Business plan Yalp2016 - 2020Napoleon Hill: “A goal is a dream with a deadline.”

2Project: Yalp Sona in Hongkou Qu, China

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“Logic takes you from A to B. Imagination takes you literally everywhere.”

Albert Einstein

Many businessplans are very comprehensive, very extensively written and often limited to only business numbers. Our businessplan is different than others, like our company is a different from others. We have a plan that after strategic thinking is consciously limited to the very essence.

Who do we want to be?Why do we exist?Where do we want to go?

By limiting our businessplan to the essential, the ‘why’ of our business is kept in mind. To us this is more important to the company than basing decisions only on financial numbers.

We of all people also realise that the world is ever-changing. The businessplan must therefore also provide room for choices that help us adapt to changes and chances that cross our path. This keeps us battle-ready and flexible, something which is more important than ever in this world of change.

The main point of our plan for 2016-2020 is simple: Yalp will become an international company which generates 50% of her turnover abroad, with a consistent top three spot in the Dutch market. We will accomplish this through our own unique way, fun with passion and professionalism. And of course our concepts for ‘a new way to play’.

We would like to share our businessplan with you to give you an insight into our goals and to challenge you to accomplish these together with us, whilst adding to an inspirational environment which invites people to sport and play and have fun.

Ben, Yvonne, Kristian, Harrie en IrmgardManagementteam Yalp

OUR BUSINESSPLANA new way to play!

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“Business is not about pleasing everyone, but staying true to yourself”

Richard Branson

In 2000 Ben and Irmgard Admiraal started their entrepreneurial adventure together with 4 other colleagues, which led to a wonderfully quirky, advancing international company with over 40 employees. The secret behind this succes is our special company culture.

We are a group of friends, but a group made up of professionals. This attracts ambitious, entrepreneurial people. Proud, helpful, critical, forward thinking, friendly, customer oriented, somewhat quirky and a little different but with Twents’ soberness. We also all share the same belief. The belief in PLAYING, the ‘why’ of our company, the power of our conviction. Moreover, we invest way more than average in our research and development. We gamble on innovative solutions and dare to do things differently. At Yalp we want to mean something to our customers, surroundings and for each other. This implies that we don’t sell, just to sell, but we sell so we can create something that meets the demand behind the question, together.

This is one of the most important questions from the management. We always start with ‘why’, after comes the ‘how’ and then the ‘what’.

A QUIRKY COMPANYWith Twents’ soberness

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“People don’t buy what you do, they buy why you do it”

Simon Sinek

1) Why?At Yalp we want to bring play, exercise, sports and meeting into the world, because it enriches our lives with a positive contribution to ourphysical, social andmental health

2) How?We create play and sports environments that are a little different and invite everyone to play, exercise, have social contact and have fun. We create these environments with passion, enjoymentand conviction.

We supply sports- and playequipment for professional markets, like public spaces, leisure and schools. We supply a turnkey with landscape designs. Our expertise is to do it all a little different and to use the modern possibilites to their fullest extent. We do this by offering unique high-tech interactive playequipment with concepts that encompass the trends of today like serious gaming, parcour and bootcamps.

3) What?

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For the coming years we have chosen for the pay off: “a new way to play”. This reflects our belief in a new way of playing, that integrates the challenges of the world of today. A world that is constantly chaging and becoming more digital. With these interactive products we are getting “the best of both worlds”.

In 2006 Yalp succesfully launched world’s first interactive playset, the Sona. Nowadays, hundreds of our products are placed around the world, receiving world wide recognition and awards in the process.

To combine these two worlds succesfully, we keep thinking conceptually, we need to inform ourselves of societal needs and test and study our concepts in society. What are the effects? And how can we make our products offer something to society? The offering of products to society and its needs, we do together with our open co-operation with partners, suppliers, customers and users.

“A new way to play” gives us direction and motivates us to stay innovative, always searching to the answer of the problem. More than ever we have to create, innovate and adjust to the new challenges in society of today. This is also beautifully summarized in these key-words:

“Choose! And you will be chosen!”

Jan van Setten

THE POWER OF PLAYIn a new way

7Project: Yalp Memo at the Julianaschool in Rijssen

8With our employees at the top: climbing Mount Toubkal, Morrocco

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“People grow the moment they realize they can realize things. When they believe in themselves then they have discovered the first secret of succes.”

Norman Vincent Peale

1. Deliver a 9+ experience through great service to every customer

2. Accept change.

3. Work with passion and do it all just a little bit different

4. Be adventurous, creative and open-minded.

5. Be open to growth and keep developing yourself.

EMPLOYEES IN THE CENTREa good company culture

In this businessplan we will start with our company culture, the succes of this business. This company culture is formed by people. It starts with our management, which gives employees confidence, attention and space to work in their own way. A management that stimulates and facilitates employees to realize ambitious goals and to inspire employees. A management that can place responsibility on their employees with the additional freedom and competence required, so that the employee can decide the route to take to the goal.

