Tru presentation 3-appendix slides

TanksRusM A N U FA C T U R I N G I N C

2 0 1 5 t o 2 0 1 9

TanksRusMANUFACTURING INC

S T R AT E G I C G R O W T H P L A N


AGENDA E x e c u t i v e S u m m a r y

S t r a t e g i c G o a l s

S i t u a t i o n a l A n a l y s i s

A n a l y s i s o f A l t e r n a t i v e s

I m p l e m e n t a t i o n

F i n a n c i a l F o r e c a s t

C o n c l u s i o n


OVERVIEW

Strategic Goals

Diversify and Implement by 2016

Return on Capital of 10%

Financing

$5.97 million available

$7.5 million required

EdmontonSales Office

AcquireGet Tanked

BalgonieConsolidation

MetalRecycling

Salt Silos

Hopper BottomCones

Net Income by 2017

NI in 2018 & 2019 by

$800K$100K

1

2

3

Meet space constraints4


RECOMMENDATIONS

Balgonie Consolidation

Edmonton Sales Office Metal Recycling

$945,000 $85,000 $218,000

$1,248,000

To achieve the goals…


PROJECTIONS

2017 2018 2019

Metal Recycling 40.896 34.298 29.25

Balgonie Facility 740.587 1053.314 1053.5668

Edmonton Sales Office 227.043 261.108 363.9977

100

300

500

700

900

1,100

1,300

1,500

After-Tax Net Income

Where will TRU be if recommendations are implemented?


To be the preferred supplier of high-quality and innovative refueling steel tanks to customers in Canada and Northern United States.

TRU is committed to be recognized as the leading manufacturer of high quality, innovative, reliable and environmentally friendly steel tanks in line with industry trends at a competitive price.

MISSION & VISIONOur purpose and goals

Mission

Vision


ENVIRONMENTAL SCANS T R E N G T H S• Strong Distribution Channel• Competitive Pricing• Experienced Executive Team

W E A K N E S S E S• High Travel Costs & Dissatisfaction• Welders’ Unionization• Limited Space Capacity• Welding Deficiencies

O P P O R T U N I T I E S• Booming Oil Industry in Alberta• Agricultural Growth in Saskatchewan• Innovative Manufacturing Technologies

T H R E A T S• Higher Lease Costs• Low Supply of Qualified Welders• Increased Steel Input Prices

Strengths Weaknesses

Where we are…

Opportunities Threats

Competitive Pricing

Newest Technologies

Access to Steel

StrategicLocations

KEY DRIVERS


REGINA

Where we should be…

E D M O N T O N$150B Spending on Construction and Maintenance over next 25 years15-35% Growth in Tank Sales in Alberta65% Decrease in Travel Costs$102B Oil Sands Projects scheduled 2015-2017$3.7B Barrels of Oil forecast for 2020

S A S K A T C H E W A NNo. 2 Saskatchewan remains No. 2 in long-term growth in Canada

2nd Largest Oil Producer in Canada

$10M Crop Production by 2020

2018 Regina Bypass Project completed Largest Sask. Transportation Project in History

2013

2020

2030

1.98B

3.7B

5.2B

TRU’S FOOTPRINT

BALGONIE

EDMONTON


STEADY-STATE PROJECTION

2014 2015 2016 2017 2018 2019

8.5M 8.5M8.9M 8.9M

9.3M 9.3M

Revenues Net Income

Net Income $639K

Net Income$718K

If we continue the current trajectory…

Net Income $839K

Competitive Landscape

TanksR Us

Tank Rentals Inc.

AB Co.

PrairieTank

Tanks of Steel

VicWest

Meridian Manufacturing

Steelcraft Inc.

