decisions for year 12 performance: need help with increasing return of equity and earnings per share to investor expected and increase net revenues and net profits change from previous year 11

Projected Y12 Performance i Investor Scoring Measures Year 12 Expect. Earnings Per Share $7.93 $8.50 Return On Equity 12.9% 42.5% Credit Rating A+ Image Rating 89 77 Change from Other Measures Year 12 Y11 Net Revenues (5000s) 977,079 +3.4% Net Profit (5000) 172,735 -18.6 Ending Cash renoos) 1,082,091 +159,894 rotors $ ACTION-CAPTURE CAMERA DESIGN Image Sensor Size 11mm diagonal LCD Display Screen 1040 pixels Image Quality (maximum resolution) 3840x2160 pix Number of Photo Modes (video / still 8/3 modes Product Camera Housing $ 15 per camera Enhancements Editing / Sharing Capabilities per camera Included Accessories Extra Performance Features features Number of AC Camera Models Product R&D Expenditures (711 was $3,000) $ 3000 (5000) UAV DRONE DESIGN Built-In Camera Major Upgrade GPS / WiFi / Bluetooth Best Available Battery Pack (maximum flight time) 18 minutes Number of Rotors Rotor Performance / Flight Controller Best Available Body Frame Construction Carbon Fiber Obstacle Sensors 360 Basic Camera Stabilization Device Best Available Extra Performance Features 5 features Number of UAV Drone Models Product R&D Expenditures (Y11 was $ 3000 (5000s) $3,000) $ 15 $ 15 per camera models 3 models Cumulative R&D Expenditures (all years) S 83.000 (5000) North America Europe Africa Asia-Pacific Latin America 320 375 $ 275 55 4 models 5.5 4 models 55 4 models $ 400 55 4 models $ 5000 $14 18 per unit $ 4000 2500 $ 3000 Average Wholesale Price to Retailers (5 unit) Buyer Appeal Variables Generated P/Q Rating from Product Design Decisions No Of Models Retailer Support Budget (5000s) Projected Support Expenditures Per Unit Sold Advertising Budget (5000) Website Displays/Info (50008) Sales Promotions (number of woekt % dlocount) Warranty Period (60 days 90 days, 120 days, 180 days, 1 year) Expected Claim Rate(%) | Repair Cost (5000s) 2000 $5.62 por unit $ 4000 $8.66 per unit 3750 $4.60 per unit $ 3000 3500 5000 5000 5000 $ 16 wkt 23% 16 wk22% 16 Wk 23% 16 wkt 14% 180 days 180 days 90 days 180 days 18.1% $3,140 18.1% $3,195 18.1% $4,025 9.196 $1,985 North America Europe-Africa Asia-Pacific Latin America 2000 2000 1500 2000 9% 9% $ 9% $ 9% 5.5 3 models 5.56 3 models 5.5 3 models 5.56 3 models 4000 $ 3000 $ 3000 $ 2500 Average Retail Price (s/unit to direct online customers) Discount Offered to 3rd-Party Online Retailers Buyer Appeal Variables Generated P/Q Rating from Product Design Decisions No Of Models Website Product Displays / Info (5000s) Search Engine Advertising (5000s) Retailer Recruitment / Support Budget (5000) Retailer Recruitment / Support (per 3rd party unit sold) Warranty Period (60 days. 90 days, 120 days, 180 days, 1 year) Expected Claim Rate (%) | Repair Cost (5000) $ 6000 3000 $ 1500 $ 3000 2000 4000 $ 2000 $232.56 per unit $ 500 $92.59 per unit $256 41 per unit $200.00 per unit 1 year 1 year 1 year 1 year 45.3% $12,150 45.3% $9,4210 45.3% $12,390 0 45.3% 54,2000 +2% per unit Compensation Decisions Company Ind. Avg. Compensation Decisions Company Ind. Avg. (Year 12) last year (Year 12) last year) Base Wage (per PAT change $ 24,582 $ 23,640 Base Wage (per PAT +2% change $ 23,203 $ 24,563 member) member) Assembly Quality 2.40 per unit 2.770 2,511 Assembly Quality Incentive $ 6.00 Incentive 3,398 3,021 Attendance Bonus 800 per worker 800 833 Attendance Bonus 1100 per worker 1,100 1,122 Fringe Benefit Package 2200 per worker 2,200 1,822 Fringe Benefit Package S 3400 per worker 3,400 3,333 Total Compensation (Sper worker per year) $ 30,352 $ 28,806 Total Compensation (5 por worker per year) $ 31,101 $ 32,040 Best Practices / Productivity Improvement Training 4000 Best Practices / Productivity Improvement Training $ 4000 Projected PAT Productivity (AC Camera units per PAT per year) 3,515 Projected PAT Productivity (UAV Drone units per PAT per year) 1721 AC CAMERA ASSEMBLY FACILITY UAV DRONE ASSEMBLY FACILITY Installed Workstation Installed Workstation Workstation Spaces Table Workstation Spaces Table At the End of At the end of 400 spaces At the End of Y11 400 workstations At the end of 153 workstations 160 space Y11 Y11 Y11 Expansion 05400k ea Installed for Expansion 05276k on 0 $400k ea Installed for $325k ea 0 Y12 (new) (new) Y12 Available for Available for 400 spaces Available for 160 Available for Y12 400 workstations 153 workstations Y12 Y12 Y12 Additional Workstations Needed to Avold Overtime Additional Workstations Needed to Avold Overtime 50 11 Ah SPECIAL OFFERS TO RETAILERS OF THE COMPANY'S BRAND OF CAMERAS - YEAR 12 A few select large retailers in each geographic region are accepting Special contract units