Global Athlectic Footwear Market

Year 2011 2012 2013 2014 2015 2016 2017

Size ($billions) 74.50 75.84 77.21 78.60 80.01 81.45 82.92
CAGR 1.80%

NB Sneaker 2013 Forecasted Sale

Year 2013 2014 2015 2016 2017 2018

Paris Sold (millions) 1.2 1.6 1.4 2.4 1.8 0.9
Sale Price - Retailer ($) $190 $190 $190 $190 $190 $190
Margin (%) 39% 39% 39% 39% 39% 39%
Sale Price -Supplier ($) $115 $115 $115 $115 $115 $115
NB Revenue ($milliions) $138.00 $184.00 $161.00 $276.00 $207.00 $103.50

Year 2013 2014

Loss of Sales ($millions) -$ 35.00 -$ 15.00
Margin (%) 40% 40%
NB Loss of Revnue ($millions) -$ 21.00 -$ 9.00 0 0 0 0
NB Net Rev Gain ($millions) $117.00 $175.00 $161.00 $276.00 $207.00 $103.50

Target User Group

12 - 18 yo

Target Purchaser
27 yo +
 2018
84.41

Adjusted Margin
Retail Price $ 190.00
Factory Price $ 115.00
Actual Margin 39%
Capital Expenditure

Factory in Vietnam
Term (years) Time Year Period Depreciation Rate
39 T0 2012 0
T1 2013 1 2.60%
T2 2014 2 5.00%
T3 2015 3 4.70%
T4 2016 4 4.50%
T5 2017 5 4.30%
T6 2018 6 4.00%

Initial Investment ($millions) $ 150.00

Salvage Value at Termination ($ millions) $ 102.00
Depreciation Rate included Salvage Value No

Time Year Period Depreciation Rate

T0 2012 0
T1 2013 1 20.00%
T2 2014 2 32.00%
T3 2015 3 19.00%
T4 2016 4 12.00%
T5 2017 5 11.00%
T6 2018 6 6.00%
Equipment Cost ($millions) $ 15.00
Freight & Installation Cost ($millions) $ 5.00

Salvage Value Equiopment ($millions) $ 3.00

Year 2012 2013 2014 2015 2016 2017
Inventory Change ($millions) $ 15.000 $ 18.975
Accounts Payalbe ($millions) $ 5.000 $ 15.180
Accounts Receivable ($millions) $ 11.040
Selling, General, Admin Expense $ 7.000 $ 7.000 $ 7.000 $ 7.000 $ 7.000 $ 7.000
Payment to Kirani (Exp) $ 2.000 $ 2.000 $ 2.000 $ 2.000 $ 2.000 $ 2.000
Olympic Bonus for Kirani (Exp) $ - $ - $ - $ - $ 1.000 $ -
Interest Cost $ 1.200 $ 1.200 $ 1.200 $ 1.200 $ 1.200 $ 1.200

Year $ 2,013.000
Project Revenue $ 138.00 8% $ 11.04
Project Vairable Cost $ 138.00 55% $ 75.90
Project Variable Cost $ 75.90 25% $ 18.98
Project Variable Cost $ 75.90 20% $ 15.18

Year
Working Capital Recovery 2018

Discoutn Rate for Projects 11%

Effective Tax Rate 40%

Sunk Cost ($millions )

R&D $ 2.00
 2018

$ 7.000
$ 2.000
$ -
$ 1.200
 NB Sneaker 2013 Forecasted Sale

Year 2013 2014 2015 2016 2017 2018

Paris Sold (millions) 1.2 1.6 1.4 2.4 1.8 0.9
Sale Price - Retailer ($) $190 $190 $190 $190 $190 $190
Margin (%) 39% 39% 39% 39% 39% 39%
Sale Price -Supplier ($) $115 $115 $115 $115 $115 $115
NB Revenue ($milliions) $138.00 $184.00 $161.00 $276.00 $207.00 $103.50

Year 2013 2014

Loss of Sales ($millions) -$ 35.00 -$ 15.00
Margin (%) 40% 40%
NB Loss of Revnue ($millions) -$ 21.00 -$ 9.00 0 0 0 0
NB Net Rev Gain ($millions) $117.00 $175.00 $161.00 $276.00 $207.00 $103.50

T0 T1 T2 T3 T4 T5 T6