0 50 100 150 200 250

8.5

12

11.4

5.2

14.8

199.3

145.6

56.8

The steady-state projection…


CUSTOMER ANALYSISSales segmented by customer and region

81% of sales• Refueling and Transport

Tanks• Oil & Agriculture

19% of sales• Large Steel Storage Tanks• Oil

35%

51%

14%

SASKATCHEWAN

ALBERTA

OTHERS & USA

99-gallon

500-gallon

1,000 gallon

25,000 gallon

50,000 gallon

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

28%

36%

36%

37%

32%


FINANCING ANALYSIS

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Get Tanked$5.5M

Balgonie$945K

HBC$500K

Salt Silos$398K

Metal Recycling $218K

Edmonton$85K

Total Required:$7.56M

Get Tanked Loan$4.5M

Invested$800K

Cash$667K


Total Available:$5.97M

How to finance our growth?


A N A LY Z I N G T H E A LT E R N AT I V E S


STRATEGY: EDMONTON SALES OFFICE

Pros Cons• Volatility in Oil Price• Competitive Market in

Alberta• Moving Cost & Recruiting

New Employees

• Reducing Travel Cost• Low Initial Investment• Consistent Growth Margin

Around 17% in the Next Five Years.

• Increased Demand for Tanks in Alberta

Additional Net Income by 2017: $227K Financing Require: $85K

Expand and grow sales in Alberta


Increasing Net Income by 2017 : $947K NPV $352K (5-year) Financing Required:

$5.5M

• Expanding Alberta Market with 15% - 35% of Increasing Sales

• Specialty in Welding could be Expanded to Reducing Production Cost

• Stable Revenue until 2025 from Long-Term Contract with Alberta

Pros Cons• Cyclical Nature of Oil

Industry• Financing Required will

Eliminate Other Options• High Debt-Equity Ratio will

not Obtain Low Interest Loan from ATB.

STRATEGY: ACQUIRE GET TANKEDLong-term venture in Alberta


STRATEGY: BALGONIE CONSOLIDATION

• Increasing Travel Time for Employees

• Higher Freight & Fuel Cost

• Increasing Wages and Expenses Accounts for 26% of Revenue in 2015

Net Income by 2017: $741K NPV $3.6M Financing Required:

$1.1M

• Additional Capacity to Expand and Diversify

• Increasing Operational Efficiency & Cost Saving

Pros Cons

Support the growth ahead…


Salt Silos Relationship with

provinces Diversify geographic risk

and in-house experience Demand for silos to

increase × Environmental impact× Operational

inefficiencies× Sales staff moral

Metal Recycling Good steel supply Product diversification

within available capacity Positive environmental

impact × Financial risk× Matured industry and

high competitiveness × Increasing operating cost

Hopper Bottom Cones Leverage agricultural

sector, growth - largest single user of industry products

Product diversification× Capacity constraint× Weather conditions× Highly competitive

Saskatchewan market

MINOR ALTERNATIVESOther ways to achieve


MINOR ALTERNATIVES

• Positive NPV of $112k (SK)• Net income $86k (average) over a 5 year period• Financing Required $ 605k (high)

Financial Considerations

• Positive NPV of $119k• Net Income $43k (2017), $44k (2018), $48k (2019)• Financing Required $ 218k

• Positive NPV on all bidding scenarios• Net income $800k (2017) based on $6.08M bid• Financing Required $400k (low)


Aligned with TRU’s Strategy

✓

✓

✓

Qualitative Criteria

Alberta’s Growth and Expansion

Cost savingsOperational

efficiencies

Access to Steel Supply

Environment-ally sustainable

Capital-Intensive

Not diversifyingUnfeasible to

implement by 2016

Increase operational inefficiency

Lowest Return on Investment

Financing Required

Low Medium Low High Low Medium

NPV $916K (DCF)

