Year 7

8/20/22, 10:18 AM GLO-BUS Decisions & Reports
Projected Y8 Performance 
Scoring Investor Other Change

Measures Year 8 Expect. Measures Year 8 from Y7
Earnings $3.83 $3.00 Net 522,965 +8.1%
Per Share Revenues
Return On 33.0% 25.0% ($000s)
Equity Net Profit 74,179 +17.3
Credit A A– ($000s)
Rating Ending 74,516 +50,834
Image 80 72 Cash
Rating ($000s)
Action-Capture Camera Design UAV Drone Design

Image Sensor Size diagonal Built-In Camera Significant Upgrad
LCD Display Screen 9 pixels GPS / WiFi / Bluetooth Best Available
Image Quality (maximum resolution) 2704 pix. Battery Pack (maximum

21 minutes
flight time)
Number of Photo Modes (video /
8 modes Number of Rotors 8 rotors
still)
Product Camera Rotor Performance /

Enhancements Housing $ per camera
Flight Controller Best Available
Editing / Body Frame

Carbon Fiber
Sharing $ per camera Construction
Capabilities
Obstacle Sensors 360° Enhanced
Included
Accessories $ per camera
Camera Stabilization
Best Available
Device
Extra Performance Features features
Extra Performance features
5
Number of AC Camera Models models Features
Number of UAV Drone
Product R&D Expenditures (Y7 Models 2 models
was $6,000)
$ 6 ($000s)
Product R&D
Expenditures (Y7 was $ 30000 ($000s)
Cumulative R&D Expenditures (all $30,000)
years) $ 63,000 ($000s)
Cumulative R&D
Expenditures (all years) $ 120,000 ($000s)
Performance / Quality Rating Performance / Quality Rating

4.9  (P/Q Rating ranges from 1-10 stars)
6.5 
(P/Q Rating ranges from 1-10 stars)
Projected AC Camera Projected UAV Drone

Production Costs $000s $/unit Production Costs $000s $/unit
Image Sensor 7,232 6.93 Built-In Camera 28,821 193.04
LCD Display Screen 10,332 9.90 GPS / WiFi / Bluetooth 15,206 101.85
Image Quality 8,266 7.92 Battery Pack 21,723 145.50
Photo Modes 9,298 8.91 Rotors / Performance / Controller 17,813 119.31
Camera Housing 12,523 12.00 Body Frame Construction 6,516 43.65
Editing / Sharing Capabilities 12,523 12.00 Obstacle Sensors 13,324 89.24
Included Accessories 12,523 12.00 Camera Stabilization Device 9,124 61.11
Extra Performance Features 14,319 13.72 Extra Performance Features 12,643 84.68
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Projected AC Camera Projected UAV Drone

Production Costs $000s $/unit Production Costs $000s $/unit
Total Cost of Components 87,015 83.38 Total Cost of Components 125,170 838.38
and Features and Features
Assembly Labor Costs 35,671 34.18 Assembly Labor Costs 7,183 48.11
Product R&D Expenditures 6,000 5.75 Product R&D Expenditures 30,000 200.94
Allowance for Warranty Repairs 4,470 4.28 Allowance for Warranty Repairs 3,810 25.52
Maintenance of Plant and Maintenance of Plant and 11,664 78.12
15,207 14.57
Equipment Equipment
Depreciation of Plant and Depreciation of Plant and 6,544 43.83
8,550 8.19
Equipment Equipment
Total Camera Total Drone 184,371 1,234.90
156,913 150.36
Production/Assembly Cost Production/Assembly Cost
Projected Unit
Assembly Regular Overtime Total
Projected Unit
Assembly Regular Overtime Total
UAV Drone Unit
149.3 0.0 149.3
Assembly (000s)
AC Camera Unit
1,024.0 19.6 1,043.6
Assembly (000s)
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Earnings $3.83 $3.00 Net 522,965 +8.1%
Per Share Revenues
Return On 33.0% 25.0% ($000s)
Image 80 72 Cash
Rating ($000s)
North America Europe-Africa Asia-Pacific Latin America
Average Wholesale Price

to Retailers ($/unit) $ 254 $ 254 $ 249 $ 240
Buyer
Appeal P/Q
Variable Rating 4.9  4.9  4.9  4.9 
s
Generat
ed from
Product
Design No. Of 3 models 3 models 3 models 3 models
Decisio Models
ns
Retailer Support Budget
($000s)
$ 800 $ 800 $ 170 $ 150
Projected Support $3.05 per unit $3.37 per unit $5.60 per unit $6.24 per unit
Expenditures Per Unit Sold
Advertising Budget
($000s)
$ 800 $ 800 $ 200 $ 200
Website Displays/Info
($000s)
$ 100 $ 100 $ 100 $ 100
Sales Promotions (number 1 wk 1 wk 2 wks 2 wks

of weeks | % discount) 0% 0% 20% 20%
Warranty Period (60 days,

90 days, 120 days, 180 days, 1 60 day 60 day 90 day 90 day
year)
Expected Claim Rate

(%) | Repair Cost ($000s)
6.8% $885 6.8% $800 10.3% $1,555 10.3% $1,230
Year 8 Year 8 Year 8 Year 8

Year 7 Projecte Year 7 Projecte Year 7 Projecte Year 7 Projecte
Market Segment Statistics Actual d Actual d Actual d Actual d
AC Unit 238.4 262.6 220.3 237.1 260.8 303.6 212.1 240.3
Camera Demand
Demand (000s)
and
Market Market 19.9% 20.8% 21.4% 21.9% 29.0% 30.8% 32.3% 33.9%
Share Share
(%)
Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 Year 7 Year 8

Retail Multi- 26 19 21 16 34 43 25 33
Outlets
Store
(number Chains
willing to
carry
https://www.glo-bus.com/users/program21/decisions/acc-marketing 1/3

the
Online 52 45 47 36 63 84 54 72
company's Retailers
product
line) Local 2,160 1,920 1,847 1,386 2,712 3,598 1,570 2,289
Retail
Shops
Price-Cost-Profit Breakdown $ Per Unit $ Per Unit $ Per Unit $ Per Unit
Revenue Wholesal 254.00 254.00 249.00 240.00
Projectio e Price
ns
– 0.00 0.00 -1.92 -1.85
Promotio
nal
Discount
s
± -3.80 3.91 5.40 -11.25
Exchang
e Rate
Adjustm
ent
Net 250.19 257.91 252.48 226.90
Reven
ues
Operatin Cost of 149.45 149.45 151.19 151.19

g Cost Units
Projectio Assembl
ns ed
Delivery 6.00 16.16 20.94 20.40
Cost (ship
ping /
import
duties)
Marketin 9.90 10.97 15.48 18.73

g Costs
Administr 8.30 8.30 8.30 8.30
ative
Expense
s
Total 173.65 184.88 195.91 198.62
Opera
ting
Costs
Operating Profit 76.55 73.03 56.56 28.28

Operating Profit Margin 30.6% 28.3% 22.4% 12.5%
(operating profit ÷ net revenues)
Competitive Assumptions North America Europe-Africa Asia-Pacific Latin America
Anticipated Price to $ 290 per unit $ 293 per unit $ 266 per unit $ 262 per unit
Industry Retailers
Average
Marketing P/Q Rating 5.4  5.4  5.4  5.4 

Efforts in Year
8 Number of 2.8 models 2.8 models 2.8 models 2.8 models
Models
Retailer $ 4.70 per unit $ 5.00 per unit $ 5.80 per unit $ 6.50 per unit
Support
Advertising $ 1,91 ($000s) $ 1,80 ($000s) $ 1,32 ($000s) $ 1,27 ($000s)
Budget
Website $ 1,57 ($000s) $ 1,38 ($000s) $ 1,02 ($000s) $ 900 ($000s)
Displays
Sales 1 wk 1 wk 1 wk 1 wk
Promotions
6.3% 6.3% 13.8% 13.8%
Warranty 90 days 90 days 90 days 90 days

Period

Earnings $3.83 $3.00 Net 522,965 +8.1%
Per Share Revenues
Return On 33.0% 25.0% ($000s)
Image 80 72 Cash
Rating ($000s)
North America Europe-Africa Asia-Pacific Latin America
Average Retail Price

($/unit to direct online customers)
$ 190 $ 195 $ 170 $ 170
Discount Offered to 3rd- $ 17% $ 15% $ 12% $ 12%

Party Online Retailers
Buyer
Appeal P/Q
Variable Rating 6.5  6.5  6.5  6.5 
s
Generat
ed from
Product
Design No. Of 2 models 2 models 2 models 2 models
Decisio Models
ns
Website Product Displays
/ Info ($000s) $ 200 $ 200 $ 700 $ 700
Search Engine
Advertising ($000s) $ 150 $ 150 $ 600 $ 300
Retailer Recruitment /
Support Budget ($000s) $ 130 $ 120 $ 500 $ 500
Retailer Recruitment / $82.28 per unit $94.49 per unit $75.76 per unit $113.64 per unit
Support (per 3rd-party unit sold)
Warranty Period (60 days,
90 days, 120 days, 180 days, 1 90 day 90 day 60 day 60 day
year)
Expected Claim Rate

(%) | Repair Cost ($000s)
9.8% $1,620.0 9.8% $1,350.0 5.9% $540.0 5.9% $300.0

UAV Direct 33.3 39.6 28.7 33.6 19.8 23.3 11.2 13.3
Drone (thru
Demand company
and website)
Market
Share 3rd-Party 18.0 15.8 14.8 12.7 5.7 6.6 3.9 4.4
(thru
online
retailers)
Total Unit 51.3 55.4 43.5 46.3 25.5 29.9 15.1 17.7
Demand
(000s)
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Market 22.5% 21.7% 22.7% 21.8% 18.7% 19.2% 18.0% 18.4%
Share
(%)
Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 Year 7 Year 8

Online Retailers (willing to carry 30 44 28 39 28 22 24 20
the company's product line)
Direct 3rd-Party Direct 3rd-Party Direct 3rd-Party Direct 3rd-Party

