30/12/2016

GAMECHANGER PLANTOPERATIONSREPORT Year18

Industry1
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica AllPlants
PLANTCAPACITY(000sofpairsw/oOT) Plant Plant Plant Plant Combined
PlantCapacityattheEndofYear17 2,000 pairs 2,000 pairs 4,000 pairs 1,500 pairs 9,500 pairs
+NewConstruction(initiatedinYear17) 0 0 0 0 0
+CapacityPurchased(atbeginningofY18) 0 0 0 0 0
CapacitySoldOff(atbeginningofY18) 0 0 1,000 0 1,000
CapacityAvailableforYear18Production 2,000 2,000 3,000 1,500 8,500
NewConstructionInitiatedinYear18 0 0 0 0 0
TotalCapacityAvailableforYear19 2,000 pairs 2,000 pairs 3,000 pairs 1,500 pairs 8,500 pairs

PlantUpgrade Online(initiatedpriortoY18) D B A,B A

Options Pending(initiatedinY18) none none none none
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica AllPlants
PLANTINVESTMENT($000s) Plant Plant Plant Plant Combined
GrossInvestmentattheEndofYear17 82,000 57,000 222,000 74,250 435,250
+UpgradeOptions(initiatedinYear17) 0 0 0 0 0
+NewConstruction(initiatedinYear17) 0 0 0 0 0
+CapacityPurchased(atbeginningofY18) 0 0 0 0 0
CapacitySoldOff(atbeginningofY18) 0 0 55,500 0 55,500
+EnergyEfficiencyInitiatives(inY18) 0 0 0 0 0
GrossInvestmentinYear18Capacity 82,000 57,000 166,500 74,250 379,750
AccumulatedDepreciation(throughY17) 55,150 9,000 73,575 14,040 151,765
CurrentDepreciation(incurredinY18) 4,100 2,850 8,325 3,713 18,988
NetInvestmentinYear18Capacity 22,750 45,150 84,600 56,497 208,997
UpgradeandConstructionWorkinProgress 0 0 0 0 0
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica
LABORSTATISTICS Year17 Year18 Year17 Year18 Year17 Year18 Year17 Year18

WorkerProductivity(pairsperworkerperyear) 5,476 5,553 3,853 3,509 2,460 2,407 2,685 2,728

NumberofWorkersEmployed 366 361 520 570 1,627 1,247 559 551
Compensation AnnualBaseWage 16.1 16.2 15.6 15.8 3.0 3.0 3.0 3.0
($000sperworker) IncentivePay 7.6 7.7 0.8 0.8 0.3 0.3 2.6 2.7
TotalCompensation 23.7 24.0 16.5 16.5 3.3 3.3 5.6 5.7
IncentivePayPerPair($pernonrejectedpair) 1.25 1.25 0.20 0.20 0.10 0.10 0.85 0.85
CumulativeBest $PerWorker 4,003 4,018 4,210 4,104
Practices $PerBrandedPair 0.76 0.93 1.62 1.39
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
PRODUCTIONSTATISTICS Branded PLabel Branded PLabel Branded PLabel Branded PLabel Branded PLabel

