Aneez Ahmed

CONFIDENTIAL An Introduction to ABco Sample Document This report is solely for the use of office personnel. No part of it may be circulated, quoted, or repdoduced for distribution outside the client organization without prior written approval from ABco. This material was used by ABco during an oral presentation. It is not a complete record of the discussion THE ABCO – BUSINESS MANAGEMENT SUPPORT Analyse • Critical success factors • Risk and reward • Business plans • Growth planning • ROI analysis • Value chain management • Due diligence • Feasibility study Seize Review Identify Source: Company website • Succession planning • Stability management • Learning lessons • Vertical integration • Market analysis • Product analysis • Strategy • Managing opportunities CONTENTS Abco – SIZE BREAK DOWN OF BUSINESSES Abco SALES – NO. OF EMPLOYEES VS. SALES VOLUME Abco SALES – NO. OF EMPLOYEES VS. SALES VOLUME AND BY REVENUES WHY DO PEOPLE GO INTO BUSINESS? ABco MANAGEMENT STRUCTURE – DIRECTORS (1/2) ABcoABcoABco Chairman & CEO ABcoABcoABco V. Chairman & Secretary ABcoABcoABco ABcoABcoABco ABcoABcoABco ABcoABcoABco ABcoABcoABco ABcoABcoABco Director Director Director Director Director Director Source: Company website ABco MANAGEMENT STRUCTURE – EXECUTION (2/2) ABcoABcoABco Chairman & CEO ABcoABcoABco Exe. VP. & COE ABcoABcoABco Sr. VP. R&D ABcoABcoABco Sr. VP. Mfg. ABcoABcoABco ABcoABcoABco VP. N. America Sales VP. Intl. Sales ABcoABcoABco Treasurer & Chief AO. Source: Company website ABco SALES ANALYSIS – 2003-06 Sales $ Millions Cost of goods sold Operating Income 140,000 12,000 126,924 114,646 120,000 9,926 10,000 103,422 100,000 7,569 90,195 8,000 6,881 80,241 80,000 73,169 65,641 6,000 59,541 60,000 4,000 40,000 1,792 2,000 20,000 0 0 2003 2004 2005 • Sales growth 40% from 2003 averaging to 11.73% p.a. from 2003 • Cost of sales remain on an average of 64.01% • Operating income growth of 453.90% from 2003 Source: Company data and ABco 2006 INTRODUCTION – SUMMARY 1. ABco “ABco” was founded by ABco and established on 5th June 1975 2. ABco was started in ABco, ABco with only 6 employees. Today, it employs over 4,000 people spread all over ABco and working for 9 ABco companies 3. ABco is 51% owned by the ABco Cement Companies namely: a) ABco Cement Company b) ABco Cement Company c) ABco Cement Company d) ABco Cement Company e) ABco Cement Company 4. ABco 49% stake is owned by the Swiss Group “ABco” 5. ABco Group is the mother company for 9 other ones, mentioned in a chronological order: a. ABco for Casting and Heat Treatment “ABco” b. ABco Environmental Protection Company “ABco” c. ABco for Foundries and Heat treatment “ABco” d. ABco Co. “ABco” e. ABco for electrical repairs “ABco” f. ABco Cement Company “ABco ABco” g. ABco Automation “ABco” h. ABco Research and Technology “ABco” Source: Company website Abco – SIZE BREAK DOWN OF BUSINESSES Number of employees 700 600 500+ 100 - 499 - 20 - 99 100 < 19 0 Very small business Small business Medium size business Large business A common and much-used breakdown by the federal government Source: Company website Business Statistics THE ABCO – US PRODUCT MARKET SHARE- Product 17 - 0.5% - Product 18 - 1.5% Product 19 - 0.4% Product 13 - 6.0% Product 14 - 8.0% Product 16 - 1.5% 2004 Product 15 - 1.1% - Product 9 - 14.9% Product 12 - 6.0% Licensed year - Product 10 - 6.5% 1999 Product 6 - 4.0% Product 5 - 0.5% Product 11 - 5.0% - Product 4 - 9.0% Product 2 - 5.0% - Product 8 0.2% 1993 Product 3 - 1.3% Product 1 - 2.2% Product 7 - 16.9% - -0.20 - 0.20 0.40 0.60 Price (US$) 0.80 1.00 1.20 8/ 2/ 20 00 26 /5 /0 0 13 /1 0/ 00 2/ 3/ 20 01 20 /7 /0 1 7/ 12 /2 00 1 26 /4 /0 2 13 /9 /0 2 31 /1 /0 3 20 /6 /0 3 7/ 11 /2 00 3 26 /3 /0 4 13 /8 /0 4 31 /1 2/ 04 20 /5 /0 