Annexure A: Eqstra Holdings Limited Business Conduct and ...
The Great Game of Business An SRC Holdings Company “Creating Businesses of Business People”
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Transcript of The Great Game of Business An SRC Holdings Company “Creating Businesses of Business People”
The Great Game of Business An SRC Holdings Company
“Creating Businesses of Business People”
Copyright 2001 All rights reserved
I. Know & Teach the Rules
II. Follow the Action & Keep Score
III. Stake in the Outcome
The Great Game of Business
Copyright 2001 All rights reserved
High Involvement Planning
Business Training
Ya Gotta Wanna
I. Know & Teach the Rules
Copyright 2001 All rights reserved
Market Analysis
Market Competitive Data
Mid-Year Actual & Year-End Projections
Contingencies
Market Budget vs. Plan
5 Year History in Dollars
Customer Survey Results
Our Strategy to Accomplish Growth
High Involvement Planning
Copyright 2001 All rights reserved
S.R.C. Industry
Profitability Year 1 Year 2 Year 3 Upper Median Lower
PBT 7.2% 5.6% 7.1% 7.9% 5.8% 1.3%
PAT 3.6% 2.3% 4.2% 4.5% 2.8% .7%
EBITDA Margin
9.2% 7.5% 9.3% 9.0% 6.9% 2.5%
EBITDA Growth
N/a -20.2% 16.1% N/a N/a N/a
R.O.A. 9.2% 6.2% 12.7% 7.7% 3.9% .6%
R.O.E. 13.5% 7.1% 26.5% 19.8% 10.9% 3.2%
Gross Margin
18.4% 15.6% 16.3% 31.0% 24.3% 17.6%
SRC Key Financial Numbers
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S.R.C. Industry
Efficiency Year 1 Year 2 Year 3 Upper Median Lower
Asset Turnover
2.6 2.7 3.1 2.8 1.7 0.7
Inventory Turnover
4.9 4.4 5.9 20.2 8.8 5.0
A/R Turnover
10.9 9.6 11.7 13.1 10.9 6.1
Collection Period
33.4 38.0 31.1 37.8 51.1 69.8
EBITDA / Sales
9.2% 7.5% 9.4% 9.4% 7.9% 5.2%
Employees 338 329 320
Sales / Employee
$149 k $152 k $173 k
SRC Key Financial Numbers
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S.R.C. Industry
Solvency Year 1 Year 2 Year 3 Upper Median Lower
Financed Debt / Equity
0.1 0.1 0.3 0.2 0.5 0.8
Total Debt / Equity
0.5 0.2 1.1 0.5 1.4 2.4
Current Ratio
3.4 14.2 1.7 3.0 1.6 1.2
SRC Key Financial Numbers
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The Bank Peer Group
Total Assets Net
Earnings Loan Loss Allowance Bank Name
Total Loans
Net Interest Margin
Efficiency Ratio ROE
$ 144,048 3 $ 721 2 $1,577,000 1.30% 2
THE BANK Springfield, MO $ 119,763 3 3.95% 2 56.24% 1 9.15% 3
$ 138,375 $ 481 $1,100,000 1.00%
Signature Bank Springfield, MO $ 109,402 4 4.01% 1 63.08% 2 6.41% 5
$ 61,439 $ 54 $288,000 .94%
Village Bank Springfield, MO $ 30,262 10 2.32% 9 80.78% 7 1.56% 9
$ 147,284 $ 262 $956,000 .76%
Community First Harrison, AR $ 125,619 1 3.69% 4 81.91% 9 3.70% 6
$ 49,055 $ 210 $576,000 1.60% 1
Community First West Plains, MO $ 35,537 9 3.94% 3 75.02% 6 6.69% 4
$ 168,037 1 $ 281 $1,398,000 1.14%
Community National Waterloo, IA $ 121,522 2 2.97% 8 74.37% 5 3.55% 7
$ 114,654 $ 274 $935,000 1.25%
Bank of Murfreesboro Murfressboro, $ 73,925 8 3.41% 6 81.54% 8 3.15% 8
$ 125,261 $ 734 1 $1,109,000 1.12%
First Security Bank Lexington, KY $ 98,336 5 3.47% 5 63.68% 4 10.92% 1
Benchmarking Criteria
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Income Statement
Cash Flow Statement
Balance Sheet
High Involvement Planning
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Cash• Debt• Equipment/Building• Compensation• Inventory Growth• Shareholder Buyout• Save• Receivables• Taxes
The Disbursement
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BONUSPROGRAM
