Vision Statement, Mission Statement, Management Team, Consolidated Financial Statements & Strategic Review

1. ANNUAL REPORT
2017
LE SAMMCOFIRM 42

2. 1
TABLE OF CONTENTS
VISION STATEMENT 2
MISSION STATEMENT 3
CREATING VALUE FOR OUR SHAREHOLDERS 4
CEO MESSAGE 5
LE SAMMCO AT A GLANCE 7
MANAGEMENT TEAM
- CHIEF EXECUTIVE OFFICER 8
- CHIEF OPERATING OFFICER 11
- CHIEF FINANCIAL OFFICER 17
- CHIEF MARKETING OFFICER 21
- CHIEF HUMAN RESOURCE OFFICER 29
- CHIEF LEGAL OFFICER 31
CONSOLIDATED FINANCIAL STATEMENTS
- BALANCE SHEET 44
- INCOME STATEMENT 49
- CASH FLOW STATEMENT 54
- CREDIT REPORT 63
STRATEGIC REVIEW
- RISK ANALYSIS & MANAGEMENT 65
- COMPETITIVE ANALYSIS 69
- BUSINESS ENVIRONMENT 74
- CORPORATE RESPONSIBILITY 75
- ENVIRONMENTAL RESPONSIBILITY 75
- SHAREHOLDER &INVESTORINFORMATION 76

3. 2
Who We Are
VISION STATEMENT
Le Sammco strives to become the premier provider of quality fragrances
within NAFTA and the EU. Our aim is to provide exceptional scents to
fashion-forward men and women. We envision a future in which our
products are among the most valued on the market, achieved through a
strong commitment to quality and innovation.

4. 3
Our Strategy
MISSION STATEMENT
Le Sammco aspires to be the leading choice for consumer in the aftershave
and perfume market. Our high price, high quality strategy that creates value
for all our stakeholder. We have six corporate objectives:
In the Top Ten for NPV Rank
- Attain an NPV ranking within the top 10 by the third quarter of 2017.
A well-leveragedfirm
- Achieve and maintain a debt to equity ratio of 1.2 by the first quarter of
2016.
Top-notch quality
- Ensure that productreturns do not exceed 5% of sales by the first
quarter of 2016.
A solid return for investors
- Achieve a return on equity of no less than 20% for shareholders by the
fourth quarter of 2016.
Profitable sales
- Achieve a productmargin of 40% by the third quarter of 2017.
Efficient sales force
- Achieve a sales representative turnover rate of 10% or below from
quarter 1, 2015 to quarter 3, 2017.

5. 4
Creating Value for Our Shareholders
Weather we are helping our customers withtheir needs, creating a positive
experience for our employees or making a real difference in our societies,
we are focused on creating value for our shareholder by generating strong
total returns and giving out dividends. We also do so by investing in our
core business and maintaining strong brand image, diversify risk and
underpinning our activities with industry prominent principles.

6. 5
CEO MESSAGE
We are fully committed to providing our customers with the highest quality products and
achieving strong fiscal earnings that generate superior returns for our shareholders.
Here at Le Sammco, we believe that our greatest asset is our people and success in
our industry was only made possible through the direct effort made everyday by our
employees on behalf of our customers. Le Sammco strives for the best quality in aftershave
and perfume and I am proud to say that I and the other Chief Officers feel this goal has been
achieved. Whether we are creating a positive aesthetic experience for our customers, creating
value for our shareholders by generating strong returns, or leaving our personal mark on the
scent industry, our focus on our people has left Le Sammco well positioned for success.
We believe in fairness to all, with manufacturing facilities appropriately located in
areas of North America and the European Union that value human rights and compensate
personnel fairly and equally. In this way we will continue to ensure that all workers at Le
Sammco see themselves as a valuable part of our overall operations. Ethical tactics in
achieving our mission are at the forefront of management concerns and it is my promise that
Le Sammco will not compromise or falter in valuing our greatest asset: you.
Shareholders were not disappointed in our performance since the company began
operation in Quarter 1, 2015, as stock prices steady climbed from $0.01 per share to an
outstanding $5.01 per share as of the time of this report. With our strong commitment to
growth, we have been able to make Le Sammco a well sought after firm in the eyes of
shareholders everywhere. Although the importance in our valued shareholders could not be
understated, Le Sammco largely believes in a stakeholder approach, as there are many
important parties involved in the present and future successes of the company. No one

7. 6
stakeholder is more important to the other and emphasis must be placed on all members of
society if we are to continue acting as a good corporate citizen. Le Sammco cannot function
without all members of the firm being actively diligent in observing the bigger picture.
On behalf of all Chief Officers and myself, I would like to say thank you to all
involved in making Le Sammco the great organization it is today. I am fully confident that
together we could continue delivering superior quality products that do not only make people
look, smell, and feel great, but also BE great.
Merci,
Marie-France Perreault
Chief Executive Officer

8. 7
LE SAMMCO AT A GLANCE
Le Sammco reported another year of growth. We move forward with our high
price, high quality strategy, and creating value for our shareholders by giving out
dividends.
• Perfume in
EU
• Perfume in
NAFTA
• Aftershave
in EU
• Aftershave
in NAFTA
$5,926,230
Net sales in
Quarter 4,
2016
$1,219,790
Net Income in
Quarter 4,
2016
900,000
stocks issued
uptodate.
$ 1.5
Dividend/shar
e previous
Quarter

