Business Case PresentationTeam 2 to ALSE Board

Business Case PresentationTeam 2 to ALSE Board

Presenters:

Tim Crowther

Karl Kenny

Maxim Michtchenko

Yuriria Lanza

Liliana Posada

April 24, 2004

Presenters:

Tim Crowther

Karl Kenny

Maxim Michtchenko

Yuriria Lanza

Liliana Posada

April 24, 2004

Problem

危機

Problem

危機

OverviewOverview

• Opportunity• Recommendation• Marketing• Revenue • Financials• Conclusion• Q&A

• Opportunity• Recommendation• Marketing• Revenue • Financials• Conclusion• Q&A

RecommendationRecommendation

Invest $2.3M

RecommendationRecommendation• Net cash $1.2M in year 5• > 15% contribution • > 20% ROI • > 20% ROS

• Net cash $1.2M in year 5• > 15% contribution • > 20% ROI • > 20% ROS

Marketing AnalysisMarketing Analysis

• Location• Environmental Scan• SWOT for ALSE• Niche Market Opportunities

• Target Customers• Value

• Location• Environmental Scan• SWOT for ALSE• Niche Market Opportunities

• Target Customers• Value

RevenueRevenueRevenue Potential

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007 2008 2009

Year

CA

D$

K

Sao Paulo/Mexico City Fort St. John

Drilling waste samplesDrilling waste samples

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2005 2006 2007 2008 2009

Total Sample Volume

ALS Sample Volume

Revenue – Mexico City & Sao PauloRevenue – Mexico City & Sao Paulo• Major

Petrochemical companies

• Market is in growth stage – enormous potential

• Oil & Gas Exploration (drilling) on increase

• Major Petrochemical companies

• Market is in growth stage – enormous potential

• Oil & Gas Exploration (drilling) on increase

0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009

Days on Site

Financial TargetFinancial Target• Net Earning -15% (1,000,000$)

contribution to entire North American operations

• Performance• ROI – 20%• ROS – 20%

• Net Earning -15% (1,000,000$) contribution to entire North American operations

• Performance• ROI – 20%• ROS – 20%

AssumptionsAssumptions• Mobile laboratory

• Cost – 250,000 • Depreciation – 5 years straight line• Annual maintenance cost – 25,000

• Computer Equipment• Cost – 5,000 • Depreciation – 3 years straight line

• Mobile laboratory• Cost – 250,000 • Depreciation – 5 years straight line• Annual maintenance cost – 25,000

• Computer Equipment• Cost – 5,000 • Depreciation – 3 years straight line

Your money at workYour money at work

-$1,000

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2004 2005 2006 2007 2008 2009

Inve

stm

ent

in C

AD

$ K

Investment Total Gross Revenue Net Cash

Investment - $2,305K

Reinvestment - $805KInitial Capital - $1,500K

-$1,000

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2004 2005 2006 2007 2008 2009

Inve

stm

ent

in C

AD

$ K

Investment Total Gross Revenue Net Cash

Investment - $2,305K

Reinvestment - $805KInitial Capital - $1,500K

Financial ResultsFinancial Results

1.23M, 18%5.60M, 82%6%

4%

8%

Current Mexico Brazil BC

1.23M, 18%5.60M, 82%6%

4%

8%

Current Mexico Brazil BC

ConclusionConclusion

Q&AQ&A

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