bsg online presentation

ACHILLES WALK

“Be different”

CEO

Güven Çelikkaya

CMO

Görkem GünelArgun

CIO

Can Ocak

CFO

Moti Seloni

Achilles Walk, dedicated to fulfill the dreams of all buyers by providing themhundreds of models of shoes that they can easily create their own style everydaywith affordable prices. Achilles Walk knows that every person is very special andhas to be represented by different models of shoes.

That is the reason of being for our business, which provide consistently attractive returns to the owners, shareholders and the market of the business.

Our dream is to be the one of the best known and prestigious athletic shoe brands on the planet by providing at least one pair of shoe for every single person all around the world.

FIN

AN

CIA

LC

UST

OM

ER

Become Industry

Cost Leader

Maximize Asset

Utilization

Increase The Profitability

Increase The Net

Revenues

Increase The Amount

Value per Customer

Maximize the stock

prices

Provide Low Cost and Moderate

Quality Products

INTE

RN

AL

Upgrade The Facility

Capacity

Optimize The Use of

Assets

Decrease The

Operation Costs

Increase the Portion of Internet

Sales

Manage The Risks

LEA

RN

ING

&G

RO

WTH

Invest Six Sigma and Best

Leaning Programs

Increase Customer Confidence With

Using Reliable Celebrities

Increase The Market Share Both In

Branded and Private Labels

Establish Learning

Organization Culture

Increase The Employee

Productivity

Implement Plant

Upgrades

Decrease The Defect

Rates

Typical ObjectivesPerspectives Typical Measures

FINANCIAL

CUSTOMER

• Become industry cost leader• Maximize the asset utilization• Increase the profitability• Increase the growth• Increase the amount value per customer• Maximize the stock price• Increase the bank loan credibility

• Provide low cost and moderate quality products• Increase customer confidence with using reliable celebrity appeal• Stabilize the S/Q ratings and increased style for satisfying the overall customer profile• Increase the market share•Using customer partnership

• Percentages in the market • Cash flows• Unit cost prices• Capacity management optimization• ROE • Revenue increase• Market price and quality rates• 20% net profitability in year 20• Capacity utilization minimum %110 levels

• 20% market share in year 20• 6 star/500 models• Percentage of sales of 500 type of shoe• Number of corporate, retailer efforts• Satisfaction rate of customer• Customer percentage of models

Typical ObjectivesPerspectives Typical Measures

INTERNAL

• Upgrade the facility capacity• optimize the use of assets• Decrease the operation costs• Increase the internet sales• Invest work force diversity program• Manage Risks• Manufacturing excellence(in new opening plants)• Increase design productivity• Reducing defects

LEARNING&GROWTH

• Invest Six Sigma and Best Leaning Programs• Establish Learning Organization Culture• Increase The Employee Productivity• Implement Plant Upgrades• Time to market

• Percentage of facility capacity in the industry• Reduce the defect rate less than %4•'Having B plans and recovery plans • Cost of wastes and rework• Gains from trade tariffs• Upgrading internet sales min%16 in year20• Change in risk rating• Engineering efficiency• Factory upgrades

• Percentage of employees trained in quality management• Providing competitive incentive pays• Six sigma expenditures at least• Implementing 5th discipline• Time compare to that of competitors• Plant upgrades

YEAR 10

EPS:$2.5

ROE:15%

Stock Price:$30

Credit Rating: B

Image Rating:70

Net Revenue:$239,147,000

Net Profit:$25,000,000

Ending Cash: :$5000,000

Pairs Sold:5 million pairs/annual

YEAR 20

EPS:$29.92

ROE:33.3%

Stock Price:$628.98

Credit Rating: A+

Image Rating:80

Net Revenue:$1,134,684,000

Net Profit:$296,785,000

Ending Cash:$648,146,000

Pairs Sold:18 million pairs/annual

0

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10000

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25000

10 11 12 13 14 15 16 17 18 19 20

Un

it S

ale

s

Years

Global Unit Sales

Private Label Sales

Whole Sales

Internet Sales

0.00%

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4.00%

6.00%

8.00%

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14.00%

16.00%

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10 11 12 13 14 15 16 17 18 19 20