9. 8
MANAGEMENT TEAM
CHIEF EXECUTIVE OFFICER
Marie-France Perreault
Marie-France Perreault is pursuing a Bachelor
of Commerce Degree with a major in Global
Management at Ryerson University. During
the course of her four years, she gained
competitive and leadership skills, which will
help her lead the development and execution of
the Company’s long term strategy with a view to creating shareholder value. Furthermore, it
will guide her to make major corporate decisions, manage the overall operations of Le
Sammco and act as the main point of communication between the board of directors and the
corporate operations. Duties and obligations of the CEO:
 To lead the development of Le Sammco Company’s strategy.
 To lead and oversee the implementation of Le Sammco’s long and short term tactics
in accordance with its strategy.
 Meeting with every executive for updates and understanding why each decision was
made.
 Ensuring the Net Present Value ranking remains positive, thus enabling the company
to pay out dividends to the shareholders.
 Ensure all operations, such as allocating hours to the company’s plant is being
efficiently utilized with the Chief Operation Officer.
 Inputting weekly decisions.

10. 9
The Net Present Value Ranking indicates how well a firm is doing compared to the ranking
of the other firms in the simulation. Le Sammco aims to achieve a Net Present Value Ranking
in the top 10 by the end of Quarter 3, 2017 fiscal period.
During Quarter 1, 2015 Le Sammco’s Net Present Value Ranking was ranked 41 out
of 48 and was then ranked 38 out of 53 during Quarter 2, 2014. Advanced firms entered the
market in different group market; hence this is why the number of total firms varies from
quarter to quarter. At the beginning of the simulation, it has been harder for Le Sammco to
project market share and sales volumes due to the unpredicted number of firms entering the
market during different quarters. Additionally, the balance of the cash flow report resulted in
a negative value, which contributed to the ranking drop. Throughout Quarter 3, 2015 and
Quarter 4, 2015, the Net Present Value Ranking moved from 42 to 46 out of 58 advanced
firms. The Net Present Value Ranking did vary much due to a more balanced cash outflows
and inflows compared to the previous quarters. During Quarter 4, 2015, Le Sammco entered
the Perfume markets in NAFTA and in the European Union. By entering the two markets, it
allowed the firm to gain a fairly large market share of Le Sammco’s products, which
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NPVRanking
Quarter-Year
Actual vs. Target NPV Ranking
Actual NPV Ranking
Target NPV Ranking

11. 10
contributed to cash inflow into the firm. In order to achieve a Net Present Value Ranking in
the top 10 by the end of the third quarter 2017, the firm’s inflows must be significantly greater
than the company’s outflows, which means the profit from sales volume must be greater than
the firm’s expenses by a significant amount. During the second year of operations, the Net
Present Value Ranking in Quarter 1, 2016, Quarter 2 2016, Quarter 3, 2016 and Quart4
2016, dropped to 49 and then went back up to 48 out of 60 advanced firms. In this quarter,
Le Sammco actual computed ending balance in the cash flow report showed to be
USD$497,026.00, which our executives would believe is a positive outcome leading to a
higher Net Present Value Ranking. However, that was not the case as we ranked far below
our desired ranking goal of top 10. Reason being for our ranking was due to the fact that our
firm’s inflows did not grow fast enough as our competitors. Although we had a positive value
in our cash inflow, our competitor’s cash inflow were much higher beating us in the NPV
Ranking. As of Quarter 1, 2017, Le Sammco is ranked 49 out of 84 advanced firms. In order
to perform against other firms, the company requires having greater cash inflows in the
upcoming quarters.

12. 11
CHIEF OPERATING OFFICER
Mark Soares
Having graduated with an advanced Business
Administrations diploma from Humber College
with honors and currently pursuing a Bachelor of
Commerce in Global Management Studies at
Ryerson University, Mr. Soares is senior officer
in charge of managing the ongoing day-to-day
operations of Le Sammco.
Maintaining continuous lines of communication among all senior officers, keeping
the CEO well informed of essential daily issues, and increasing the efficiency and
effectiveness of the company’s overall encompassing productivity are key responsibilities of
his function as COO.
As Chief Operating Officer, Mr. Soares will analyze potential strategic market areas
in order to pinpoint and develop Le Sammco’s organizational raw materials resources,
inventory, capacity and production to full capability, as well as monitoring quality control to
the highest level. The position will involve working closely with the CHRO in scheduling
and coaching human capital, the CMO with forecasting realistic production targets based on
supply and demand, and the CFO in financing capital assets. Duties and obligations of the
COO:
 Ensure that product returns do not exceed 5% of sales.
 Monitor inventory levels.
 Forecasting required raw materials to meet production targets.
 Manage plant operations to maximize daily productivity

13. 12
 Review the Dollars and Scents Quarterly on a weekly basis.
0%
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ProductReturns(%)
Quarter-Year
Aftershave Returns in NAFTA
Aftershave Returns
Target
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ProductReturns(%)
Quarter-Year
Aftershave Returns in EU
Aftershave Returns
Target

14. 13
The Amount of Product Returns is a standard measure of quality determining how useful
and valuable end users are finding Le Sammco’s aftershave and perfume products. Le
Sammco has consistently achieved product returns well below 5% of the total units sold as
per the firms 3rd key measure of success in the above mission statement.
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ProductReturns(%)
Quarter-Year
Perfume Returns in NAFTA
Perfume Returns
Target
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ProductReturns(%)
Quarter-Year
Perfume Returns in EU
Perfume Returns
Target

