Letter to Shareholders

To Our Valued Shareholders,

Team Pink has been consistent in maintaining profits from round 1 till the present round. We
are determined to constantly push our product quality to the best possible in the market. We
have been successful in maintaining our balanced growth in the high-end segments of both
household and company. We are confident that in the times forward we will be able to grow
more.
In a market dominated primarily by low price smartphones, Team Pink has maintained its
position as a high-end smartphone manufacturer, we have kept our premium pricing strategy
since the beginning and will continue to do so. Having said that, we are continuously
monitoring the normal segment as well and they are showing healthy growths, much higher
that high-end segments. Thus, we plan to enter those segments as well but our premium
pricing in higher segments will stay. The premium pricing has allowed our Team to maintain
high Gross Profit Percentages since the start.
In the latest round we entered normal household segment as well and our new product has
been well received. Thus, we can confidently say that we will be treading on this path too
going forward.
We have been able to sell a total of 931,960 units in Europe. In Europe 346,825 units were
attributed to high-end models namely HEHouseE, HECompE, HEHouseEA and HECompEA
while 585,135 units were attributed to our latest low segment model BasicEA. Furthermore,
in India we have been able to generate 751,178 units in sales. 209,822 units were attributed to
high-end models namely HECompEA and HEHouseEA while 541,355 units attributed to our
low segment model BasicEA.
We have been continuously investing heavily in research and development which has allowed
us to develop a wide product portfolio, with each product having its own USP. We were the
only company having a performance factor of 170+, with three of our models namely
HEHouseE, HECompE and BasicEA offering 180, 186, 170 performance points. Having the
highest cumulative spending in R&D we offer the best products desired by high end segment.
We have been continuously monitoring the market demands and outlook and have been
adjusting our spendings accordingly.

Price Reduction Pressure

Even after facing high pressure to lower our product prices, we decided not to budge to it and
kept the margins higher than market average. Due to this our market share maybe average but
the company has maintained healthy profit levels and we strive to continue going down our
premium pricing path.

Key Financial Metrices

Current Financial standing of Team Pink is as follows:
  Fourth highest asset base amongst all competitors.
 Average Goss Profit of 53.56% for all rounds.
 Average EBIT (Operating Profit) of 17.22% for all rounds
 Share Price 96.69 as of round 5.
European Market Situation
Household – 6.18%
High-End Household – 9.96%
Company – 5.59%
High-End Company – 10.91%

Asian Market Situation

Household – 4.44%
High-End Household – 8.39%
Company – 3.58%
High-End Company – 6.48%

Looking Forward
Our initial focus was healthy market share in high-end segment of Europe which we have
been able to maintain. We now strive to increase our market share in Asia as well as other
customer segments. We are planning to further improve our product portfolio with products
targeting each segment in a much effective way. High-end models will dominate our product
portfolio, accompanied by smartphone models crafted specially for non-high-end segments.
In a market where smartphones are being majorly differentiated by price, we have been trying
to follow differentiation by performance model. You can expect a product line overhaul in
the coming rounds which will be beneficial everyone associated with us. We are adamant of
maintaining our profit percentages well above the industry average, thus benefitting all our
shareholders.
Having put everything in place, we expect growth both in profits as well as market share in
the coming times as well as in the long run.
We, Team Pink than all our shareholders for choosing to associate with us and believe in us.

Thank You,
Respectfully Yours,

Team Pink
Shreya Dutta
Sugali Raveendra Naik
Swapnil Singh