Abri Co. MD&A, Q12 v Q11

8/9/2019 Abri Co. MD&A, Q12 v Q11

http://slidepdf.com/reader/full/abri-co-mda-q12-v-q11 1/42

"#$$!"#

$%&%'($(&) +,-./--,0& %&+%&%12-,- 03 3,&%&.,%1 .0&+,),0&

%&+ 4(-/1)- 03 05(4%),0&-

6/%4)(4 "7 8(4-/- 6/%4)(4 ""

8/9/2019 Abri Co. MD&A, Q12 v Q11


%&'() *+(,-.'/( 0))',(1$9:;<= .<>?9=@9>

!"#$"%&'(&")*#$($!+,'(-.#,-&/,

%&'() "'2#2,'#$ 0))',(1A<B9C 3D>E;<B

011+"/2$!)*#$($!+,'(-.#,-&/,

%&'() 3#14(.'25 0))',(1'<F@G9> 8GHH9@@9

415677&((&)*#$($!+,'(-.#,-&/,

%&'() 06(1#.'25 0))',(1.9H9C@9 /=E9>IDDE8#.+,"!9.6776$!9)*#$($!+,'(-.#,-&/,

%&'() 7.1#.(58 0))',(1 !"#$%&' )*'%'#

!"#$%&%'()*+,+-'$%,./*$.01$

8/9/2019 Abri Co. MD&A, Q12 v Q11


Table of Contents

Overview """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" "#$%#$&'( )'$&'(*+ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, - "#.%('/'/0( 120&3'&*( ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 4 5&$6(' )7&$( ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Results of Operations """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 897/:/' - ; )'&'(.(3'< #= >3?#.( ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, @

Net Operating Revenue """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" A(0(3B( 13&C+</< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 897/:/' 4 E A(0(3B( 13&C+</< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, F G$#H(?'(2 A(0(3B( ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, )(*.(3' 13&C+</< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, I

Marketing and Selling Expenses """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""#& 120($'/</3* ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, -@ )&C(< J==/?(< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

K(: 5&$6('/3* 89%(3<(< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, -L )&C(< M#$?( ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Cost of Production """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""#' N&:#$,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, "7&3*(#0($ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, -O 897/:/' L E "#<' #= G$#2B?'/#3 P&:C( ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 4Q 5&'($/&C< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Operations Overhead Expenses """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""(& 89?(<< "&%&?/'+ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, >30(3'#$+ R#C2/3* "#<'< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 4D )7/%%/3* ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Research and Development Expense """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""()

Financial Position """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""(* 897/:/' O E S&C&3?( )7((' ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 4L

Breakeven Analysis """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""(' 897/:/' -Q E S$(&6(0(3 13&C+</< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 4O

Liquidity and Capital Resources """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""$+ 897/:/' -- E )'&'(.(3' #= "&<7 MC#T< &32 N/UB/2/'+ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, V-

Business Outlook """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""$# M/*B$( F ; M#$(?&<'(2 A(0(3B(< ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, V4

Appendix """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""$&

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 111

Disclaimer – This section, Management’s Discussion and Analysis of Financial Conditionsand Results of Operations, contains forward-looking statements based on our currentexpectations. These forward-looking statements represent our estimates and assumptionsonly as of the date of this report. In some cases, you can identify forward-lookingstatements by terms such as “may,” “will,” “should,” “could,” “goal,” “would,”

“expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential”and similar expressions intended to identify forward-looking statements. These statementsinvolve known and unknown risks, uncertainties and other factors, which may cause ouractual results, performance, time frames or achievements to be materially different fromany future results, performance, time frames or achievements expressed or implied by the

forward-looking statements. A brief discussion of risk factors affecting our business and future prospects will be addressed at the end of the MD&A. All market researchinformation is based on data received from the Marketplace Business Simulation.

Overview

Abri Co. (“The Company”) designs, manufactures, markets, and sells personal computersfor the CostCutter, Work Horse, Innovator and Traveler market segments in the UnitedStates, Canada, Europe, China and Brazil. As of Quarter 13, Abri Co. is positioned as thetechnological leader in the Traveler market segment and a fast follower in the Innovatorand Mercedes segments. We are also the most efficient firm (lowest cost producer) in ourindustry, which allows us to be the price-leader in the CostCutter and Work Horse marketsegments with an average price up to $300 lower than our competitors.

Corporate StrategyThe Company’s market development strategy is to offer all products in all availablemarkets both online and through local sale offices. Abri Co. started to sell its product linesin the United States (New York, Atlanta, and Los Angeles), before expanding to Europe(London & Berlin), Canada (Toronto), Brazil (Sao Paulo) and China (Shanghai). Abri Co.is also selling online through web centers worldwide (USA, Canada, Europe, Brazil andChina). Our new offices in Chicago, Montreal, Paris and Rome will be operational inQuarter 13 and we will continuously enter new geographical markets in the future.

Abri Co.’s product development strategy is to offer computers answering specific needsand wants to all segments (CostCutter, Workhorse, Traveler, Innovator andMercedes). Abri Co. will offer two models in each market segment to meet the needs ofboth the feature-focused and cost-focused customers’ needs and wants more precisely ineach segment. We will ultimately offer ten different brands by the end of Year 4.

Abri Co. will release its two new versions of its current Sapphire (Workhorse) andPlymouth (CostCutter) by redesigning existing lines and releasing new generations ofcomputers in Quarter 13 using the new features developed by our research anddevelopment department.

The Innovator segment desires the newest and best technology, and frequently usessoftware to perform computational problems. Mercedes buyers want the newest, best and

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 112

fastest technology and are willing to pay a premium for deluxe computers. The more price-sensitive Traveler segment relies on portability of the personal computer to performnecessary tasks for executives and salespeople while on the road. CostCutter andWorkhorse segments desire low prices for basic computing tasks and fast networkcapabilities.

Thus, Abri Co.’s strategy is to provide customers with high-quality products at competitiveprices for our higher margin segments (Innovator, Traveler & Mercedes) and provide equalvalue products at lower cost for our lower margin segments (CostCutter & Workhorse).The company selected Innovator and Traveler to be its primary target segments in order toutilize the close correlation in customer needs, wants and expectations, as well as thepotential margins offered.

Abri Co. works to improve its marketing effectiveness and cost-efficiency to keep its price-leader position in the CostCutter and Workhorse segments. We also continue to invest inResearch and Development to come up with innovative features and keep our technologicalleader position for the Traveler market segment. Finally, Abri Co. also invests in Researchand Development to develop features for its Innovator and Mercedes computers. We arepositioned as a fast follower in the Innovator and Mercedes segments. Our goal is tobecome the leader in technology for all segments by the end of the year.

Competitive Advantage!"#$ &'( 5'6/$6-04 /' 7#'8 /' .59$030 5':;0/$/$30 .<3.6/.70 .<.;/0< /' 0.59 :.#=0/407:06/( >90 5':;.6? ';0#./04 8$/9 :'#0 0@@$5$065? /9.6 '-# 5':;0/$/'#4 $6 /90$6<-4/#? .5#'44 .AA 5'4/B407:06/4C 89$59 .AA'84 -4 /' 5':;0/0 '6 ;#$50 @'# /90&'4/&-//0# .6< D'#= E'#40 407:06/4 .6< .59$030 9$790# :.#7$64 $6 /90 >#.30A0# .6<F66'3./'# 407:06/4( &-##06/A?C !"#$ &'( 9.4 /90 9$7904/ #0A$."$A$/? G-<7:06/ .5#'44 .AA407:06/4 .6< . 5'4/B.<3.6/.70 /9#'-79 ';0#./$'6.A 0@@$5$065? 4-59 /9./ /90 5':;.6?9.4 /90 A'804/ '30#.AA 5'4/ ;0# -6$/ <0A$30#0< /' /90 :.#=0/( E.3$67 /90 9$7904/#0A$."$A$/? #./$67C .4 80AA .4 9.3$67 5':;0/$/$30 "#.6< .6< .< G-<7:06/4C A0.<4 /' '-#$65#0.4$67 4.A04 .6< :.#=0/ 49.#0( )'#0'30#C !"#$ &'( 4/#./07$5.AA? 4;06<4 '60@@$5$065? $:;#'30:06/4C 89$59 5'6/$6-0 /' A'80# '-# 5'4/4 /9#'-79 9$790# 0@@$5$065?(

>90 4;05$@$5 5':;0/$/$30 .<3.6/.704 40#3$67 0.59 407:06/ 5.6 "0 @'-6< $6 '-#407:06/ .6.A?4$4 "0A'8( You may also find our complete competitive advantage table inthe Appendix for more details.