15. 14
Quarter 1, 2015
Le Sammco decided to first entre the scent industry in North American (NAFTA) and
Europe (EU) primarily selling aftershave, with final products being purchased from
Peacock Industries. Despite the fact that Le Sammco’s North American plant wouldn’t be
ready until quarter 3, 2015, Product Returns for Aftershave in both NAFTA and the EU
were 0, establishing a strong quality brand association.
Quarter 2, 2015
Sales climbed significantly from 56 and 50 units sold in NAFTA and EU respectfully to
944 and 700. Sizeable expenditures on quality control ensured that returns remained at a
very low 3 units in NAFTA and 4 units in the EU.
Quarter 3, 2015
Being a slow quarter for the industry as a whole, sales dipped slightly despite a rise in
market share in both NAFTA and the EU for aftershave. Returns remained extremely low
at 1 return in NAFTA and 0 returns in the EU.
Quarter 4, 2015
With the North American factory ready for production, Le Sammco decided to entre and
capitalizes on the perfume market in both the NAFTA and EU areas. Perfume unit sales in
NAFTA began at 756 with 12 returns, which was well below the 5% benchmark, but still
slightly high for the company’s liking. Perfume sales in the EU painted a different picture
with exactly 1000 units sold and 0 returns. Aftershave maintained top quality with 2796
unit sales and 0 returns in NAFTA, and 2534 units sold in the EU with 6 returns.
Quarter 1, 2016
Aftershave unit sales dropped in NAFTA and the EU to 658 and 242 respectfully, but
achieved top-notch quality with 0 returns in both regions. Perfume sales saw a dramatic rise

16. 15
with 2716 units sold in NAFTA with only 2 returns. EU perfume sales climbed to a
dramatic 6099 units sold, with 27 returns. 27 Returns in the EU was high for Le Sammco’s
liking despite being within the 5% acceptable amount of retunes benchmark, therefore more
funds would later be allocated to quality for Quarter 2, 2016. It was also decided among the
Chief Officers to build a plant in the EU to deliver higher quality in the EU and avoid
volatile shipping costs.
Quarter 2, 2016
The increase in quality budget paid off significantly for Le Sammco, with 0 returns for both
aftershave and perfume products, with returns being seen only in the NAFTA market for
perfume, amounting to a total of 6 returns for 1582 units of perfume sold in NAFTA.
Quarter 3, 2016
Le Sammco realized no returns at all in both aftershave and perfume in the NAFTA region.
Returns were only seen in the EU with only one returned unit of aftershave sold out of a
total of 476 units. Perfume sales in the EU rose to 3682 with returns of 18 units, translating
to 0.0049% of perfume units sold in the EU.
Quarter 4, 2016
Quarter 4, 2016 ended with quality never being better in the aftershave market for Le
Sammco. No units of aftershave were returned in both NAFTA and the EU, with total units
being sold of 2346 and 3136 respectfully. Returns were higher for perfume in both NAFTA
and the EU, however they were largely offset by the rise in perfume sales. 15597 units of
perfume were sold in NAFTA with 26 returns, and 8847 perfume units in the EU were sold
with 48 returns.

17. 16
Quarter 1, 2017
Although sales in aftershave took a dip at the start of 2017 for both NAFTA and the EU,
returns were very minimal, with 0 returns in NAFTA and 4 returns seen in the EU. Perfume
unit sales were very strong this quarter with 13501 in NAFTA and 10 returns, and 8880
units sold in the EU with 24 returns.

18. 17
CHIEF FINANCIAL OFFICER
Ari Pasternak
As a graduate of Ryerson University with a
Bachelor of Commerce, and years of experience
in finance, Mr. Pasternak brings solid strategic
financial know-how to Le Sammco.
As the CFO, Mr. Pasternak is responsible
for ensuring the financial health for Le Sammco.
Maintaining an appropriate debt to equity ratio, determining required borrowing, share sales,
and budgeting are all part of his comprehensive role.
It is the responsibility of this position to ensure that the firm has adequate cash on
hand to pay for the operations and capital expenditures of the firm’s strategic units.
As a classical firm, Le Sammco must maintain a high level of debt and outstanding
shares. The forecasting of interest payments, debt issues, inventory costs, and capital
requirements is necessary to ensure smooth operations. Duties and obligations of the
CFO:
 Achieve and maintain a debt to equity ratio of 1.2.
 Forecast future cash inflows and disbursements to ensure sufficient cash is on hand
to cover expenses.
 Work with the COO to unload underperforming assets and lease out surplus
manufacturing capacity.
 Invest surplus cash in the equity market to ensure every dollar is pulling its weight.
 Budget and secure funding for capital expenditures.
 Maintain a return on equity of no less than 20% for shareholders.