Online Online Online Online Online Online Online Online
Price-Cost-Profit Breakdown Sales Retailers Sales Retailers Sales Retailers Sales Retailers
Revenue Selling 1,900.00 1,577.03 1,950.00 1,657.48 1,700.00 1,496.06 1,700.00 1,495.91
Projectio Price
ns
± -28.43 -23.61 30.00 25.51 37.12 32.73 -80.30 -70.68
Exchang
e Rate
Adjustm
ent
Net 1,871.57 1,553.42 1,980.00 1,682.99 1,737.12 1,528.79 1,619.70 1,425.23
Reven
ues
Operatin Cost of 1,238.71 1,238.35 1,238.15 1,239.45 1,227.77 1,226.21 1,225.56 1,228.64
g Cost Units
Projectio Assembl
ns ed
Delivery 62.50 12.47 140.51 78.82 164.51 102.12 164.51 102.27
Cost (ship
ping /
import
duties)
Marketin 88.38 82.28 104.17 94.49 55.79 75.76 75.19 113.64

g Costs
Administr 11.24 11.20 11.22 11.26 11.24 11.21 11.20 11.36
ative
Expense
s
Total 1,400.83 1,344.30 1,494.05 1,424.02 1,459.31 1,415.30 1,476.47 1,455.91
Opera
ting
Costs
Operating Profit 470.73 209.11 485.95 258.98 277.81 113.48 143.23 -30.68
Operating Profit Margin 25.2% 13.5% 24.5% 15.4% 16.0% 7.4% 8.8% -2.2%
(operating profit ÷ net revenues)
22.2% 22.3% 14.3% 6.4%
Anticipated Average Retail $ per unit $ per unit $ per unit $ per unit
1,72 1,74 1,56 1,52
Industry Price
Average
Marketing Retailer 14.0 % 13.9 % 11.9 % 11.9 %
Efforts in Year Discount
8
P/Q Rating 5.7  5.7  5.7  5.7 
Number of $ 2.0 models $ 2.0 models $ 2.0 models $ 2.0 models

Models
Website $ 1,93 ($000s) $ 1,86 ($000s) $ 1,05 ($000s) $ 978 ($000s)
Displays
Search Engine $ 2,06 ($000s) $ 1,88 ($000s) $ 1,16 ($000s) $ 785 ($000s)
Advertising
Retailer 96.5 per unit 94.6 per unit 80.4 per unit 95.6 per unit
Recruitment
Warranty 110 days 110 days 90 days 90 days
Period
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Earnings $3.83 $3.00 Net 522,965 +8.1%
Per Share Revenues
Return On 33.0% 25.0% ($000s)
Image 80 72 Cash
Rating ($000s)
AC Camera Workforce Compensation UAV Drone Workforce Compensation
Compensation Decisions Company

Ind. Avg.
Compensation Decisions Company
Ind. Avg.
(Year 8) (last year) (Year 8) (last year)

Base Wage Base Wage
(per PAT change $ 22,065 $ 21,275 (per PAT change $ 23,166 $ 21,857
member) member)
Assembly Assembly
Quality $ per unit 2,047 2,031 Quality $ per unit 2,740 2,274
Incentive Incentive
Attendance 800 850 Attendance 850 850
Bonus $ per worker
Bonus $ per worker
Fringe Benefit 2,000 2,000 Fringe Benefit 2,200 2,250

Package $ per worker
Package $ per worker
Total Compensation ($ per Total Compensation ($ per

$ 26,912 $ 26,156 $ 28,956 $ 27,231
worker per year) worker per year)
Best Practices / Productivity Best Practices / Productivity

Improvement Training $ 10 Improvement Training $ 17
Projected PAT Productivity (AC Camera units per Projected PAT Productivity (UAV Drone units per
PAT per year)
3,200 PAT per year)
1,693
AC Camera Assembly Facility UAV Drone Assembly Facility

Installed Workstation Installed Workstation
Workstation Spaces Table Workstation Spaces Table
At the At the workst At the At the workst

End of 320 spaces End of 320 End of 120 spaces End of 115
ations ations
Y7 Y7 Y7 Y7
Expan Install Expan Install
sion 0 $400k ea.ed for 0 $125k ea. sion 0 $400k ea.ed for 0 $325k ea.
(new) Y8 (new) Y8
Availab Availab workst Availab Availab workst
le for 320 spaces le for 320 le for 120 spaces le for 115
ations ations
Y8 Y8 Y8 Y8
Additional Workstations Needed to 7 Additional Workstations Needed to 0

Avoid Overtime Assembly Avoid Overtime Assembly
Assembly 1,024.0 w/o OT 1,229.0 at maximum OT Assembly 195.0 w/o OT 234.0 at maximum OT
Capability Capability
(000s of units) (000s of units)
Projected Camera 1,043.6 Projected Drone Demand 149.3

Demand (000s of units) (000s of units)
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Expected ACC Unit 0.0 (000s of units) Expected UAV Unit 0.0 (000s of units)
Shortfall Shortfall
(unsatisfied demand) (unsatisfied demand)
Labor Costs
Unit Assembly and Units
Labor Costs $000s $/unit Labor Costs

(000s) Unit Assembly and Units
Labor Costs (000s) $000s $/unit

ACC Regular- 1,024.0 34,489 33.68
Assembly Time UAV Regular- 149.3 7,027 47.07
Overtime 19.6 862 43.98 Assembly Time
Training 320 0.31 Overtime 0.0 0 0.00
Total 1,043.6 35,671 34.18 Training 156 1.04

Total 7,183 48.11
Robotics Upgrade for All ACC
Workstations
Robotics Upgrade for All UAV
No Upgra
(to reduce the number of persons per Workstations
Initiated
PAT from 4 to 3) (to reduce the number of persons per PAT in Y6
from 4 to 3)
$000s
Cost Impact of Depreciation $000s
Upgrade ($000s) (5% of $0k capital 0 Cost Impact of Depreciation
cost of upgrade) Upgrade ($000s) (5% of $17,250k
+863
capital cost of
Labor (total
upgrade)
savings in wages 0
and incentive pay) Labor (total
Maintenance savings in wages -2,334
(additional cost of and incentive pay)
0
$9.0k per Maintenance
workstation) (additional cost of
+1,035
$9.0k per
Interest (if financed ) 0 workstation)
Net Annual Interest (if financed ) +248

Cost Impact of 0
Robotics Net Annual
Upgrade Cost Impact of -188
Robotics
Upgrade
Capital Facility
Expendit New Expansio Robotics Total Capital Facility
ures Workstns n Upgrade Outlays Expendit New Expansio Robotics Total
ures Workstns n Upgrade Outlays
Y8 Capital Outlays ($000s)
$0 $0 $0 $0
Y8 Capital Outlays ($000s)
$0 $0 $0 $0
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Earnings $3.83 $3.00 Net 522,965 +8.1%
Per Share Revenues
Return On 33.0% 25.0% ($000s)
Image 80 72 Cash
Rating ($000s)
Corporate Social Responsibility and Citizenship

Below are six CSRC initiatives that can be used to develop a "social responsibility strategy" for
your company. The drop-down selection boxes below offer several optional actions.
While practicing good corporate citizenship is often considered "the right thing to do", one
reason to operate in a socially responsible manner is to enhance the company's image.
Aggressive and astute pursuit of a social responsibility strategy over 5 years can increase the
company's Image Rating by 15 to 20 points.
However, which (if any) of the six initiatives to pursue and how much to spend is entirely
voluntary. There is no pressure to spend anything on these initiatives — the company can
perform success-fully without undertaking any social responsibility initiatives. In Year 5, prior
company management spent no money on any of the six optional social responsibility
initiatives.
The Help button at the top-right offers further information and guidance regarding the six
CSRC initiatives.
CSRC Initiatives
Charitable Contributions Involves donations to registered charities and charitable causes.
$ or of operating profit Treated on the Income Statement as "Other Expenses" (reduces
pre-tax income).
Involves use of environmentally friendly components, recycled
"Green" Initiatives to Promote
materials, and green shipping. Increases production cost of AC
Environmental Sustainability Cameras by $2.00 and UAV Drones by $5.00 per unit, shipping
costs of AC Cameras by $1.00 and UAV Drones by $2.50 per
unit, and annual administrative costs by $300k.
Renewable Energy Program Involves ongoing expenditures to incorpoprate renewable energy
$ 1500 resources at the Taiwan assembly facilities. These expenditures are
treated as capital investment and depreciated at 5% per year.
Improved Working Cafeteria and On-Site Child Involves one-time capital
Conditions Care Facilities for Plant Continue
Employees investment of $3.0
million and increased
administrative costs of
$500k annually. Results
in one-time productivity
increases of 100
units/year for camera
https://www.glo-bus.com/users/program21/decisions/csrc 1/2
PATs and 50 units/year
for drone PATs.
Involves one-time capital
investment of $2.5
million and increased
administrative costs of
Additional Safety Equipment
and Improved Lighting / Continue
$600k annually. Results
Ventilation in one-time productivity
increases of 100
units/year for camera
PATs and 50 units/year
for drone PATs.
Involves a dedicated effort to promote fair employment practices
Institution of a Supplier Code
and safe working conditions at supplier factories (regarding
of Conduct and Compliance
excessive work hours, substandard wages, underage labor,
Monitoring of Suppliers exposure to toxic materials, and unsafe work practices). Entails
added annual administrative costs of $500k.
Cash Outlays for Corporate Social

Responsibility and Citizenship in Year Total Cash Outlays ($000s) $8,769 $ Per unit Sold $7.35
8
Company CSRC Efforts Year 3 Year 4 Year 5 Year 6 Year 7

Charitable Contributions ($000s) 0 0 0 558 1,008
"Green" Initiatives No No No Yes Yes
Renewable Energy Program
0 0 0 3,500 1,500
($000s)
Improved Facilities No No No Yes Yes

Working
Conditions Safety/Lighting No No No Yes Yes
Supplier Code of Conduct No No No Yes Yes
Total Cash Thousands of $ 0 0 0 14,462 8,219

Outlays $ Per Unit Sold 0.00 0.00 0.00 16.53 7.70
Company CSRC Efforts by Year
The information below indicates the range of effort being exerted by companies to operate in a
socially responsible manner and be good corporate citizens. These statistics should be helpful in
crafing your own company's social responsibility strategy.
Industry 5 CSRC Cash Outlays Year 6 Year 7

High 14,462 9,443
Thousands of $ Average 8,654 6,466
Low 0 1,100
High 16.53 8.57
$ Per Unit Sold Average 8.92 5.95
Low 0.00 0.93
Industry 5 CSRC Cash Outlays
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Earnings $3.83 $3.00 Net 522,965 +8.1%
Per Share Revenues
Return On 33.0% 25.0% ($000s)
Image 80 72 Cash
Rating ($000s)
Finance and Cash Flow

1-Year Bank Loan (3.50%
0 interest)
Sources of Uses for Early None
Additional Excess Repayment of
Cash ($000s) 5-Year Bank Loan (4.00%
0 interest) Cash ($000s) L-T Loans
(Balance Sheet N/A

10-Year Bank Loan (4.50%
0 interest) Note 8)
Stock Issue (000s of shares at $101.27) Dividend ($/share)