Footwear RegularPairsProduced 2,000 0 2,000 0 2,303 697 1,438 62 7,741 759

Production OvertimePairsProduced 348 52 355 45 0 401 0 300 703 798
(000sofpairs) RejectedPairs 165 1 203 2 109 22 55 4 532 29
NetFootwearProduction 2,183 51 2,152 43 2,194 1,076 1,383 358 7,912 1,528
RejectRate(%ofregular+OTproduction) 7.0% 1.5% 8.6% 3.1% 4.7% 2.0% 3.8% 1.1% 6.3% 1.9%
NumberofModelsProduced 500 50 500 50 500 50 500 50
S/QRatingofPairsProduced 3 3 3 3 3 3 3 3
CapacityUtilization(maxutilizationatfullOT=120%) 120.0% 120.0% 113.4% 120.0% 117.7%
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
BRANDEDPRODUCTIONCOSTS $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair
MaterialsCosts Standard 11,242 5.15 10,649 4.95 8,201 3.74 5,121 3.70 35,213 4.45
Superior 7,048 3.23 7,362 3.42 9,576 4.36 5,979 4.32 29,965 3.79
LaborCosts RegularPay 8,593 3.94 9,417 4.38 3,116 1.42 2,762 2.00 23,888 3.02
Thissectionlists
OvertimePay 1,531 0.70 2,393 1.11 0 0.00 0 0.00 3,924 0.50
costsforbranded BestPracticesTraining 565 0.26 727 0.34 389 0.18 253 0.18 1,934 0.24
productiononly. PlantSupervision 2,118 0.97 3,355 1.56 1,688 0.77 880 0.64 8,041 1.02
PrivateLabel EnhancedStyling/Features 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
productioncosts TQM/6SigmaQualityProgram 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
arelistedonthe ProductionRunSetUp 14,000 6.41 7,000 3.25 7,000 3.19 14,000 10.12 42,000 5.31
PrivateLabel PlantMaintenance 6,616 3.03 2,796 1.30 7,327 3.34 3,115 2.25 19,854 2.51
Operationsreport.
Depreciation 4,010 1.84 2,796 1.30 5,636 2.57 2,967 2.15 15,409 1.95
TotalProductionCosts 55,723 25.53 46,495 21.61 42,933 19.57 35,077 25.36 180,228 22.78
CostofRejectedPairs 3,915 1.80 4,007 1.87 2,031 0.93 1,341 0.97 11,295 1.43

CompanyOperatingReports CopyrightGLOBUSSoftware,Inc. Page1

1/5
30/12/2016

GAMECHANGER DISTRIBUTION&WAREHOUSEREPORT Year18

Industry1
(thousandsof NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Company
WAREHOUSEOPERATIONS brandedpairs) Warehouse Warehouse Warehouse Warehouse Total
EndingInventoryfromYear17 313 pairs 335 pairs 863 pairs 1,234 pairs 2,745 pairs
InventoryClearance(atthebeginningofY18) 0 0 0 0 0
BeginningInventory(carriedoverfromY18) 313 335 863 1,234 2,745
Incoming NorthAmericaPlant 2,183 0 0 0 2,183
Shipmentsfrom EuropeAfricaPlant 0 2,152 0 0 2,152
AsiaPacificPlant 0 0 2,194 0 2,194
LatinAmericaPlant 0 0 0 1,383 1,383
PairsAvailableforSale(inventory+shipments) 2,496 2,487 3,057 2,617 10,657
PairsSold InternetSegment 264 216 238 201 919
WholesaleSegment 1,957 1,984 2,506 2,138 8,585
TotalBrandedSales 2,221 2,200 2,744 2,339 9,504
RequiredInventory(neededtoachievedeliverytime) 275 287 313 278 1,153
InventorySurplus(Shortfall) 68 184 0 309 561
EndingInventory(pairsleftoverattheendofY18) 275 pairs 287 pairs 313 pairs 278 pairs 1,153 pairs

Weighted average of
ModelAvailability(weightedaverage) 500 500 500 498 beginning inventory +
S/QRating(weightedaverage) 3 3 3 3 new incoming pairs
shippedfromplants.
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
COSTOFBRANDEDPAIRSSOLD $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair

CostofBeginningYear18Inventory 8,971 28.66 8,160 24.36 18,869 21.86 34,321 27.81 70,321 25.62
+ProductionCostofIncomingPairs 55,723 25.53 46,495 21.61 42,933 19.57 35,077 25.36 180,228 22.78
ExchangeRateCostAdjustments 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
+FreightonIncomingPairs 2,183 1.00 2,152 1.00 2,194 1.00 1,383 1.00 7,912 1.00
+ImportTariffsonIncomingPairs 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
CostofEndingYear18Inventory 7,368 26.79 6,556 22.84 6,552 20.93 7,519 27.05 27,995 24.28
CostofBrandedPairsSoldinYear18 59,509 26.79 50,251 22.84 57,444 20.93 63,262 27.05 230,466 24.25
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
WAREHOUSEOPERATINGEXPENSES $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair
InventoryStorageCosts 203 0.09 225 0.10 729 0.27 1,160 0.50 2,317 0.24
Packaging/ShippingInternet 2,112 0.95 1,728 0.79 1,904 0.69 1,608 0.69 7,352 0.77
Wholesale 3,436 1.55 3,476 1.58 4,259 1.55 3,707 1.58 14,878 1.57
WarehouseLeaseandMaintenance 1,000 0.45 1,000 0.45 1,000 0.36 1,000 0.43 4,000 0.42
TotalWarehouseOperatingExpenses 6,751 3.04 6,429 2.92 7,892 2.88 7,475 3.20 28,547 3.00
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
INVENTORYCLEARANCE $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair

NetRevenuesfromPairsCleared 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

DirectCostsProduction/Freight/Tariffs 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
ofPairs InventoryStorage 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
Cleared Packaging/Shipping 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
MarginOverDirectCosts 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

CompanyOperatingReports CopyrightGLOBUSSoftware,Inc. Page2

2/5
30/12/2016

GAMECHANGER DISTRIBUTION&WAREHOUSEREPORT Year18

Industry1
(thousandsof NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Company
WAREHOUSEOPERATIONS brandedpairs) Warehouse Warehouse Warehouse Warehouse Total
EndingInventoryfromYear17 313 pairs 335 pairs 863 pairs 1,234 pairs 2,745 pairs
InventoryClearance(atthebeginningofY18) 0 0 0 0 0
BeginningInventory(carriedoverfromY18) 313 335 863 1,234 2,745
Incoming NorthAmericaPlant 2,183 0 0 0 2,183
Shipmentsfrom EuropeAfricaPlant 0 2,152 0 0 2,152
AsiaPacificPlant 0 0 2,194 0 2,194
LatinAmericaPlant 0 0 0 1,383 1,383
PairsAvailableforSale(inventory+shipments) 2,496 2,487 3,057 2,617 10,657
PairsSold InternetSegment 264 216 238 201 919
WholesaleSegment 1,957 1,984 2,506 2,138 8,585
TotalBrandedSales 2,221 2,200 2,744 2,339 9,504
RequiredInventory(neededtoachievedeliverytime) 275 287 313 278 1,153
InventorySurplus(Shortfall) 68 184 0 309 561
EndingInventory(pairsleftoverattheendofY18) 275 pairs 287 pairs 313 pairs 278 pairs 1,153 pairs

Weighted average of
ModelAvailability(weightedaverage) 500 500 500 498 beginning inventory +
S/QRating(weightedaverage) 3 3 3 3 new incoming pairs
shippedfromplants.
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
COSTOFBRANDEDPAIRSSOLD $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair
CostofBeginningYear18Inventory 8,971 28.66 8,160 24.36 18,869 21.86 34,321 27.81 70,321 25.62
+ProductionCostofIncomingPairs 55,723 25.53 46,495 21.61 42,933 19.57 35,077 25.36 180,228 22.78
ExchangeRateCostAdjustments 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
+FreightonIncomingPairs 2,183 1.00 2,152 1.00 2,194 1.00 1,383 1.00 7,912 1.00
+ImportTariffsonIncomingPairs 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
CostofEndingYear18Inventory 7,368 26.79 6,556 22.84 6,552 20.93 7,519 27.05 27,995 24.28
CostofBrandedPairsSoldinYear18 59,509 26.79 50,251 22.84 57,444 20.93 63,262 27.05 230,466 24.25
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
WAREHOUSEOPERATINGEXPENSES $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair
InventoryStorageCosts 203 0.09 225 0.10 729 0.27 1,160 0.50 2,317 0.24
Packaging/ShippingInternet 2,112 0.95 1,728 0.79 1,904 0.69 1,608 0.69 7,352 0.77
Wholesale 3,436 1.55 3,476 1.58 4,259 1.55 3,707 1.58 14,878 1.57
WarehouseLeaseandMaintenance 1,000 0.45 1,000 0.45 1,000 0.36 1,000 0.43 4,000 0.42
TotalWarehouseOperatingExpenses 6,751 3.04 6,429 2.92 7,892 2.88 7,475 3.20 28,547 3.00
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
INVENTORYCLEARANCE $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair

NetRevenuesfromPairsCleared 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

DirectCostsProduction/Freight/Tariffs 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
ofPairs InventoryStorage 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
Cleared Packaging/Shipping 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
MarginOverDirectCosts 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

CompanyOperatingReports CopyrightGLOBUSSoftware,Inc. Page2

3/5
30/12/2016

GAMECHANGER INCOMESTATEMENT Year18

Industry1
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
CONSOLIDATEDINCOMESTATEMENT $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair

SegmentRevenues Internet 15,811 59.89 12,936 59.89 14,254 59.89 12,038 59.89 55,039 59.89
Wholesale1 78,065 39.89 73,190 36.89 89,940 35.89 78,871 36.89 320,066 37.28
PrivateLabel 11,812 27.99 12,400 27.99 8,537 27.99 10,020 27.99 42,769 27.99
GrossRevenuesfromFootwearSales 105,688 39.99 98,526 37.28 112,731 36.97 100,929 37.42 417,874 37.88
ExchangeRateAdjustments 0 0.00 3,399 1.29 4,971 1.63 4,451 1.65 2,879 0.26
NetRevenuesfromFootwearSales 105,688 39.99 101,925 38.56 107,760 35.34 105,380 39.07 420,753 38.14
OperatingCostofPairsSold 1 67,997 25.73 60,286 22.81 62,480 20.49 69,273 25.69 260,036 23.57
Costs WarehouseExpenses 7,173 2.71 6,872 2.60 8,197 2.69 7,833 2.90 30,075 2.73
MarketingExpenses 17,339 6.56 17,658 6.68 20,406 6.69 16,529 6.13 71,932 6.52
AdministrativeExpenses 2,835 1.07 2,808 1.06 3,502 1.15 2,985 1.11 12,130 1.10
OperatingProfit(Loss) 10,344 3.91 14,301 5.41 13,175 4.32 8,760 3.25 46,580 4.22

InterestIncome(Expenses) 9,855 0.89

PROFITABILITY&PAYOUT Year17 Year18 OtherIncome(Expenses)2 0 0.00
EarningsPerShare $0.28 $2.57 PreTaxProfit(Loss) 36,725 3.33
DividendPerShare $0.00 $0.00 IncomeTaxes3 11,018 1.00
NetProfit(Loss) 25,707 2.33
1. TheseitemsincluderevenuescollectedfromandcostsassociatedwithinventoryliquidatedatthebeginningofY18.SeethelastsectionoftheDistribution&WarehouseReport.
2. Thisitemincludesanycharitablecontributionsand/orinstructorimposedfines(appearingasnegative)and/orinstructorawardedrefunds(appearingaspositive).
3. Theincometaxrateis30%.IfanetlosswasrecordedinY17,thelossiscarriedforwardandmayoffsetsomeoralltaxableY18profitandreduceY18incometaxes.

GAMECHANGER REVENUECOSTPROFITPERFORMANCE Year18

Industry1 INTHEBRANDEDSEGMENTS
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
INTERNETMARKETPERFORMANCE $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair
RevenuesfromInternetSales 15,811 59.89 12,936 59.89 14,254 59.89 12,038 59.89 55,039 59.89
CustomerPaidShippingFees 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
GrossInternetRevenues 15,811 59.89 12,936 59.89 14,254 59.89 12,038 59.89 55,039 59.89
ExchangeRateAdjustments 0 0.00 446 2.06 629 2.64 531 2.64 348 0.38
NetInternetRevenues 15,811 59.89 13,382 61.95 13,625 57.25 12,569 62.53 55,387 60.27
Operating CostofPairsSold 7,074 26.80 4,934 22.84 4,982 20.93 5,436 27.04 22,426 24.40
Costs WarehouseExpenses 2,255 8.54 1,848 8.56 2,054 8.63 1,794 8.93 7,951 8.65
MarketingExpenses 3,252 12.32 2,764 12.80 3,069 12.89 2,533 12.60 11,618 12.64
AdministrativeExpenses 337 1.28 276 1.28 304 1.28 256 1.27 1,173 1.28
OperatingProfit(Loss) 2,893 10.96 3,560 16.48 3,216 13.51 2,550 12.69 12,219 13.30
MARKETSTATISTICS Year17 Year18 Year17 Year18 Year17 Year18 Year17 Year18 Year17 Year18
PairsSold(000s) 194 264 191 216 202 238 199 201 786 919
MarketShare 11.8% 14.4% 11.6% 11.7% 14.0% 14.2% 14.0% 12.1% 12.9% 13.2%
OperatingProfitMargin 13.7% 18.3% 16.1% 26.6% 18.2% 23.6% 6.2% 20.3% 13.5% 22.1%
NorthAmerica EuropeAfrica AsiaPacific LatinAmerica Overall
WHOLESALEMARKETPERFORMANCE $000s $/pair $000s $/pair $000s $/pair $000s $/pair $000s $/pair
GrossWholesaleRevenues 78,065 39.89 73,190 36.89 89,940 35.89 78,871 36.89 320,066 37.28
ExchangeRateAdjustments 0 0.00 2,525 1.27 3,966 1.58 3,478 1.63 2,037 0.24
NetWholesaleRevenues 78,065 39.89 75,715 38.16 85,974 34.31 82,349 38.52 322,103 37.52
Operating CostofPairsSold 52,435 26.79 45,318 22.84 52,461 20.93 57,826 27.05 208,040 24.23
Costs WarehouseExpenses 4,496 2.30 4,581 2.31 5,838 2.33 5,681 2.66 20,596 2.40
MarketingExpenses 14,087 7.20 14,894 7.51 17,337 6.92 13,996 6.55 60,314 7.03
AdministrativeExpenses 2,498 1.28 2,532 1.28 3,198 1.28 2,729 1.28 10,957 1.28
OperatingProfit(Loss) 4,549 2.32 8,390 4.23 7,140 2.85 2,117 0.99 22,196 2.59
MARKETSTATISTICS Year17 Year18 Year17 Year18 Year17 Year18 Year17 Year18 Year17 Year18
PairsSold(000s) 2,030 1,957 1,914 1,984 2,082 2,506 1,291 2,138 7,317 8,585
MarketShare 16.3% 16.4% 15.1% 15.8% 19.5% 24.2% 12.1% 24.2% 16.2% 20.5%
OperatingProfitMargin 0.6% 5.8% 4.6% 11.1% 1.8% 8.3% 12.5% 2.6% 0.3% 6.9%

