MXBX Balanced Scorecard President- Ashley Thompson Senior Vice President- Julianne Donahue Executive Vice President- Paul Martin

Financial Perspective Improve Shareholder Value Increase Revenue Growth

Shareholder Value Period YearShareholder ValueShareholder Price 2008(57)% $ (48)% $ (37)% $ (41)% $4.28  Affected by our decrease in revenue  4.28 – 3.14*100 = 3.14  36.30%

Revenue Growth Period YearValue 2008$9,444, $9,515, $9,334, $9,872,814  9,872,814 – 9,444,116 * 100 = 9,444,116  4.53% Affected our decision to target new customers in our competitors existing youth and mountain bicycle markets to gain market share.

Decrease Average Manufacturing Cost per Bike Cost of Goods Sold # of Bikes Sold 2008: 6,456,944 = , : 5,390,444 = *100= 1.29% 39, : 4,832,460 = , *100= 26.99% 2011: 6,949,878 = ,014

Customer Perspective Excel at Distribution Coverage Excel at Distribution Coverage Excel at Quality of Products Excel at Quality of Products Excel at Efficiency Production Excel at Efficiency Production Excel at Awareness of Products- Proper Capacity to Meet Demand- Excel at Awareness of Products- Proper Capacity to Meet Demand-

Adv7 Funsta X 100 = % X 100 = -15% FreeRanger X 100 = -10.5%.19 Excel at Distribution Coverage –Distribution Index –Decreased by % in the mountain segment and -15% in the youth segment from 2008 to 2011 –Affected by our decision to increase extra support to distributors. Free Ranger

Excel at Quality of Products –Quality Index –Decreased -16%  X 100 = -16%.75  Affect by our decisions in rate of inspection and quality systems expenditures.

Excel at Efficiency Production Efficiency of Production Efficiency of Production –Efficiency Index –Decreased -6.97%  X 100 = -6.97%.86  Affect by our decisions in Inventory Weeks of Stock for availability.

Excel at Awareness of Products- Proper Capacity to Meet Demand- –Awareness Index of Mountain and Youth Bicycle –Decreased for the Adv7 by % and for the Funsta by -7.14%. Increased for the FreeRanger by 85.7% Adv7Funsta X 100 = % X 100 = -7.14% Free Ranger X 100 = 85.7%.07

Internal Process Perspective Obtain Appropriate Supplier Relations – Retailer Support i.e. Retailer Margin Obtain Appropriate Supplier Relations – Retailer Support i.e. Retailer Margin Decrease Quality Improvement Expenditures Decrease Quality Improvement Expenditures Maximize Production Efficiency Maximize Production Efficiency Maximize Production Rate and Decrease Idle Time Maximize Production Rate and Decrease Idle Time

Obtain Appropriate Supplier Relations – Retailer Support i.e. Retailer Margin –Retailer Margin – Decreased by -5.4% for Bike Shops and Sports Stores and -2.7 for Discount Stores from 2008 to 2011 Bike Shops Discount Stores X 100 = -5.4 % X 100 = -2.7% Sports Stores X 100 = -5.4%.37

Decrease Quality Improvement Expenditures –Quality Improvement Expenditures –Decreased by -100% from 2008 to 2011 Quality Index

Maximize Production Efficiency –Efficiency Improvement Expenditures –Increased by 197% from 2008 to 2011  2,989,124-1,003,110 X 100 = 198%  1,003,110  Affected our decision to target new customers  in our competitors existing youth and mountain bicycle markets.

Maximize Production Rate and Decrease Idle Time –Production %, Wastage %, Idle % –Wastage increased by 41.67%, Production decreased -6.85% and idle time didn’t change at all from 2008 to 2011 WastageProduction X 100 = 41.67% X 100 = -6.85% Idle Time X 100 = 0%.15

The Growth and Learning Perspective Motivate Employees to improve performance- efficiency and quality expenditures: Motivate Employees to improve performance- efficiency and quality expenditures: Improve Employee Skills – efficiency and quality expenditures: Improve Employee Skills – efficiency and quality expenditures:

Motivate Employees to improve performance- efficiency and quality expenditures: –Production Efficiency Rate –Decreased by -6.98% from 2008 to X 100 = -6.98%.86 Affected by our decision to decrease workforce.

Improve Employee Skills – efficiency and quality expenditures –Quality Index –Decreased by -16% from 2008 to X 100 = -16%.75 Affected our decision to raise increase efficiency and quality expenditures.

MXBX challenges you to “Take the Plunge”