A policy in which every employee is taken seriously, becomes involved and appreciated for their input and succes. Successes we celebrate together, because we want to enjoy our work, our input, our customers and the things we do together. This employee policy is captured in 10 key-values.

6. Be clear in communication and work on open and fair relationships.

7. Work toward a positive teamspirit.

8. Do more with less.

9. Work passionately and with determination.

10. Be self-conscious and humble.

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“The profit and loss acounts can be compared to bikini’s, what it shows is interessting, but what it hides is essential...”

Burton G. Malkiel

Our goal of being helpful to our customers, clients, surroundings and for each other, can only be realised with sufficient profitability. Because of this, we can consistently keep investing in our organization.

Besides this, we want to guarantee the continuity and that means remainig sufficiently solvable (at least 40 percent) and sufficiently liquid as we always want to be able to follow up on our payment obligations, but moreover, want to keep the option of investing.

To achieve this, we shall pay attention to frequent reports of the financial numbers, whereby not only keeping in mind the value, but also discussing the stories behind these numbers. We shall try to understand them and try and translate them to a useful and responsable company policy. We keep our financial structure as simple as possible and, where possible, share this information with our staff. Together we are responsable for a for a fincancially sound company which, in turn, can be meaningful for society. Additionally, we trust our belief, in that good financial numbers are the result of trust in the power of our team, our professionals, whom work with passion and pleasure according to a great, communicated vision of our company.

1. Yield of 5 percent 2. Grasp on overheadcosts

3. Turnover growth 10 percent per year

FINANCIAL RESULTImportant condition

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“Never say you dont have enough time. You have the same hours in a day as Michaelangelo, Mother Theresa, Leonardo da Vinci, Thomas Jefferson and Albert Einstein.”

H. Jackson Brown

1. Domestic market is our base

2. Retaining top three position

3. Expanding domestic market to Flanders

OUR STRATEGIC CHOICESThe domestic market, priority 1

In the Netherlands we have built a good name and have been in the top three of our branch for years. We have realised many beautiful play and sports venues, with pleased customers. This due to our ability to deliver turn key projects by having all aspects, for instance, installation and design together in one office.

This leading position in the Dutch market is very important for our company. In our domestic market, we have launced, tested, improved and made the interactives to make them suitalbe to export to foreign markets. In the domestic market, we have developed valuable concepts, such as exercise for seniors, parkour and bootcamp. In short, we have become specialists in realising challenging and great play and sports environments, that make it possible for us to be active interationally.

Besides this, the domestic market is our financial base of our company and is therefore our top priority in our policy. Unfortunately, the market for playsets has saturated in the Netherlands, and has even shrunk in the last few years. This does not take away from the fact that there will always be a demand for playsets, combined with the representation of the international brand Lappset, there is a big chance we will remmain in our top three position.

All necessary investments will be made to keep this position in the domestic market and, where possible, improve our position. Aside from this, we will also expand our domestic market to Flanders, where we will also reach a top three position.

13Project: bootcamp Health City in Amsterdam

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Our differentiating concept: Lappset Parkour

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1. Handle according to “a new way to play”

2. Focus on the added value instead of focus on the price

3. Concepts parkour, seniors excercising and interactives

OUR STRATEGIC CHOICESFocus on concepts

“The difference between a leaderand a follower is innovation”

Steve Jobs

Winning new customers is easier when you are diffent. This makes it easier to explain your message in salesdiscussions, networks and via means that are used, such as websites and brochures.

Making this choice has become more important because of the large competitive offer of playsets. With Yalp we want to be different. We clearly choose for “a new way to play” and will be spending more than an average amount of attention to figure out the demand and the process to come to an inspiring solution, which, in turn, is delivered with passion and professionalism.

This is why we will remain investing into education, research and development of our concepts, such as our interactives, bootcamp, seniors excersing, parcour and totalproject. We want to extend past “just a product” and want to come to an innovative and inspring environment, that invite people to play, exercise and have fun, together with our customer.

The big succes in the Netherlands with our interactives, the Yalp Sona, Sutu, Fono, Memo and Toro will be expanded upon internationally. This increase will offer us more reason to innovate.

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OUR STRATEGIC CHOICESMore focus on interactive

1. 50 percent of our turnover from interactives

2. Continue investing in R&D

3. Constant innovation

“It is important to consciously go with the tiems and to understand the youth of today. This is the only way you can understand that the times have also changed from our old way of playing.”

Wimjoost Licht - Municipality Hengelo

In our belief that technology offers countless possibilities tot make the surroundings nicer and more attractive has rewarded us with more than five hundred interactive concepts world wide and many innovation prizes, of which the Red Dot Award is one of the most prestigious. With the realised projects we have shown durability and teamwork. We will further stimulate this growth by continuing to invest into our R&D department and our interactive products.