CompanyOperatingReports CopyrightGLOBUSSoftware,Inc. Page4

4/5
30/12/2016

GAMECHANGER BALANCESHEET&CASHFLOWREPORT Year18

Industry1

BALANCESHEET CASHFLOWSTATEMENT
ASSETS $000s CASHAVAILABLEINYEAR18 $000s
CashOnHand 95,445 BeginningCashBalance 10,651
AccountsReceivable(seeNote1) 105,188
FootwearInventories 27,995 Cash ReceiptsfromSales(seeNote1) 414,146
Inflows BankLoans 1Year 0
TotalCurrentAssets 228,628 5Year 0
NetPlantInvestment(seeNote2) 208,997 10Year 0
ConstructionWorkinProgress 0 StockIssues(0sharesissued) 0
TotalFixedAssets 208,997 SaleofExistingPlantCapacity 30,975
LoantoCoverOverdrafts 0
TotalAssets 437,625 InterestonY17CashBalance 224
TotalCashAvailablefromAllSources 455,996
LIABILITIES $000s
AccountsPayable(seeNote3) 18,941 CASHOUTLAYSINYEAR18 $000s
OverdraftLoanPayable(seeNote4) 0
1YearBankLoanPayable(seeNote5) 0 PaymentstoMaterialsSuppliers(seeNote2) 79,561
CurrentPortionofLongTermLoans(seeNote6) 22,800 ProductionExpenses(seeNote3) 110,403
DistributionandWarehouseExpenses 42,628
TotalCurrentLiabilities 41,741 MarketingandAdministrativeExpenses 84,062
LongTermBankLoansOutstanding(seeNote7) 102,600 CapitalPlantUpgradeOptionsInitiated 0
Outlays PurchaseofUsedPlantCapacity 0
TotalLiabilities 144,341 ConstructionofNewCapacity 0
EnergyEfficiencyInitiatives 0
Beginning Change
SHAREHOLDEREQUITY Balance inY18 $000s RepaymentofPrincipal OverdraftLoan 0
onBankLoans(seeNote4) 1YearLoan 0
CommonStock(seeNote8) 10,000 0 10,000 5YearLoans 4,800
AdditionalCapital(seeNote9) 96,199 0 96,199 10YearLoans 18,000
RetainedEarnings(seeNote10) 161,377 +25,708 187,085 InterestPaymentson OverdraftLoan 0
BankLoans 10,079
TotalShareholderEquity 267,576 +25,708 293,284 StockRepurchases(0sharesrepurchased) 0
IncomeTaxPayments 11,018
ReturnonAverageEquityforYear18(seeNote11) 9.2% DividendPaymentstoShareholders 0
BalanceSheetNotes(alldollarandsharefiguresinthousands) CharitableContributions 0