19. 18
 Documentation of executive decisions.
Quarter 1, 2015
Le Sammco funded entry into the marketplace through the issue stock and taking out a
short-term loan. 1 million shares were issued at $3.16 per share, for a total of $3.16 million.
$1 million in short-term debt was taken on to cover working capital and capital expenditure
costs, chosen for its relatively low interest rate.
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Actual D/E
Target D/E
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20. 19
Quarter 2, 2015
Short-term debt was increased to $2 million to cover working capital and continued capital
expenditures. This brings debt to equity up to .7118, shy of the 1.2 target. With the
repayment of the previous quarter’s short-term loan, this netted $1 million cash for
operating and capital expenditure activities.
Quarter 3, 2015
Short-term loan remained the same, netting no new cash for operations or capital
expenditures.
Quarter 4, 2015
Short-term loan was reduced to $1 million, and $1 million was repaid netting -$1 million
for operations. Because of this, debt equity dropped to .3436.
Quarter 1, 2016
Short-term loan was increased back to $2 million, netting $1 million cash. This brings debt
to equity to 7496, closer to target than in the previous quarter. $500,000 in bonds was
issued, discounted to a present value of $447,773.19 in cash. These funds were used to
finance plant construction in the EU. To increase the debt to equity ratio without taking on
unneeded debt, 100,000 were repurchased for $4.33 per share for a total of $433,000. As
cash sales were lower than forecasted, a special loan was received in the amount of
$40,948.75.
Quarter 2, 2016
Short-term loan was increased to $2.85 million to finance continued construction of the
plant in the EU. Debt to equity comes in at 1.1577, just shy of target. Dividends of $0.50
per share were issued, for a total of $450,000. Due to cash sales being significantly lower
than forecasted, a special loan was received in the amount of $591,507.50.

21. 20
Quarter 3, 2016
Short-term loan was increased to $4.15 million. This causes debt to equity to overshoot
target, reaching 1.3656. Another dividend of $0.50 per share was issued, for a total of
$450,000.
Quarter 4, 2016
Short-term loan was reduced to $4 million to bring debt equity closer to target. This was
miscalculated, however, resulting in a special loan of $107,802.50. A dividend of $1 per
share was issued, for a total of $900,000.
Quarter 1, 2017
Short-term loan was reduced to $3.75 million to reign in debt to equity. Debt equity for the
quarter is brought down to 1.2463. Dividends of $1.50 per share were issued for a total of
$1.35 million.

22. 21
CHIEF MARKETING OFFICER
Salman Saeed
Salman Saeed obtained his Bachelor of
Commerce degree at Ryerson University, with a
major in Global Management and minor in
Finance. Mr. Saeed has held various positions in
customer service, sales and marketing in the past.
Furthermore, Salman has developed strong
customer service and interpersonal skills through his six years of combined experienced as a
customer service and sales associate. As the Chief Marketing Officer at Le Sammco, Mr.
Saeed’s goal is to help make the firm a global leader in the aftershave product markets of
NAFTA and EU. CMO is responsible for generating revenue by increasing sales through
successful marketing tactics. Duties and obligations of the CMO:
 Conduct market forecasting. This lays the framework that allows Le Sammco to
accurately determine necessary decisions regarding the number of units to produce,
pricing, and advertising budget.
 Ensure the organization’s message is distributed across channels and to targeted
audiences in order to meet sales and market share objectives in both the NAFTA and
EU aftershave market.
 Coordinate with the CFO and the CHRO to ensure that an appropriate budget is
allocated towards advertising, hiring sales representatives, salary, and commission.
 Coordinate with the COO to ensure that the appropriate number of units is produced
to meet consumer demand.

23. 22
 Review the weekly decisions on Fridays to ensure the final decisions are placed in
accordance with the executive decisions.
In the beginning, total demand of the market was taken from the Industry Report. An exact
calculation for predicting the future is a difficult task. Therefore, following the markets, the
competition, and team’s capabilities; Le Sammco’s forecasting has been close to accurate
in most quarters. Advertising considerations are also part of our forecast model. Le
Sammco’s forecasting model is based on of the formula: Overall market demand x real
market share X seasonal market share of each product. Generally, conservative approach is
applied in the first two quarter on the year, followed by moderated tactic for the third
quarter. Aggressive calculations are generally used in the final quarter of the year to meet
excess demand of the holiday shopping season. At this point, company does not require any
adjustment in forecasting. However, market forecast of perfume in NAFTA and EU could
be adjusted to be more accurate.
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PriceUSD$
Quarter-Year
Market Price ofAftershave in NAFTA
Firm 41
Le Sammco
Firm 43
Firm 44
Firm 45
Firm 46
Firm 47
Frim 48

24. 23
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Market Price ofAftershave in EU
Le Sammco
Firm 43
Firm 44
Firm 45
Firm 46
Firm 47
Firm 48
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Quarter-Year
Market Price ofPerfume in NAFTA
Firm 41
Le Sammco
Firm 43
Firm 44
Firm 46
Firm 45
Firm 47
Firm 48

25. 24
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Market Price ofPerfume in EU
Le Sammco
Firm 43
Firm 44
Firm 45
Firm 46
Firm 47
Firm 48
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Market Forecast ofAftershave in NAFTA
Forecasted Demand
Actual Demand

26. 25
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Forecasted Demand
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Forecasted Demand
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27. 26
Quarter 1, 2015
Based on our strategy of high price, high quality, we decided to have the highest price of
Aftershave in both NAFTA and EU. Aftershave was priced at $220 in the NAFTA and €220
in EU. Our forecasted demand for the first quarter was 131 units, 125 units of aftershave in
the NAFTA and EU region respectively.
Quarter 2, 2015
Following the conservative approach we forecasted the same amount of unit we had in the
previous quarter. At this stage, Le Sammco was still dealing with Peacocks Industries to
purchase its units.
Quarter 3, 2015
Quarter 3 was supposed to be a slow one according to the seasonal demand. We forecasted
little higher demand than our conservative forecast because of the high advertising budgets
in the previous Quarters. Usually it takes up to three quarter for advertising to be fully
effective. This approach worked well at the end for both EU and NAFTA markets of
aftershave.
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Market Forecast ofPerfume in NAFTA
Forecasted Demand
Actual Demand