Market ShareAbri Co. has 46% of the overall market share (compared to 34% for Tungsten, our main

competitor) as well as 83% of the market share in the Traveler segment (compared to 8%for Balsam Technology and 9% for Alpha Cyber Technology, our only competitors in thissegment) and CostCutter segment with 41% and of Work Horse (compared to 37% forAlpha Cyber Technology) as shown in Table 1, below.

Abri Co. also has the second highest market share, 37%, in the Innovator segment(compared to 60% for Tungsten, leader in this segment), and in the Mercedes segment with21% market share, (compared to Tungsten’s 78% market share in this segment).

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

Table 1 – Market Share

As compared to Quarter 11, Abri Co.’s market share has increased from 31% to 46%. Dueto the number of brands, our stratified segment strategy, and the bankruptcy of our former

competitor, Prestige, we were able to gain the highest market share of the overall industry,Traveler, and Work Horse segments and the second position in all the other segments.

The position has been achieved by carefully targeted advertisements aimed at ourconsumers, increasing salesperson productivity, a dedicated quality improvementdepartment, and continually updating our products with new technology to offer the highestlevel of technology or the cheapest price to our customers depending on the targetedsegment.

Results of Operations

During Quarter 12, net income was $9,632,771 compared to net income of $8,394,630 inQuarter 11, an increase of $1,238,141 or a 14.7% increase as shown in Exhibit 1 (below).Net revenue in Quarter 12 was $51,724,237 as compared to $42,442,892 in Quarter 11, anincrease of $9,281,345 or 21.9% increase.

Net income increased due to higher demand, 22,162 in Quarter 12 verses 11,861 in Quarter11. Demand increased because of offices opened in Paris, Chicago, Rome, andMontreal. Moreover, Abri Co. redesigned our brands and released new computers to meetthe needs of all customers. To breakeven in Quarter 12, we needed to sell 11,237 units butactually sold 22,162 units.

*-#$67 ,-.#/0# 128 /'/.9 :.#;0/ 4<.#0 =.4 >?@ A':B.#0C /' 51@ $6 ,-.#/0#11( DB0A$E$A 407:06/ :.#;0/ 4<.#0 $6A#0.40 $4 4<'=6 $6 F$7-#0 18 "09'=(

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

Exhibit 1 – Statements of Income

"#$%&' ( ) *+,-$' #- .'$/'-0 1,&2'0 .+,&'

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

This increase in market share is due to our redesigned lines and the bankruptcy of PrestigeTechnology in Quarter 12. Our redesigned lines for our Traveler and Innovator segmentshave allowed us to meet more of our customers’ needs and wants through our threeColumbus and three Fjord brands.

Net Operating Revenue

Revenue AnalysisThe average price of total units sold in Quarter 12 was $3,222 as compared to $3,321 inQuarter 11, a decrease of $99 or 3.0%, which represents a decrease in revenue due to pricechange of $523,881. In Quarter 12, Abri Co. introduced six new brands to replace ourprevious products offered. We were able to price these new brands at the same price as theold series in Quarter 11, but we offered rebates to sell our inventory of oldercomputers. This made our average price decrease by 3.0% and explains the decrease inrevenue due to price change as shown in Exhibit 2, below.

The total number of units sold in Quarter 12 (as shown in Exhibit 8) was 15,680 ascompared to 12,764 in Quarter 11, an increase of 1,916 units or 15.0%, which represents anincrease in revenue due to volume change of $9,683,398. In Quarter 12 we released newbrands, incorporating new research and development features, matching customers desiresand needs, we benefited from our strong company’s image but also from seasonality togenerate demand. We also improved our web marketing tactics and were able to convertdemand to sales thanks to our productive sales force: 126 units of demand per sales officeperson and 269 units of demand per web sales person. The increase in demand converted tosales explains the increase in revenue to volume change.

The revenue decrease due to sales mix in Quarter 12 was $1,024,546. Abri Co. offerednew research and development features in our Workhorse and CostCutter segments (Officenew release in the Plymouth 2.0 and Plug and Play Design in both Plymouth 3.0 andSapphire 2.0) increasing the number of units sold in these two segments, priced lower thanInnovators and Travelers. The sales mix for CostCutter increased by 4.8% while sales mixfor Traveler decreased by 8.1%. This explains the negative revenue change due to salesmix in Quarter 12.

We salvaged the Columbus II inventory in Quarter 12, for a total revenue of $1,202,538added to our sales revenue. We salvaged Columbus II to eliminate the inventory we werecarrying since Quarter 10 and the holding cost related to it.

Finally, our revenue increased in Quarter 12 because one of our direct competitors, PrestigeTechnologies, ceased operating. We believe that Abri Co. gained a portion of their marketshare, increasing our demand and thus our revenue from sales. As a result of thesechanges, net revenue in Quarter 12 was $51,724,237 as compared to $42,442,892 inQuarter 11, an increase of $9,281,345 or 21.9% as shown in Exhibit 2, below.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

Exhibit 2 - Revenue Analysis

Projected Revenue

Figure 2 - Projected Revenue

In Quarter 10, we improved our strategy to be more aggressive and efficient. We used theincrease of our revenue and margins to repay the emergency loan we had to take in Quarter9 as well as investing in new sales offices and product features. By stratifying oursegments, we answered the needs of feature-focused and cost-focused customers. Thisstrategy has been successful as shown in Figure 2, above.

Projected revenue, as shown in Figure 2, for Quarter 12 was $26,999,000 as compared to$51,724,237 in actual revenue. Following our new strategy, we made decisions toaggressively pursue our original strategy to be present in each segment in each market, and

Abri Co.Quarterly Change in Revenue Analysis

Segment Quarter 12 Quarter 11 Quarter 12 Quarter 11 Quarter 12 Quarter 11 Quarter 12 Quarter 11 Unit Price DollarPrice ChangeUnits Sold Price per Unit Net Sales RevenueSales Mix

Cost Cutter 2,637 1,535 16.8% 12.0% 4,146,863$ 2,431,215$ 1,573$ 1,584$ (11)$ (29,758$Workhorse 976 663 6.2% 5.2% 2,522,474 1,729,137 2,585 2,608 (24) (22,983

Innovator 5,889 2,404 37.6% 18.8% 22,965,811 8,458,196 3,900 3,518 381 2,246,046 Mercedes - 2,096 0.0% 16.4% - 10,119,604 - 4,828 - - Traveler 6,178 6,066 39.4% 47.5% 20,886,272 19,648,298 3,381 3,239 142 875,196 Unwanted Inventory 0.0% 0.0% -$ -$ - - Total 15,680 12,764 100.0% 100.0% 50,521,420$ 42,386,450$ 3,068,501$ Average 3,222$ 3,321$

Change 2,916 (98.75)$

Revenue change due to price change 3,068,501$Revenue change due to volume 9,683,398 Revenue change due to sales mix (4,616,928) Total sales change 8,134,970$

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

match the industry reality. We continued to stratify our markets, providing products toboth upper and lower ends of segments to diversify our activities and reach more customerswith different needs.