And we will continue. We still have so many great ideas and inspiration as to what we can do with our interactive products, and that is exactly what we are going to do! We have all the possibilites at our disposal, namely expertise, experience, powerful partners, an international network, and the necessary production scale. Moreover, all interactives have been developed with a vision and with technology we can futher develop upon.

The interactives are already an important part of our turnover, and with the strategic choices, this wil only be expanded upon to a level, whereby half of our turnover will be realized with interactives.

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Project: Hardste schot van Twente, Castorweg, Hengelo

“Many failures are the result of the fact that people didn’t know how close they were to the success, when they gave up.”

Thomas Alva Edison

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OUR STRATEGIC CHOICESFocus on export, from 10% to 50%

“Start with “yes”, and you will always figure it out”

Jan van Setten

1. Export becomes 50% of our turnover2. Interactives as flagship for our distributors 3. YALP as international brand 4. Extra focus on China and Germany

Since 2011 we have built international fundamentals with projects in Finland, China, Germany, Sweden, Spain, Singapore, Russia and England. These fundamentals are completed, and therefore are the basis for an acceleration that we are going to cause with our partners in these countries. We will support this acceleration with interantional marketing activities. We will be more present via different communication channes, such as Instagram, Facebook, Twitter, and trade fairs. Together with our international partners we are going to get the brand Yalp into the mainstream media, together with the experience of “a new way to play”.

Critically, we will only work together with local partners if they take our beliefs and our vision of “a new way to play” as a flagship brand, and push it as such. And to introduce the interactives into the local market as flagship products. Partners, who want to invest in training, education and are willing to accept the sales targets, because they are intrinsicly motivated to do so. In return we will support our partners with all of our experience, knowledge and service.

The coming years we will expand the number of export countries, to, increase our growth, balanced out to compensate for our existing export companies. Special attentian shall be given to Germany and China, where we strive to achieve a leading position in the market. We also acknowledge that every country has its own features. China is different than Germany, which does mean we have to apply different exportmodels to all countries. Internet support ant international online sales will become more important in the future.

19Trade mission China: Presentation of our director Ben Admiraal to, among others, the royal family

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1. We aim for a 9+ experience

2. Our office in the Netherlands is our centre of inspiration

3. Continue investing in service and support

OUR STRATEGIC CHOICESWe aim for the 9+ experience

“There’s no use saying “we will do our best.”. you have to succeed in what is necessary.”

Winston Churchill

We don’t really believe in advertising, but more in the stimulation of our employees and the expression of our quirky company culture. everyone has the right to say what they think and feel, this in pursuit of a 9+ experience for our cutomers.

This 9+ experience is the driving force in our policy. Good is beautiful, but the real fun is when it exceeds expectations. It’s more fun than expected, a little different, a little more personal and a with a little more attention and care. The satisfaction and enjoyment that results from our 9+ experiences, bring new projects with it, this is everything Yalp is based on. To retain this we continue investing in our organization and staff, so we can manage the expectations we have created, follow up on promises and leave enough energy to do something extra.

Our office in Twente is the source of this inspiration and knowledge for our staff, customers and our partners. This is where the researach is done, interactives are demonstrated and many marketing sessions are held. It is an open academy where everyone is welcome to understand our concepts, to try them out, and to udnerstand their story.

21International Salesmeeting

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1. Always search for new possibilities in the B to B market

2. Adapt problems to become solutions

3. Keep innovating

OUR STRATEGIC CHOICES Seeing opportunities and taking them!

“If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward.”

Martin Luther King Jr.

In 2008 the name YALP, the reverse of PLAY, was chosen as a short, catchy name. Since YALP has grown to become the most innovative and fun company in the Dutch playground equipment-branche.

We will actively promote Yalp internationally, together with our users and partners. The users are increasingly being approached directly. What is “cool” and inspiring to youngsters? How do they experience our products? With this information we constantly update and redevelop our products, to keep up with this rapidly changing world.

We will also keep researching the B to B market. What can we do for this segment with our refreshing play and sports concepts? Can we improve the experience of shopping malls or suburbs? Can we be of assistance to theme parks, entertainment centres and hospitals?

There is a demand for fun, enjoyment and pleasure in society, even outside of traditional playgrounds. Yalp is open to all possibilities. Actually, we are going to actively search for this, because we believe in the power op play.

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OUR PROJECTSExceeding expectations

Every thing you enjoy doing, goes well. It feels good as well. You aren’t “having” to do anything, you “want” to, and everything goes almost automatically. You are looking forward to it, you get stuck in, and before you know it, the day is already over. It is almost just like playing. A playing child, forgets what the time is and is preoccupied with the game. Theyget into the flow of the game and are completely concentrated with the task at hand: PLAYING! And whilst playing they learn. Yalp is active in the market that affects the playing child... that is why, naturally, Yalp staff does everything whilst playing.