28. 27
Quarter 4, 2015
Demand fluctuates seasonally; Quarter 4 is robust for both aftershave and perfume.
Therefore, aggressive calculation was decided upon which worked out in our favor at the
end. Seasonal demand of Aftershave was 50%, 40% for perfume respectively, in the Quarter
4. High price strategy remains intact during the 2015 year. Le Sammco also entered in the
perfume market in this quarter, while selling perfume for $ 325 in NAFTA and €325 in the
EU.
Quarter 1, 2016
Following the past year trend, conservative calculation were applied to forecast the demand.
Perfume forecasted demand were little off since, it was new market for Le Sammco. Actual
demand was higher for the perfume in the EU than forecasted, whereas, NAFTA had a less
actual sales than our forecasted figures. Aftershave had a regular slow period with 12.5 % of
seasonal demand of the annual sales.
Quarter 2, 2016
Quarter 2 was a normal quarter for Le Sammco without any major discrepancy. New
subsidiary was entered in our market group, firm 47. Firm 47 prices didn’t affect our high
prices strategy since its prices were far off than Le Sammco’s.
Quarter 3, 2016
Le Sammco had bad quarter in terms of forecasting demand. Forecasted figures did not meet
the market expectations in all four product markets. Demands fluctuated in all the product
markets, and our demand was based of the past year’s trend.
Quarter 4, 2016
Aftershave demand declined in the NAFTA region. Perfume sales skyrocketed with back
orders in place for NAFTA and the EU. At this point, new firm 48 were competing directly

29. 28
in terms of perfume price in NAFTA and EU. Le Sammco and Firm 48 had the same high
price strategy with similar prices of $325 and €325 in NAFTA and EU respectively.
Quarter 1, 2017
Based on our past experiences, Le Sammco applied the conservative calculations for our
demand of aftershave. Considering the higher seasonal demand in the first quarter for
perfume, actual demand turned out to be higher for perfume in the EU for perfume.
Aftershave prices did not change, however perfume price was increased by $5 in NAFTA
and €5 in the EU region.

30. 29
CHIEF HUMAN RESOURCE OFFICER
Mack Cathmoir
Le Sammco’s Chief Human Resource
Officer, Mack Cathmoir, graduated from
Ryerson University with a Bachelor of
Commerce Degree in Global Management
Studies. His passion for travel and
international relations makes him the perfect
fit as CHRO of the global player, Le Sammco. As an executive, it is Mr. Cathmoir’s
responsibility to have strong communications with the other executive within the firm. Mr.
Cathmoir schedules in person meetings for the executives twice a week, in which the
counterparts exchange ideas on the implementation of Le Sammco’s high price high quality
strategy. Mr. Cathmoir understands the importance of the company’s culture and values. As
CHRO, it is Mr. Cathmoir’s duty to ensure that Le Sammco’s sales representatives
exemplify our corporate vision with their skill and experience, delivering the best customer
service in our market. Duties and obligations of the CHRO:
 Forecasting number of sales representatives needed in NAFTA and EU areas.
Involves examining external factors including seasonal demand, economic and
industry growth and internal factors including company growth.
 Hiring/firing of sales trainees and transferring sales representatives to NAFTA or
EU accordingly.
 Salaries and commissions of employees. Encompasses working with CFO to
coordinate budgets for sales expenses.
 Organizing in person meetings & communication among executives.

31. 30
-25
-20
-15
-10
-5
0
5
10
15
20
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3'
16
Q4'
16
Q1'
17
TurnoverRate(%)
Quarter-Year
Sales RepresentativeTurnover Rate
Target
Le Sammco Turnover Rate

32. 31

33. 32

34. 33
Quarter 1, 2015
In the first quarter, Le Sammco entered the After Shave market in both NAFTA and the
EU. As a Human Resource (HR) tactic, the firm believed that hiring 8 sales representatives
and 6 sales representatives in NAFTA and the EU, respectively would be an efficient sales
force to sell the 2000 units purchased from Peacock Industries. In order to remain
competitive in the labour market, Le Sammco paid salaries of $5,000, forecasting that this
amount would be higher than the market average. In addition, as a cost saving measure, Le
Sammco also hired three sales trainees to be ready for the next quarter. This HR tactic will
help achieve the firm’s goal of maintaining a turnover rate of 10 percent or below
throughout the duration of the simulation.
Quarter 2, 2015
In this quarter, we forecasted our demand to grow exponentially. To compliment this, the
firm used the HR tactic of hiring more sales trainees. This tactic helped drive unit sales as
Le Sammco experienced a 1450.94% increase in sales from Quarter 1, 2015. It can be