Segment Analysis

Table 2 – CostCutter Competitive Advantage

Our strategy for the CostCutter segment is to provide equal value products at a lower costto our customers. The Sapphire 2.0 is our newest computer targeting this segment. Thetotal cost of the Sapphire 2.0 is $1,532 as compared to an average of $1,904 for ourcompetitors. Thanks to our cost-efficiency, we were able to drop the brand’s average priceto $1,569 as compared to $2,555 for our competitors, as shown in Table 2, above. Weentered in this segment to take market share of our competitors and prohibit theirdevelopment. In part, our brand judgment of 66 and ad judgment of 58 have contributed toAbri Co. having the second largest market share, 40%, for this segment.

Exhibit 3 - CostCutter ProfitabilitySegment ProfitabilityCost Cutter

Quarter 12 % Rev Quarter 11 % Rev Change % ChangeDemand 3,438 1,535 1,903 124.0%Lost Sales (801) - (801) NAUnits Sold 2,637 1,535 1,102 71.8%Average Price 1,577$ 1,584$ (7)$ -0.4%Sales Revenue 4,159,063$ 100.3% 2,431,215$ 100.0% 1,727,848$ 71.1%Rebates 12,200 0.3% - 0.0% 12,200 NA

Net Revenues 4,146,863 100.0% 2,431,215 100.0% 1,715,648 70.6%Cost of Goods Sold 2,466,354 59.5% 1,398,061 57.5% 1,068,293 76.4%Gross Margin 1,680,509 40.5% 1,033,154 42.5% 647,355 62.7%Variable Operating Costs Quality Cost 78,857 1.9% 95,810 3.9% (16,952) -17.7% Shipping Cost 84,962 2.0% 70,733 2.9% 14,229 20.1%Subtotal 163,819 4 .0% 166,542 6.9% (2,723) -1.6%

Sales and Marketing CostsSales Force Compensation 193,159 4 .7% 107,643 4.4% 85,516 79.4%Brand Creation/Revision 60,000 1.4% - 0.0% 60,000 NAAd(s) Creation/Revision 30,000 0.7% 30,000 1.2% - 0.0%Brand Advertising 118,700 2.9% 92,300 3.8% 26,400 28.6%Brand Promotions - 0.0% - 0.0% - NASubtotal 401,859 9 .7% 229,943 9.5% 171,916 74.8%Segment Profit 1,114,831$ 26.9% 636,669$ 26.2% 478,163$ 75.1%Percent of Revenue 26.9% 26.2% 0.7% 2.7%Profit per Unit 423$ 415$ 8$ 1.9%

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

Net revenue for the CostCutter segment in Quarter 12 was $4,159,063 as compared to$2,431,215 in Quarter 11, an increase of $1,727,848 or 71.1% as seen in Exhibit 3,below. The average price of units sold to CostCutter in Quarter 12 was $1,577 ascompared to $1,584 in Quarter 11, a decrease of $7 or 0.4%. We sold 2,637 units to

CostCutter segment as compared to 1,535 units in Quarter 11, an increase of 1,102 units or71.8%. In Quarter 12, CostCutter represented 16.8% of our total sales as compared to12.0% in Quarter 11, an increase of 4.8%. Total gross margin for this segment was 40.5%in Quarter 12 as compared to 42.5% in Quarter 11, a decrease of 2.0%. Profit per unit inQuarter 12 was $423 as compared to $415 in Quarter 11, an increase of $8 or 2%.

In Quarter 10, we introduced the Sapphire brand to the CostCutter segment. In Quarter 12we released Sapphire 2.0, an upgraded computer with the plug and play design, developedwith our R&D expenditures in Quarter 11. With this computer matching our customersneeds more than the previous one, we were able to generate 124% more demand andconvert it to sales. We did not increase the pricing of Sapphire 2.0 compared to Sapphirebut we offered a rebate of $100 for the purchase of the old generation Sapphire asexplained in the revenue analysis, above. Even though our gross margin decreased due tothe implementation of the new feature, we managed to increase the segment profitability by$8 in reducing the growth rate of our operating and marketing costs.

Table 3 – Work Horse Competitive Advantage

Our strategy for the Workhorse segment is to provide equal value products at a lower costto our customers. The Plymouth 3.0 is our newest computer targeting this segment. Thetotal cost of the Plymouth 3.0 is $1,909 as compared to an average of $2,171 for ourcompetitors as shown in Table 3, above. Due to our cost-efficiency, we were able to dropthe brand’s average price to $2,579 as compared to $2,967 for our competitors. Our low

costs, brand judgment of 64 and ad judgment of 67 have all contributed to Abri Co. gainingthe second largest market share, 40%, for this segment.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 115

Exhibit 4 – Work Horse Profitability

Net revenue for the Workhorse segment in Quarter 12 was $2,522,474 as compared to$1,729,137 in Quarter 11, an increase of $793,337 or 45.9% as seen in Exhibit 6,below. The average price of units sold to the Work Horse segment in Quarter 12 was$2,598 as compared to $2,608 in Quarter 11, a decrease of $10 or 0.4%. The number ofunits sold to Workhorse in Quarter 12 was 976 as compared to 663 units in Quarter 11, anincrease of 313 units or 47.2%. In Quarter 12, Workhorse represented 6.2% of our totalsales as compared to 5.2% in Quarter 11, an increase of 1%. In Quarter 12, total grossmargin for this segment was 55.5% as compared to 57.4% in Quarter 11, a decrease of1.9%. Profit per unit in Quarter 12 was $1,033 as compared to $1,218 in Quarter 11, adecrease of $185 or 15.2%.

For the Workhorse segment in Quarter 12, we released a new version of the Plymouth withthe Plug and Play Design upgrade, the Plymouth 3.0. We offered a $100 rebate for thepurchase of Plymouth II in the U.S., Canada and Europe for the reasons explained in theCostCutter segment profitability analysis, above. This strategy was successful and we

eliminated 90% of our Plymouth II inventory and we will salvage the last 30 units inQuarter 13. The new version of the Plymouth, along with seasonality, increased thevolume of units sold and explains the increase in the segment revenue, while our averageprice decreased by $10.

Segment ProfitabilityWorkhorse

Quarter 12 ev Quarter 11 ev Change % ChangeDemand 1,085 663 422 63.7%Lost Sales (109) - (109) NAUnits Sold 976 663 313 47.2%Average Price 2,598$ 2,608$ (10)$ -0.4%Sales Revenue 2,535,324$ 100.5% 1,729,137$ 100.0% 806,187$ 46.6%Rebates 12,850 0.5% - 0.0% 12,850 NA

Net Revenues 2,522,474 100.0% 1,729,137 100.0% 793,337 45.9%Cost of Goods Sold 1,122,071 44.5% 736,096 42.6% 385,975 52.4%Gross Margin 1,400,403 55.5% 993,041 57.4% 407,362 41.0%Variable Operating Costs Quality Cost 29,186 1.2% 41,382 2.4% (12,196) -29.5% Shipping Cost 31,446 1.2% 30,551 1.8% 895 2.9%Subtotal 60,632 2.4% 71,933 4.2% (11,301) -15.7%

