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Jensens Roofing Inc. Mike MacKinnon Kevin Lee Evan Conrad Ryan Kehrig Olajumoke Oni Aeisha Caracciolo

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Industry Overview Industry Overview Operating Plan Operating Plan Marketing Plan Marketing Plan Human Resources Plan Human Resources Plan Financial Model & Analysis Financial Model & Analysis Risk Analysis Risk Analysis The Investment Decision The Investment Decision Outline

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Industry Overview Jensen Roofing will operate in the Lethbridge, Alberta market Currently a booming residential construction market Shortage of skilled tradesman in the area Competitors are numerous in the area

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The Operating Plan

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Jensen Roofing - Start-up Incorporate the business at start-up Owner managed business -- Robert has several years experience in the roofing industry. Accountant available to provide financial and Management advice

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Operations Plan Business will be operating out of Jensens home. Materials and equipment will be stored in the garage of his home. Minimal working capital requirements as materials will be procured on a per- job basis.

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Operations Plan Typical business day for Robert: Usually 10 Hour days Roofing Administration (e.g. Banking) Purchasing materials Meeting with clients Marketing

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Capital Outlay 1st Year Equipment Estimated Cost ($) Pick-up Truck (1/2 ton) 15,000 3 Tonne Dump Truck 25,000 Cherry Picker for Dump Truck 3,000 Office Equipment 3,000 Roofing Nail Guns 1,000

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Capital Outlays 1st Year EquipmentEstimated Cost ($) Roofing Gum Guns50 Safety Equipment200 Incorporating Cost 1500 Ladders200 Total$49,150

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Marketing Plan SWOT Analysis Strengths Locally Based Growth in construction industry Labour shortage Contacts in industry (new homes) Weaknesses 3-4 large competitors No reputation in the market

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Marketing Plan SWOT Analysis Opportunities Knowledge & experience Low startup costs Low risk of failure Threats Labour shortage (attract employee) Economic downturn

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Market Analysis - Residential Roofing (New Homes)

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Current Economic & Competitive Environment Three general contractors in Lethbridge Customers want quality workmanship & reliable service Finding skilled labour is difficult Attracting employees from 100 km radius Locally based JENSENS ROOFINGS GOAL Obtain 11% market share in first year

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Sale Pricing Strategy Pricing 20% mark up on materials 70% mark up on foreman wages 50% mark up on helper wages Marketing Strategy Booming economy provides instant demand for services Provide reliable service & quality workmanship

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Market Analysis - Residential Roofing (Roof Repairs)

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Lethbridge Housing Market Environment Lethbridge Housing Market Environment 2006: 30,700 dwellings 23,000 low-sloped roofs 2007 & 2008 approx 1,400 new homes built 2008: 32,100 dwellings 24,400 low-sloped roofs Roofing repairs occur Mid-march to early November

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Repairs Market Breakdown Composite shingles (asphalt) 95% of roofs 20-25 year life 1,000 repair jobs required annually Wood shingles 5% of roofs Unlimited life Minimal annual repair jobs annually

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Potential Customers Owners Live in House Rental Properties Market Size 72%28% Who Are They Young & mature families Newlyweds & Retirees Landlord Important Quality workmanship Reliability/service Low cost Quality workmanship Purchase Ask friends, Online Phonebook, Real estate agent May know general contractor Ask friends, Online Phonebook Price Sensitivity Somewhat - quality work, fast & reliable Yes, want it fixed for low cost

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Detailed Breakdown of Owner Occupied Homes

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Jensens Target Market Couples without children Quality workmanship Reputation Reliability/service Little disruption to life as possible Low price sensitivity Single person households Reputation Reliability/Service Little Disruption to life as possible Not as price sensitive

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Service Features Common practice for customers to complain about contractors Jensens approach to this problem Quality workmanship essential for every roofing company Reliable service (timeliness) Hassle free minimal disruption to customer

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Jensens Competitive Position

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Growth Opportunities 1 st Year Competitive prices 5% discount Attract price sensitive consumers 1.65% of total market

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Growth Opportunities 2 nd Year Competitive prices 4% discount Start to lose price sensitive consumers 2.39% of total market

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Growth Opportunities 3 rd Year Competitive prices 2% discount Lose price sensitive consumers 4.38% of total market

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Growth Opportunities 4 th Year Competitive prices 0% discount Attract non- price sensitive consumers 5.88% of total market

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Growth Opportunities 5 th Year Competitive prices Attract non- price sensitive consumers 7.5% of total market

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Sale Pricing Strategy Cost of goods or services plus a markup 20% on materials 70% on foreman 50% on helper wages Remain competitive 5% discount of total price. Will remove discount as reputation and brand grows

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Sales Mix Projections

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Selling The Jensens Brand Enhancing the quality of homes for our neighbours in our community Jensens Roofing installs piece of mind over head, in a timely and hassle free manner

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Marketing Plan Budget 20082009201020112012 Newspaper ads 7200000 Info Sessions 4800000 Magnetic Signs 1000000 Yellow Pages 6,7206,9227,1297,3437,563 Referrals5005001,0001,0001,000 Brochures5001,0001,0001,0001,000 Total9,0208,2208,7208,7208,720

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Human Resources Plan Robert Jensen President - Foreman Roofing Helper Accountant / Financial Advisor

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Human Resources Plan Job Descriptions: Foreman Robert Jensen: Manage every aspect of daily operations Responsible for marketing, bookkeeping, scheduling, materials, tools and supplies --- Essentially anything that needs done Roofing Helper: Performing physical tasks and assisting the foreman wherever possible Running for supplies, removing shingles, etc. Running for supplies, removing shingles, etc.

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Human Resources Plan

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Availability of Labour Supply: Seasonal in nature Long summer hours potential for high $ for a summer job University of Lethbridge student population of 14,000 steady annual labour supply

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Financial Model & Analysis

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Financial Plan Economic Forecast Oil economy Agricultural commodities boom Rising inflation Rising interest rates

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Financial Plan Explanation of Financial Model

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Financial Plan Financial Statements Results & Ratios

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Financial Plan Sensitivity Analysis

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Risk Analysis Critical Risk Variables for Jensen: Cost of labour Availability of labour Economic downturn Injury liability Reputation damage

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The Investment Decision Low risk venture Low risk venture Very experienced workman Very experienced workman Huge demand for skill set Huge demand for skill set

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Q &A ?

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Inventory Option Items$ Selling Price22.50 Total sales volume800 bundles Total Revenues17,760 Cost Per bundle18.50 Cost of Purchase14,800 Gross Margin2,960 Initial Capital Outlay~$105,000 Risks associated with this option Inventory obsolescence risk Insurance cost on merchandise