35. 34
concluded from our 0% turnover rate that our sales force was satisfied and was an
important factor in our sales growth.
Quarter 3, 2015
Since Quarter 3 is a slow seasonal quarter, the firm had to prepare the sales force for
Quarter 4, in which we forecasted our company to experience seasonal growth. As a human
resource tactic, we hired 5 new employees to build a strong sales force for the entrance into
the perfume product market. In this quarter we experienced a turnover rate within our goal,
as no employees quit and we hired new employees.
Quarter 4, 2015
In this quarter Le Sammco entered the Perfume product market in NAFTA and EU, but did
not produce enough units to meet market demand. As a result, the firm incurred lost sales
of 1954 and 4981 units of perfume in NAFTA and EU, respectively. This resulted in 5 sales
representatives quitting due do the loss in potential commissions earned from unit sales. In
addition, based on the growth of our company we believe our sales force was too large in
relation to our firm size. Another HR tactic used to analyze this result was to compare our
number of sales representative to our competitors. In Quarter 3, 2015 we had the most sales
representatives in our market group, but not the highest sales volume. This was another
factor that resulted in the decline in the turnover rate.
Quarter 1, 2016
To recover from the decrease in the turnover rate in Quarter 4, 2015, we used the tactic of
hiring three sales trainees to be ready by Quarter 2, 2016. We planned to delegate 11 sales
representatives in the EU and 10 in NAFTA. Based on the higher sales volume and
quarterly demand of the EU, our firm hired more sales representatives in the EU than
NAFTA.

36. 35
Quarter 2, 2016
Moving forward, Le Sammco needed to improve employee turnover to maintain our goal of
sales representative turnover rate of 10 percent or below. In the previous quarter, the firm
trained three sales representatives to compliment the expected company growth. In this
quarter, the three trainees were transferred into sales representatives into the relative areas
previously mentioned in Quarter 1 2016. In the Dollars and Scents quarterly, the news
stated that workers will be demanding higher wages in Quarter 2, 2016. To counter this
demand, Le Sammco implemented the HR tactic of agreeing to the demand and increased
salaries by 5 percent (from $5000 to $5250).
Quarter 3, 2016
Le Sammco had one sales representative quit in the EU, as a result the turnover rate fell
below 0% and our desired goal. This occurred because our Aftershave unit sales in the EU
were not at an acceptable level for our sales representatives to make commissions. Le
Sammco also believes that our sales force in the EU was not at an efficient level in relation
to our sales volume. To counter this, Le Sammco did not hire any sales representatives in
Quarter 3, 2016 to test if an allocation of 10 sales representatives in each area is efficient. It
has been recognized that sales volume is a key determinant of the satisfaction of our sales
representatives.
Quarter 4, 2016
In this quarter, our HR tactic of not hiring/firing any sales reps in Quarter 3, 2016 proved to
be an efficient tactic as Le Sammco had no representatives quit in the quarter, thus
achieving our goal of a turnover rate of at or below 10 percent. Since this quarter has a high
seasonal demand forecast, the firm believes our sales representatives were satisfied with

37. 36
their wages earned from commissions from the increase in sales volume compared to the
previous quarter.
Quarter 1, 2017
This quarter demonstrated that the HR tactic that was implemented last quarter was
efficient as no sales representatives quit. We experienced a positive quarter in sales, which
played a key factor in the worker satisfaction.

38. 37
CHIEF LEGAL OFFICER
Spencer Schwetz
Prior to becoming Chief Legal Officer at Le
Sammco, Spencer graduated from Toronto’s
Ryerson University with a Bachelor of
Commerce degree in Global Management
Studies. His attention to detail and ability to
predict trends while mitigating legal risk
makes him an excellent fit as CLO of Le Sammco. As an Officer at the firm, the
responsibility falls on Mr. Schwetz to ensure that all decisions made by the firm are in
compliance with local law in all markets in which Le Sammco operates. Mr. Schwetz
oversees all aspects of the firm’s legal affairs and ensures the protection of its legal rights.
Ethical concerns – as well as legal concerns – are a top priority for Mr. Schwetz. In
addition, as CLO it is Mr. Schwetz’s duty to ensure that contracts are written and executed
properly, and in such a way that the firm’s corporate objectives may be achieved as
efficiently as possible. Duties and obligations of the CLO:
 Negotiate and prepare contracts. Involves close interaction with all members of the
executive to ensure the availability of resources privy to the contract.
 Review contracts on the day of their execution, and ensure that the terms of the
contract are accurate as to our arrangements.
 Maintain relationships with other firm executives within the market, ensuring a
network of contacts with whom we may negotiate.
 Responsible for the firm’s adherence to all rules and regulations. Ensure that the
firm is free from fines, or other punitive action.

39. 38
0
10
20
30
40
50
60
70
80
90
0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3' 16 Q4' 16 Q1' 17
roductMargin(%)
Quarter-Year
Product Margin on Aftershave RetailSales
in NAFTA
Product Margin
Target
0
10
20
30
40
50
60
70
80
90
0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3' 16 Q4' 16 Q1' 17
roductMargin(%)
Quarter-Year
Product Margin on Aftershave RetailSales
in EU
Product Margin
Target

40. 39
0
10
20
30
40
50
60
70
80
90
0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3' 16 Q4' 16 Q1' 17
roductMargin(%)
Quarter-Year
Product Margin on Perfume Retail Sales
in NAFTA
Product Margin
Target
0
10
20
30
40
50
60
70
80
90
0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3' 16 Q4' 16 Q1' 17
roductMargin(%)
Quarter-Year
Product Margin on Perfume Retail Sales
in EU
Product Margin
Target