Sales and Marketing CostsSales Force Compensation 71,491 2.8% 46,493 2.7% 24,998 53.8%Brand Creation/Revision 60,000 2.4% - 0.0% 60,000 NAAd(s) Creation/Revision 30,000 1.2% - 0.0% 30,000 NABrand Advertising 169,876 6.7% 67,000 3.9% 102,876 153.5%Brand Promotions - 0.0% - 0.0% - NASubtotal 331,367 13.1% 113,493 6.6% 217,874 192.0%Segment Profit 1,008,403$ 40.0% 807,614$ 46.7% 200,789$ 24.9%Percent of Revenue 40.0% 46.7% -6.7% -14.4%Profit per Unit 1,033$ 1,218$ (185)$ -15.2%

8/9/2019 Abri Co. MD&A, Q12 v Q11


8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1111

Net revenue for the Traveler segment in Quarter 12 was $20,886,272 as compared to$19,648,198 in Quarter 11, an increase of $1,237,974 or 6.3% as seen in Exhibit 5,below. The average price of units sold to Travelers in Quarter 12 was $3,383 as comparedto $3,242 in Quarter 11, an increase of $141 or 4.4%. The number of units sold toTravelers in Quarter 12 was 6,178 as compared to 6,066 in Quarter 11, an increase of 112

units or 1.8%.As with the Innovator segment, we upgraded our Traveler brands, following ourstratification strategy. First, we offered a $100 rebate to eliminate our inventory inColumbus IV and we salvaged Columbus II. This strategy was successful; we sold ourentire starting Traveler inventory. We also released Columbus 5.0, targeting the lower endof the Traveler segment answering basic Traveler’s needs for portability at the industry’slowest price; and Columbus 5.1, a premium version answering higher end of the Travelersegment’s needs with new R&D features, at a premium price.

Table 5 – Innovator Competitive Advantage

Our strategy for the Innovator segment is to provide high-quality products at competitiveprices to our customers. To answer this segment’s needs and wants more specifically, AbriCo. sells two version of its Fjord line: Fjord 4.0 targeting the lower-segment and Fjord 4.1targeting the upper-segment of Innovator. As of Quarter 12, we were also offering theFjord III, older version of our Fjord to liquidate our inventory.

The total cost of the Fjord line is $2,654 as compared to an average of $3,030 for ourcompetitors, as shown in Table 5, above. Due to an average brand judgment of 86compared to 80 for our competitors and a 64 average ad judgment compared to 63 for ourcompetitors, we were able to take 37% of the Innovator market share with an average priceour new generation brands of $3,777 as compared to only $3,625 for our competitors. AbriCo. is a fast follower in technology and has second market share ownership of thissegment. However, our main competitor, Tungsten Tech LLC, offers products that aretechnologically ahead of us and takes 60% of the market share in this market. Abri Co.’sstrategy is to invest in research and development to take the technological leader positionwithin the incoming year.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1112

Exhibit 6 - Innovator Profitability

Net revenue for the Innovator segment for Quarter 12 was $22,965,811 as compared to$8,458,196 in Quarter 11, an increase of $14,507,615 or 171.5% as seen in Exhibit 4,below. The average price of units sold to Innovators in Quarter 12 was $3,910 ascompared to $1,880 in Quarter 11, an increase of $2,030 or 108.0%. The number of unitssold to Innovators in Quarter 12 was 5,889 units as compared to 2,404 units in Quarter 11,an increase of 1,389 units or 30.9%.

Like our other segments, we upgraded our Innovator brands, following our stratificationstrategy. Firstly, we offered a $100 rebate to eliminate our inventory in Fjord II and FjordIII. This strategy was successful; we sold our entire starting Innovator inventory. Then wealso released Fjord 4.0, targeting the lower end of the Innovator segment, answering basicInnovators’ needs at the industry’s lowest price; and Fjord 4.1, a premium versionanswering higher end of the Innovator segment’s needs at a premium price.

We decided to assign Fjord 4.1 to the upper end of Innovators instead of targeting the

Mercedes segment like we did with the Fjord III last quarter. We realized that ourcompetitors in the Mercedes segment had a competitive advantage in more advancedfeatures and more expenditure for R&D that we were not positioned to competesuccessfully. We then focused on our own competitive advantage in the Innovatorsegment. As a result of this strategy, we increased the segment revenue by 171.5% inselling 30.9% more units at a 108% higher price.

Segment ProfitabilityInnovator

Quarter 12 ev Quarter 11 ev Change % ChangeDemand 7,668 2,404 5,264 219.0%Lost Sales (1,779) - (1,779) NAUnits Sold 5,889 2,404 3,485 145.0%Average Price 3,910$ 3,518$ 391$ 11.1%Sales Revenue 23,023,561$ 100.3% 8,458,196$ 100.0% 14,565,365$ 172.2%Rebates 57,750 0.3% - 0.0% 57,750 NA

Net Revenues 22,965,811 100.0% 8,458,196 100.0% 14,507,615 171.5%Cost of Goods Sold 11,137,413 48.5% 4,508,839 53.3% 6,628,574 147.0%Gross Margin 11,828,398 51.5% 3,949,357 46.7% 7,879,041 199.5%Variable Operating Costs Quality Cost 176,106 0.8% 150,050 1.8% 26,056 17.4% Shipping Cost 189,738 0.8% 110,776 1.3% 78,962 71.3%Subtotal 365,843 1.6% 260,826 3.1% 105,018 40.3%

Sales and Marketing CostsSales Force Compensation 431,366 1.9% 168,582 2.0% 262,784 155.9%Brand Creation/Revision 120,000 0.5% - 0.0% 120,000 NAAd(s) Creation/Revision 120,000 0.5% - 0.0% 120,000 NABrand Advertising 523,870 2.3% 198,899 2.4% 324,971 163.4%Brand Promotions - 0.0% - 0.0% - NASubtotal 1,195,236 5.2% 367,481 4.3% 827,755 225.3%Segment Profit 10,267,319$ 44.7% 3,321,050$ 39.3% 6,946,269$ 209.2%Percent of Revenue 44.7% 39.3% 5.4% 13.9%Profit per Unit 1,743$ 1,381$ 362$ 26.2%

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

This quarter we implemented the Plug and Play feature from our R&D in both brands. Wewere then able to increase our margin by 1.8% in increasing our prices. The seasonality isalso responsible for increasing our sales volume in Quarter 12. We increased the segmentprofitability by 9.2% in reducing quality and shipping costs by 41.7% while we increasedour gross margin.

Abri Co.’s margins in all segments reflect the execution of our strategy to offer high qualityproducts at a low cost to our customers, as shown in Exhibits 3 through 7. We havesuccessfully done this, keeping our costs as low as possible, as shown in our MarketProfitability in Exhibit 7, below. In order to increase sales, Abri Co. has developed andpublished advertisements with high ratings, while also concentrating on aggressive researchand development to meet our customers’ needs and wants for better computers.

We designed Columbus 5.0, 5.1, Fjord 4.0 and 4.1 following this strategy to stratify ourmarkets and reach the upper end of the corresponding segments, introducing new hightechnology features. We were thus allowed to increase our prices and thus ourmargins. Furthermore, we reevaluated our advertising strategy and introduced regionalinserts promoting all the new generations brands in order to create demand for all oursegments. We also eliminated local and regional inserts, targeting older brands, whichhave already been advertised and are now recognized, to reduce our total advertising costavoid too many stock outs, creating ill will for Quarter 13. Cost has also been reduced dueto higher factory productivity and higher employee satisfaction as discussed in the Laborsection.

