations• Plan for the ‘Think Tanks’ to be conducted

MARKETING & SALES • Revamp website with information • Start creating content marketing initiatives

HUMAN RESOURCES • Job descriptions of France manufacturing employees • Integrate the company culture to Excel Carbide

RED 45

2016-2018BUDGET - SHORT TERM

AGENT WEIGHT BUDGET ALLOCATED

Operations 50% $ 2,582,951

Human Resources 20% $ 1,033,180

Marketing & Sales 5% $ 258,295

Information Technology 20% $ 1,033,180

Contingency Fund 5% $ 258,295

Total 100% $ 5,165,901

RED 46

MEDIUM TERM

OPERATIONS • Build and launch operations of manufacturing plan in France• Utilize the distribution network of Excel Carbide

TECHNOLOGY• Maintain ERP system and have control over all operations• Implement ‘Think Tanks’ internally and externally • Evaluate and update software

MARKETING & SALES • Revamp website with information • Launch content marketing initiatives

HUMAN RESOURCES • Hire and train manufacture employees

2018-2020

RED 47

2018-2020BUDGET – MEDIUM TERM

AGENT WEIGHT BUDGET ALLOCATED

Operations 50% $ 2,582,951

Human Resources 20% $ 1,033,180

Marketing & Sales 5% $ 258,295

Information Technology 20% $ 1,033,180

Contingency Fund 5% $ 258,295

Total 100% $ 5,165,901

RED 48

2020-2021LONG TERM

OPERATIONS• Maintain manufacturing plant operations and expand as

needed• Acquire Excel Carbide

TECHNOLOGY • Fully integrate Excel Carbide into operation on ERP systems • Allow all IT software to be shared in operations

MARKETING & SALES • Maintain all marketing and brand activities

HUMAN RESOURCES • Expand employee base in France • Promote student program

RED 49

2020-2021BUDGET – LONG TERM

AGENT WEIGHT BUDGET ALLOCATED

Operations 50% $ 2,582,951

Human Resources 20% $ 1,033,180

Marketing & Sales 5% $ 258,295

Information Technology 20% $ 1,033,180

Contingency Fund 5% $ 258,295

Total 100% $ 5,165,901

RED 50

CONCLUSION

RED 51

Historical & targeted growth rate of 20%

DESIRED

CAGR of 30% over the next 5 years

Revenues of $12M in 2015 Revenues reaching $32M in 2021

Manufacturing presence in 3 countries

Manufacturing presence in 4 countries

OVERVIEWCURRENT

RED 52

RED CONSULTINGKOLESAROVA | MAISONNEUVE | RUBIO MALDONADO