41. 40

42. 41
Quarter 1, 2015
In the first quarter, Le Sammco entered the Aftershave market in both NAFTA and the EU.
As a Legal tactic – without the facilities to produce our own units – Le Sammco made use of
a wholesale distribution channel to purchase 1750 units of Aftershave from Firm 18 (Peacock

43. 42
Industries) with which to enter the two product markets. With the negotiation of a purchase
price of $56 USD, the firm ensured that the contract purchase had the potential for
profitability. The firm determined that a sale price of $225 USD per unit would be adequately
profitable, and high enough to aid in the achievement of our high-price, high-quality strategy.
With a product margin on sales of 75.11%, the legal tactic was successful as our measure of
success of a 40% product margin was achieved.
Quarter 4, 2015
In this quarter Le Sammco entered the perfume product market in NAFTA and EU. The firm
decided that resources would be best allocated to retail perfume sales as opposed to
wholesale. However, this quarter was the first for the firm to enter the wholesale product
markets for aftershave in NAFTA and the EU. Overall, the entrance of the aforementioned
wholesale product markets was a success, as the firm was able to demand a high enough
wholesale price to adhere to our strategy. The 1500 unit sales made through contracts yielded
a product margin on sales of 53.97%, which achieves the firm’s measure of success, and
ultimately aided in the achievement of our strategy.
Quarter 4, 2016
Quarter 4, 2016 was another quarter of high-forecasted retail demand for both perfume and
aftershave in all product markets. As such, demand in the wholesale market was equally
robust. Le Sammco capitalized on the high demand in the wholesale market by negotiating
contract sales of both perfume and aftershave in the EU. Firstly, the firm was able to negotiate
a sale of 2000 aftershave units at a price of $78 per unit. Despite our best efforts, the firm
was unable to maintain the $100 USD price point achieved on the last aftershave contract, as
wholesale competition was fierce. However, the contract was profitable for the firm, yielding
a 32.67% product margin on sales. This fell short of the firm’s measure of success of a 40%

44. 43
product margin on sales, although by nature of profitability, contributed to the achievement
of our NPV ranking measure of success of top 10 NPV rank by Q3 2017. Secondly, the firm
was able to negotiate a sale of 14,000 perfume units at a price of $110 USD per unit. Again,
competition in the wholesale perfume market was fierce, and despite best efforts, the firm
was forced to settle for a price unable to achieve the firm’s measure of success. In addition,
due to the volume of product purchased in the contract, the firm was flexible with our price
points. At a product margin on sales of 19.22%, this contract was unable to achieve the firm’s
product margin measure of success. However, due to the high volume of units sold, the firm
was satisfied with the contract as it yielded $296,000 USD in profit, and aided in the
achievement of top 10 NPV ranking by Q3 2017.
Quarter 1, 2017
Leading into another quarter of robust retail demand for perfume, the firm began negotiating
wholesale contracts for the sale of perfume. Negotiations were slightly easier this quarter, as
Le Sammco had developed a network of contacts with whom we could negotiate, as well as
a reputation as a reliable firm with quality merchandise. In terms of wholesale contract sales,
the firm was able to negotiate two contracts with a combined volume of 12,000 units. Once
again, with a volume of sales as high as this, Le Sammco was flexible in our negotiation of
price points, resulting in sales at a price of $115 per unit. These contracts together yielded
$322,560 USD in profit at a margin on sales of 23.4%, and despite the contracts inability to
achieve a product margin on sales of 40%, the firm was satisfied with the results of this
quarter’s wholesale activity, as it again aided in the achievement of our measure of success
of top 10 NPV ranking by Q3 2017.