Exhibit 7 - Market ProfitabilityMarket ProfitabilityQuarter 12

United States Canada Brazil Europe China TotalDemand 8,137 3,146 2,632 5,694 2,795 22,404

Lost Sales (2,963) (1,176) (245) (2,099) (241) (6,724) Units Sold 5,174 1,970 2,387 3,595 2,554 15,680 Average Price 3,392$ 3,188$ 3,057$ 3,241$ 3,069$ 3,228$Sales Revenue 17,550,159$ 6,280,812$ 7,297,246$ 11,650,302$ 7,837,350$ 50,615,870$Rebates 47,751 18,700 - 28,100 - 94,551

Net Revenues 17,502,408 6,262,112 7,297,246 11,622,202 7,837,350 50,521,319 Cost of Goods Sold 7,363,558 2,783,427 3,310,596 5,102,765 3,517,473 22,077,819 Gross Margin 10,138,850 3,478,685 3,986,650 6,519,437 4,319,877 28,443,500 Variable Operating Costs Quality Cost 154,724 58,911 71,381 107,505 76,375 468,897

Shipping Cost 166,701 63,471 76,907 115,827 82,287 505,194 Subtotal 321,425 122,383 148,288 223,333 158,663 974,092

Sales and Marketing CostsSales Office Expenses 435,000 211,000 146,000 343,000 140,000 1,275,000

Sales Force Expenses 785,592 250,363 275,986 455,104 222,062 1,989,107 Web Marketing Expense 138,697 138,697 138,697 138,697 138,697 693,485 Local Advertising 228,883 32,044 36,621 119,019 54,932 471,499 Regional Advertising 291,826 274,431 184,251 219,385 181,962 1,151,855 Subtotal 1,879,998 906,535 781,556 1,275,205 737,653 5,580,946 Market Profit 7,937,427$ 2,449,768$ 3,056,807$ 5,020,900$ 3,423,562$ 21,888,462$Percent of Revenue 45.4% 39.1% 41.9% 43.2% 43.7% 43.3%Profit per Unit 1,534$ 1,244$ 1,281$ 1,397$ 1,340$ 1,396$

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

As shown in Exhibit 7, in Quarter 12, our Chinese and Brazilian markets increasedprofitability to surpass that of Canada, which was our third most profitable market. Thiswas due to our strategy to eliminate our old generation computer by selling them withrebates in the U.S, Canada and Europe. The old generation created an unmet demand of1,176 units while we only had 245 and 241 lost sales respectively for Brazil and

Canada. We then sold more units and had higher revenue in the latter. Also, the brick-and-mortar offices in Sao Paulo and Shanghai were operational for the first time in addition tothe regional web centers in Quarter 12. Our plan to increase profitability in China andBrazil was successful.

Marketing and Selling Expenses

Advertising

Figure 3 – Advertising Expenditure Changes

Total advertising expense in Quarter 12 was $1,623,354 as compared to $914,720 inQuarter 11, an increase of $708,634 or 77.5% as shown in Figure 3 above. The total

number of inserts in Quarter 12 was 209 as compared to 123 in Quarter 11, an increase of86 inserts or 69.9%. The total average price of inserts in Quarter 12 was $7,767 ascompared to $7,436 in Quarter 11, an increase of $331 or 4.5%.

Our overall advertising strategy remains to capitalize on building a strong company imageto help us sell our computers based on our reputation and reliability. In Quarter 12 wereleased six new brands to offer a new generation of computers to our customers, matchingour stratification strategy, to answer the segment needs at different prices. We continued to

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

advertise in the five regions we operate in to generate demand for our six new brands. Ouradvertising strategy has been successful in creating a total demand of 22,162 for all brandsfor their first operating quarters. These decisions also increased the number of inserts andthe average price of advertising as we added inserts in more expensive publications.

Table 6 – Advertising Cost per Unit of Demand

In Quarter 12, we increased our advertising budget while we kept an average advertising judgment of 65 in our existing segments (CostCutter, Innovators, Travelers and WorkHorse) as compared to an average of 57 for our competitors. As a result, Abri Co.

increased its demand by 9,118 or 69.9% in Quarter 12, as shown in Table 6 above.The Company spent $300,000 in ad creation and revisions, since we had to create newadvertisements for our new brands. This expense should decrease since we do not plan todo a revision of all brands each quarter.

Local advertising expenses in Quarter 12 were $384,404 as compared to $237,876 inQuarter 11, an increase of $146,528 or 61.6%. The number of local inserts in Quarter 12was 64, as compared to 35 in Quarter 11, an increase of 29 inserts or 82.9%. The averageprice of a local insert in Quarter 12 was $6,006 as compared to $5,286 in Quarter 11, anincrease of $720 or 13.6%. We added local inserts in Sao Paulo and Shanghai since ournew sales offices there were operational in Quarter 12. As a result, we generated a demandof 2,979 for these two new cities in Quarter 12, an increase of 2,428 as compared toQuarter 11.

Regional advertising expenses in Quarter 12 were $929,350 as compared to $520,844 inQuarter 11, an increase of $408,506 or 78.4%. The number of regional inserts in Quarter12 was 145, as compared to 78 in Quarter 11, an increase of 67 or 85.9%. The average

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

price of a regional insert in Quarter 12 was $6,409 as compared to $6,677 in Quarter 11, adecrease of $268 or 4.0%.

In Quarter 12, our regional advertising strategy was consistent in all the regions in whichwe operated. We wanted to create demand in these markets for all of our new brands. Wealso added inserts to promote our new Fjord 4.1 to Mercedes in all regions, in addition toone insert to promote Sapphire 2.0 in Leading Trade Journals globally and doubled thenumber of inserts for Plymouth 3.0 in the U.S., Canada and Europe, our three mostprofitable markets in Quarter 11. Our average price decreased due to lower costs topromote Fjord 4.1 and Sapphire 2.0 in less expensive publications (respectively GeneralNews Magazines and Leading Trade Journals). The volume of new ads combined with theprice of these publications explains the net increase in the regional advertisingexpenses. As a result, we created a total demand for regional web centers of 11,314 inQuarter 11 as compared to 7,344 in Quarter 11, an increase of 3,970 or 54.1%.

Table 7 – Advertising Cost per Unit Sold

In Quarter 12, our advertising cost per unit of demand was $72 as compared to $70 inQuarter 12, an increase of $2 or 2.8%, as shown in Table 7 above. This increase is due tothe release of our new generation computers that we advertised more than the oldergeneration. Also, our advertising cost per unit sold is on average $62 lower than theindustry’s average (please find our competitive advantage table in the Appendix for moredetails). We carefully created the most profitable media plan in our industry and haveachieved the best advertising judgment globally.

Sales OfficesLocal sales office expenses in Quarter 12 were $1,321,000 as compared to $834,000 inQuarter 11, an increase of $487,000 or 58.4%, as shown in Table 8 below. We opened fournew brick-and-mortar offices in Quarter 12 to be operated in Quarter 13: in Chicago,

Montreal, Paris and Rome. The difference in our sales office expenses come from the set-up cost for four new venues, representing $660,000.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

Table 8 – Sales Office Expense Per Unit of Demand

Our sales offices accounted for 49.5% of our total demand in Quarter 12 as compared to42.2% in Quarter 11, due to the opening of our three new offices as shown in Table 7,above. In Quarter 13, we will begin operating our four new offices in Chicago, Montreal,Paris and Rome, in our three most profitable markets when we made the decision to openthem. We hope to increase our demand in Quarter 13 due to operations in these four newoffices. We will also invest in expansion in new markets for our company.

