BVN Industries Where the best quality, creates the best experience!

1. BVN IndustriesWhere the best quality, creates the best experience! Victoria Galvin NishaAkalanana Brian Freeman

2. Introduction • Approximately four years ago the three of us were asked to take over this company. • From there we went in rather blind with the industry. • We were unsure of the economy, and with little experience in the industry of outdoor lighting and picture frames • We weighed all our options and with great experience in marketing, management, and finance we decided it was a step we were willing to take.

3. Introduction (cont.) • We are happy to present our triumphs and realizations over the past four years. • It was a learning and growing experience for all, but we truly believe you can not grow any further without learning as you go. • We are pleased with where are company is ranked in comparison to its competition, and we would love the opportunity to share with you our journey.

4. Marketing Victoria Galvin; CMO

5. Overview • When first starting out BVN Industries unanimously decided to focus on quality. • While evaluating various companies who seem to use quality well, we finalized our decisions. • We researched the top companies for product quality.

6. Overview (cont.) • Upon discussion we concluded that although quality may raise price, we assume consumers would be willing to pay the price for a product that would last longer. • Some say higher customer satisfaction leads to higher customer loyalty, which in turn, will potentially lead to higher profits.

7. Areas of Concentration • Target Markets- Tri-state • Marketing Strategies • Advertising • Research and Development • Pricing Strategies • Company’s Long Term Plans • Customer Impact

8. Target Market-Digital Photo Viewer • We were looking to distribute the Digital Photo Viewer to consumers between the ages of 16-20 and 25-40. • We figured ages 16-20 are around the age to starting making their own money, while also being interested in technology, and would be interested in buying our product. • The majority of consumers in the 25-40 range have now bought their own home, and have probably started to have their own family. This would give this age group more reason to have a product to display their family photos throughout their house, without having the bulky photo albums. • Although these were our target markets, we also saw consumers in the ages above 40. Though not a huge market due to the technology, this age group were interested in having a display of their family photos.

9. Target Market-Outdoor Light Fixture • We wanted to focus on marketing our products to younger home owners. • We thought with the younger home owners, they are likely to have kids as well host gatherings at their home. In this case you are more apt to be outside longer enjoying nice weather and so on. • We wanted families who were going to be spending a lot of time outside, with the reasoning that they would need more light fixtures than the average house.

10. Marketing Strategies • In the following slide you will see we put most of our advertising dollars in web marketing. After much research we decided newspaper and magazines were a dying sector of marketing.

12. Company’s Long Term Plans • Our company would like to branch out in the WWW marketing. We will continue along doing a few ads in the magazine industry, while promoting ourselves mainly through web. • We will be planning an expansion in Q17 to accommodate our company to make various products within each category. • We will be making digital photo viewers of various sizes to meet the needs of the younger consumers. • We will also be making different styles of lighting fixtures so our loyal consumers will be able to purchase an item that best fits their lifestyle. • Along with WWW marketing, we will begin promoting at local home and garden shows with our light fixtures. As a company we have decided the popularity of these showcases will allow us to reach more of our target market.

13. Customer Preference • As a whole we wanted to focus our company on quality. I believe consumers wanted our products and were willing to pay the price due to our quality. • With quality we are able to guarantee our product, and stand behind our product with great pride.

14. Community Involvement • We have recently partnered with Habitat for Humanity to give outdoor fixtures and lighting to the houses built within our community. • We felt that this was important to give back to our community since they have helped us grow beyond what we could have imagined. • In Quarter 20, after our expansion we have plans to join with Boys and Girls Club of America to give various young adults the opportunity to have a successful career.

