Mike’s BikesEnd of Simulation

PresentationTeam Cyclerz

Executive Management Team

Natalie TaylorChief Executive

Officer

Pat GestringChief Financial

Officer

Stephen SwartzendruberProduction & Marketing

Director

VisionCyclerz is a bicycle manufacturing company that provides quality bikes at a price everyone can afford. Each bike is made with the customer’s safety and satisfaction in mind.

Main Goals Set goals Create profit Grow business Monitor competition Raise shareholder value Make decisions & investments Learn from mistakes & build on progress

CEO Report

Overall Pro Forma Units Sold: 360,188 Overall Actual Units Sold: 304,934

Overall Pro Forma Retail Sales: $140,541,074 Overall Actual Retail Sales: $119,506,259

Overall Pro Forma Profit: $38,928,956 Overall Actual Profit: $30,074,657

Overall Actual Units Sold: 304,934

2015 2016 2017 2018 2019 2020 20210

20,000

40,000

60,000

80,000

100,000

120,000

Units SoldPro Forma/Actual Comparison

ProForma Actual

Overall Actual Retail Sales: $119,506,259

2015 2016 2017 2018 2019 2020 2021$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Sales Revenue Pro Forma/Actual Comparison

ProForma Actual

Overall Actual Profit: $30,074,657

2015 2016 2017 2018 2019 2020 2021$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Profit Pro Forma/Actual Comparison

ProForma Actual

2015 2016 2017 2018 2019 2020 2021$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

Shareholder Value

CFO Report – Keys to $$$ SuccessSummary: The goal of any business is to start with a

“comfortable” cash amount on hand and end with a substantial margin of profit. (See Chart – next slide)

In Rollovers 1 & 2: (2015, 2016) - Start up cash balance was under $4M

In Rollovers 3 & 4: (2017, 2018) - Cash balance steadily increased to $6,168,194 with a net income of $2,408,505 after expenses

2015 2016 2017 2018 2019 2020 20211,000,000

10,000,000

Net In-

come

1,693,491 1,669,9821,990,409

2,408,505

6,657,164 7,238,9738,416,1337,400,640

8,735,02510,099,180

15,029,936

22,229,62726,548,970 29,462,881

Net Income/Sales Revenue Comparison

Net Income Sales Revenue

Financial Decisions – What Went Well? Production costs were kept at a minimum while

reducing in-stock inventory when Cyclerz began keeping expenses low

Redevelopment of an existing bike design caused a steady increase in sales volume beginning in Rollover 3

Managing the number of bikes produced with the number of bikes sold in Rollover 3 through 6 increased accuracy of forecasting making it possible to end with a substantial net margin of profit in Rollover 7

Production Director Report Main Goals:

increase our awareness Increase our production in order to have Establish high sales volume Earn high profits

Main focus: Increase our name recognition through branding and

advertising Efficiency improvement Lowering the cost of goods sold

2015 2016 2017 2018 2019 2020 20211,000,000

10,000,000

1,693,491 1,669,9821,990,409

2,408,505

6,657,164 7,238,9738,416,133

7,400,6408,735,025 10,099,180

15,029,936

22,229,62726,548,970 29,462,881

Revenue & Net Income Comparison

Net Income Sales Revenue

Profit & Shareholder Value Comparison

Mountain Bike

Road Bikes

Youth Bikes

Capacity

Marketing Director Report

2014 2015 2016 2017 2018 2019 2020 20210

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

2014; 750000

2015; 225000

2016; 650000

2017; 900000

2018; 700000

2019; 135000

2020; 350000

2021; 500000

Advertising Expenditure

2014-15%2015-14%

2016-19%

2017-24%2018-24%

2019-19%

2020-17%

2021-18%

Product Awareness

Secretary’s Report Items Reviewed for Every Rollover Overall results from rollover New product launch options Support & Branding adjustments Production, Capacity & Pricing adjustments Advertising & PR adjustments Metrics measured Equity adjustments

Lessons Learned Balance between price, marketing, distribution,

and capacity is essential

Risks are required

Every penny spent needs produce revenue

Reviewing financial statements is key

The Good, Bad and Ugly of TeamsTeam Dynamic Natalie – CEOPreferred to make safer choices and take less risk

Stephen – Production & Marketing DirectorRisk taker and knack for looking at potential production and profit

Pat – CFOVoice of reason and tie breaker on tough decisions

Closing StatementWorking in a small team gave us an opportunity to coordinate ideas, share experience and maximize on each of our strengths.  We all have different personalities and viewpoints, so working together allowed us to develop our people skills and learn to compromise.  Mike’s Bikes gave us hands-on experience in a manufacturing business environment that some of us might not have the opportunity to experience otherwise.