Table 9 – Web Center Expense per Unit of Demand

Web center expenses in Quarter 12 were $770,000, the same Quarter 11. These web

centers have been operating since Quarter 11. As a result, our web centers generated ademand of 11,314 units over 7,347 in Quarter 11, an increase of 3,967 units of demand or54%. Our regional demand is shown in Table 9, above. Our web centers accounted for50.5% of our total demand in Quarter 12 as compared to 55.8% in Quarter 11, due to ourthree new operating brick-and-mortar offices (see the section above). In Quarter 13 we willincrease our web marketing tactics to generate more demand and convert more sales. Wematched our strategy to be present in the U.S., Canada, Brazil, Europe and China byQuarter 13 and will continue to expand within each region and in new regions.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

Web Marketing ExpensesAbri Co.’s web marketing expenses for Quarter 12 were $693,485 as compared to$238,920 in Quarter 11, an increase of $454,565 or 190.3%. The company’s expense perunit of demand was $61 as compared to $33 in Quarter 11, an increase of $28 or 84.8%.This increase was mostly due to an investment in web productivity tactics discussed below.

Total web traffic tactics expense in Quarter 12 was $194,000 as compared to 114,000 inQuarter 11, an increase of $80,000 or 70.2%. We decided to invest in “Contracts withmajor electronics web sites to be cross-listed” to increase web traffic for our webcenters. As a result, web demand increased by 3,970 in Quarter 12. We will continue toimprove our web traffic tactics in the next quarters to have the most efficient Web Centerspossible and generate more demand.

Total web productivity tactics expense in Quarter 12 was $448,000 as compared to $96,000in Quarter 11, an increase of $352,000 or 366.7%. We decided to invest in “Customerprofile data banks” to store mailing information, credit card numbers, past purchases, etc.to facilitate purchases, customer service and data mining and “Data mining” to profilevisitors and their web behavior in order to present product options that might best appeal tocustomers. Our web centers have now reached their maximum productivity, resulting inincreased demand per web sales person to 269 in Quarter 12 as compared to 175 in Quarter11.

Commissions paid to web sales partners in Quarter 12 were $51,485 as compared to$28,920 in Quarter 11, an increase of $22,565 or 78.0%. This increase is due to theincrease of our regional demand because of the seasonality, the release of new brands soldat a higher price, and to the new web traffic tactic we contracted in exchange of a $20commission per unit sold through our partners.

Sales ForceTotal sales force expense in Quarter 12 was $1,989,107 as compared to $1,297,874 inQuarter 11, a decrease of $691,233 or 53.3%.

Local sales force budget in Quarter 12 was $1,463,343 as compared to $822,885 Quarter11, an increase of $640,458 or 77.8%. This increase is due to staffing of our new salesoffices in New York, Sao Paulo and Shanghai. As a result, we increased unit demand persales office person by 21 in Quarter 12.

The Special Training Programs budget in Quarter 12 was $88,000 as compared to $55,000in Quarter 11, an increase of $33,000 or 60.0%. We continued our sales force trainingprogram because we were satisfied by the productivity improvements we saw in previousquarters. The budget increased due to the increase in our staff in Quarter 11.

Demonstration kits budget in Quarter 12 was $26,400 as compared to $16,500 in Quarter11, an increase of $9,900 or 60%. Abri Co. implemented a demonstration kits program toencourage our sales force and increase sales productivity. Also, the effects of thedemonstration kits program on salespersons’ productivity were immediate as compared toother sales force programs and more durable compared to the free gift program we

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1115

implemented in Quarter 10. We then chose this program to see the results by the end ofQuarter 12. As a result, in Quarter 12 we were able to increase demand per web salesperson by an average of 95 units from Quarter 11.

Cost of Production

In Quarter 12, total production cost decreased due to sales mix by $898,056. Totalproduction cost change due to volume was $3,957,130. (A detailed view of totalpercentages can be seen in Exhibit 8, below.) This is the result of 16,637 units produced inQuarter 12, compared to the 13,044 units that were produced in Quarter 11. By generatinga higher demand, and therefore larger number of units sold, Abri Co. was able to decreasethe cost of production due to economies of scale. In Quarter 12, Abri Co. capitalized onour available capacity and released new brands: Sapphire 2.0, Plymouth 3.0, Columbus 5.0and 5.1, and Fjord 4.0 and 4.1. Sapphire is the new generation of our CostCuttercomputer. Plymouth 3.0 is the new generation of our Work Horse computers. Columbus

5.0 is a new generation of our Traveler computers, and targets the lower segment, whileColumbus 5.1 targets the upper segment. Fjord 4.0 is the new generation of Innovatorcomputers and targets the lower segment, while Fjord 4.1 targets the upper segment. Theincreased demand of 3,593 units can be attributed to the introduction of the aforementionednew brands.

LaborThe labor cost per unit in Quarter 12 was $163 in comparison to $171 in Quarter 11, adecrease of $8 or 4.67%. Abri Co.’s factory worker productivity increased by 1% to 100%,from 99% in Quarter 11. Total compensation in Quarter 12 was $19,226, consistent withQuarter 11.

ChangeoverAs seen in the Cost of Production table, above, changeover cost decreased to $19. Thedecrease of changeover cost per unit is the outcome of spending $700,000 on changeoverimprovement, resulting in a 49% decrease in time, and a 33% reduction in cost. In additionto changeover improvements made, cost per unit decreased due to components in each unitbeing more similar.

In Quarter 12, Abri Co.’s factory changed its production line 34 times, compared to 23times in Quarter 11, an increase of 11 times, or 47%. This 47% increase is related tobeginning inventory for Quarter 12. Also, as Abri Co. produced six new computers tostratify our market, our factory increased the number of production changes. In Quarter 13,

Abri Co. will spend another $700,000 to reduce changeover by 49%.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

Exhibit 8 - Cost of Production Table

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1121

MaterialsAs seen in the Cost of Production Table, above, materials cost per unit increased. This isdue to adding Office Software Word/Spreadsheets New Release as well as Plug and Playeasy set up. A detailed list of components for all segments can be seen in Tables 10-13,below.

Table 10 – CostCutter Components

While Alpha Cyber Technology offers a 17” monitor for desktop, it is not a high priorityfor customers, while multi-purpose workstation, ability to see and work on multipleprograms and quick response to commands are high priority for customers. That is why

offering an expanded keyboard with hot keys, which only increased our cost per unit by$33, was a strategic move for Abri Co. Balsam offers a high-resolution monitor thatincreases their computer cost without meeting needs of the CostCutter segment. Abri Co.added plug and play (easy set-up) this quarter to meet the need of easy set up in theCostCutter segment. Moreover, Office Software Word/Spreadsheets new release wasadded to satisfy the highest rated use pattern of Word Processing, increasing our cost perunit. A larger screen was also added. All improvements made to Sapphire increased costsby $77 per unit.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1122

Table 11 – Traveler Components

Presentations, communications with other computers, engineering/design, businessgraphics, computer-aided design, manufacturing control, and word processing software arethe highest rated use patterns for the Traveler segment. Abri Co. and Alpha CyberTechnology offer software meeting these requirements. Balsam fails to do so with itsLLC2. Furthermore, Abri Co. offers office software word/spreadsheets new release as wellas plug and play (easy set-up) to meet the needs of the Traveler segment with its featured-focus Columbus 5.1 and redesign its cost-focused Columbus 5.0 to reduce cost by, forexample passing from a wireless to a standard network connection. The changes in designfor the Columbus IV decreased our incremental cost per unit by $154 for Columbus 5.0 andincreased it by $49 for Columbus 5.1.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

Table 12 – Innovator Components

Web design, statistical analysis, communications with other computers, engineering/design,data management, presentations, business graphics, computer aided design, manufacturingcontrol, bookkeeping/budgeting, and word processing software are the highest rated usepatterns for the Innovator segment. Abri Co. and all competitors offer software meetingthese requirements, however, Abri Co. offers the new release of office softwareword/spreadsheets. Both Abri Co. with Fjord 4.0 and 4.1 and Tungsten with Gold-X2 offerultra high performance power/speed as well as high-speed network/internetconnection. Office software word/spreadsheets new release as well as plug and play (easyset-up) was added in Quarter 12, which increased price per unit for Fjord 4.1 by$201. Fjord 4.0 decreased in price by $44 per unit due to eliminating business graphics,presentation, and manufacturing software.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

Table 13 – Work Horse Components

Bookkeeping/budgeting, word processing, communications with other computers, datamanagement, web design, business graphics, presentations and statistical analysis softwareare the top rated uses for the Work Horse segment. R2D2B, Balsam Technology’s WorkHorse computer lacks a very high capacity hard drive that is used to fulfill the customerneed of fast computer to computer links, and also has a standard battery for portable whentheir computer is a desktop. While they are cost leaders in this segment, they fail to meetcustomer needs and use patterns and employ excess features, which drive up their costsunnecessarily. Abri Co. offers differentiation by providing Office SoftwareWord/Spreadsheets new release as well as Plug and Play (easy set-up), which were addedin Quarter 12, increasing cost per unit. We added three new features to the Plymouth 3.0,which increased per unit cost by $123.

