Winning Sales Presentation at 2014 Society of Automotive Engineers Sales Event

1. Cal Poly Racing
Velocitá
Chief Marketing Officer: Chris Taylor
Chief Technical Officer: Ryan Flatland

2. Contents
0Who We Are
0What we Build
0How We Deliver
0Results

3. Cal Poly Racing
0Mission Statement:
“Engineering geniuses and off-road
enthusiasts, we at the Cal Poly Baja Team
strive to offer the safest, most reliable, easiest,
and most exhilarating off-road driving
experience, while making it all affordable and
available for everyone.”

4. Why
0We believe in challenging the status
quo by creating new, and innovative
ways to experience familiar sensations.
0We have created a thrilling, seat-of-
your-pants ride, while offering class-
leading safety.

5. Product Overview
0 Two Production Models:
0 Base Model: Velocitá
0 Upgraded Model: Velocitá X
0 Safety Features:
0 5 point full harness
0 Full roll cage
0 Radio connectivity
0 Easy to Use:
0 No complicated shifting
0 Direct power
0 Reverse gear

7. Velocità X
0Upgraded Engine:
030hp Briggs and Stratton OHV Engine
0More Advanced Suspension:
0Fox Evol Rc2: 3 tuning options
0Custom Formed Seat:
0Ergonomically designed to best fit driver

8. Target Market
0Age: 16-45
0Recreational to Experienced Off-roader
Driver
0Average Yearly Income: 50+ K$/yr
0Sales of roughly 225,000 in 2012 =~1.7%

9. Smith Family

10. ATV Injury Statistics
0 107,900 injuries in 2012
025% of which were children <16

11. Reaching the Market
0Social Media:
0Print Advertisement:

12. National and Local events

14. Manufacturing Strategy
45,000 sq.ft @ $91/ft = $4,095,000

15. Retail Sales
0 Velocitá:
0 Cost: $5,419.01
0 Suggested Retail: $9,499.00
0 Velocitá X:
0 Cost: $6,185.74
0 Suggested Retail Price:$12,249.00
0 Projected Sales:
0 4,000 units in 2015:
060% Velocitá
040% Velocitá X

16. Profit Sector
0 Projected Revenues for 4,000 units:
0 Investment of $3.75 million:
0 7% interest rate, 4 year return, compounded quarterly
0 35% equity in Cal Poly Racing
Cost of Goods Sold Revenue
Velocitá $13,005,624.00 $22,797,600.00
Velocitá X $9,897,180.26 $19,598,400.00
Total $22,902,804.26 $42,396,000.00
Profit Margin 46%

17. Summary
0Easy to Use
0Fun to Drive
0Large Market Opportunity
0Rock Solid Sales Strategy

18. Want a Test Drive?

19. 2012 CPSC
In 2012, there were an estimated 107,900 ATV-related,
emergency department-treated
injuries in the United States. An estimated 26,500 (25
percent) of these were children
younger than 16 years of age

20. New Sales 2012

21. Sect # Item Subassembly Costs Vehicle Assembly LaborCost Subtotal
Material Labor Time(min) Cost Material Labor
1 Engine $703.47 43.17$ 15 8.75$ 527.60$ 32.38$ 527.60$ 41.13$
2 Transmission 1,521.78$ 753.35$ 15 8.75$ 380.44$ 565.01$ 380.44$ 573.76$
3 Drive Train 519.23$ 143.50$ 20 11.67$ 389.42$ 107.63$ 389.42$ 119.29$
4 Steering 555.82$ 38.55$ 10 5.83$ 416.87$ 28.91$ 416.87$ 34.75$
5 Suspension $2,422.67 299.22$ 45 26.25$ 605.67$ 224.41$ 605.67$ 250.66$
6 Frame 208.12$ 392.43$ 156.09$ 294.32$ 156.09$ 294.32$
7 Body 270.48$ 357.28$ 10 5.83$ 40.57$ 267.96$ 40.57$ 273.80$
8 Brakes 779.83$ 60.72$ 45 26.25$ 584.87$ 45.54$ 584.87$ 71.79$
9 Safety Equipment 187.41$ 12.13$ 15 8.75$ 140.56$ 9.10$ 140.56$ 17.85$
10 Electrical Equipment 220.53$ 26.25$ 60 35.00$ 165.40$ 19.69$ 165.40$ 54.69$
11 Fasteners 34.89$ -$ 26.17$ -$ 26.17$ -$
12 Miscellaneous 322.66$ 11.20$ 5 2.92$ 242.00$ 8.40$ 242.00$ 11.32$
Total 7,746.90$ 2,137.80$ 240.00$ 140.00$ 3,675.66$ 1,603.35$ 3,675.66$ 1,743.35$ 5,419.01$

22. TRX400: $6,995
Sportsman Ace: $7,995