5 7/ 10 /2 00 5 24 /2 /0 6 14 /7 /0 6 1/ 12 /2 00 6 20 /4 /0 7 7/ 9/ 20 07 25 /1 /0 8 13 /6 /0 8 THE ABCO – GROWTH ACROSS COUNTRIES Growth US$ M 1,500 1,400 1,300 1,200 1,100 1,000 900 800 600 200 100 0 USA Australia 700 Canada 500 400 300 China Africa India Germany THE ABCO – PHASE EXPANSION Phase Phase Phase 2 1 2009 2010-11 2012-13 Actions • xxx • xxx • xxx Areas • xxx • xxx • xxx 3 THE ABCO – BUSINESS VARIABLES GROWTH AND VALUE - Growth 6.0 Quality 5.0 0 0.1 0.2 Management Composition of services New products 0.3 0.4 0.5 0.6 4.0 Infrastructure Advantage 3.0 Rate Efficiency Materials 2.0 1.0 Brand value 0.7 0.8 0.9 1 THE ABCO – BUSINESS STRENGTHS • Contracts • Infrastructure H • Prime infrastructure • Engineering Barriers • Planning M L • Management L • Project management • Administration • Agents M Importance H Key factors • Key expertise • Finance • Infrastructure THE ABCO COST DETAILS - ICI Memphis 20 ICI Beaumont 15 Metacril 10 Cyro 5 R&H1 R&H2 0 0 20 40 60 80 100 120 THE ABCO – MINERAL CONTENT RADAR Yaroslavl Ryazan Nizhniy Novgorod Lipetsk Voronezh Ulyanovsk Rostov-on-Don Saratov Volgograd Krasnodar Astrakhan Toliatti Samara Kazan Izhevsk Ufa Perm Ekaterinburg Tyumen Krasnoyarsk Chelyabinsk Omsk Novosibirsk KEY FINANCIALS CAGR % 2000 Construction Percent GDP XXX 384 XXX 146 XXX 331 XXX 82 XXX 25 XXX 44 XXX 119 2 5 4 2000-02 Infrastructure USD 2005-06 Forecast USD 83 3.0 192 22.0 48 4.0 77 13.0 94 5.0 95 5.0 1 7.0 8 1.0 3 9.0 8 3.0 5 12.0 24 1.0 25 14.0 33 4.5 275 16.0 295 2.7 XXX 1 1 3 2 XXX XXX 1,736 XXX 1 13,192 6 8,416 18.0 7,989 3.3 XXX XXX 2,095 3 859 21.0 864 2.9 THE ABCO – MINERAL CONTENT DETAILS Cities with iron-ore Cities with copper Saint-Petersburg Yaroslavl Ryazan Lipetsk Nizhniy Novgorod Voronezh Ulyanovsk Rostov-on-Don Volgograd Krasnodar Astrakhan Saratov Toliatti Samara Kazan Izhevsk Perm Ufa Chelyabinsk Ekaterinburg Tyumen Krasnoyarsk Omsk Novosibirsk THE ABCO – MINERAL CONTENT RADAR Yaroslavl Ryazan Nizhniy Novgorod Lipetsk Voronezh Ulyanovsk Rostov-on-Don Saratov Volgograd Krasnodar Astrakhan Toliatti Samara Kazan Izhevsk Perm Ekaterinburg Tyumen Chelyabinsk Ufa Krasnoyarsk Omsk Novosibirsk MARKET DEVELOPMENT Market 1 Market 2 Market 3 2005 Germany 2003 3rd 2002 2nd Income 2001 1st Independent Markets Weakness Competition Customers Accessibility Standards REVENUE DETAILS Business 1 Businesses 13% 150 65 22% 820 2002 Business 2005 2 750 2002 2005 17% 315 115 2002 2005 BUSINESS DETAILS Diligence findings Scope Ownership • Manufacturing business • Mr. X, Chairman and CEO Due diligence 1 History Findings Actions • • • • • ______ ______ ______ ______ ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • ______ • Business created in 2008 Content source Financials • Business standards, 1997 USD Due diligence 2 2002 2007 No, of units __ __ Income __ __ CAGR % __ __ Net income __ __ NI margin X% X% Due diligence 2 INDUSTRY ANALYSIS GLOBAL AUTOMOBILE INDUSTRY Forecast to grow 10.2% annually Ancillary services expected to grow at 2.2% Fall-outs/bankruptcy expected to increase further US AUTOMOBILE INDUSTRY Forecast to grow 5.2% annually Demand, deflation, etc. SECTOR INDUSTRIAL ANALYSIS Forecast to grow 4.2% annually Demand, deflation, etc. MARKET DYNAMICS XXX • XXX – XXX – XXX – XXXXX – XXX XXX XXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX XXX • XXXXXX • • • • • • XXXXXX • XXXXXX XXX XXX XXX XXX XXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX • XXXXXX XXX • XXX • XXX • XXX • XXXXX • XXX • XXXXXX • XXXXXX SWOT ANALYSIS STRENGTHS             XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX OPPORTUNITIES       XXX XXX XXX XXX XXX XXX WEAKNESSES             XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX THREATS       XXX XXX XXX XXX XXX XXX