A salesperson can give a great speech, but for the customer, their story still seems “supsicous”. The seller wants to sell, and the buyer want to buy, it is a promise. And for the customer/buyer, the trust in the seller increases when they see this promise in a real-life situation.

It is therefore that we trust in a perfect realization of a project and a pro-active attitude, to make that project lead to another project. Respect for our mechanics, that install the product, as well as their involvement is necessary to create good ambassadors and to make the priciple of “from work, comes work” work. And: This ties in with the necessity to make sure we exceed expectations.

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RISKS We are prepared for them

“The word “crisis” is written with two characters in Chinese. One resembles danger, and the other opportunities.“

John Fitzgerald Kennedy

1. We strive for excellence2. Extra investments in R&D3. Not doing everything at once

There is a lot of enthusiasm in our company and we always see possibilities. We develop high-tech products, that are unique. We are active in different market segments in the public realm from recreational area’s to schoolyards to exercise gardens for seniors. At the same time, we are active in over 15 countries, from China to Belgium.

Our enthusiasm, coupled with doing many things at the same time is also our greatest risk, of which we are very aware. We strive for excellence and that means that we can’t always do everything. We want to stick close to our motive: “a new way to play” and thougthfully investing in our organization, to be able to do what we do excellently. The choice for “a new way to play” and the thoughtful investing in export and R&D we will carefully secure with good and clear arrangement with our partners.

We take into account, the fact that the growth in export can be slower and/or the Dutch market could decrease. We take into account, the fact that interactive products will be copied, however difficult that may be.

We are prepared for this and this will not change our strategic course and that is why we will always reach our target, whereby our way to the top may differ to what we previously expected, but we will reach that top.

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CORPORATEsocial responsability

1. From “do no harm” to “do good” 2. Adding to social changes 3. Making good use of our passion and belief in playing

Sustainability is, in many cases, focused on ‘do no harm’. This is logical, as this is stimulated by the sustainablilty compliances. Preventing child labour, countering discrimination. The same way ISO14001 was created as an environmentmanagement system, which is aimed at reducing the impact the organization has on the environment. That is a great way to secure the three P’s, which we have done through certified environmental, and quality protection systems. Yalp takes this concept, and expands on it by not looking how to not do things wrong, but also to see what Yalp can do to help and add something to society. This lies partially in the P of Planet, but is much stronger toward the P of People and the P of Profit, specifically what Yalp adds to society. This goes further than realizing local employment and added value to the local economy. Yalp wants to aleviate important social issues. Within our branche you may think about our stance on lack of exercise of the youth of nowadays, but also solitude, the uprising of (inside) gaming with (virtual) friends.

Think of the ever increasing demand for care of an ever increasing number of elderly people. And think of social cohesion in relation to growing intolerance. But also think of learning (dis)abilities in children. Yalp wants to help aleviate these issues through including everyone in the innovatie play solutions we offer for everyone.

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“Communication is often the biggest problem for a solution”

Hein Pragt

FINAL WORDSWith this policy, Yalp continues to grow by 10 percent yearly, of which an increasing percentage is realized abroad. Also almost half of our turnover is made through interactives. This means that by the end of 2020 there will be over 1000 interactives world wide. We track all our interactives, we track the hours played, the scores set and the popularity of games, and develop new games based on this data.

By then, English will maybe be the language we all comunicate in with the addition of new international, talented employees whom will find their way in Yalp and how great it is to work for such a different company.

Our list of adventures, which is already large, with Ibiza, Marocco and the addition of Portugal and the GOALympics, will greatly expand. And there it is a big possibility that our course will somewhat differ from what is written here. The whole world changes, and so will Yalp. What won’t change, however, is our ambition, passion and belief in playing, which is the power of our conviction.

The business plan for 2016-2020 summarized in 6 points:1. Our success stems from a special company culture, which we will treasure2. We are proud and greatful for our top three position in the Netherlands and we would like to retain it. 3. Futher growth in turnover is necessary, fun and ambitious. This growth will in large part come from further international ventures and focus on the interactives. 4. To continue growing we will invest in our organization through a preference for young talent. 5. We enjoy adventrue and will seak it out through our R&D, where we will continue building on our beautiful interactive product portfolio, which we are going to make a lot cooler. 6. We will continue wowing our customers with our 9+ experience policy by exceeding every expectation, which we will celebrate, which, in turn, will give us more energy to do it all over again.

A new way to play!

Yalp Nieuwenkampsmaten 12 7472 DE Goor T+31 (0)547 289410 www.yalpinteractive.com