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Company Andrews

C61400
Quarterly Meeting
April 30
th
, 2014

Executives:
Randi Camhi, Greg Haller,
Liz Rotiroti, Brittany Manski, Asiana Gilchrist
Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders

Strong financials lead to secured profitability

Company strengths provide for a promising
future
3
Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders
- Strategy
- Mission Statement
- SWOT
- Porters Five Forces

4
Broad Differentiator Strategy
Maintain a presence in all segments of the sensor market

Competitive advantage gained by distinguishing products
with excellent design, high awareness, and easy accessibility

R&D capability to keep designs fresh and exciting

Improved size and performance

Prices are above average

www.capsim.com

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Our Mission
Premium products for the industry.
Our brands withstand the test of time
www.capsim.com

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Porters Five Forces
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Competitive
Rivalry
within the
Industry
Bargaining
power of
Customers
Threat of
New
Entrants
Threat of
Substitute
Products
Bargaining
power of
Suppliers
SWOT Analysis
Strengths (Internal factors) Weaknesses (Internal factors)
- High contribution margin
- Low age of product
- High performance of product
- High product accessibility
-Among current market leaders
-Strong financial position
-High cost to produce
- R&D funds (expensive to modify
product)
- Cost of constant marketing funds
Opportunities (External factors) Threats (External factors)
-High industry growth rate
-Market is available for capture
-Customers are willing to pay for quality

-Potential market share of competitors
-Competitors price cutting unexpectedly

www.capsim.com

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www.capsim.com

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Weaknesses (Internal factors)
-High cost to produce
- R&D funds (expensive to modify
product)
- Cost of constant marketing funds
www.capsim.com

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www.capsim.com

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www.capsim.com

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Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders

Strong financials lead to secured profitability

Company strengths provide for a promising
future
13
Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders

Strong financials lead to secured profitability
-Profit Margin
-Return on Equity
-Cash on Hand
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Profit Margin
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5.30%
8.60%
11.40%
11.60%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
1 2 3 4 5 6 7 8
Year
Profit Margin
Andrews
Digby
Erie
Return on Equity
16
11.8%
23.4%
28.8%
18.3%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
1 2 3 4 5 6 7 8
Year
Return on Equity
Andrews
Digby
Erie
Easy and Accessible Financing
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Andrews Baldwin Chester Digby Erie
Amount of Cash on Hand, Round 8
$

Companies in Industry
$96,626
Bond Rating: AAA CC DDD A AA
www.capsim.com

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Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders

Strong financials lead to secured profitability

Company strengths provide for a promising
future
18
Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders

Strong financials lead to secured profitability

Company strengths provide for a promising
future
Sales Growth
Contribution Margin
Production Capacity
Future Plans

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Annual Sales
20
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1 2 3 4 5 6 7 8 9 10 11 12 13
D
o
l
l
a
r
s
*

(
$
)

Year
* Dollar value in thousands
15%
average
growth
www.capsim.com

Contribution Margin
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5 6 7 8 9
Andrews Industry Average
Year
C
M

%

TQM Cost Reductions:
Direct Labor: 13.94 %
Direct Materials: 11.35%
31%
www.capsim.com

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Value for YOU
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Many users of financial statements, including
investors, want to know what is the value of the
firm?






Value for shareholders is the income from operating
and financing activities
Andrews Baldwin Digby
Operating $79,651 $51,523 $70,552
Financing 0 (48,495) 0
Value $79,651 $3,028 $70,552
www.highered.mcgraw-hill.com
Year 8 Production Capacity
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0 5000 10000 15000 20000 25000
Erie
Digby
Andrews
Units (Thousands)
Capacity Analysis (w/2nd Shift)
Production
Capacity
Future Plans
Competitive Pricing
Capture additional market share

TQM Investments
Administration Expenses

Improve Forecast Accuracy
Reduce inventory




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Company Andrews is a Low Risk,
Strong Buy for Investors
Low risk factors provide confidence to
management, consumers, and shareholders

Strong financials lead to secured profitability

Company strengths provide for a promising
future
25
Questions?
26