$3.6M $119K $352K $281K $112K

DECISION MATRIX TanksRusM A N U FA C T U R I N G I N C

EdmontonSales Office

AcquireGet Tanked

BalgonieConsolidation

MetalRecycling

Salt Silos

Hopper Bottom Cones

The right strategic decisions


O P E R AT I O N A L I S S U E S & I M P L E M E N TAT I O N P L A N


MAJOR OPERATIONAL ISSUES

LAWSUIT & POTENTIAL

DEFAMATION

M. HARDING & LEGAL COUNSEL

OUT OF COURT

SETTLEMENT

3 - 6 MONTHS

Lawsuit and Potential Defamation


MAJOR OPERATIONAL ISSUES

WELDING DEFICIENCIES

AND STAFFING

R. PATEL & PRODUCTION

TEAM

SEMI-AUTOMATIC

ROBOTIC WELDING SYSTEM

APPRENTICESHIP PROGRAM

6 - 12 MONTHS


Lawsuit and Potential Defamation


MINOR OPERATIONAL ISSUES

LACK OF PAYROLL & HIRING PRACTISE

RELIANCE ON ONE SUPPLIER

SUPERVISOR NON-COMPLIANCE

OUTSOURCE CRADLE PRODUCTION

FOREIGN STAFFING

NEW WEBSITE

MANUAL PRODUCT COSTING

Resolving the Minor Issues


IMPLEMENTATION PLAN

CHANGE MANAGEMENT

• Committee Formation

• Effective Communication

• Track Changes

PRODUCT RISK

• Fixed Contracts

• Consistent Supply

FINANCIAL RISK

• Line of Credit

• Financial Reporting

HR RISK

• Incentives

• Training

• Office Visits


FINANCIAL FORECAST

2014 2015 2016 2017 2018 20190

2,000

4,000

6,000

8,000

10,000

12,000

14,000

9,392

10,70911,745

12,672

NI $325K

NI $245K

NI $141K

Reaching the end goals…

Highlights 2017 | $1.13M +$325K > Target

2017 | $1.37M+$245K Increase

2019 | $1.51M+$141K Increase


FINANCING THE FUTURE DIRECTION

Cash on Hand - 2014 667,403

Shareholder’s Advances 500,000

Issuance of Class B Shares 300,000

Total available funds 1,467,403

Purchase of Bulgonie Site 945,000

Sales office in Alberta 85,000

Recycling Joint Venture 218,000

Total required 1,248,000

Surplus 219,403

Investing in the right opportunities


FORWARD-LOOKING STATEMENTS

TRU Manufacturing Inc. is committed to be the leading manufacturer of high quality, innovative reliable and sustainable steel tanks by applying latest technologies in line with industry trends and to supply products to the customers at a competitive price.

To be the preferred supplier of high-quality, innovative and sustainable steel tanks to customers in Canada and Northern United States.

Setting a new course…

Mission

Vision


PERFORMANCE MANAGEMENTMaximize performance and results


BLUEPRINT FOR SUCCESSCharting a strategic direction

Balgonie Consolidation

Edmonton Sales Office

Metal Recycling

$945,000 $85,000 $218,000

$1,248,000

Achieved Net Income Diversification& Implementation by 2016

Return on Investment

•Diversified & greater control over supply chain • Scalable Implementation

> 10%

2017 2018 2019

325244 141


TanksRusMANUFACTURING INC

T H A N K YO U a n d Q & A



1. Cover Page2. Agenda3. Executive Summary4. Strategic Recommendati

ons5. Financial Outcome6. Original Mission and Vis

ionSituational Analysis7. Geographic Footprint8. Pipeline Map9. Future Situation10. Compared to our peers11. Financial Forecast 12. Financing Analysis

13. Alt: Edmonton Sales Office

14. Alt: Get Tanked

15. Alt: Balgonie16. Minor Alts17. Minor Alts

– Financial18. Decision Mat

rix19. Major Ope

rational Issues

20. Minor Operational Issues

21. Implementation Plan

22. FINANCIAL FORECAST

23. FINANCING THE FUTURE DIRECTION

24. Forward-Looking Statements

25. Performance Management

26. CONCLUSION27. Thank you and Q

&A

TABLE OF CONTENTS


Bibliography


Appendix 1: Ratios

2014 2013 2012 2011

Current Ratio: 1.84 1.79 1.71 1.36

Quick Ratio: 1.31 0.97 0.05 0.79

0.56 0.72 1.03 0.80

Debt to Total Assets: Total Debt/Total Assets 0.57 0.61 0.65 0.62

Times Interest Earned 11.15 10.43 2.70 12.66

Average Collection Period (in days)

