Funky Junk INC Years 6-15 Review Willomina Wonka Xavier Xenon Yitzhak Yankovic Zero Zevon Years 6-15 Review Willomina Wonka Xavier Xenon Yitzhak Yankovic Zero Zevon

Financial Performance Annual revenues grew at a CAGR of 2.8% per year Annual EPS grew at a CAGR of 10.7% per year Annual ROE grew at a CAGR of 4.9% per year Annual credit rating reached A+ in year 9 and continued through year 15 Stock price grew at a CAGR of 9.8% per year Image rating peaked at year 8 with a 74 Annual revenues grew at a CAGR of 2.8% per year Annual EPS grew at a CAGR of 10.7% per year Annual ROE grew at a CAGR of 4.9% per year Annual credit rating reached A+ in year 9 and continued through year 15 Stock price grew at a CAGR of 9.8% per year Image rating peaked at year 8 with a 74

Strategic Vision Establish the company as a leading low cost provider of digital cameras while providing high quality products and maximizing stockholders' return. We also strive to employ the best workers in the industry through training and highly competitive compensation.

Future Targets Year 16 EPS – $4.12 ROE – 24% CR - A+ IR - 65 Stock $ - $67 Year 16 EPS – $4.12 ROE – 24% CR - A+ IR - 65 Stock $ - $67 Year 17 EPS - $4.50 ROE – 27% CR – A+ IR - 70 Stock $ - $72 Year 17 EPS - $4.50 ROE – 27% CR – A+ IR - 70 Stock $ - $72

Competitive Strategy E-L To be a overall low cost provider of entry-level digital cameras in the four geographic regions in which we operate. Strategy had to evolve during years 9-10 because of high operating and marketing costs Strategy back on track by year 15 with a price 4% below industry average To be a overall low cost provider of entry-level digital cameras in the four geographic regions in which we operate. Strategy had to evolve during years 9-10 because of high operating and marketing costs Strategy back on track by year 15 with a price 4% below industry average

Competitive Strategy M-F To be a overall low cost provider of multi-feature digital cameras in the four geographic regions in which we operate. Strategy had to evolve during years 9-10 because of high operating and marketing costs Strategy focused by year 15 with price 13% below industry average To be a overall low cost provider of multi-feature digital cameras in the four geographic regions in which we operate. Strategy had to evolve during years 9-10 because of high operating and marketing costs Strategy focused by year 15 with price 13% below industry average

Production Strategy Our production strategy included utilizing overtime capabilities to avoid costly outsourcing Expanding in-house assembly to 71 available workstations by year 15 Maximum bonus for perfect attendance and an average of $1500 in training per PAT Compensation package around $35,000 per year Our production strategy included utilizing overtime capabilities to avoid costly outsourcing Expanding in-house assembly to 71 available workstations by year 15 Maximum bonus for perfect attendance and an average of $1500 in training per PAT Compensation package around $35,000 per year

Finance Strategy Our finance strategy centered around paying off L/T debt within the first 4 years to free up capital and achieve an A+ CR Repurchasing maximum amount of stock with extra capital Steadily increasing dividends to reward shareholders, ending with the highest dividends paid in the industry Continue paying near maximum dividends in the future years to increase SE in the company Our finance strategy centered around paying off L/T debt within the first 4 years to free up capital and achieve an A+ CR Repurchasing maximum amount of stock with extra capital Steadily increasing dividends to reward shareholders, ending with the highest dividends paid in the industry Continue paying near maximum dividends in the future years to increase SE in the company

Strongest Competitors Entry-Level Closest competitors were companies B & D because of same P/Q ratings (2) and competitive prices among the companies Entry-Level Closest competitors were companies B & D because of same P/Q ratings (2) and competitive prices among the companies Multi-Feature Closest competitors were companies D & H because of similar P/Q ratings (3 – 3 ½) and price battling between the companies Multi-Feature Closest competitors were companies D & H because of similar P/Q ratings (3 – 3 ½) and price battling between the companies

Out – Competing Rivals Entry –Level and Multi-Feature Continue to lower production costs which will enable us to decrease prices Invest more in marketing and R&D to capture market share away from our closest rivals Entry –Level and Multi-Feature Continue to lower production costs which will enable us to decrease prices Invest more in marketing and R&D to capture market share away from our closest rivals

Lessons Learned You must observe and take action to decrease costs associated with marketing and production Study your rivals and the industry when deciding what offensive tactics to pursue Stick to your competitive strategy, allowing for evolvement over time Do not lower ethical standards in order to just make money You must observe and take action to decrease costs associated with marketing and production Study your rivals and the industry when deciding what offensive tactics to pursue Stick to your competitive strategy, allowing for evolvement over time Do not lower ethical standards in order to just make money