Max. share issue 0 Year 7 dividend 0.00
in Y8 = 5000k was $0.00
Stock Repurchase
(000s of shares at
0
$101.27)
Shares of stock outstanding at the 19,354 k Max. share repurchase in Y8 = 726k
beginning of Year 8
Shares of stock outstanding at the 19,354 k
Projected Cash Available in Year 8
end of Year 8
Beginning Cash Balance (carried over from
$ 23,682 Projected Cash Outlays in Year 8
Year 7)
Cash Inflows Receipts from Sales 519,905 Cash Payments to Component $ 209,062
Outlays Suppliers
Bank Loans 1-Year 0
Production and Assembly 114,005
5-Year 0 Expenses
10-Year 0 Delivery/Marketing/Admin 69,744
Expenses
Stock Issue (0 shares @
0
$101.27) Capital New 0
Outlays Workstations
Loan to Cover Overdraft
0 Robotics
(1-year loan) 0
Upgrade
Interest on Year 7 Cash 0
Balance Facilities 0
Expansion
Cash Refund (awarded by
0 Facilities
instructor)
Improvemen 1,500
Cash Available from All Sources $ 543,587 t
Loan 1-Year 20,000
Principal Loans
Repayment
5-Year 17,000
Loans
10-Year 0
Loans
Interest Bank Loans 4,850
Payments
Y7 Overdraft 0
Stock Repurchases (0
0
shares @ $101.27)
Income Tax Payments 31,791

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Projected
Dividend
Cash
Payments
Outlays in Year 8 0
Charitable Contributions 1,119

Cash Fine (assessed by
0
instructor)
Total Cash Outlays $ 469,071
Projected Cash Balance at the End of Year 8 Could generate interest income of
$0k in
$ +74,516
($000s) Year 9.
Other Important Performance on

Financial Credit Rating
Statistics Last Year Year 8 (projected) Measures Last Year Year 8 (projected)
Interest Rate 6.2% 5.5% Debt / Equity 45:55 32:68

Paid on Overdraft Percentage (D:E)
Loans
Interest 10.71 23.08
Interest Rate 0.2% 0.0% Coverage Ratio
Received on (operating profit ÷
Cash Balances interest exp.)
Shareholder 188.0 mil. 262.2 mil. Current Ratio 1.33 2.33

Equity (mandated (current assets ÷
minimum = $100 current liabilities)
mil.)
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Camera
& Drone
Journal Year 7 Scoreboard
20-Aug-22 Investor Best-In- Weighted
Expectation Industry Average Change
Rank Company Name Score Score Score from Y6
1 B Company 116 99 108 +2
Industry 5 2 A Company 115 81 98 +3
IBS K46 3 C Company 115 77 96 +10
3 D Company 114 78 96 -6
Year 7
(practice)
Game-To-Date Scoreboard
Investor Best-In- Weighted Overall
Expectation Industry Average Bonus G-T-D
Rank Company Name Score Score Score Points Score
1 B Company 116 99 108 2 110
2 D Company 115 79 97 1 98
3 A Company 114 80 97 0 97
4 C Company 113 75 94 2 96
Investor Investors and company boards of directors have established targets for the five
Expectation key performance measures that appear on pages 2 and 3 of this report. The
Score (I.E.) I.E. score ranges from 0 to 120 (if all targets are exceeded by 40% or more).
Click the Help button (upper-right) for more information.
Best-In- The B-I-I score measures each company's performance relative to the best
Industry performing company on each key scoring measure. The B-I-I score ranges
Score (B-I-I) from 0 to 100. To score 100 a company must be the best performing company
in the industry on all five key performance measures.
Weighted The weighted average score combines the Investor Expectation Score and the
Average Best-In-Industry Score using a 50%-50% weighting as specified by the course
Score instructor. Detailed explanations of scoring are provided in the Help sections
asociated with pages 1, 2, and 3 of this report.
Copyright © 2019 GLO-BUS Software, Inc. Page 1
https://www.glo-bus.com/users/program21/cdj/page1 1/8
Industry 5 Camera & Drone Journal Year 7
(practice)
Key Performance Measures
Earnings Per Share ($)

Earnings Per Share scores are based on a 20% or 20 point weighting. Bolded numbers indicate achievement of the investor expected EPS
shown below each yearly column head. Highlighted numbers indicate best-in-industry performances for each year. Game-To-Date scores are
based on a weighted average of the annual EPS performances. For more information, click the Help button (above-right).
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Wgt. Avg. Y7 Score G-T-D Score
(1.25) (2.00) (3.00) (4.25) (5.50) (7.00) (8.50) (10.50) (12.50) (14.50) (1.63) I.E. B-I-I I.E. B-I-I
A 1.59 3.27 2.42 24 14 24 15 A
B 1.97 4.59 3.28 24 20 24 20 B
C 1.07 2.80 1.93 24 12 22 12 C
D 1.70 3.06 2.37 24 13 24 14 D
Return On Equity (%)

Return On Equity scores are based on a 20% or 20 point weighting. Bolded numbers indicate achievement of the investor expected ROE
shown below each yearly column head. Highlighted numbers indicate best-in-industry performances for each year. Game-To-Date scores are
based on a weighted average of the annual ROE performances. For more information, click the Help button (above-right).
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Wgt. Avg. Y7 Score G-T-D Score
(17.5) (20.0) (25.0) (30.0) (35.0) (40.0) (42.5) (45.0) (47.5) (50.0) (18.8) I.E. B-I-I I.E. B-I-I
A 24.4 38.2 32.1 24 17 24 16 A
B 29.4 46.2 39.4 24 20 24 20 B
C 18.2 36.4 28.4 24 16 24 14 C
D 25.9 36.1 31.6 24 16 24 16 D
Stock Price ($ per share)

Stock Price scores are based on a 20% or 20 point weighting. Bold numbers indicate achievement of the investor expected stock price shown
below each yearly column head. Highlighted numbers indicate best-in-industry performance for each year. Game-To-Date scores are based
solely on the most recent year's stock price. For more information, click the Help button (above-right).
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y7 Score G-T-D Score
(20.00) (35.00) (60.00) (100.00) (150.00) (200.00) (250.00) (300.00) (330.00) (350.00) I.E. B-I-I I.E. B-I-I
A 41.41 101.27 24 13 24 13 A
B 60.46 151.06 24 20 24 20 B
C 28.90 85.74 24 11 24 11 C
D 50.37 92.66 24 12 24 12 D
(practice)
Key Performance Measures

(concluded)
Credit Rating
Credit Rating scores are based on a 20% or 20 point weighting. Bolded credit ratings indicate achieving or exceeding the investor expected
EPS shown below each yearly column head. For Best-In-Industry scoring, an A+ credit rating earns a score of 20 points (lesser credit ratings
earn lower scores). Game-To-Date scores are based solely on the most recent year's credit rating.
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y7 Score G-T-D Score
(B+) (B+) (A–) (A–) (A–) (A) (A) (A) (A) (A) I.E. B-I-I I.E. B-I-I
A B+ A– 22 18 22 18 A
B A– A 23 19 23 19 B
C B+ A– 22 18 22 18 C
D A– A– 22 18 22 18 D
Image Rating
Image Rating scores are based on a 20% or 20 point weighting. Bolded image ratings indicate achieving or exceeding the investor expected
image rating shown below each yearly column head. Highlighted numbers indicate best-in-industry performances for each year. Game-To-
Date scores are based on an average of each company's image ratings for the most recent three years.
Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y5-Y7 Y7 Score G-T-D Score
(70) (72) (72) (75) (75) (77) (77) (80) (80) (80) Average I.E. B-I-I I.E. B-I-I
A 68 78 73 21 19 20 18 A
B 77 81 79 21 20 21 20 B
C 83 79 81 21 20 21 20 C
D 74 75 75 20 19 21 19 D
Corporate Social Responsibility and Citizenship Corporate Responsibility Award

Industry 5 Cash Outlays for Corporate Image Rating Points for Exemplary Corporate Citizenship
Social Responsibility and Citizenship Generated from
Beginning in Year 9, the World Council for Exemplary
Total Dollars ($000s) Per Unit Sold ($/unit) CSRC Expenditures Corporate Citizenship presents a distinguished award
High Average Low High Average Low High Average Low to the company making the highest cash outlays as a
percentage of revenues for corporate social respon-
Year 6 14,462 8,654 0 16.53 8.92 0.00 6 4 0 sibility and citizenship initiatives.
Year 7 9,443 6,466 1,100 8.57 5.95 0.93 8 6 4
Year 8 Award Winner 2nd Place
Year 9 Y9
Year 10 Y10
Year 11 Y11
Year 12 Y12
Year 13 Y13
Year 14 Y14
Year 15 Y15
(practice)
Bonus Point Awards
BULL'S EYE AWARD One bonus point added to any company's game-to-date score when actual
performance on Total Revenues AND Earnings Per Share vary by no more
for Accurately Forecasting Total Revenues, than 5% from projected performance AND when Image Rating varies by no
Earnings Per Share, and Image Rating more than 4 points from the projected image rating.
Revenues (within ± 5%) EPS (within ± 5% or ± 10¢) Image Rating (within ± 4 points) Year 7 Cumu-
Year 7 Year 7 Percent Year 7 Year 7 Percent Year 7 Year 7 Point Bull's Eye lative
Forecast Actual Variance Forecast Actual Variance Forecast Actual Variance Award Awards
A 435,202 483,687 +11.1 % 2.53 3.27 +29.2 % 75 78 +3 pts. No 0 A
B 524,425 535,120 +2.0 % 4.58 4.59 +0.2 % 78 81 +3 pts. Yes 2 B
C 593,147 572,810 -3.4 % 3.06 2.80 -8.5 % 80 79 -1 pts. No 1 C
D 515,735 539,531 +4.6 % 2.71 3.06 +12.9 % 74 75 +1 pts. No 1 D
Trends in Variances Between Projected and Actual Performance

(company and industry variances bertween projected and actual revenues, EPS, and image rating)
Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Industry 5 Largest +11.1 % +14.8 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Variance Average +3.1 % +4.7 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Smallest +1.2 % +1.2 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Company A Variance +11.1 % +14.8 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
LEAP FROG AWARD Beginning in Year 7, one bonus point is added to the game-to-date overall
score of the company whose current-year overall score is most improved
for Most Improved Overall Score over the prior year. If all companies fail to improve their scores from one
(current year to current year) year to the next, then no Leap Frog bonus is awarded.
Current-Year Scores and Net Changes Cumu-

Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 lative
Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Awards
A 95 +3 98 0 A
B 106 +2 108 0 B
C 86 +10 96 1 C
D 102 -6 96 0 D
Δ = net change in score between years Highlighted figure = Leap Frog Award winner
Copyright © 2019 GLO-BUS Software, Inc. Page 3b
(practice)
Industry Overview
Action-Capture Camera Global Statistics (industry totals)