47 45 15 33

Days Sales in Inventory

41 81 97 Average Inventory/

(Cost of Goods Sold/Days in a year)

A/R/(Total Credit Sales/

365 Days)

Liqu

idit

y Ra

tios

:Ac

tivi

ty R

atio

s:

LT Debt / Total EquityLong Term Debt to Equity Ratio:

(EBT+Interest)/Interest

Cash+A/R/Curr. Liab

Curr. Assets/Curr.Liab

Leve

rage

Rat

ios:


Appendix 2: Product Profitability

Contribution Margin per product type Labour ` Total Average ContribType Material Cost OH Var. Selling Margin CM %of Tank Cost @ $27/h @29.625/h Costs Price

by Product

99-gallon 617.96 175.5 193 986 1,375 389 28%500-gallon 799.02 275.4 302 1,377 2,150 773 36%1,000 gallon 1,182.31 415.8 456 2,054 3,225 1,171 36%25,000 gallon 7,538.21 2127.6 2,334 12,000 18,900 6,900 37%50,000 gallon 16,422.61 3037.5 3,333 22,793 33,650 10,857 32%


Appendix 3: Alberta Sales Office

AssumptionsNote 1: Increase in revenue is according to this schedule (2016-2020) 2016 2017 2018 2019 2020

15% 35% 15% 15% 15%Note 3: Assume no change in overheadNote 4: Sales people at $15,000 eachNote 5: Salespeople at 15,000 eachNote 6: Increase by % of sales schedule (2016-2020)Note 7: Increase in material cost 3% per year @ 80% of COGS of 2014 2016 2017 2018 2019 2020Note 8: $3000 per saleperson per month plus 2% increase per year 5% 4% 1% 1% 1%Note 9: Assume 2% increase per year

Note 2: Assume no freight revenue/cost since Alberta customer prefer their own transportation


Appendix 4: Get Tanked

Revenue: Notes 2014 2015 2016 2017 2018 2019 2020Tank Sales 5,758 6,257 6,528 7,370 7,425 7,797 7,980 COGS Notes (1) (2) 3,702 3,870 4,138 4,604 4,748 4,898 5,136 Gross Margin 2,056 2,387 2,390 2,766 2,678 2,899 2,844 Production Costs:Total Production Costs 987 862 883 1,070 820 720 660 Total expenses 778 781 760 582 654 669 683 Net income before tax 291 744 747 1,114 1,203 1,510 1,500 Income tax 44 112 112 167 180 227 225 Net Income 247.5583 633 635 947 1,023 1,284 1,275 Plant Equipment Upgrades (500) Add back Amortization:Office equipment Note (8) 643 50 50 50 50 50 - Plant equipment Note (8) 62 450 450 600 300 150 50 Net Cash Inflows 500 634 1,596 1,372 1,483 1,325 Discount Rate, at 10% 0.909 0.826 0.751 0.683 0.621 0.564 PV of Cash Inflows 454 524 1,199 937 921 748

Total PV of Cash Inflows 4,934 Cash Outlay for Purchase of Company (5,000) Tax Shield on Plant Equipment 268 Tax Shield on Plant Equipment Upgrades 108 Tax Shield on Office Equipment 42 NPV (6 years, 10% rate) 352

Pro-Forma P&L for Get Tanked, 2015 to 2021 ($ in 000s)


Appendix 4: Get TankedNote (1) Material costs increase 3%, material costs are equal to ( C ) + ( D ) in the Schedule of COGs

Schedule of Cost of Goods Sold (COGS)Production 1000 Gal. 2,485 2,514 2,645 2,677 2,711 2,747

135 Gal. 2,000 2,200 2,500 2,500 2,500 2,600 Material Costs 1000 Gal. (C) 1,772 1,846 2,001 2,086 2,176 2,270

135 Gal. (D) 1,090 1,235 1,445 1,489 1,534 1,643 Total Labor Costs 1000 Gal. (E) 116 121 135 141 146 152

135 Gal. (F) 62 70 85 88 90 96 Overhead $145/Hr x 830 866 938 945 952 974 Note (3) Six plant employees - by 2020, on additional employee at a cost of $54,167Note (4) Rework estimated at 0.025% o SalesNote (5) Schedule of Administrative Wages