High Involvement Planning
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Succession PlanningThree People Deep
Stock Options
Top Guns
Annual Employee Reports
High Involvement Planning
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Employee Retention
Classroom / Formal Training
Tuition Refund
Interactive / Informal Training
Business Training
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You Gotta Wanna
The Great Game of Business
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II. Follow The Action & Keep Score
Opening The Books
Huddling
Create Wins
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Opening The Books
Converting stories, activities and performances into numbers
You have the playbook, now execute the plays
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Huddling
Create a uniform financial format
Forecast numbers and the activities that will cause them
Report results to all employees within 48 hours in the same format
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HuddlingDivision Jan Feb Mar Apr May June
Heavy Duty Plan
Opinion
Actual
Corporate Plan
Opinion
Actual
GGOB Plan
Opinion
Actual
Avatar Plan
Opinion
Actual
Combined Plan
Opinion
Actual
SRC Corporation and Subsidiaries Current Sales Opinion
Copyright 2001 All rights reserved
HuddlingSRC Corporation and Subsidiaries Monthly Income Statement
Heavy Duty Corp. GGOB Avatar Combined
Sales
COGS
Gross Income
Gross Margin %
Expenses
Engineering
Sales
G & A
Warranty
Total Expenses
Operating Income
Non-Operating Exp
Profit Before Tax
Taxes
Profit After Tax
Copyright 2001 All rights reserved
HuddlingSRC Corporation and Subsidiaries Monthly Cash Flow Statement
Heavy Duty Corp. GGOB Avatar Combined
Net Collections
Less Payments
Gross Cash Inflow
Less Engineering
Sales
G & A
Warranty
Add Back Deprec.
Net Operating Cash
Less Non-Op Exp.
Proj. Gross Cash
Less Taxes
Net Projected Cash
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Follow The ActionCommunication Process
Daily Facility Monitoring
Financial Plan
AUDIT
AUDIT
Weekly Updates To All
Employees
Deviation Management
Bi-Weekly Corporate Reporting
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Create WinsWinning is a process
You need to design achievement in your game plans
Little wins add up to big wins
Self-esteem, pride and teamwork don’t happen by accident
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Instant Recognition
Career Opportunities
Ownership
III. Provide a Stake in the Outcome
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Employee Job Satisfaction Survey
0
10
20
30
40
50
60
70
80
90
100
HeavyDuty
Corporate GGOB Avatar Megavolt
Prior 2 Prior 1 Current
Copyright 2001 All rights reserved
Employee Stock Ownership
401K Investment
Equity Positions
Internal Stock Exchange
Ownership
Copyright 2001 All rights reserved
1983SRCCorp
100%
1985SequelCorp
SOLD
1987SRC ofCanada
100%
SRC Holdings Corporation 1988
Engines Plus
100%
1989Avatar Comp
100%
1990Megavolt
Ltd.
60%1990
NewstreamEnterprises
51%
1991Great Game of Business
100%
1994Encore
100%
1996K&K
Machine
100%
1997The Bank
5%
1997CCRC
100%
1998REGEN
50%
1998SRC Auto
100%
2000Quest Capital
25%
Copyright 2001 All rights reserved
1983 2001
SRC Holdings Corp.Pre-split Stock Performance
Copyright 2001 All rights reserved
“Where employees Feel, Think and Act like OwnersOwners.”
The Great Game of Business