Product and Market

Traditional Low High Performance Size

Segment-wise Market Share
2029
2028
Traditional Low High
Performance Size
Daze(Trad.)
Round 0 17% 17% 16% 17% 16% 25%

20%
2027 Daze(Trad.)
Dell(Low)
Dash(High)

Round 1 17% 19% 19% 20% 20% 2026

15% Daze(Trad.)
Dell(Low)
Dash(High)
Dano(Size)
Doss(Perf.)

2025 10%
Daze(Trad.)
Dell(Low)
Dash(High)
Dano(Size)
Doss(Perf.)

2024
Round 2 17% 19% 15% 17% 16%
Dell(Low)
5% Dano(Size)
Daze(Trad.) Doss(Perf.)

2023
Duck(High)
0%
Round 3 18% 18% 11% 18% Dell(Low) 12% Round 0 Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Round 8
Daze(Trad.) Dot(Perf.)
Duck(High)
2022
Round 4 18% Daze(Trad.)
17%
Dell(Low)
13%
Duck(High)
15% Dot(Perf.)19%
Dune(Size)
Dune(Size)
Dash(High) Market Share(%)
Dell(Low) Dano(Size)
Dot(Perf.) 20
Dash(High)
Daze(Trad.)
Round 5 17% Duck(High)15% 13%
Dune(Size) 10% 14% Doss(Perf.)
18
Dell(Low) Dot(Perf.) Dano(Size) 16
Duck(High) Dune(Size) 14
Round 6 16% 16% 13% 15% 14% 12
Dot(Perf.)
10
Dune(Size) 8
Round 7 17% 16% 14% 16% 17% 6
4
2
Round 8 17% 14% 13% 17% 17% 0
2021 2022 2023 2024 2025 2026 2027 2028 2029

Market Share(%)

1
 Finance
Current Assets Year Contribution Margin
CurrentCurrent
Ratio Liabilities Current Ratio
Contribution Margin
Round 0 20358 6583 3.092511013 2021 28.3
9 45
8 Round 1 18956 7,382 2.567867787 40 2022 26.5
7 Round 2 33,679 14,496 2.323330574 35 2023 27.4
30
6
Round 3 35,067 8,230 4.260874848 25 2024 26.1
5
Round 4 54,886 35,062 1.565398437 20 2025 23.3
4 15
3 Round 5 41,500 23,488 1.766859673 10 2026 22.8
2 5 2027 37
Round 6 45,326 25,827 1.754985093
1 0
Round 7 45,308 6,342 7.144118575 2021 2022 2023
2028 2024 2025 2026 2027
41.8 2028 2029
0
Round 0 Round
Round 8 1 Round 2 59,962
Round 3 Round 4 Round 5 Round 6 Round
7,420 7 Round 8
8.081132075 2029 Contribution Margin 37.9

EBITCurrent Revenue
Ratio Profit Margin

9 Round 1 801 1,17,379 0.68%

8
Round 2 6745 1,45,608 4.63%
7
6 Round 3 10042 1,71,874 5.84%
5 Round 4 4995 1,86,015 2.69%
4
Round 5 8115 1,67,753 4.84%
3
2 Round 6 15607 1,78,506 8.74%
1
Round 7 25040 1,90,674 13.13%
0
Round 0 Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Round 8
Round 8 36447 2,31,316 15.76%

2
Digby, at a glance
Maintained market Profit
share in a skewed increased by
market scenario 7X in the last
round

Decresed long Contribution Cautious to

term debt by 8 margin jumping aggressive
million dollars in from 22.8% to approach
single round 41.8%

Great inventory
Accurate management
forecasting

3
 CHALLENGES FACED

Positioning of products Misallocation of Capacity bought now Separation cost of

below the ideal position resources will come in effect only in employees and its
the next round financial implications
Investing more per round, Channelled funds
positioning close to the appropriately leading to Introduced newer Automate more and
ideal position and better customer products but missed reduce the quantum
recovering towards the end accessibility and on buying capacity of hire and fire over
awareness the previous round the years
. .
4
 Lesson learnt
Target Ideal Position
• Should have target ideal position at early stages as in later stages it
became difficult because the revision time increases.