Note (6) Schedule of Lease 2015 2016 2017 2018 2019 2020 2021Total Lease Costs (in 000s) 400 402 455 458 460 463 465

Note (7) Equipment repair and maintenance to go up $50K annually

Note (9) Schedule of Sales Quantities 2015 2016 2017 2018 2019 2020Retail Sales Volume 1,000 Gallon 585 614 645 677 711 747 Sales Price 1,725 1,725 1,725 1,725 1,725 1,725 Total Retail Sales (in 000s) (A) 1,009 1,060 1,113 1,168 1,227 1,288 Contract Sales Qty (in 000s) 1,000 Gallon 3,042 3,042 3,362 3,362 3,530 3,530 Contract Sales Qty (in 000s) 135-Gallon 2,206 2,427 2,895 2,895 3,040 3,162 Total Contract Sales (in 000s) 5,248 5,469 6,257 6,257 6,570 6,692

Note (8) Amortization on office equipment and plant equipment, declining balance at CCA rates since no deferred tax

- One owner at $200,000 per year to stay on in 2016, one manager to take over in year 2017 at $175,000 and increase by 10% next year and 3% every year after and other administrative wages calculated below:

Note (2) Labour Costs increase by $1 per hour, however in 2018 the increase is to be $2. Labour Costs is equal to (E) + (F) in the schedule of COGs


Appendix 5: Balgonie Consolidation2014 2015 2016 2017 2018 2019 2020

Total revenues 8,510 8,512 8,938 8,940 9,387 9,390 9,393 Total COGS 6,603 6,842 7,013 7,140 7,291 7,425 7,561 Gross margin 1,907 1,670 1,924 1,800 2,096 1,965 1,831 Gross margin percentage 22% 20% 22% 20% 22% 21% 19%Production overhead:Total production overhead 45 100 (445) (416) (555) (579) (591) Total General and Admin. expenses 1,000 1,102 1,103 1,125 1,147 1,170 1,193 Total expense before overhead allocation1,168 1,317 767 813 692 688 697 Pre-tax income 740 354 1,158 987 1,404 1,277 1,134 Tax @ 25% 185 88 289 247 351 319 284 Net income 555 265 868 741 1,053 958 851 Add back depreciation 398 373 381 243 200 169 Annual cash flow 663 1,241 1,122 1,296 1,158 1,019 Discount factor i=10% 1 1 1 1 1 2 PV of cash flow 663 1,128 927 974 791 633 Sensitivity Analysis Asking Price versus Realtor Suggested PriceTotal PV of cash flow 4,453 4,453 Required (375) (245) Purchase price (375) (245) Financing (11) (7) Building upgrade (450) (450) (55) (55) Plant equipment (250) (250) (450) (450)

(250) (250) CCA tax shield building class 1 @ 10% 85 85 (1,142) CAA tax shield Equipment class 43 @ 30% 49 49 Total TotalNet present value 3,512 3,642 (1,142) (1,008)


