Traditional Toys of Perennial Appeal to Children

30% owned by Ponti

70% Investors

Strategy

Traditional toys of perennial appeal to children

Reduce manufacturing costs – all produce in Italy by machine, no outsourcing

Policy of not laying off workers

Sales

Seasonal but less than cometitors

Customers

Toy Stores, Small gift shops, etc and supermarkets.

Finance

Line of credit 5M – paid over Q1 (2 months)

From 2001-2003, plant expansion to increase production = sales 110M

Dec 2001 Bank Loan 20M

Dec 2003 Sales +15% Profits +22%

Line of credit

June 2003 +7M, Dec 2003 +5M

Previously only used from May to September

Cash balance should be above 2M

Expected growth

2004 +15%

2005 +5%

2006 +5%

Income Statement (P&L)

Sales                         81,5M

COGS                         42,6M

SG&A                        24,3M

Overhead                4,1M

F. Expense                1,2M

(inc. interest Long term loan)

Depre. Expenses         2,8M

(to include in product cost when valuing inventories)

Corporate TAX        (30%)         XXM

Payment of Receivables 60 days (now longer, calculate)

Payment to suppliers 60 days

Purchase of Materials 38,4M (Payments 37,2M)

Tax outstanding from 2003 would be paid in March 2004