Operations Overhead Expenses

Excess CapacityAbri Co. spent $424,973 on excess capacity in Quarter 12 over $216,567 in Quarter 11, anincrease of $208,406 or 96.2%. This is due to an over-projected demand of 1700 units andthe sales of on hand inventory. Due to seasonal increase of demand in the fourth quarter,Abri Co. allowed extra operating capacity in order to keep up with new demand for boththe fourth quarter and new and improved brands and we avoided unplanned stockouts. The company attempts to add a safety margin to its estimated sales in order to avoidstock-outs when possible. This has historically led to higher inventory holding costs whileeliminating excess capacity costs, but one advantage to this system is the ability to lower

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

changeover time and costs. While it is still necessary to produce multiple brands, having abeginning inventory on hand helps prevent stock-outs and customer ill will at the beginningof the following quarter.

Inventory Holding CostsIn Quarter 12, Abri Co. spent $397,518 on inventory holding costs while in Quarter 11 thecompany spent $494,555, a decrease of $97,037 or 19.6%. This was due to a renewedfocus on inventory management, with an adequate beginning inventory of all new brandsplanned to avoid stock outs at the beginning of Quarter 13 and ending inventory of 3,476units, which compared to the 3,036 units in Quarter 12, is a decrease of 440 units or 12.7%.

Quality In Quarter 12, Abri Co. spent $662,738 on quality costs versus $814,164 in Quarter 11, adecrease of $151,878 or 18.7%. Quality costs per unit decreased from $62 per unit to $40per unit, a decrease of 55%. Abri Co.’s reliability judgment rose to 76 over 74, an increaseof 2.7%. The benefit of Abri Co.’s investment in quality has manifested in our decreasingquality costs per unit and the reliability judgment of our consumers. Abri Co.’s productsare ranked the most reliable on the market since our competitors’ reliability judgmentsrange from 64-73, as pictured in Figure 3 below. Abri Co. will continue to aggressivelypursue excellence in our products to maintain our competitive advantage.

Figure 4 - Reliability Judgment

In Quarter 12, Abri Co. spent $16,640 on warranty costs versus $15,171 in Quarter 11, anincrease of $1,469 or 9.6%. This slight increase is due to a greater volume of units sold inQuarter 12. Inspection costs in Quarter 12 were $2,453 over $3,151 in Quarter 11, adecrease of $698 or 22.2%. Defect costs in Quarter 12 were $463,645 over $607,841 in

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

Quarter 11, a decrease of $144,196 or 23.7%. We spent $180,000 on action costs todecrease defects while in Quarter 11 Abri Co. spent $188,000 on action costs, a decrease of$8,000 or 4.3%. These improvement actions lowered our defect rate by 16.6%, total defectcosts by 18.6% and cost per unit by $22 or 55%, which drove up our reliability rating by 2points in Quarter 12.

ShippingIn Quarter 12, shipping costs were $714,038, while in Quarter 11 shipping costs were$601,065, an increase of $112,973 or 18.8%. This increase was due in part to a largervolume of units shipped – 15,684 units in Quarter 12 versus 12,764 units in Quarter 11, anincrease of 2,920 units or 22.9%. Shipping costs per unit dropped to an average of $45 perunit in Quarter 12, compared to an average of $47 per unit - a decrease of $2 or 4.3%. Thisdecrease is due to economies of scale in shipping: the sales in Brazil and China bothincreased allowing us to obtain a volume discount on shipping. The number of unitsshipped by region is show in Figure 4, below. Shipping costs by region are shown inFigure 5, below.

Figure 5 – Shipping Costs by Region

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

Research and Development Expense

Abri Co.’s strategy is to provide our customers with high-quality products at competitiveprices for the Traveler and Innovator segments. This is why Abri Co. has already investedmore than $19.61 million to develop new features since its creation 3 years ago and will

continue to offer new features on its different series in the future. Abri Co. plans to havethe nine remaining R&D features available to its customers in the incoming year. This willrepresent an investment of $26,720,150 in total. However, our strategy is to provide ourcustomers equal value products at lower cost to customers for CostCutter and Work Horsesegments.

In Quarter 12, research and development investment expenditures to develop new featureswere $5,181,725 while in Quarter 11 we spent $5,510,239 on research and development, adecrease of $328,514 or 6%. The Quarter 11 investments correspond to the OfficeSoftware-Word, Spreadsheets-New Release & Plug and Play Design (easy setup) newfeatures that have been released on all our redesigned lines. The feature differences of our

lines can be found in the Tables 10 through 13 in the Material Cost above. These newfeatures have permitted Abri Co. to improve its brand judgments as shown in Table 14below.

Table 14 – Brand Judgments

Please note that our Columbus 5.0 had been designed as a test product to offer a “low-cost”computer to the lower segment of Traveler. Compared to Columbus IV, we removed theDVD and Wi-Fi to cut our costs, which explains the drop in brand judgment. However,Abri Co. expects that the drop of its price will attract new customers who need a portablecomputer at a more affordable price.

In Quarter 13, Abri Co. invested $5,181,725 to develop two new features. The UPS(uninterruptible power supply) and windows upgrade for professionals with high security

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

protection will be used to update and redesign our line of computer and better match AbriCo. customers’ needs and wants and being able to release two different versions of thePlymouth and Sapphire to stratify these segments in Quarter 13. These developments areapplicable to all segments and will be incorporated into most brands in Quarter 13.

Financial Position

For Quarter 12, Abri Co. introduced many new computer brands, with the intention ofexpanding and stratifying our customer base and the number of sales: Fjord 4.0, Fjord4.1,Columbus 5.0, Columbus 5.1, Plymouth 3.0 and the Sapphire 2.0. With the addition ofthese new brands, our company now has brands targeted at the CostCutter, Traveler, WorkHorse and Innovator segments; 80% of the possible segments. As a result, total currentassets are up 6.9%, and net fixed assets are up 14.9%.

Exhibit 9 - Balance Sheet

As shown in Exhibit 9, total assets for Quarter 12 were $33,467,900 versus $30,835,129 inQuarter 11, a change of $2,632,771 or 8.5% increase. This increase in total assets can beattributed to a decrease in liabilities and an increase in equity. Total liabilities in Quarter12 were $3,500,000 versus $10,500,000 in Quarter 11, a change of $7,000,000 or a

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1125

decrease of 66.7%. This can be attributed to paying off of a $7,000,000 conventional loanin Quarter 12 that covered R&D and expansion expenditures. Total equity for Quarter 12is $29,967,90 versus $20,335,129 in Quarter 11, a change of $9,632,771 or a 47.4%increase. This can be attributed to the extra cash provided by the increased sales due tonew computer brands released during Quarter 12, as well as an expansion to factory

capacity, and additional sales offices.

