Comprehensive Analysis of Bobsla's Way Forward in Snowmobile Market

This presentation discusses Bobsla's current status in the snowmobile market, emphasizing the need for focus, clear business model, and targeted market penetration. It outlines recommendations, market analysis, internal factors, and a strategic plan for the next 10 years to capitalize on growth opportunities. With a clear focus on product commercialization, customer segments, and international expansion, Bobsla aims to tap into the untapped potential of the e-vehicle market. The analysis highlights strengths, weaknesses, opportunities, and threats, positioning Bobsla for steady growth and success.

• Snowmobile Market
• Business Strategy
• Growth Opportunities
• Market Analysis
• Strategic Planning

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1. JMSB CASE COMPETITION Bobsla s Way Ahead Monday January 3rd, 2022 12:00pm

2. THE TEAM AT J4 Cyril MARCHI Consultant Shalini GOYAT Consultant Andy DSA Consultant Varun SONI Consultant Slide 1 of 18

3. Bobsla Today Recommendation s Problem Context Implementation Financials Contingency Conclusion oThe worldwide market of snowmobile is substantial oThis market is almost untapped when it comes to e-vehicles oThere are competitors on the market and companies that are developing upcoming products Takeaway: numerous opportunities to cease in the future Slide 2 of 18

4. Bobsla needs to focus, and convince Recommendation s Problem Context Implementation Financials Contingency Conclusion oIf Bobsla were to be a rocket, we believe it is safe to say that it has lacked target, i.e. a Business Model oAs a result, Bobsla will also be able to convince investors to take part Takeaway: focus to become efficient, to grow and to lift funds is a must Slide 3 of 18

5. A glance at Bobslas next 10 years BM Recommendation s Problem Context Implementation Financials Contingency Conclusion Bobsla must focus on the following: oOne sole High-end product to be commercialized oStarting with B2B customers oUsing a lean approach to expand abroad (North America first) Takeaway: 3 steps action-plan -> one product, B2B, steady expansion Slide 4 of 18

6. Market of snowmobile Recommendation s Problem Context Implementation Financials Contingency Conclusion $1.4b to $1.8b 2020-2027 3.5% CAGR TAM Worldwide SAM More than 80% in North America $1.1b to $1.4b Serviceable Available Market SOM 5% of SAM $55m to $70m Serviceable Obtainable Market Takeaway: a huge market is available to tap into Slide 5 of 18

7. Internal Analysis Recommendation s Problem Context Implementation Financials Contingency Conclusion Strengths Weakness Opportunities Threats New market- Uncertainty Unorthodox Design Untapped Market- growth potential Electric is the future No first movers advantage Covid-19 Safety Compact, low weight Driving Pleasure (Agility and ability to drift) Pricing Improved energy efficiency Do not sink in fresh snow Takeaway: Good potential of growth Slide 6 of 18

8. Competitors Analysis Recommendation s Problem Context Implementation Financials Contingency Conclusion High Cost Aurora e-sled i-Cat Pro Low Range High Range Bobsla Low Cost Takeaway: Advantageous position over competitors Slide 7 of 18

9. Main variables - options to considers Recommendation s Problem Context Implementation Financials Contingency Conclusion 1. Clients - B2B or B2C markets B2B Hotels, Ski-resorts, governments, Restaurants B2C Leisure 2. Self-development or Outsource Should the company move towards self- reliance 3. Geography - Expand or becoming a local player 4. Product Single or multiple products 5. Financing Best and worst case scenarios / Should the company get more investors 6. Advertisement How to increase brand awareness Takeaway: Where does the company add value? Slide 8 of 18

10. Recommendations for now Recommendation s Problem Context Implementation Financials Contingency Conclusion 1. Clients- Target B2B customers with current model 2. Begin advertisements 1. Contacting influencers 2. Partnerships with ski-resorts, Chalet, Restaurants (Fun & Service) 3. Set up team to contact businesses (Cold emailing) 3. Additional source of revenue Initiate the maintenance business Takeaway: These recommendations will help the business in the short run Slide 9 of 18