North Europe- Asia- Latin
America Africa Pacific America Overall NOTES
Average Wholesale Price ($/unit) 290 293 266 262 278 ◄ Average wholesale prices in Year 7
% Change from Year 6 +9.8 % +8.9 % +9.9 % +9.6 % +9.4 % were much higher than in Year 6
AC Camera Demand (000s of units) 1,200 1,028 900 656 3,784 ◄ -0.8% lower than forecast.
Units Assembled/Shipped/Sold 1,200 1,028 900 656 3,784 ◄ Up by 6.3% from Year 6.
Unsatisfied Demand (000s of units) 0 0 0 0 0 ◄ Assembly capability industry-wide was
adequate to satisfy Year 7 demand.
Demand Forecast Year 8 1,268 1,083 984 716 4,051
(000s of units)
Year 9 1,334 1,142 1,076 783 4,335 ◄ Demand for AC Cameras is expected
to increase by about 7.1% annually.
Year 10 1,406 1,204 1,176 857 4,643
Action-Capture Camera Global Trends

(industry average price, P/Q Rating, and number of performance features)
Price P/Q Rating Features

$280 10
Average Price
P/Q Rating –
$260
Features
5
$240
$220 0
5 6 7 8 9 10 11 12 13 14 15
Year
UAV Drone Global Statistics (industry totals)

North Europe- Asia- Latin
America Africa Pacific America Overall NOTES
Average Wholesale Price ($/unit) 1,725 1,741 1,565 1,525 1,639 ◄ Average wholesale prices in Year 7
% Change from Year 6 +12.2 % +13.2 % +9.8 % +7.9 % +10.8 % were much higher than in Year 6
UAV Drone Demand (000s of units) 228 192 136 84 640 ◄ -5.3% lower than forecast.
Units Assembled/Shipped/Sold 228 192 136 84 640 ◄ Up by 10.3% from Year 6.
Unsatisfied Demand (000s of units) 0 0 0 0 0 ◄ Assembly capability industry-wide was
adequate to satisfy Year 7 demand.
Demand Forecast Year 8 257 213 154 98 722
(000s of units)
Year 9 288 238 178 113 817 ◄ Demand for UAV Drones is expected
to increase by about 12.0% annually.
Year 10 314 260 199 127 900
UAV Drone Global Trends

(industry average price, P/Q Rating, and number of performance features)
Price P/Q Rating Features

$2000 10
Average Price
P/Q Rating –
Features
$1500 5
$1000 0
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Financial Performance Summary
Income Statement Data ($000s)

Net Sales Revenues Cost of Delivery Marketing Admin Operating Interest Income Net
AC Camera UAV Drone Total Goods Sold Costs Costs Expenses Profit Exp (Inc) Taxes Profit
A 239,560 244,127 483,687 317,167 28,365 27,200 10,173 100,782 9,406 27,110 63,258 A
B 260,754 274,366 535,120 317,535 33,142 34,514 9,769 140,160 8,994 38,929 90,835 B
C 306,153 266,657 572,810 401,706 31,038 37,575 9,358 93,133 9,012 25,236 58,885 C
D 283,646 255,885 539,531 379,294 28,242 28,670 9,743 93,582 8,998 25,375 59,209 D
272,528 260,259 532,787 353,926 30,197 31,990 9,761 106,914 9,103 29,163 68,047
Balance Sheet Data ($000s)

Shareholder Equity
Cash Current Fixed Total Current Long-Term Total Beginning Stock Sales Earnings Ending
On Hand Assets Assets Assets Liabilities Loans Liabilities Equity (Purchases) Retained Equity
A 23,682 120,132 223,287 343,419 90,443 65,000 155,443 143,608 -18,893 63,258 187,976 A
B 21,789 120,490 196,725 317,215 63,242 12,000 75,242 151,135 0 90,835 241,973 B
C 37,810 158,568 188,861 347,429 85,550 78,000 163,550 139,308 -14,312 58,885 183,879 C
D 53,138 159,789 182,724 342,513 82,459 78,000 160,459 145,826 -22,982 59,209 182,054 D
34,105 139,745 197,899 337,644 80,424 58,250 138,674 144,969 0 68,047 198,971
Selected Financial and Operating Statistics

Dividend Data Credit Rating Measures Profitability Ratios Capital Shares
Dividend Total Div Payout Debt : Interest Gross Operating Net Outlays of Stock
Per Share Payment (percent of Equity Coverage Current Profit Profit Profit ($000s for Outstanding
($/share) ($000s) net profit) (D%:E%) Ratio Ratio Margin Margin Margin plant & equip) (000s of shrs)
A 0.00 0 0.0 % 45:55 10.71 1.33 34.4 % 20.8 % 13.1 % 9,000 19,354 A
B 0.00 0 0.0 % 24:76 15.58 1.91 40.7 % 26.2 % 17.0 % 15,500 19,800 B
C 0.00 0 0.0 % 47:53 10.33 1.85 29.9 % 16.3 % 10.3 % 6,750 21,016 C
D 0.00 0 0.0 % 47:53 10.40 1.94 29.7 % 17.3 % 11.0 % 5,500 19,354 D
0.00 0 0.0 % 41:59 11.76 1.76 33.7 % 20.2 % 12.8 % 9,188 19,881
(practice)
Action-Capture Camera Benchmarks
Assembly and Production Benchmarks

Industry 5 Company
Low Average High A
Camera Components Image Sensor 6.93 9.61 14.70 7.00
and Features LCD Screen Display 9.90 16.00 29.40 10.00
($ per unit)
Image Quality 4.95 10.34 20.58 8.00
Photo Modes 6.43 8.27 9.00 9.00
Camera Housing 11.00 13.50 16.00 12.00
Editing/Sharing Capabilities 12.00 14.25 16.00 12.00
Included Accessories 12.00 15.50 20.00 12.00
Extra Performance Features 8.82 15.07 24.01 14.00
Total Cost of Camera Components and Features ($ per unit) * 84.00 102.54 120.24 84.00
R&D Expenditures Year 7 Expenditures 0 16,500 32,000 6,000
($000s)
Cumulative Expenditures 57,000 80,000 101,000 57,000
Workforce Statistics Total Compensation ($ per employee) 25,513 26,156 26,857 26,023
Productivity (units per PAT per year) 3,137 3,189 3,252 3,149
Labor Cost ($ per unit assembled)) 32.66 33.72 34.52 33.44
Total Camera Production/Assembly Cost (manufacturing cost per unit) 153.36 181.29 210.39 153.36
Assembly Facility Workstation Spaces (plant size) 300 308 320 320
($000s)
Installed Workstations 280 293 320 320
* The total of all the component/feature cost items may not equal the figures on the Total Cost of Camera Components and Features line because the low,
average, and high costs for each component/feature may come from different companies.
Geographic Operating Benchmarks

Industry 5 Company
Low Average High A
North America Delivery Cost ($ per unit sold) 5.00 5.50 6.00 6.00
Marketing Cost ($ per unit sold) 10.91 16.31 19.16 10.91
Operating Profit ($ per unit sold) 62.08 77.64 102.85 75.49
Operating Profit Margin (%) 20.4 % 27.1 % 35.6 % 29.7 %
Warranty Claim Rate (%) 6.1 % 9.8 % 13.6 % 6.8 %
Warranty Repair Cost ($ per unit sold) 3.03 4.91 6.83 3.38
Europe-Africa Delivery Cost ($ per unit sold) 16.16 17.23 17.60 16.16
Asia-Pacific Delivery Cost ($ per unit sold) 20.94 21.45 21.80 20.94
Latin America Delivery Cost ($ per unit sold) 20.40 21.24 21.84 20.40
(practice)
UAV Drone Benchmarks
Assembly and Production Benchmarks

Industry 5 Company
Low Average High A
Drone Components Built-In Camera 173.15 218.90 253.95 196.92
and Features GPS / WiFi / Bluetooth 50.00 76.98 103.95 103.95
($ per unit)
Battery Pack 125.00 156.55 227.70 148.50
Rotor Performance / Flight Controller 69.30 89.27 121.77 121.77
Body Frame Construction 44.55 44.77 45.00 44.55
Obstacle Sensors 67.00 99.79 150.00 91.08
Camera Stabilization Device 17.82 39.05 62.37 62.37
Extra Performance Features 88.21 97.35 123.00 88.21
Total Cost of Drone Components and Features ($ per unit) * 767.15 822.66 896.56 857.35
R&D Expenditures Year 7 Expenditures 0 19,500 30,000 30,000
($000s)
Cumulative Expenditures 45,000 70,500 90,000 90,000
Workforce Statistics Total Compensation ($ per employee) 26,234 27,231 28,415 27,793
Productivity (units per PAT per year) 1,564 1,623 1,675 1,644
Labor Cost ($ per unit assembled)) 47.84 60.44 68.33 47.84
Total Drone Production/Assembly Cost (manufacturing cost per unit) 953.56 1,153.48 1,287.25 1,287.25
Assembly Facility Workstation Spaces (plant size) 110 118 120 120
($000s)
Installed Workstations 100 109 115 115
* The total of all the component/feature cost items may not equal the figures on the Total Cost of Drone Components and Features line because the low,
average, and high costs for each component/feature may come from different companies.
Geographic Operating Benchmarks

Industry 5 Company
Low Average High A
North America Delivery Cost ($ per unit sold) 42.49 47.47 53.49 44.95
Europe-Africa Delivery Cost ($ per unit sold) 104.11 114.85 120.28 119.52
Asia-Pacific Delivery Cost ($ per unit sold) 132.41 142.61 153.46 150.63
Latin America Delivery Cost ($ per unit sold) 125.32 138.87 150.76 148.41
Industry 5 Competitive Intelligence Reports — Comparative Competitive Efforts Year 7
(practice)
Co. A
North America Competitive Efforts by Company Ind. vs Ind.
A B C D Avg. Avg.
AC CAMERA SEGMENT
Price (average wholesale $ per unit) 254 289 310 305 290 -12.4 %
P/Q Rating (1 to 10 stars) 4.9★ 5.3★ 5.5★ 6.5★ 5.6★ -12.5 %
Brand Reputation (prior-year image) 68 77 83 74 76 -10.5 %
Number of Models 3 2 4 2 2.8 +7.1 %

Retail Multi-Store Chains 26 40 45 45 39 -33.3 %
Outlets Online Retailers 52 78 91 93 79 -34.2 %
Local Retailers 2,160 3,240 3,730 3,900 3,258 -33.7 %
Retailer Support ($ per unit) 3.36 5.17 6.14 5.15 4.96 -32.3 %
Advertising Budget ($000s) 800 1,800 2,750 2,300 1,913 -58.2 %
Website Displays ($000s) 1,000 1,800 1,700 1,800 1,575 -36.5 %
Sales Promotions — Weeks 1 1 1 1 1.0 0.0 %
Discount 0.0 % 5.0 % 10.0 % 10.0 % 6.3 % -100.0 %