Breakeven Analysis

Abri Co. exceeded the required quarterly breakeven point for Quarter 12. In Quarter 12,the company needed to sell 11,237 units, and sold 22,162 units as shown in Exhibit 10below. Abri Co. sold 15,669 units more than needed to breakeven, or 197.2% of therequired amount. Due to a shift in mix to lower cost computers ($628 less per unit), and anincrease in marketing expenses for new brands, breakeven units are up 4,686 units.

Exhibit 10 - Breakeven Analysis

As shown in Exhibit 10 above, the average price per unit in Quarter 12 was $2,334 versus$3,254 in Quarter 11, or a 28% decrease. This was due to a less expensive mix in Quarter12. Average cost per unit in Quarter 12, was $1,065 versus $1,357 in Quarter 11, a 21%decrease. This can be attributed to the many cheaper models in the brand line up for

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1156

Quarter 12. Gross margin per unit in Quarter 12 was $1,268 versus $1,897 in Quarter 11,or a 33% decrease due to the shift in mix of lower margin computers.

Fixed expenses in Quarter 12 were $14,253,869 versus $12,425,560 in Quarter 11, or a15% increase. The number of units needed to breakeven in Quarter 12 was 11,237 versus

6,551 in Quarter 11, or a 72% increase. The amount of revenues needed to breakeven inQuarter 12 were $26,225,746 versus $21,314,590 in Quarter 11, or a 23% increase. Thiswas due to Abri Co.’s lower gross margin per unit in Quarter 12. Gross margin is downdue to our updated line of computers, a response made to answer the needs and wants ofcustomers. We included new R&D features, even in the lower segment lines, withoutincreasing the consumer’s price. Thus, Abri Co.’s computers are more costly to produce,pointing to a decrease in gross margin. Abri Co. also spent $1,100,000 in factoryexpansion, $700,000 in changeover improvements and $4,121,725 in R&D, which affectedbreakeven revenues. Total overhead in Quarter 12 was $654,406 versus $593,356 inQuarter 11, or a 10% increase. Overhead increased in Quarter 12 due to high excessoperating capacity. The decision to increase R&D was based on our strategy to become

technological leader in our industry.

Liquidity and Capital Resources

As seen in Exhibit 11 below, Abri Co.’s liquidity position in Quarter 12 was $78,103,523versus $49,222,334 in Quarter 11, or an increase of 58.7%. Due to increased profits earnedby the exit of our competitor Prestige, as well as seasonality and the introduction of Fjord4.0, Fjord 4.1, Columbus 5.0, Columbus 5.1, Plymouth 3.0 and Sapphire 2.0 in Quarter 12,liquidity has increased dramatically in comparison to earlier quarters.

Cash and cash equivalents balance for the beginning of Quarter 12 was $19,052,076 versus$6,270,414 in Quarter 11, or a 203.8% increase. Cash generated (used) by operatingactivities was $10,890,647 in Quarter 12 versus $7,056,663 in Quarter 11, or a 54.3%increase.

Cash and cash equivalents balance for the end Quarter 12 was $21,667,723 versus$19,052,076 in Quarter 11, an increase of 13.7%. Quarter 12 ended with $21,667,723 dueto the additions of the Fjord 4.0, Fjord 4.1,Columbus 5.0, Columbus 5.1, Plymouth 3.0 andthe Sapphire 2.0 as well as the recent increase in fixed plant capacity and R&Dexpenditures.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1151

Exhibit 11 - Statement of Cash Flows and Liquidity

Abri Co. plans to increase liquidity by increasing its assets (cash) through a higher numberof units sold and the introduction of new computer components over the course of the nextfew quarters. In return, the company will have greater financial stability, greater access toboth short-term and long-term loans for investment and expansion in both current and asyet untouched markets.

Business Outlook

Since Quarter 12, Abri Co.’s factory is positioned to produce our multiple product lines tomeet an increasing potential demand in following quarters. In Quarter 12, we invested$1,100,000 to expand fixed capacity to 375 units per day. We will continue investing toimprove our fixed capacity to meet our increasing demand due to our product portfoliodevelopment and our expansion as discussed below.

Our new offices in Chicago, Paris, Montreal and Rome will be operational in Quarter13. Abri Co. will work toward offering local sales offices in all markets in order to reach

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1152

any customers through both our web centers and sales offices. By the end of year 4, AbriCo. will open sales offices in Calgary, Vancouver, Curitiba, Rio de Janeiro, BeloHorizonte, Tianjin, Beijing and Guangzhou allowing our customers to buy Abri Co.’sproduct locally worldwide. We will also expand our web centers and sales offices inemerging market such as India, Australia and Middle Eastern countries where Abri Co.

expects to encounter an appealing potential demand by the end of Year 8.

In Quarter 13, Abri Co. plans to redesign its lines using the two new features that have beendeveloped in Quarter 12. We will be releasing two new versions of our Plymouth andSapphire computers to answer the Work Horse’s and CostCutter’s cost-focused andfeature-focused segments’ specific needs and wants. By the end of Year 4, Abri Co. plansto develop all technology necessary to release an advanced, feature-laden new brand (theBelvedere) targeting the Mercedes segment. Two versions of the Belvedere will beavailable to target the lower and upper segments of the Mercedes market by the end ofYear 4.

Furthermore, Abri Co. plans to develop innovative features such as a touch screen toincrease convenience and portability of our computer to answer to the Traveler needs andwants. We will also work on the development of a low-cost plastic production process todecrease our cost of production while keeping the quality of our products to please theWork Horse and CostCutter segments by dropping our prices. For the improvement of ourFjord and Belvedere series, Abri Co. plans to develop a 3D high-resolution screen and aserver-integrated service.

Figure 6 – Forecasted Revenues

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1155

Due to an average expected 20% quarterly increase of demand in Year 4 (due to thefinalization of our expansion of our sales offices in exciting markets and the developmentof its final portfolio (two brands per segment including the Mercedes), Abri Co. expectsrevenue for Year 4 to be $334.5 million for a projected net income of $61.9 million. AbriCo. will then, focus on brand improvement through its R&D department, but will not enter

new a target segment unless an opportunity shows up in the future. Abri Co. will alsoexpand its business in new areas such as Australia, India and the Middle EasternCountries. Due to this expansion, Abri Co. expects an average quarterly increase of 10%of demand. We also expect our revenues to be $549.3 million, $803.8 million, $1.1 billion,$1.7 billion in years 5 through 8, for projected net incomes of $161.3, $281.8, $471.3,$764.8 million, as show in Figure 6, above.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1156

Appendix

Abri Co. has achieved competitive advantage in several areas, most noticeably in thereliability of our brands. Abri Co. has the highest reliability judgment of its industry with areliability judgment of 76, while having a quality cost price of only $62 compared to an

average of $151 for its competitors selling to the same segments, as shown in the followingtables. This advantage began in Year 2 when we chose to invest in variance studies andsource studies in order to provide our customers with more reliable products. Our greaterreliability has benefited our customers with less frustration dealing with products. In turn,this has strengthened our company image and reduced the costs involved with warrantiedrepairs, inspections, and replacing defective parts.

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1156

Table I – North America

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1156

Table II – Canada

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1156

Table III – Brazil

8/9/2019 Abri Co. MD&A, Q12 v Q11


!"#$ &'( )*+!

,-.#/0# 12 30#4-4 ,-.#/0# 1156

Table IV – Europe

8/9/2019 Abri Co. MD&A, Q12 v Q11


Table V – China

Documents

Abri Co. MD&A, Q12 v Q11