Appendix 5: Salt Silos


Appendix 6: Metal Recycling


Appendix 7: Hopper Bottom Cones


Appendix 7: Balance SheetAssets 2015 2016 2017 2018 2019 2020Current assets: Cash 1,759 2,847 4,069 5,626 7,092 8,649Net accounts receivable (Note-1) 1,091 1,260 1,444 1,586 1,699 1,812Inventory (Note-2) 574 658 763 825 890 962Prepaid expenses (Note-3) 170 197 225 247 265 283Total current assets 3,595 4,962 6,501 8,284 9,946 11,706Building 650 618 556 500 450 405Leasehold improvements 159 120 30 30 20 10Office equipment 16 30 20 14 10 8Manufacturing equipment 684 840 759 508 472 338Vehicles 48 34 24 17 12 8Total capital assets 1,558 1,641 1,388 1,069 963 769Total Assets 5,153 6,603 7,890 9,353 10,909 12,474LiabilitiesCurrent liabilities:Total current liabilities 1,299 1,670 1,920 2,148 2,285 2,428Bank loan 180 154 130 107 84 62Venture capital payable 564 500 436 372 308 244Total long-term debt 744 655 566 479 392 306Total liabilities 2,043 2,325 2,486 2,627 2,677 2,733EquityShare capital 875 875 875 875 875 875Current earnings 432 958 1,124 1,418 1,473 1,513Retained earnings 2,252 3,013 4,089 5,236 6,804 8,391Dividends paid (450) (568) (685) (803) (920) (1,038)Total retained earnings 2,234 3,403 4,529 5,851 7,357 8,866Total Equity 3,109 4,278 5,404 6,726 8,232 9,741Total Liabilities and Equity 5,153 6,603 7,890 9,353 10,909 12,474

2015 0.24

2016 0.15

2017 0.10

2018 0.07

2019 0.05

2020 0.03

LT Debt to Equity


Appendix 8: Cash Flow2015 2016 2017 2018 2019 2020

Cash Flows from Operating Activities Net Income 725 895 1,125 1,369 1,511 1,514 Add Expenses Not Requiring Cash: Depreciation 436 428 378 273 225 190 Other Adjustments: Difference in Accounts Receivable (1) (168) (184) (142) (113) (113) Difference in Inventory (19) (84) (104) (63) (64) (73) Difference in Prepaid Expenses (22) (26) (29) (22) (18) (18)Difference in Current Liabilites excl. Current portion of debt (37) 371 250 228 138 142 Net Cash from Operating Activities 1,082 1,415 1,435 1,644 1,678 1,643Cash Flows from Investing Activities Investment in Balgonie (945)Investment in Metal Recovery facility (109)Loans to MSAB (109)Investment in Computers* (18)Investment in Manufacturing Equipment* (165) (125) (125)Leasehold Improvement - Metal Tank* (50)Investment in Office Equipment (5) Net Cash Used for Investing Activities (1,163) (238) (125) 0 (125) 0Cash Flows from Financing Activities Financing received Note 2 1,248Dividend PaymentsPayment of Long Term Debt and Financing (75) (89) (88) (88) (87) (86)Payment of Short term portion of debt Net Cash from Financing Activities 1,173 (89) (88) (88) (87) (86)NET INCREASE/(DECREASE) IN CASH 1,092 1,088 1,222 1,557 1,467 1,557CASH, BEGINNING OF YEAR 667 1,759 2,847 4,069 5,626 7,092CASH, END OF YEAR 1,759 2,847 4,069 5,626 7,092 8,649

2015 $1.76M

2016 $2.85M

2017 $4.07M

2018 $5.63M

2019 $7.09M

2020 $8.65M

EndingCash


Appendix 9: Statement of Comprehensive Income

Year Year Year Year Year1 2 3 4 5

2015 2016 2017 2018 2019 2020RevenuesTotal Revenues 8,512 9,392 10,709 11,745 12,672 13,540Cost of goods sold:Total cost of goods sold 6,821 7,544 8,670 9,406 10,151 10,997Gross margin 1,692 1,849 2,039 2,339 2,521 2,543Gross margin percentage 19.9% 19.7% 19.0% 19.9% 19.9% 18.8%Production overhead:Total production overhead (436) (542) (581) (693) (756) (802)General and administrative expenses:Total general and administrative expenses 1,028 1,064 987 1,073 1,129 1,192Bonus expense 17 17 17 17 17 17Depreciation 33 33 33 33 33 33Interest expense 83 83 83 83 83 83Total other expenses 133 133 133 133 133 133Total expense before overhead allocation 725 655 539 513 507 524Pre-tax income 967 1,194 1,500 1,826 2,014 2,019Tax @ 25% 242 298 375 456 504 505Net Income 725 895 1,125 1,369 1,511 1,514Target Net Income 800 1,225 1,469Net Income over/(under) target (in 000s) +325 +145 +41