Warranty Period (days) 60 120 60 120 90 -33.3 %
Demand for ACC Units (000s) 238.4 289.9 341.8 329.9 300.0 -20.5 %
Gained/Lost (due to stockouts) 0.0 0.0 0.0 0.0 0.0
AC Camera Units Sold (000s) 238.4 289.9 341.8 329.9 300.0 -20.5 %
Market Share
19.9 % 24.2 % 28.5 % 27.5 % 25.0 % -5.1 pts.
Special AC Camera Contracts
Discount Offer (% off standard price) 0.0 % 0.0 % 0.0 % 0.0 % Avg. Discount = 0.0 %
Value Index 0 0 0 0 Avg. Value Index = 0
Special Contract Units Sold (000s) 0.0 0.0 0.0 0.0 Total Units = 0.0 k
UAV DRONE SEGMENT

Price (average direct-sale $ per unit) 1,900 1,550 1,650 1,800 1,725 +10.1 %
Discount to Online Retailers 17 % 10 % 16 % 13 % 14.0 % +21.4 %
P/Q Rating (1 to 10 stars) 6.4★ 5.5★ 5.5★ 6.1★ 5.9★ +8.5 %
Number of Models 2 2 2 2 2.0 0.0 %

Online Retailers 30 38 34 46 37 -18.9 %
Website Displays ($000s) 2,000 2,255 1,900 1,600 1,939 +3.1 %
Search Engine Advertising ($000s) 1,500 1,955 2,300 2,500 2,064 -27.3 %
Retailer Recruitment ($ per unit) 72.22 136.36 91.30 96.00 98.97 -27.0 %

Drone Unit – Direct (company website) 33.3 50.0 38.4 44.1 41.5 -19.8 %
Demand 3rd-Party Retailers 18.0 11.0 20.7 12.5 15.6 +15.4 %
(000s)
Total Demand 51.3 61.0 59.1 56.6 57.0 -10.0 %
UAV Drone Units Sold (000s) 51.3 61.0 59.1 56.6 57.0 -10.0 %
Market Share 22.5 % 26.8 % 25.9 % 24.8 % 25.0 % -2.5 pts.
AC CAMERA SEGMENT — NORTH AMERICA UAV DRONE SEGMENT — NORTH AMERICA

High End High End
A
D
D
C C
Price and P/Q Rating
B
B A A
B B
A
C C
D D
Low End Low End

Low High Low High
Sales Promotions / Advertising Search Engine Advertising / Retailer Discount
Competitive Intelligence Report Copyright © GLO-BUS Software, Inc. Page 1
https://www.glo-bus.com/users/program21/cir/comparative-efforts 1/12
(practice)
Co. A
Europe-Africa Competitive Efforts by Company Ind. vs Ind.
A B C D Avg. Avg.
AC CAMERA SEGMENT

Retail Multi-Store Chains 21 36 38 40 34 -38.2 %
Outlets Online Retailers 47 69 79 80 69 -31.9 %
Local Retailers 1,847 2,950 3,300 3,307 2,851 -35.2 %
Retailer Support ($ per unit) 3.63 5.95 6.64 4.83 5.26 -31.0 %
Advertising Budget ($000s) 800 1,800 2,800 1,800 1,800 -55.6 %
Website Displays ($000s) 1,000 1,300 1,450 1,800 1,388 -28.0 %
Sales Promotions — Weeks 1 1 1 1 1.0 0.0 %
Discount 0.0 % 5.0 % 10.0 % 10.0 % 6.3 % -100.0 %

Demand for ACC Units (000s) 220.3 251.9 286.3 269.4 257.0 -14.3 %
AC Camera Units Sold (000s) 220.3 251.9 286.3 269.4 257.0 -14.3 %
Market Share
21.4 % 24.5 % 27.9 % 26.2 % 25.0 % -3.6 pts.
UAV DRONE SEGMENT

Discount to Online Retailers 15 % 10 % 16 % 13 % 13.5 % +11.1 %

Online Retailers 28 33 29 34 31 -9.7 %
Website Displays ($000s) 2,000 2,255 1,720 1,500 1,869 +7.0 %
Search Engine Advertising ($000s) 1,500 1,800 1,950 2,300 1,888 -20.6 %
Retailer Recruitment ($ per unit) 81.08 128.05 80.92 98.13 97.05 -16.5 %

Demand 3rd-Party Retailers 14.8 8.2 17.3 10.7 12.8 +15.6 %
(000s)
Total Demand 43.5 51.1 50.9 46.5 48.0 -9.4 %
Market Share 22.7 % 26.6 % 26.5 % 24.2 % 25.0 % -2.3 pts.
AC CAMERA SEGMENT — EUROPE-AFRICA UAV DRONE SEGMENT — EUROPE-AFRICA

High End High End
A
D
D
C
C
B
B A A
B B
A C C
D D
Low End Low End

Low High Low High
(practice)
Co. A
Asia-Pacific Competitive Efforts by Company Ind. vs Ind.
A B C D Avg. Avg.
AC CAMERA SEGMENT

Retail Multi-Store Chains 34 28 33 30 31 +9.7 %
Outlets Online Retailers 63 54 66 57 60 +5.0 %
Local Retailers 2,712 2,300 2,716 2,450 2,545 +6.6 %
Retailer Support ($ per unit) 6.52 5.06 7.41 4.30 5.82 +12.0 %
Advertising Budget ($000s) 2,000 1,200 1,300 800 1,325 +50.9 %
Website Displays ($000s) 1,000 1,000 1,200 900 1,025 -2.4 %
Sales Promotions — Weeks 2 1 1 1 1.3 +53.8 %
Discount 20.0 % 10.0 % 10.0 % 15.0 % 13.8 % +44.9 %

Warranty Period (days) 90 120 60 90 90 0.0 %
Demand for ACC Units (000s) 260.8 237.0 216.0 186.1 225.0 +15.9 %
AC Camera Units Sold (000s) 260.8 237.0 216.0 186.1 225.0 +15.9 %
Market Share
29.0 % 26.3 % 24.0 % 20.7 % 25.0 % +4.0 pts.
UAV DRONE SEGMENT

Discount to Online Retailers 12 % 10 % 17 % 10 % 12.3 % -2.4 %

Online Retailers 28 27 31 20 27 +3.7 %
Website Displays ($000s) 700 1,300 1,300 900 1,050 -33.3 %
Search Engine Advertising ($000s) 600 1,500 1,455 1,100 1,164 -48.5 %
Retailer Recruitment ($ per unit) 87.72 113.92 67.31 52.63 80.40 +9.1 %

Demand 3rd-Party Retailers 5.7 7.9 10.4 3.8 7.0 -18.6 %
(000s)
Total Demand 25.5 45.1 38.6 26.9 34.0 -25.0 %
Market Share 18.7 % 33.1 % 28.4 % 19.8 % 25.0 % -6.3 pts.
AC CAMERA SEGMENT — ASIA-PACIFIC UAV DRONE SEGMENT — ASIA-PACIFIC

High End High End
A
D
C
C
B
B A A
A B B
C C
D D
Low End Low End

Low High Low High
(practice)
Co. A
Latin America Competitive Efforts by Company Ind. vs Ind.
A B C D Avg. Avg.
AC CAMERA SEGMENT

Retail Multi-Store Chains 25 15 25 26 23 +8.7 %
Outlets Online Retailers 54 29 54 48 46 +17.4 %
Local Retailers 1,570 802 1,570 1,370 1,328 +18.2 %
Retailer Support ($ per unit) 7.07 8.28 7.58 4.22 6.79 +4.1 %
Advertising Budget ($000s) 2,000 1,200 1,000 900 1,275 +56.9 %
Website Displays ($000s) 1,000 1,000 900 700 900 +11.1 %
Sales Promotions — Weeks 2 1 1 1 1.3 +53.8 %
Discount 20.0 % 10.0 % 10.0 % 15.0 % 13.8 % +44.9 %

Warranty Period (days) 90 120 60 90 90 0.0 %
Demand for ACC Units (000s) 212.1 138.7 158.3 147.0 164.0 +29.3 %
AC Camera Units Sold (000s) 212.1 138.7 158.3 147.0 164.0 +29.3 %
Market Share
32.3 % 21.1 % 24.1 % 22.4 % 25.0 % +7.3 pts.
UAV DRONE SEGMENT

Discount to Online Retailers 12 % 10 % 17 % 10 % 12.3 % -2.4 %

Online Retailers 24 19 28 15 22 +9.1 %
Website Displays ($000s) 700 1,500 1,210 500 978 -28.4 %
Search Engine Advertising ($000s) 300 1,300 1,240 300 785 -61.8 %
Retailer Recruitment ($ per unit) 128.21 125.00 79.22 50.00 95.61 +34.1 %

Demand 3rd-Party Retailers 3.9 6.0 7.7 2.0 4.9 -20.4 %
(000s)
Total Demand 15.1 27.8 26.5 14.5 21.0 -28.1 %
Market Share 18.0 % 33.1 % 31.6 % 17.3 % 25.0 % -7.0 pts.
AC CAMERA SEGMENT — LATIN AMERICA UAV DRONE SEGMENT — LATIN AMERICA

High End High End
A
D
D
C
C
B B
A A
A B B
C C
D D
Low End Low End

Low High Low High
Industry 5 Regional Average Competitive Efforts Year 7
(practice)
North America
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
AC CAMERA SEGMENT
Price (average wholesale $ per unit) 225 264 290
P/Q Rating (1 to 10 stars) 4.0★ 4.9★ 5.6★
Brand Reputation (prior-year image) 70 70 76
Number of Models 3 3 3
Retail Multi-Store Chains 36 36 39
Outlets Online Retailers 72 72 79
Local Retailers 3,000 3,000 3,258
Retailer Support ($ per unit) 6.00 6.18 4.96
Advertising Budget ($000s) 2,500 2,125 1,913
Website Displays ($000s) 1,500 1,513 1,575
Sales Promotions — Weeks 1 1 1
Discount 10.0 % 7.5 % 6.3 %
Warranty Period (days) 60 105 90
Demand for ACC Units (000s) 285.0 294.0 300.0
Gained/Lost (due to stockouts) 0.0 0.0 0.0
AC Camera Units Sold (000s) 285.0 294.0 300.0
Market Share 25.0 % 25.0 % 25.0 %
Discount Offer (% off standard price) 0.0 % 0.0 % 0.0 %
Value Index 0 0 0
Special Contract Units Sold (000s) 0.0 0.0 0.0
UAV DRONE SEGMENT
Price (average direct-sale $ per unit) 1,100 1,538 1,725
Discount to Online Retailers 15 % 14 % 14 %
Online Retailers 36 36 37
Search Engine Advertising ($000s) 1,500 1,850 2,064
Retailer Recruitment ($ per unit) 80.00 94.39 98.97
Drone Unit – Direct (company website) 37.7 40.4 41.5
Demand 3rd-Party Retailers 14.3 12.6 15.6
(000s)
Total Demand 52.0 53.0 57.0
UAV Drone Units Sold (000s) 52.0 53.0 57.0
Market Share 25.0 % 25.0 % 25.0 %
ACC Price UAV Price P/Q Rating