More selective in launching products

• We could have been more selective in launching new products keeping
capital expenses under consideration.

Early Automation
• Should have started spending on automation in the early stages to get
early returns in subsequent rounds.
• Higher automation helps reducing labor cost drastically and in turn helps
increase contribution margin

5
Regular interval dividends
• It is better to give out dividends at regular intervals
as it helps boost the share price.

Better inventory management

• Should keep tight control on inventory for better
capital requirements and discontinue slow moving
products.

Customer Accessibility & Awareness

• Should have allotted adequate amount for sales and
promotion budget even before the actual launch of
product.

6
 Business Model for upcoming rounds
Gap
01 Fulfillment Traditional
High End
• Erie has no product for Traditional segment leading
• Wewill
Merging help HIGHEST
can have utilize our
salescapacities better and
to considerable loss in revenue.
• Capturing
decrease labor cost
54%considerably
of the market and
(Decthereby
31, 2028)increase
• Total Trad Revenue: $ 244,988
• Generate
contribution marginbetter Contribution Margin due to
• ~27% of Industry by Size
utilization levels of capacities
02 Dominance • D+F will become the SECOND largest player
Performance End
Low
• We can have HIGHEST sales too
• Erie is running a cross product for Low end leading
• Capturing 37% of the market (Dec 31, 2028)
to sub-optimal performance
• Increase this share henceforth as one of the 6
• Total Low Revenue: $ 194,816
player has no product here
• ~ 37% of Industry by Size
Utilization • This is the highest growth segment
03 • D+F will become the SECOND largest player

7
Business Model for upcoming rounds

04 Pricing • Traditional
Digby has a higher leverage as of now, but it has
•started
~27%its
of Industry by Size,
deleveraging Bestthe
from pricing. Can achieve
last round at a
good
rapid market share
pace
Low
• • Each
Erie of& the
Ferris on teams
the other hand consistently
has already
three had been
•deleveraged
~ 37% of Industrybutbyhas
Size,full
Superior CM &utilization
add in
performing wellBSin cash management.capacity
Conservative
growth
Leverage atlevels
stance and maintaining sufficient cash balance to
05 High
• work
Hence & Performance
formoving ahead, this merger will be a best fit
the future
•to challenge
Merged entity dominates
the current withdominance
market 54% & 37% share
Size
• Digby has volumes, Erie has margins. Thus,
combined can earn as well as create profits
06 Cash Mgmt

8
 Objectives For The Next Five Years
 In the next five years, we aim to continue the relationship with Eerie and Ferris in
accordance with the terms and conditions of the acquisition
 The companies will work together focusing on synergies that each company
brings and making the merger, a profitable one
 Maintaining competitiveness coupled with ethics and integrity
 Improving the overall quality across functional areas and making more
sustainable products that delights the customers

9
 Functional Areas
We will focus on TQM to reduce the time taken for R and D. We see that
R&D there are no benefits accrued in cross listing the products and hence will be
discontinuing the same

Since there is consolidation in the market now, price wars will subside and
Marketing going forward we can increase the prices across all the segments and majorly
looking for good margins and profitability

We plan to spend more on Automation and TQM which not only reduces
Production Material and Labour cost but also to increase the demand and implement
Just in Time

We have already cleared 8 million dollars of debt in the last year and with
Finance 1.5 billion dollar in cash and will soon clear off the debt in the coming years
with ease

10
 Roapmap for upcoming rounds
1 Lower Competition
Industry Consolidation
2
S Lesser Price War

1 Higher CM

T Portfolio consolidation
2 Eliminate cross-listing

1 Cash & Inv. Management

A Merged Entity
2 Inc. Profits & Deleveraging

R Vertically segmented
1 Capacity Availability
2 Focus on TQM &
Promotion
11