11. Recommendations for future growth Recommendation s Problem Context Implementation Financials Contingency Conclusion 1. Invest in R&D to create: A new product A lower price point to target B2C clients Start building products internally to reduce costs 2. Move globally (2024) but only to North America for now (biggest potential market) 3. Begin tapping into the B2C market (2026) with the new line of lower priced products Takeaway: These recommendations will help the business in the long run Slide 10 of 18

12. Implementation Recommendation s Problem Context Implementation Financials Contingency Conclusion 2022 E-BOB ($14,999) Initiate Maintenance business Initiate marketing project 2024 Begin moving to NA (increase production) Begin investing in R&D 2023 2026 "Warm up" the NA market (collaborations, marketing) Invest in assembly and maintenance facility in Canada Begin production of new product E-BOB 2.0 Target B2C Takeaway: Constantly monitoring implementation plan is critical for success Slide 11 of 18

13. TITLE Recommendation s Problem Context Implementation Financials Contingency Conclusion COST OF IMPLEMENTATION ( Best Case Scenario) INITIATIVE YEAR FREQUENCY REVENUE (US$) COST (US$) Expanding in North American 2024 One Time $6.1 Million 150 million Marketing Expenses 2022 Recurring Maximise sales 10% Revenues Campaigns 2022 Recurring Maximise 10% revenues Takeaway: Aggressive strategy is the key to gain first mover advantage Slide 12 of 18

14. Worst Case Scenario( Stay in the same Geography) Recommendation s Problem Context Implementation Financials Contingency Conclusion 0 2022 23 24 25 26 150 units each year Revenues 2,250,000 2,362,500 2,480,625 2,604,656 2,734,889 Variable costs(47%) Marketing & Campaigns(20%) -1,050,000 -1,071,000 -1,092,420 -1,114,268 -1,136,554 -450,000 -472,500 -496,125 -520,931 -546,978 EBIT 750,000 1,291,500 1,388,205 1,490,388 1,598,335 Cash flows 0.00 750,000.00 1,291,500.00 1,388,205.00 1,490,387.85 1,598,335.29 PV 0.00 600,000.00 826,560.00 710,760.96 610,462.86 523,742.51 NPV 3,271,526.33 15000 Price in year 1 Growth rate price Variable costs, year 1 Growth rate variable costs 5% 7000 2% Takeaway: Even at discount rate of 25%, The NPV is positive. Slide 13 of 18

15. Expansion in North American Market ( Best Case) Recommendation s Problem Context Implementation Financials Contingency Conclusion Units 0 #150 #150 #250 #250 #250 Revenues 2,250,000 2,362,500 4,134,375 4,341,094 5,469,778 Variable costs 47% Marketing & Advertiseme nt (20%) R&D /Maintainenc e 20% -1,050,000 -1,071,000 -1,092,420 -1,114,268 -1,136,554 Price in year 1 Growth rate price Variable costs, year 1 Growth rate variable costs 15000 5% -450,000 -472,500 -496,125 -520,931 -546,978 7000 -450,000 -4,725,008 -4,961,259 -5,209,322 -5,469,788 2% EBIT 300,000 1,291,500 3,041,955 3,226,825 4,333,224 - Initial investment 5,000,000.0 0 - 5,000,000.0 Breakeven in 5 years Cash flows 0 - 300,000.001,291,500.003,041,955.003,226,825.354,333,224.36 5,000,000.0 PV 0 240,000.00 826,560.001,557,480.961,321,707.661,419,910.96 Takeaway: Company must dilute stake to raise 150million in order to expand NPV 365,659.58 Slide 14 of 18

16. Risk Analysis Recommendation s Problem Context Implementation Financials Contingency Conclusion As much as the electric cars market at the moment: o Not a lot of competitors right now but a lot working on the matter o Bobsla should be able to scale back to reduce costs in case Sales are not met o Bobsla should be adaptive and listening to local markets Takeaway: high opportunity comes with high risk Slide 15 of 18

17. Conclusion Recommendation s Problem Context Implementation Financials Contingency Conclusion A growing business cannot disperse itself too much and lack of focus is known to be the main source of failure for business to sustain activity. oOne product to focus on and reach efficiency oB2B to generate revenue stream rapidly oLean expansion the IKEA way Takeaway: focus on key elements -> product, customers, geography Slide 16 of 18

18. THANK YOU! Slide 17 of 18

19. Q & A Session Slide 18 of 18