are produced and assembled with the same offers from camera makers to supply Action Capture Cameras at a specifications and P/Q rating as the company's regular AC Camera discount from regular wholesale prices. The three companies units, first utilizing idle workstations (if any are available) staffe offering the most attractive combination of price, PlQ rating, and automatically with the required number of PATs, then overtime number of models (as measured by the Value Index shown below) assembly (if available and needed), and then outsourced assembly are awarded a contract to manufacture and deliver a volume of (if needed) at a cost of $50 per unit assembled cameras equal to 10% of regular camera orders in Year 12 Use the selections at the bottom to see the potential impact on All interested camera manufacturers are invited to make a special overall company performance of winning one or more specia wholesale discount offer. To make an offer, enter whatever discount contracts Selecting "Yes" in one or more regions has no impact on from regular wholesale price you are willing to bear. You may make whether or not a contract is awarded. This feature simply offers offers in any or all regions, or none at all. A discount offer of 0% means of anticipating the cash flow and profitability impacto indicates that you do not wish to compete for a special contract winning one or more special contracts North America Europe Africa Asia-Pacific Latin America $400 $320 $375 $275 Special Offers to Retailers Wholesale Price to Retailers (ats entered on ACC Marketing page) Special Discount Offer (% off of regular wholesale price) Discount Price Offer to Large Retailers Value Index of AC Camera Units Offered (100-point scale) 0% 0% 0% 0% $0 $0 $0 $0 0 0 0 0 Involves donations to registered charities and charitable causes Charitable Contributions $ 3000 or 0.0% of operating profit Treated on the Income Statement as "Other Expenses (reduces pro-tax income) "Green" Initiatives to promote Involves use of environmentally friendly components, recycled materials and green shipping. Increases Yes Environmental Sustainability production cost of AC 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 $ 5000 Involves ongoing expenditures to incorporate renewable energy resources at the Taiwan assembly facilities. These expenditures are treated as capital investment and depreciated at 5% per year Cafeteria and On-Site Child Involves one-time capital investment of $30 million and increased Care Facilities for Plant Continue administrative costs of $500k annually. Results in one-time productivity Improved Employees increases of 100 units/year for camera PATs and 50 units/year for drone PATS Working Conditions Additional Safety Involves one-time capital Investment of $25 million and increased Equipment and improved Continue administrative costs of $600k annually Results in one-time productivity Lighting / Ventilation increases of 100 unitsyear for camera PATs and 50 units/year for drone PATS Institution of a Supplier Code Involves a dedicated effort to promote fair employment practices and safe working conditions at supplier of Conduct and Compliance Yes factories (regarding excessive work hours substandard wages. underage labor exposure to foxic Monitoring of Suppliers materials, and unsafe work practices) Entalls added annual administrative costs of $500k Cash Outlays for Corporate Social Responsibility and Citizenship in Year 12 Total Cash Outlays (5000) $16,739 S Per unit Sold $9.01 0 0 FINANCE AND CASH FLOW Sources of 1-Year Bank Loan (2 90% interest Uses for Early Repayment of L-T None Additional Excess Loans Cash (50008) 5-Year Bank Loan (3,40% interest) Cash (5000s) (Balance Sheet Note 8) NA 10-Year Bank Loan (3.90% interest) 0 Dividend (S/share) 1.50 Year 11 dividend was 0.75 Stock Issue (000s of shares at $25778) Stock Repurchase Max share issue in Y12 = 5000k 000s of shares at $25778) 0 Max share repurchase in Y12 = 3266 shares of stock outstanding at the beginning of Year 12 21.770 Shares of stock outstanding at the end of Year 12 21,770K Projected Cash Available in Year 12 Projected Cash Outlays in Year 12 Beginning Cash Balance carried over from Year 11) $ 922,197 Cash Payments to component Suppliers 5389,647 Outlays Cash Intlows Receipts from Sales 977,636 Production and Assembly Expenses 149.928 Bank Loans 1-Year Delivery/Marketing/Admin Expenses 154 622 5-Year Capital Outlays New Workstations 0 10-Year Robotics Upgrade 0 Stock Issue (0 shares @ $25778) Facilities Expansion 0 Loan to Cover Overdraf (t-year loan) Facilities 5,000 Interest on Year 11 Cash Balance Improvement 3,689 Loan Principal 1-Year Loans Cash Refund cawarded by instructor) Repayment 5-Year Loans Cash Available from All Sources $ 1.903.522 o o o o o OO 0