ConceptPixelsStefan Shircel, Michael Flowers,

Callum McCann, Nader Issa

Presentation Date: December 9, 2016

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Initial Strategy – Years 6 &7 • Entry Level : Focused Low-Cost

• Importance of Market Share

• Asia-Pacific Region Focus

• High R&D Expenditure

• High Production

• Increase Advertising expenditure

• Multi-Feature : Focused Differentiation • High P/Q rating

• Niche Market

• High Margins & Price

• Best Quality

• Lower Market Share

3

• Shareholders continue to invest

• ConceptPixels invests more in R/D

• ConceptPixels makes the best cameras in the market

• More low-income customers have access to a ConceptPixels Camera

Cost Efficient Cameras

Competitive Advantage

Increase in Market Share

Revenue Increase

4

Adjustments and Strategies Years 8-13

5

Corporate Citizenship

Finance & Cash Flow

Compensation & LaborAssembly

Marketing

Product Design

Our Formula

6

Product Design: Increased R&D• In total, we invested

$121,000,000 in R&D for the 8 years of operation.

• Higher investment in R&D allows you to expand your margins which is why we were capable of selling our entry level cameras for $90-$110.

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Price and Quality Rating

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13$0.00

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Price and PQ Rating

Price of Entry Level Price of Multi-Featured Entry Level PQ Rating Multi-Featured PQ Rating

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Marketing: High investment in advertising expenses

• Advertising expenses were on average, 114% higher than industry average• Chain Stores: 112% above avg.• Online Sites: 93% above avg.• Local Shops: 95% above avg.

• Large investments in advertising later on allowed ConceptPixels to promote substantial growth and gain market share.

• The high investment in advertising allowed us to reach a market share which competitors were not able to compete.

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Entry-Level and Multi-Feature Assembly: Strategically overproducing

• Entry Level Cameras: produced at cost 18% - 20% lower than industry average• Multi-Feature Cameras: produced at cost 15% lower than industry average

• Due to the constant yearly fluctuations in exchange rates, we wanted to overproduce past the projected retailer demand in specifically quarters 1 and 2.

• Because we hired more workers than other companies, producing more cameras in Quarters 1 and 2 would provide a safety net of inventory for quarters 3 and 4.

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Compensation and Labor: Pay well, Hire many• We wanted to hire as many workers needed to keep up with the constant increase in

demand for years 8-13 and NEVER outsource.• On average, we pay our workers 10% above the industry average.• We rarely laid off any workers because we were continuously overproducing and demand

was increasing.

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Corporate Citizenship: Invest in safe working conditions• Starting in year 6 or 7 we made the decision to invest in additional safety equipment and

improved lighting/ventilation. • This choice was attractive because it boosts PAT productivity by 25 units a quarter. • Corporate citizenship did not have much effect on image rating.

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Finance and Cash Flow: Repurchase max amount of shares every year• Repurchasing shares increased EPS• Increased Shareholder Value Added which is directly related to EPS.• We contribute our high EPS to a strategy of repurchasing the maximum number of shares possible

and not issuing a dividend with our profits or excess capital.

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13

29.7322.96 26.83

41.06

60.12 64.29

83.44

117.41

Stock Price

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13

$2.05

$0.86

$2.71

$5.07 $5.24

$3.49

$7.30$7.96

Earnings Per Share

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Financial and Marketing component targetsYR6 – YR13

1. Max R&D every year to lower production cost and increase margins2. Sell in every available market to increase net profits3. Under sell our competitors

a. ConceptPixels Entry level cameras were generally priced $20 - $40 less than competition average

4. Increase advertising budget from years 9-13 because competition cannot compete

5. ConceptPixels offered a shorter warranty period, allowing us to reduce administrative costs

Changing of Strategy (Entry Level)

Focused Low-Cost

Best Cost

Changing of Strategy (Multi-Feature)

Focused Differentiation

Best Cost

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Strategic Group MapEn

try L

evel

Seg

men

t

Mul

ti-Fe

atur

e Se

gmen

t

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Product Benchmarks

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Geographic Benchmarks

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Key Learnings and Recommendations • Continue to Hire (Do Not Outsource)

• Continue to Advertise

• Hold Market-share (Invest in R&D)***

• Follow Industry Success Equation

Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 130.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Market Share

North America Entry Level North America Multi-Featured Asia-Pacific Entry Level Asia-Pacific Multi-Featured

Latin-America Entry Level Latin-America Multi-Featured Europe-Africa Entry Level Europe-Africa Multi-Featured

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Questions?