Appendix 10: Manufacturing Space Constraint

Available Square Footage

99-gallon, DW

500-gallon, DW

1,000-gallon, DW

25,000-litre, DW

50,000-litre, DW

Increase in Alberta Sales (2017 production) Storage

Scrap Metal

Space available after allocation

Small Tank Facility 15,000 4,000 5,000 6,000 -

Large tank facility 10,000 4,500 5,500 -

Storage Yard 65,340

Storage Yard 65,340 65,000 340

New Facility 60,000 4,000 5,000 6,000 4,500 5,500 3,063 8,000 23,938

Space allocation

Exis

ting

Prop

osed

Current Square Footage 90,340

Proposed Square Footage 125,340

Space Allocated:

Alberta Sales Growth by 2020 9,215

Scrap Metal 8,000


Appendix: Action PlanAction Lead Cost Q1 Q2 Q3 Q4

TRU Overall '000s1 Internal memo to all employees about the new direction Pres.2 Facilitate dialougue among employees and senior management GM3 Arrange for financing for the different alternatives Contrl.4 Change management committee to monitor progress Mgmt.5 Monthly & Quarterly fin. reporting on different performance matrix Contrl.

Opening of New Sales Office in Alberta6 Finalize contract with landlord to lease office space and start moving SM 557 Begin transition of staff leaving TRU, pay for severance and hire new SM/Admin 308 Monthly visit to sales office to monitor staff and provide support SM

Purchase Saskatchewan Location9 Sign purchase agreement for new Saskatchewan plant Pres 245

10 Hire Contractors to initiate upgrade of building GM 45011 Purchase equipments for the new plants PM 25012 Consolidate production facility to the new location and ensure PM13 Research financial incentives to workers at the new plant PM 4814 Work with new plant workers on flexible shifts and charter bus to aid PM 9

Metal Recycling Venture15 Finalize contract with MSAB to start the new venture Pres16 Work with MSAB to begin construction of new facility PM 21817 Set up contracts to get scrap delivery PM/GM18 Negotiate contracts to sell scrap to mills PM/MSSK19 Negotiate contracts for steel delivery PM

Major Lawsuit from Customer20 Seek legal counsel GM 5021 Analyze various site remediation techniques Mgmt.22 Create provision/reserve for potential clean-up charge Contrl. 14023 Negotiate out of court settlement Legal Team

Welding Deficiencies24 Analyze implication of robotic welding systems Mgmt.25 Request quote from robot welding manufacturers Contrl.26 Send welders for training program to improve skill level PM 10


Appendix: Action PlanAction Lead Cost Q1 Q2 Q3 Q4

External Supplier for Cradles27 Outsource cradle production and create quality control checks to PM

Inefficiencies due to Multiple Sites28 Analyze and implement Just in Time inventory management PM29 Analyze efficiencies of new facility to ensure targets are met PM

Standard Hiring Practices and Payroll System30 Set up HR Department GM31 Set up hiring standards to be followed by company GM/HR

Implement SAGE ERP to manage payroll Contrl.Computerized Costing System

32 Purchase ERP system Sage ERT X3 GM 1333 Train employees to use ERP system Admin 5

Using Foreign Workers34 Engage staffing agencies to hire foreign workers under federal program GM35 Analyze Balgonie population for potential hires PM

Unionization and Welder Morale36 Start in house apprenticeship Admin37 Implement retention program Admin

New Website38 Hire external web developers to build new site Admin 1039 Analyze usability of Google AdWords Admin

Supervisor Not Following Standards40 Provide training to supervisors regarding standards and protocols GM/PM

Quality of Raw Material41 Negotiate Service Level Agreement with suppliers PM42 Ensure usage of metal from recycling venture PM

Cash Flow Planning and Loan Negotiation43 Assign employee with cash management responsibility Contrl.44 Maintain relationship with major banks to build credibility Contrl.

Documents

Tru presentation 3-appendix slides