Mar

ket

Shar

e

Years

Market Share

Market Share

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Stock Price

Stock Price Investor Expectation

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

10 11 12 13 14 15 16 17 18 19 20Years

Earnings Per Share Earnings Per Share

Investor Expectation

0.00%

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15.00%

20.00%

25.00%

30.00%

35.00%

10 11 12 13 14 15 16 17 18 19 20

RO

E

Years

Return On EquityROE

Investor Expectation

YEAR/ COMPANY

RANK

ACHILLES FIRST RANK

11 6 CORE

12 5 EARN

13 3 IMPERIAL

14 1

15 2 DHARMA

16 1

17 1

18 1

19 1

20 1

YEAR 20 GAME TO DATE SCOREBOARD

YEAR COMP. STAR MODELS N/A PRICE MKT SHARE

YEAR 11

ACHILLES 5 200 $46,00 12,0%

IMPERIAL 6 249 $50,00 10,6%

YEAR 12

ACHILLES 6 238 $49,00 15,6%

IMPERIAL 6 344 $48,98 13,1%

YEAR 13

ACHILLES 6 249 $53,00 14,3%

IMPERIAL 6 309 $47,99 15,6%

YEAR 14

ACHILLES 6 346 $55,00 14,8%

IMPERIAL 6 293 $47,90 16,6%

YEAR 15

ACHILLES 6 485 $54,90 12,5%

IMPERIAL 7 312 $48,90 12,2%

YEAR 16

ACHILLES 6 498 $55,90 14,7%

IMPERIAL 8 463 $54,90 15,4%

YEAR 17

ACHILLES 6 500 $55,70 13,0%

IMPERIAL 7 466 $53,80 14,4%

YEAR 18

ACHILLES 6 500 $54,90 11,1%

IMPERIAL 7 495 $52,90 12,2%

YEAR 19

ACHILLES 6 500 $58,80 12,5%

IMPERIAL 8 500 $56,00 13,6%

YEAR 20

ACHILLES 6 500 $59,80 12,3%

IMPERIAL 8 500 $59,90 15,2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

11 12 13 14 15 16 17 18 19 20

ACHILLES NET PROFIT

IMPERIAL NET PROFIT

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

11 12 13 14 15 16 17 18 19 20

ACHILLES NET PROFIT

IMPERIAL NET PROFIT

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

11 12 13 14 15 16 17 18 19 20

ACHILLES ROE

IMPERIAL ROE

Achilles vs Imperial

Net Profit Analysis

Achilles vs Imperial

ROE Analysis

• Capacity expansion• Decreasing the operating expense• Implementing necessary factory upgrade• Spending money at best practice’s• Optimum selling price• Detailed competitive analysis and forecasts their movements• Having worst case scenarios and B plans • Managing the risk

Where We Won?..

$-

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10 11 12 13 14 15 16 17 18 19 20

Do

llars

Pe

r S

har

e

Years

Stock Price

Stock Price Investor Expectation

Stock Buy

Stock Sales

Where We Won?..

• Stock trade• Allocation of Marketing expenses • Using celebrity appeal• Learn from the mistakes of us and our competitors

• Some forecast errors both in branded and private label markets in year 19 and 20.

•Low S/Q ratings

• Long lead times

• Selling stock before waiting to reach the maximum point

• Underestimating the competitors acts about the bid prices of celebrities in year 19

Achilles’ Heel

• Increase the S/Q ratings about one more star

• Be more flexible and take more risks

• Invest more to plant capacity

• Buy more stocks at the begging of the game

• Trying to be more effective in Private Label

Market

YEAR 18 Achilles Walk is ranked in the BSG Global Top 50

Ranked 50th in Global Top 50

Stock Price

YEAR 19 Achilles Walk is ranked in the BSG Global Top 25

Ranked 23th in Global Top 25

Game-To-Date Score

Ranked 25th in Global Top

25 ROE Score

Ranked 14th in Global Top

25 Stock Price

Ranked 15th in Global Top

25 Earnings Per Share

YEAR 20 Achilles Walk is ranked in the BSG Global Top 25

Ranked 10th in Global Top 25

Game-To-Date Score

Ranked 6th in Global Top 25

ROE Score

Ranked 2th in Global Top 25

Stock Price

Ranked 2th in Global Top 25

Earnings Per Share

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