15. BVN Industries • Presents the new Viking Outdoor Light Fixture • 513.548.6852 • www.bvnindustries.com • BVNIndustries @BVNIndustries

16. Sources for Research & Development • http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best8.html • http://www.acrwebsite.org/topic.asp?artid=278

17. Financial NishaAkalanana; CFO

18. Cash Flow

19. Income

20. Balance Sheet

21. Product Sales vs. Net Income

22. ROA and Debt-Asset Ratio

23. Cost Control Measures • Raw Materials: Ordered according to our forecasted sales for future quarters. • Manufacturing: • Labor: Hired enough for next quarter. Let staff work overtime if understaffed. If overstaffed, laid off excess labor. • Warehouse: Built extra production units according to expected demand. • Marketing: Concentrated on web marketing.

24. Company Strengths • Products: Quality • Marketing: Web Based Marketing • Personnel: Constantly Trained and Improved Working Conditions

25. Areas of Improvement • Products: • Quality to beat competition. • Marketing: • Increased web presence. • Personnel: • Increased workforce so that there was no overtime (which could lead to low productivity levels).

26. Future Operating Plan • Concentrate in quality over quantity. • Continue training workforce and maintain manufacturing plant. • Increase advertisement to reach larger demography • Invest company’s net profit. • Pay off all mortgages and look at possible expansion into a different market area.

27. Future Budget

28. Operations Brian Freeman; COO

29. Production • Plan was to produce equal amount of both • Average production for Digital Photo Viewer • Year 1-6,625, Year 2-7,888, Year 3-9,728 Year 4-9,363 • Average productions of Outdoor light fixture • Year 1-5,050, Year 2-4900, Year 3-8025 Year 4-9275

30. Production cont. • We wanted to have happy employees • Spent on average for maintenance • Year 1 $5,537.50 Year 2-$4,737.50 Year 3- $7,387.75 Year $4-8,00 • Only had to subcontract for one quarter • On average cost to produce both products • Year 1-$42.41, Year 2-$43.39, Year 3-$42.53 Year 4-$43.41

31. Inventory • Our original plan was to keep at least 1500 of each • We switched to order as need for both products • Our finished good was on the go • For most of the quarters we should all the products we produced

32. Raw Material • On average raw material available • Digital Photo viewer • Year 1-7563, Year 2-9,793, Year 3-11,218, Year 4- 12,937 • Outdoor Light fixture Year 1 5,800 Year 2-6,375 Year 3-11,300, Year 4-11,450

33. Raw Material cont. • On average raw material ordered • Digital Photo viewers • Year 1-5,675, Year 2-8,600, Year 3-10,188, Year 4-8,500 • Outdoor light fixture • Year 1-4,450, Year 2-5,500, Year 3-9,900 Year 4-10,000

34. Inventory Costs • On average to order raw materials • Year 1-96,562.50 Year 2-211146.50 Year 3-178,827.50 Year 4-198,862.50 • Increased warehouse size by 108 percent • Went from 11,100 to 23,100 • On average warehouse cost • Year 1- 6,810, Year 2-2,658, Year 3-4,618.67 Year 4-11,690.75

35. Workforce • Our workforce doubled • Did not have to lay many people off • Our worker productivity increased throughout the years • Product one workers increased 4% • Product two workers increased 4%

36. Workforce Costs • On labor, quality and overhead on average we spent • Year 1-355,128 Year 2-490,738.25 Year 3-533,740 Year 4-0560,325.50

37. Workforce cont. • On average spent on training • Year 1$-5,366.50 Year 2-$6,212.50, Year 3-$7,150 Year 4-$7,900 • We wanted to have the most trained and skilled workers • Learned how to utilize workers better

38. Our Competitors • Our direct competion was QAD Solutions • Our indirect competion was JTM Enterprise

39. Quality • For the Digital Photo Viewer on average we invested • Year 1-2.20, Year 2-3.29 Year 3-3.65 Year 4-3.90 • For the Outdoor light fixture on average we invested • Year 1-4.09, Year 2-4.78, Year 3-5.18 Year 4-5.50

40. Quality Cont. QUALITY IN DOLLARS TEAMS

41. BVN Industries We thank you for taking some time with us today, and we hope you enjoyed learning about BVN Industries! At this time we would like to offer up the opportunity to ask any questions.