$1735.00 10.0★
$1326.25 7.5★
P/Q Rating
Industry
Price
Average $917.50 5.0★

Prices and
P/Q Ratings $508.75 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Europe-Africa
AC CAMERA SEGMENT
Discount 10.0 % 7.5 % 6.3 %
Market Share 25.0 % 25.0 % 25.0 %
Value Index 0 0 0
UAV DRONE SEGMENT
(000s)
Market Share 25.0 % 25.0 % 25.0 %

$1751.00 10.0★
$1338.25 7.5★
P/Q Rating
Industry
Price
Average $925.50 5.0★

Prices and
P/Q Ratings $512.75 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Asia-Pacific
AC CAMERA SEGMENT
Website Displays ($000s) 900 925 1,025
Discount 10.0 % 12.5 % 13.8 %
Market Share 25.0 % 25.0 % 25.0 %
Value Index 0 0 0
UAV DRONE SEGMENT
Search Engine Advertising ($000s) 600 850 1,164
(000s)
Market Share 25.0 % 25.0 % 25.0 %

$1575.00 10.0★
$1206.25 7.5★
P/Q Rating
Industry
Price
Average $837.50 5.0★

Prices and
P/Q Ratings $468.75 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Latin America
AC CAMERA SEGMENT
Advertising Budget ($000s) 750 1,278 1,275
Website Displays ($000s) 600 650 900
Discount 10.0 % 13.8 % 13.8 %
Market Share 25.0 % 25.0 % 25.0 %
Value Index 0 0 0
UAV DRONE SEGMENT
Search Engine Advertising ($000s) 300 450 785
(000s)
Market Share 25.0 % 25.0 % 25.0 %

$1535.00 10.0★
$1176.25 7.5★
P/Q Rating
Industry
Price
Average $817.50 5.0★

Prices and
P/Q Ratings $458.75 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
Industry 5 Time Series Competitive Efforts — Company A Year 7
(practice)
North America Company A Competitive Efforts

AC CAMERA SEGMENT
Advertising Budget ($000s) 2,500 500 800
Discount 10.0 % 5.0 % 0.0 %
Market Share 25.0 % 18.6 % 19.9 %
Value Index 0 0 0
UAV DRONE SEGMENT
(000s)
Market Share 25.0 % 15.1 % 22.5 %

$2210.00 10.0★
$1682.50 7.5★
P/Q Rating
Industry
Price
Average $1155.00 5.0★

Prices and
P/Q Ratings $627.50 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
ACC Sales UAV Sales

25%
Market Share
Industry 20%
Average
Market Share 15%
10%
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Europe-Africa Company A Competitive Efforts

AC CAMERA SEGMENT
Advertising Budget ($000s) 1,400 500 800
Discount 10.0 % 5.0 % 0.0 %
Market Share 25.0 % 19.7 % 21.4 %
Value Index 0 0 0
UAV DRONE SEGMENT
(000s)
Market Share 25.0 % 14.8 % 22.7 %

$2210.00 10.0★
$1682.50 7.5★
P/Q Rating
Industry
Price
Average $1155.00 5.0★

Prices and
P/Q Ratings $627.50 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
ACC Sales UAV Sales

25%
Market Share
Industry 20%
Average
Market Share 15%
10%
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Asia-Pacific Company A Competitive Efforts

AC CAMERA SEGMENT
Discount 10.0 % 15.0 % 20.0 %
Market Share 25.0 % 27.4 % 29.0 %
Value Index 0 0 0
UAV DRONE SEGMENT
(000s)
Market Share 25.0 % 13.4 % 18.7 %

$1910.00 10.0★
$1457.50 7.5★
P/Q Rating
Industry
Price
Average $1005.00 5.0★

Prices and
P/Q Ratings $552.50 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
ACC Sales UAV Sales

30%
Market Share
Industry 20%
Average
Market Share 10%
0%
5 6 7 8 9 10 11 12 13 14 15
Year
(practice)
Latin America Company A Competitive Efforts

AC CAMERA SEGMENT
Advertising Budget ($000s) 750 2,500 2,000
Discount 10.0 % 15.0 % 20.0 %
Market Share 25.0 % 26.6 % 32.3 %
Value Index 0 0 0
UAV DRONE SEGMENT
(000s)
Market Share 25.0 % 14.1 % 18.0 %

$1910.00 10.0★
$1457.50 7.5★
P/Q Rating
Industry
Price
Average $1005.00 5.0★

Prices and
P/Q Ratings $552.50 2.5★
$100.00 0.0★
5 6 7 8 9 10 11 12 13 14 15
Year
ACC Sales UAV Sales

40%
Market Share
Industry
Average 20%
Market Share
0%
5 6 7 8 9 10 11 12 13 14 15
Year
A Company PERFORMANCE HIGHLIGHTS Year 7
(Industry 5) (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) $0.75 $1.59 $3.27
ROE (return on equity) 14.0 % 24.4 % 38.2 %
Stock Price $12.00 $41.41 $101.27
Credit Rating B B+ A–
Image Rating 70 68 78
Net AC Camera 188,637 169,928 239,560
Revenues UAV Drone 145,491 169,542 244,127
($000s)
Total 334,128 339,470 483,687
AC Camera North America 285.0 218.5 238.4
Sales Market Share 25.0 % 18.6 % 19.9 %
(000s of units)
Europe-Africa 240.0 194.9 220.3
Market Share 25.0 % 19.7 % 21.4 %
Asia-Pacific 185.0 224.4 260.8
Market Share 25.0 % 27.4 % 29.0 %
Latin America 130.0 153.2 212.1
Market Share 25.0 % 26.6 % 32.3 %
Total 840.0 791.0 931.6
Market Share 25.0 % 22.9 % 25.6 %
UAV Drone North America 52.0 31.9 51.3
Sales Market Share 25.0 % 15.1 % 22.5 %
(000s of units)
Europe-Africa 43.0 26.0 43.5
Market Share 25.0 % 14.8 % 22.7 %
Asia-Pacific 28.0 16.1 25.5
Market Share 25.0 % 13.4 % 18.7 %
Latin America 17.0 10.1 15.1
Market Share 25.0 % 14.1 % 18.0 %
Total 140.0 84.1 135.4
Market Share 25.0 % 14.5 % 21.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera 4.0★ 3.5★ 4.9★
UAV Drone 4.0★ 5.7★ 6.4★
Compensation AC Camera 25,000 24,300 26,023
($ per PAT member) UAV Drone 25,000 25,937 27,793
PAT Productivity AC Camera 3,000 3,088 3,149
(units per PAT) UAV Drone 1,500 1,608 1,644
Labor Cost AC Camera 33.67 31.87 33.44
($/unit assembled) UAV Drone 65.38 46.05 47.84
Production Cost AC Camera 156.97 133.07 153.36
($/unit assembled) UAV Drone 806.22 1,409.22 1,287.25
Marketing Cost AC Camera 17.73 19.33 15.46
($ per unit sold) UAV Drone 77.71 172.41 94.53
Operating Profit AC Camera 29.33 37.51 63.33
($ per unit sold) Margin 13.1 % 17.5 % 24.6 %
UAV Drone 65.75 311.24 308.60
Margin 6.3 % 15.4 % 17.1 %
Earnings Per Share (EPS)
EPS
$4
EPS
$2
$0
5 6 7 8 9 10 11 12 13 14 15
Year
https://www.glo-bus.com/users/program21/cor/performance-highlights 1/5
A Company ASSEMBLY AND FACILITY OPERATIONS Year 7
Action-Capture Cameras UAV Drones

AC Camera Production UAV Drone Production
Units Assembled (000s) Product Attributes Units Assembled (000s) Product Attributes
Regular-Time 931.6 Extra Performance Features 4 Regular-Time 135.4 Extra Performance Features 5
Overtime 0.0 Number of Models 3 Overtime 0.0 Number of Models 2
Total 931.6 P/Q Rating 4.9  Total 135.4 P/Q Rating 6.4 
Product R&D Expenditures in Year 7 ($000s) $ 6,000 Product R&D Expenditures in Year 7 ($000s) $ 30,000
Cumulative Product R&D Expenditures ($000s) $ 57,000 Cumulative Product R&D Expenditures ($000s) $ 90,000
AC Camera Assembly Facility UAV Drone Assembly Facility
Space Available for Workstations (at end of Year 6) 310 spaces Space Available for Workstations (at end of Year 6) 120 spaces
New Spaces Added (facility expansion at begin. of Y7) 10 New Spaces Added (facility expansion at begin. of Y7) 0
Space Available for ACC Workstations (in Year 7) 320 spaces Space Available for Drone Workstations (in Year 7) 120 spaces
Installed Workstations (at end of Year 6) 300 workstations Installed Workstations (at end of Year 6) 115 workstations
New workstations Added (at beginning of Y7) 20 New workstations Added (at beginning of Y7) 0
Total Installed Workstations (available for use in Y7) 320 workstations Total Installed Workstations (available for use in Y7) 115 workstations
Investment in AC Camera Facility ($000s) Investment in UAV Drone Facility ($000s)