Note1: Ofthe$420,753netrevenuesreportedintheY18incomestatement,25%have TotalCashOutlays 360,551

notbeencollectedfromcustomers(andwillbecollectedinY19).
Note2: For more details on net plant investment, see the Plant Investment section of NetCashBalance(attheendofYear18) 95,445
thePlantOperationsReport.
CashFlowNotes
Note3: Ofthe$75,764inmaterialsusedforfootwearproductioninY18,25%havenot
beenpaidfor(andwillbepaidforinY19). Note1: ReceiptsfromSalesrepresents75%ofYear18revenuesand25%ofYear17
Note4: Loansforoverdraftsareincurredautomaticallytopreventanegativeyearend revenuesduetoa3monthlaginreceivablescollections.
cashbalanceandcarryaninterestrate2%abovetheratefor1yearloans. Note2: Payments to Materials Suppliers represents 75% of the cost of materials used
Note5: Thecompany'sinterestratefora1yearloaninY18was10.7%. forY18productionand25%oftehcostofmaterialsusedforY17productiondue
toa3monthlaginpaymentsmadetomaterialssuppliers.
Note6: Thisitemrepresentstheprincipalportionofalloutstanding5yearand10year
bankloansduetoberepaidinYear19. Note3: ProductionExpensesincludeallY18productionrelatedexpenses(adjustedfor
the exchange rate effects of shipping to regional warehouses) except for
Note7: Longtermbankloansoutstanding: depreciation(whichisanoncashaccountingcharge).
Out Annual Year19
Loan Initial Original Interest standing Principal Interest Note4: Overdraft and 1year loans received in Year 17 were repaid in full in Year 18.
Number Year Principal Rate Term Principal Payment Payable InterestonanoverdraftloanreceivedinY17wouldalsoberepaidinY18.
1 Y7 115,000 8.5% 10Yr 0 0 0
2 Y9 24,000 7.5% 5Yr 0 0 0
3 Y12 100,000 7.0% 10Yr 0 0 0
4 Y13 110,000 6.2% 10Yr 55,000 11,000 3,410
5 Y14 40,000 7.6% 5Yr 0 0 0
6 Y16 24,000 6.9% 5Yr 14,400 4,800 994
7 Y16 70,000 7.4% 10Yr 56,000 7,000 4,144
8 Y0 0 0.0% 0Yr 0 0 0
9 Y0 0 0.0% 0Yr 0 0 0 SELECTEDFINANCIALSTATISTICS
10 Y0 0 0.0% 0Yr 0 0 0
11 Y0 0 0.0% 0Yr 0 0 0
12 Y0 0 0.0% 0Yr 0 0 0 Credit InterestCoverageRatio(oper.profitinterestexp.) 4.73
13 Y0 0 0.0% 0Yr 0 0 0 Rating DebtToAssetsRatio(totaldebttotalassets) 0.29
14 Y0 0 0.0% 0Yr 0 0 0 Measures DefaultRiskRatio(freecashflowprincipalpayments) 1.96
15 Y0 0 0.0% 0Yr 0 0 0
16 Y0 0 0.0% 0Yr 0 0 0 DefaultRiskRating(seeNote1) Medium
Note8: There are 10,000 shares issued and outstanding at a par value of $1.00 per CreditRating(attheendofYear18) B+
share.Theauthorizedmaximumnumberofsharesoutstandingis40,000.
CurrentRatio(currentassetscurrentliabilities) 5.48
Note9: AdditionalCapitalrepresentstheamountoverandaboveparvaluethatshare OperatingProfitMargin(operatingprofitnetsalesrevenues) 11.1%
holdershavepaidtopurchasenewsharesofstock.
NetProfitMargin(aftertaxprofitnetsalesrevenues) 6.1%
Note10: Retained Earnings is a summation of all aftertax profits the company has DividendPayout(dividendpershareearningspershare) 0.0%
earnedthathavenotbeendistributedtoshareholdersintheformofdividends.
Note11: TheformulaforReturn AfterTaxprofit FreeCashFlow(aftertaxprofit+[depreciationdividends]) 44,695
onAverageEquityis: (BeginningEquity+EndingEquity)2 TotalPrincipalPayments($000stobepaidinYear19) 22,800
Note1: Adefaultriskratioof3.00orhigherresultsinaLowdefaultriskrating,1.00to
3.00resultsinaMediumrating,andbelow1.00resultsinaHighrating.

CompanyOperatingReports CopyrightGLOBUSSoftware,Inc. Page5

5/5