Beginning New Year 7 Beginning New Year 7
Gross Year 7 Facilities Gross Year 7 Facilities
Investment Investment Investment Investment Investment Investment
Plant Facility $ 129,500 $ 5,750 $ 135,250 Plant Facility $ 99,500 $ 750 $ 100,250
Workstations 32,500 2,500 35,000 Workstations 12,625 0 12,625
Robotics Upgrade 0 0 0 Robotics Upgrade 17,250 0 17,250
Total (Gross) Investment in AC Camera Facilities $ 170,250 Total (Gross) Investment in UAV Drone Facilities $ 130,125
– Accumulated Depreciation (at the end of Year 6) 45,600 – Accumulated Depreciation (at the end of Year 6) 16,469
– Current-Year Depreciation (5% of gross investment) 8,513 – Current-Year Depreciation (5% of gross investment) 6,506
Net Investment in AC Camera Facilities $ 116,137 Net Investment in UAV Drone Facilities $ 107,150
AC Camera Work Force Statistics UAV Drone Work Force Statistics
Year 7 $ Per Year 7 $ Per
Decisions Worker Decisions Worker
Base Wage Per PAT Member +4% $ 21,216 Base Wage Per PAT Member +5% $ 22,063
Incentive Bonus (to reduce warranty claims) $2.60 / unit 2,007 Incentive Bonus (to reduce warranty claims) $5.00 / unit 2,680
Attendance Bonus (for perfect attendance) $800 / worker 800 Attendance Bonus (for perfect attendance) $850 / worker 850
Fringe Benefit Package $2,000 / worker 2,000 Fringe Benefit Package $2,200 / worker 2,200
Total Compensation (annual pay per worker) $ 26,023 Total Compensation (annual pay per worker) $ 27,793
Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,750
PAT Productivity (units assembled per PAT per year) 3,149 PAT Productivity (units assembled per PAT per year) 1,644
Number of PATs Employed (for AC camera assembly) 296 Number of PATs Employed (for AC camera assembly) 83
× Number of Workers Per PATs (no robotics upgrade) × 4 × Number of Workers Per PATs (with robotics upgrade) × 3
Total Number of Workers Employed 1,184 Total Number of Workers Employed 249
AC Camera Production and Assembly Costs UAV Drone Production and Assembly Costs
$000s $ / Unit $000s $ / Unit
AC Camera Image Sensor 6,521 7.00 UAV Drone Built-In Camera 26,663 196.92
Components LCD Display Screen 9,316 10.00 Components GPS / WiFi / Bluetooth 14,075 103.95
and Features Image Quality 7,453 8.00 and Features Battery Pack 20,107 148.50
Photo Modes 8,384 9.00 Rotors / Performance / Controller 16,488 121.77
Camera Housing 11,179 12.00 Body Frame Construction 6,032 44.55
Editing / Sharing 11,179 12.00 Obstacle Sensors 12,332 91.08
Included Accessories 11,179 12.00 Camera Stabilization Device 8,445 62.37
Extra Performance Features 13,042 14.00 Extra Performance Features 11,943 88.21
Total Cost of Components and Features 78,253 84.00 Total Cost of Components and Features 116,085 857.35
Assembly Regular-Time Labor 30,857 33.12 Assembly Regular-Time Labor 6,332 46.77
Labor Overtime Labor 0 0.00 Labor Overtime Labor 0 0.00
Costs PAT Training 296 0.32 Costs PAT Training 145 1.07
Total Cost of Labor and Training 31,153 33.44 Total Cost of Labor and Training 6,477 47.84
Product R&D Expenditures 6,000 6.44 Product R&D Expenditures 30,000 221.57
Allowance for Warranty Repairs (8.5% claims) 3,970 4.26 Allowance for Warranty Repairs (8.9% claims) 3,630 26.81
Plant Operations and Maintenance 14,983 16.08 Plant Operations and Maintenance 11,595 85.64
Depreciation of Plant and Equipment 8,513 9.14 Depreciation of Plant and Equipment 6,506 48.05
Total Camera Production/Assembly Cost 142,872 153.36 Total Drone Production/Assembly Cost 174,293 1,287.25
A Company AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 7
Regular AC Camera Sales North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s
Revenues Gross Revenues 60,554 254.00 55,956 254.00 64,939 249.00 50,904 240.00 232,353
– Promo Discounts 0 0.00 0 0.00 -500 -1.92 -392 -1.85 -892
± Exchange Rate Adj. 0 0.00 858 3.89 702 2.69 6,539 30.83 8,099
Net Revenues 60,554 254.00 56,814 257.89 65,141 249.77 57,051 268.98 239,560
Production Costs (components / assembly) 36,349 152.47 33,592 152.48 40,220 154.22 32,708 154.21 142,869
Delivery Shipping 1,430 6.00 1,322 6.00 1,565 6.00 1,273 6.00 5,590
Costs Import Duties 0 0.00 2,238 10.16 3,896 14.94 3,054 14.40 9,188
Marketing Retailer Support 800 3.36 800 3.63 1,700 6.52 1,500 7.07 4,800
Costs Advertising 800 3.36 800 3.63 2,000 7.67 2,000 9.43 5,600
Website Expenditures 1,000 4.19 1,000 4.54 1,000 3.83 1,000 4.71 4,000
Administrative Expenses 2,179 9.14 2,014 9.14 2,384 9.14 1,939 9.14 8,516
Operating Profit 17,996 75.49 15,048 68.31 12,376 47.45 13,577 64.01 58,997
Operating Profit Margin 29.7% 26.5% 19.0% 23.8% 25%
Unit Demand and Sales Units Market Units Market Units Market Units Market Market
(000s) Share (000s) Share (000s) Share (000s) Share Share
Projected Demand (from decision entries) 239.1 19.2% 213.0 20.5% 250.9 28.0% 186.2 29.6% 24.2%
Actual Demand (as determined by competition
among rival companies in Y7) 238.4 19.9% 220.3 21.4% 260.8 29.0% 212.1 32.3% 25.6%
Units Gained/Lost (due to stock-outs) 0.0 0.0 0.0 0.0
Total Units Assembled and Shipped 238.4 19.9% 220.3 21.4% 260.8 29.0% 212.1 32.3% 25.6%
Retail Outlets Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 Year 7 Year 8
Number of Multi-Store Chains 26 19 21 16 34 43 25 33 Number of retail
outlets willing to
Outlets Online Retailers 52 45 47 36 63 84 54 72 carry the compa-
ny's brand of AC
Local Retail Shops 2,160 1,920 1,847 1,386 2,712 3,598 1,570 2,289 cameras.
Special AC Camera Contracts North America Europe-Africa Asia-Pacific Latin America Overall
No No No No
Discount Offer (% off of standard price) 0.0% Offer 0.0% Offer 0.0% Offer 0.0% Offer 0
Offers
Value Index of Units Offered 0 0 0 0 Accepted
Units Assembled / Sold (000s) 0.0 units 0.0 units 0.0 units 0.0 units
0.0
units
Incremental Revenues-Costs-Margins $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s
Revenues Gross Revenues 0 0.00 0 0.00 0 0.00 0 0.00 0
± Exchange Rate Adj. 0 0.00 0 0.00 0 0.00 0 0.00 0
Net Revenues 0 0.00 0 0.00 0 0.00 0 0.00 0
Less: Cost of Components / Features 0 0.00 0 0.00 0 0.00 0 0.00 0
Assembly Labor Costs 0 0.00 0 0.00 0 0.00 0 0.00 0
Allowance for Warranty Repairs 0 0.00 0 0.00 0 0.00 0 0.00 0
Delivery (shipping and import duties) 0 0.00 0 0.00 0 0.00 0 0.00 0
Contribution Margin 0 0.00 0 0.00 0 0.00 0 0.00 0
All AC Camera Operations North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $000s $000s $000s $000s
Net Revenues 60,554 56,814 65,141 57,051 239,560
Operating Production Costs 36,349 33,592 40,220 32,708 142,869
Costs Delivery (shipping / duties) 1,430 3,560 5,461 4,327 14,778
Marketing Costs 2,600 2,600 4,700 4,500 14,400
Administrative Costs 2,179 2,014 2,384 1,939 8,516
Operating Profit 17,996 15,048 12,376 13,577 58,997
Operating Profit Margin 29.7% 26.5% 19.0% 23.8% 24.6%
Warranty Period / Claims / Costs
Warranty Period Offered in Year 7 60 days 60 days 90 days 90 days
Anticipated Warranty Claim Rate 6.8% 6.8% 10.3% 10.3% 8.5%
Allowance for Warranty Repairs ($000s) 805 745 1,335 1,085 3,970
Warranty Repair Cost ($ per unit sold) 3.38 3.38 5.12 5.12 4.26
A Company UAV DRONES – MARKET SEGMENT PERFORMANCE Year 7
Direct Online Sales North America Europe-Africa Asia-Pacific Latin America Overall
Revenues Gross Revenues 63,270 1,900.00 55,965 1,950.00 33,660 1,700.00 19,040 1,700.00 171,935
± Exchange Rate Adj. 0 0.00 858 29.90 367 18.54 2,465 220.09 3,690
Net Revenues 63,270 1,900.00 56,823 1,979.90 34,027 1,718.54 21,505 1,920.09 175,625
Production Costs (components / assembly) 43,005 1,291.44 37,051 1,290.98 25,314 1,278.48 14,307 1,277.41 119,677
Delivery Shipping 2,081 62.49 1,794 62.51 1,238 62.53 700 62.50 5,813
Costs Import Duties 0 0.00 2,239 78.01 2,020 102.02 1,142 101.96 5,401
Marketing Website Expenditures 2,000 60.06 2,000 69.69 700 35.35 700 62.50 5,400
Costs Search Engine Advertising 1,500 45.05 1,500 52.26 600 30.30 300 26.79 3,900
Administrative Expenses 408 12.25 351 12.23 242 12.22 137 12.23 1,138
Operating Profit 14,276 428.71 11,888 414.22 3,913 197.63 4,219 376.70 34,296
Direct Online Sales (000s of units) 33 units 29 units 20 units 11 units 93.0 units
% of Total UAV Drone Unit Sales 65.0% 66.0% 77.5% 74.0% 68.7%
3rd-Party Online Retailers North America Europe-Africa Asia-Pacific Latin America Overall
Revenues Gross Revenues 28,386 1,577.00 24,531 1,657.50 8,527 1,495.96 5,834 1,495.90 67,278
± Exchange Rate Adj. 0 0.00 376 25.41 93 16.32 755 193.59 1,224
Net Revenues 28,386 1,577.00 24,907 1,682.91 8,620 1,512.28 6,589 1,689.49 68,502
Production Costs (components / assembly) 23,216 1,289.78 19,101 1,290.61 7,307 1,281.93 4,997 1,281.28 54,621
Delivery Shipping 225 12.50 185 12.50 71 12.46 49 12.56 530
Costs Import Duties 0 0.00 981 66.28 512 89.82 350 89.74 1,843
Retailer Recruitment / Support 1,300 72.22 1,200 81.08 500 87.72 500 128.21 3,500
Administrative Expenses 220 12.22 181 12.23 70 12.28 48 12.31 519
Operating Profit 3,425 190.28 3,259 220.20 160 28.07 645 165.38 7,489
3rd-Party Sales (000s of units) 18.0 units 14.8 units 5.7 units 3.9 units 42.4 units
% of Total UAV Drone Unit Sales 35.0% 34.0% 22.5% 26.0% 31.3%
Number of online
Retail Outlets Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 retailers willing to
carry the compa-
Number of 3rd-Party Online Retailers 30 44 28 39 28 22 24 20 ny's brand of UAV
drones.
All UAV Drone Operations North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $000s $000s $000s $000s
Net Revenues 91,656 81,730 42,647 28,094 244,127
Operating Production Costs 66,221 56,152 32,621 19,304 174,298
Costs Delivery (shipping / duties) 2,306 5,199 3,841 2,241 13,587
Marketing Costs 4,800 4,700 1,800 1,500 12,800
Administrative Costs 628 532 312 185 1,657
Operating Profit 17,701 15,147 4,073 4,864 41,785
Unit Demand and Sales Units Market Units Market Units Market Units Market Market
(000s) Share (000s) Share (000s) Share (000s) Share Share
Projected Demand (from decision entries) 43.6 17.6% 34.9 17.1% 22.4 16.0% 13.9 15.8% 16.9%
Actual Demand (as determined by competition
among rival companies in Y7) 51.3 22.5% 43.5 22.7% 25.5 18.7% 15.1 18.0% 21.3%
Units Gained/Lost (due to stock-outs) 0.0 0.0 0.0 0.0
Total Units Assembled and Shipped 51.3 22.5% 43.5 22.7% 25.5 18.7% 15.1 18.0% 21.3%
Warranty Period / Claims / Costs
Warranty Period Offered in Year 7 90 days 90 days 60 days 60 days
Anticipated Warranty Claim Rate 10.1% 10.1% 6.2% 6.2% 8.9%
Allowance for Warranty Repairs ($000s) 1,560 1,320 480 270 3,630
Warranty Repair Cost ($ per unit sold) 30.41 30.34 18.82 17.88 26.81
A Company FINANCIAL STATEMENTS Year 7
Income Statement ($000) North Europe Asia Latin Company Notes to Income Statement
America Africa Pacific America Total
AC Camera Revenues 60,554 56,814 65,141 57,051 239,560 ¹ Revenues listed here have been ad-
UAV Drone Revenues 91,656 81,730 42,647 28,094 244,127 justed for promotional discounts and
exchange rates. See the Market Seg-
Total Revenues¹ 152,210 138,544 107,788 85,145 483,687 ment Performance reports for details
Cost of Goods Sold 102,570 89,744 72,841 52,012 317,167 on promotional discount and ex-
change rate adjustments to revenues.
Delivery Costs 3,736 8,759 9,302 6,568 28,365
Marketing Costs 7,400 7,300 6,500 6,000 27,200 ² Other Income (Expense) will include
charitable contributions, instructor-
Administrative Expenses 2,807 2,546 2,696 2,124 10,173 imposed fines (appearing as nega-
Operating Profit (Loss) 35,697 30,195 16,449 18,441 100,782 tive), and instructor-awarded refunds
(appearing as positive).
Interest Income (Expense) -9,406 ³ The income tax rate is 30%. If a net
Profitability and Payout Year 6 Year 7 Other Income (Expense)² -1,008 loss was recorded in Year 6, the loss
Pre-Tax Profit (Loss) 90,368 is carried forward and may offset
Earnings Per Share $1.59 $3.27 some or all taxable Year 7 profit and
Dividends Per Share $0.00 $0.00 Income Taxes³ 27,110 reduce the company's tax liability in
Net Profit (Loss) 63,258 Year 7.
Balance Sheet Cash Flow Statement

Assets $000s Cash Available in Year 7 $000s
Cash on Hand 23,682 Beginning Cash Balance (carried over from Year 6) 4,736
Accounts Receivable (see Note 1) 77,016 Cash Receipts from Sales (see Note 1) 459,947
Component Inventories (see Note 2) 19,434 Inflows Bank Loan 1-Year 20,000
Total Current Assets 120,132 5-Year 70,000
Gross Investment in Plant and Equipment 300,375 10-Year 0
Less Accumulated Depreciation 77,088 Stock Issue (0 shares isued @$42.36) 0
Total Fixed Asset Investment (see Note 3) 223,287 Loan to Cover Overdraft 0
Interest on Year 6 Cash Balance 9
Total Assets 343,419 Cash Refund (awarded by instructor) 0
Liabilities $000s Total Cash Available (from all sources) 554,692
Accounts Payable (see Note 4) 53,443 Cash Outlays in Year 7 $000s
Overdraft Loan Payable (see Note 5) 0
1-Year Bank Loan Payable (see Note 6) 20,000 Payments to Component Suppliers (see Note 2) 180,038
Current Portion of Long-Term Loans (see Note 7) 17,000 Production and Assembly Expenses (see Note 3) 107,808
Delivery, Marketing, and Administrative Expenses 65,738
Total Current Liabilities 90,443 Capital Outlays New Workstations 2,500
Long-Term Bank Loans (see Note 8) 65,000 Robotics Upgrades 0
Total Liabilities 155,443 Facilities Expansion 5,000
Beginning Change Facilities Improvements (CSRC) 1,500
Shareholder Equity Balance in Year 7 $000s Repayment of Overdraft Loan 0
Common Stock (see Note 9) 9,900 -223 9,677 Bank Loan 1-Year Loan 15,000
Additional Capital (see Note 10) 77,677 -18,670 59,010 Principal 5-Year Loan 3,000
(see Note 4)
Retained Earnings 56,031 +63,258 119,289 10-Year Loan 94,000
Total Shareholder Equity 143,608 +44,368 187,976 Interest Payments Year 7 Overdraft Loan 0
Bank Loans (1-year, 5-year, 10-year) 9,415
Return on Average Equity (see Note 11) 38.2% Stock Repurchases (446 shares repurchased @ $42.36) 18,893
Notes to Balance Sheet (all dollar and share figures in thousands) Income Tax Payments 27,110
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone
Dividend Payments to Shareholders 0
revenues generated in Year 7 (to be collected in Year 8). Charitable Contributions 1,008
Note 2: A 10% reserve of camera and drone components is kept at all times. Cash Fines (assessed by instructor) 0
Note 3: For more details, see the Assembly and Facility Operations report. Total Cash Outlays 531,010
Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 7 (to be paid in Year 8). Net Cash Balance ($000s at the end of Year 7) 23,682
Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Notes to Cash Flow Statement
Note 6: The company's 1-year bank loan interest rate in Year 7 was 4.2%.
Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 8. and 3rd-party drone revenues generated in Year 7.
Note 8: Long-term bank loans outstanding: Note 2: Payments to component suppliers equals 75% of the cost of components used
Out- Annual Year 8 in Year 7 and 25% of the cost of components used in Year 6.
Loan Initial Original Interest standing Principal Interest
No. Year Principal Rate Term Principal Payment Payable Note 3: Production and assembly expenses include all Year 7 production-related ex-
penses except for depreciation (which is a non-cash accounting charge).
1 Y1 60,000 7.5 % 10-Yr 0 0 0 Note 4: Overdraft and 1-year loans received in Year 6 were repaid in full in Year 7.
2 Y4 20,000 8.5 % 10-Yr 0 0 0 Interest on overdraft and 1-year loans received in Y6 was also paid in Y7.
3 Y4 80,000 8.5 % 10-Yr 0 0 0
4 Y6 15,000 6.0 % 5-Yr 12,000 3,000 720
5 Y7 70,000 4.7 % 5-Yr 70,000 14,000 3,290
6 Selected Financial Statistics
7
8 Credit Debt / Equity Percentage (Debt : Equity) 45:55
9 Rating Interest Coverage Ratio (oper. prof. ÷ int. exp.) 10.71
10 Measures Current Ratio (current assets ÷ current liabilities) 1.33
11
12 Credit Rating (at the end of Year 7) A–
Note 9: There are 19,354 shares of stock outstanding at a par value of $0.50 per share. Operating Profit Margin (operating profit ÷ net sales revenues) 20.8 %
Note 10: Total $ amount above par value that shareholders paid to purchase stock. Net Profit Margin (net profit ÷ net sales revenues) 13.1 %
Note 11: The formula for Return After-Tax Profit Dividend Payout (dividend per share ÷ earnings per share) 0.0 %
on Average Equity is: (Beginning Equity + Ending Equity) ÷ 2 Market Capitalization ($101.27 stock price × 19,354 shares ) $1,959,980
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding
inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.

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8/20/22, 10:18 AM GLO-BUS Decisions & Reports

Scoring Investor Other Change

Action-Capture Camera Design UAV Drone Design

LCD Display Screen 9 pixels GPS / WiFi / Bluetooth Best Available

Image Quality (maximum resolution) 2704 pix. Battery Pack (maximum

Product Camera Rotor Performance /

Editing / Body Frame

Performance / Quality Rating Performance / Quality Rating

Projected AC Camera Projected UAV Drone

Projected AC Camera Projected UAV Drone

Scoring Investor Other Change

North America Europe-Africa Asia-Pacific Latin America

Average Wholesale Price

Sales Promotions (number 1 wk 1 wk 2 wks 2 wks

Warranty Period (60 days,

Expected Claim Rate

Year 8 Year 8 Year 8 Year 8

Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 Year 7 Year 8

Year 8 Year 8 Year 8 Year 8

Operatin Cost of 149.45 149.45 151.19 151.19

Marketin 9.90 10.97 15.48 18.73

Operating Profit 76.55 73.03 56.56 28.28

Competitive Assumptions North America Europe-Africa Asia-Pacific Latin America

Marketing P/Q Rating 5.4  5.4  5.4  5.4 

Competitive Assumptions North America Europe-Africa Asia-Pacific Latin America

Warranty 90 days 90 days 90 days 90 days

Scoring Investor Other Change

North America Europe-Africa Asia-Pacific Latin America

Average Retail Price

Discount Offered to 3rd- $ 17% $ 15% $ 12% $ 12%

Expected Claim Rate

Year 8 Year 8 Year 8 Year 8

Year 8 Year 8 Year 8 Year 8

Year 7 Year 8 Year 7 Year 8 Year 7 Year 8 Year 7 Year 8

Direct 3rd-Party Direct 3rd-Party Direct 3rd-Party Direct 3rd-Party

Marketin 88.38 82.28 104.17 94.49 55.79 75.76 75.19 113.64

Competitive Assumptions North America Europe-Africa Asia-Pacific Latin America

Number of $ 2.0 models $ 2.0 models $ 2.0 models $ 2.0 models

Scoring Investor Other Change

AC Camera Workforce Compensation UAV Drone Workforce Compensation

Compensation Decisions Company

(Year 8) (last year) (Year 8) (last year)

Fringe Benefit 2,000 2,000 Fringe Benefit 2,200 2,250

Total Compensation ($ per Total Compensation ($ per

Best Practices / Productivity Best Practices / Productivity

AC Camera Assembly Facility UAV Drone Assembly Facility

At the At the workst At the At the workst

Additional Workstations Needed to 7 Additional Workstations Needed to 0

Projected Camera 1,043.6 Projected Drone Demand 149.3

Labor Costs $000s $/unit Labor Costs

Labor Costs (000s) $000s $/unit

Training 320 0.31 Overtime 0.0 0 0.00

Total 1,043.6 35,671 34.18 Training 156 1.04

Net Annual Interest (if financed ) +248

Scoring Investor Other Change

Corporate Social Responsibility and Citizenship

Cash Outlays for Corporate Social

Company CSRC Efforts Year 3 Year 4 Year 5 Year 6 Year 7

Improved Facilities No No No Yes Yes