45. 44
CONSOLIDATED FINANCIAL STATEMENTS
Balance Sheets
QUARTER 1, 2015
QUARTER 2, 2015

46. 45
QUARTER 3, 2015
QUARTER 4, 2015

47. 46
QUARTER 1, 2016
QUARTER 2, 2016

48. 47
QUARTER 3, 2016
QUARTER 4, 2016

49. 48
QUARTER 1, 2017

50. 49
INCOME STATEMENT
QUARTER 1, 2015
QUARTER 2, 2015

51. 50
QUARTER 3, 2015
QUARTER 4, 2015

52. 51
QUARTER 1, 2016
QUARTER 2, 2016

53. 52
QUARTER 3, 2016
QUARTER 4, 2016

54. 53
QUARTER 1, 2017

55. 54
CASH FLOW STATEMENTS
QUARTER 1, 2015

56. 55
QUARTER 2, 2015

57. 56
QUARTER 3, 2015

58. 57
QUARTER 4, 2015

59. 58
QUARTER 1, 2016

60. 59
QUARTER 2, 2016

61. 60
QUARTER 3, 2016

62. 61
QUARTER 4, 2016

63. 62
QUARTER 1, 2017

64. 63
CREDIT REPORT
QUARTER 1, 2015
QUARTER 2, 2015
QUARTER 3, 2015
QUARTER 4, 2015
QUARTER 1, 2016

65. 64
QUARTER 2, 2016
QUARTER 3, 2016
QUARTER 4, 2016
QUARTER 1, 2017

66. 65
Strategic Review
RISK ANALYSIS AND MANAGEMENT
Le Sammco is a classical firm, and we are proud to employ a high price, high quality
strategy. The success of our strategy is best reflected through our objectives (or measures of
success), as outlined in our mission statement. Each executive plays an important in the
implementation of our strategy, and the achievement of our objectives.
Le Sammco’s Net Present Value Ranking is 49 as of quarter 1, 2017. As a high price high
quality firm, we are targeting a smaller market segment than low cost producer firms. For
this reason, our sales volume is lower than the other firms in the simulation. In order to
attain a Net Present Value Ranking within the top 10, we need to increase our volume sales.
Within our market group, Le Sammco has the highest price for
aftershave ($US225.00 in NAFTA and €225.00 in EU) and perfume ($US330.00 in
NAFTA and €330.00 in EU). Furthermore, the firm has experienced minimal product returns;
consistently well below the threshold set out in our mission statement for both NAFTA and
EU. This indicates that our customers are satisfied with our product. Our high quality product
and commitment to customer satisfaction gives us a competitive advantage over our
competitors. Furthermore, Le Sammco is spending $US8.00 per unit for quality control in
order to have top-notch quality products. The firm is also using just-in-time shipping, which
fits our strategy of a high quality firm. These tactics have shown that our decisions are
working to ensure that our product returns do not exceed 5% of sales.
Le Sammco’s forecasting has been close to accurate in most quarters. Advertising
considerations are also part of our forecast model. Aggressive calculations are generally used
in the final quarter of the year to meet excess demand of the holiday shopping season. At this

67. 66
point, Le Sammco does not require any adjustment in forecasting. However, market forecast
of perfume in NAFTA could use slight adjust in its forecasting. This can be achieved by
applying a less aggressive approach in the first two quarters coupled with a more aggressive
tactic in the fourth quarter.
As a classical firm, Le Sammco has large capital expenditures for the construction of
production facilities. These projects are financed through the issue of large amounts of debt.
A high level of debt is acceptable for a firm of this size, as the risk involved is significantly
less than firms with a smaller asset base.
This debt is primarily composed of short-term loans, of which we are currently carrying
$US3.75 million. The remainder of our debt is derived from bonds; we raised $US447,
773.19 worth of bonds, with a maturity value of $US500, 000. The target Debt to Equity ratio
for our firm is 1.2. As of Q1 2017, we are slightly above our target, at 1.2463. We will bring
this down by slightly reducing our short-term debt load. As of Q1 2017, Le Sammco has
900,000 shares outstanding. In this quarter we also issued dividends of $1.50 per share, with
the intent of boosting our Net Present Value, and thus our Net Present Value Ranking.
The biggest threat to our financial health is the issue of a special loan that occurred
in Q2 2016. Due to a miscalculation in plant expansion costs, we received a special loan of
$US591, 507.50. This hurt our credit rating, and caused us to incur large interest expenses.
As we have employed more rigorous cash forecasting methods, we are confident that this
will not repeat itself in the future. To aid the implementation of our high price high quality
strategy, Le Sammco aims to achieve an employee turnover rate of 10% or less from
beginning Q1 2015 to end of Q3 2017. The employee turnover is a quantified measure of the
replacement of sales representatives who have left the firm. This allows the firm to determine
employee satisfaction with current wages and also if the firm is hiring an efficient amount of

68. 67
sales representatives. A human resource tactic used to achieve the desired turnover rate is
measuring sales expense as a percentage of sales revenue. Specifically, our target percentage
is to have sales expense to be 10% of sales revenue from Q1 2015 to end of Q3 2017. This
can be achieved by either increasing or decreasing salaries paid to our sales representative
by maintaining this 10% ratio we are achieving an adequate sales force for the amount of
sales growth. This directly correlates with employee turnover because if we do not pay
sufficient salaries, our sales representatives will leave the firm. By analyzing the two
measures, the firm can maintain an efficient employee turnover and sales expense/sales
revenue ratio of 10%, which has been achieved in Q2 2016.
To aid the implementation of our high price high quality strategy, Le Sammco aims
to achieve an employee turnover rate of 10% or less from beginning Q1 2015 to end of Q3
2017. The employee turnover is a quantified measure of the replacement of sales
representatives who have left the firm. This allows the firm to determine employee
satisfaction with current wages and also if the firm is hiring an efficient amount of sales
representatives. Maintaining an efficient turnover rate is key to the success of the firm
because the impact on our business from employees leaving our business results in additional
costs. These include the costs of hiring trainees ($3000) as well as converting them to sales
reps ($3000). This is a cost that can be avoided if our firm has an efficient sales force. An
efficient sales force can be determined when the employee turnover rate is 0%. This means
that the firm did not have to hire or fire any sales representatives. From Quarter 3, 2016 Le
Sammco used the Human Resource tactic of not hiring or firing sales representatives as the
firm believed the efficient sales force is 10 sales representatives in each area; NAFTA and
EU. This tactic has been successful as no sales representatives left the firm from Quarter 3,
2016 to Quarter 1, 2017. This tactic has been accompanied by satisfactory unit sales, in which

69. 68
the sales representatives earn commissions. Le Sammco will continue to ensure forecasting
is accurate which will help maintain an employee turnover rate of 10% or less, and in turn
help the success of the firm.

70. 69
COMPETITIVE ANALYSIS
Le Sammco Corporation’s two main competitors are Firm 48 (entered as a subsidiary of Firm
71). These are our two main competitors because they both sell aftershave and perfume
within the high end price ranges of USD$170.00 - $250.00 in NAFTA, €170.00 - €250.00
and USD$250.00 – USD$350.00, €250.00 - €350.00 respectively. The following chart is a
price comparison between Le Sammco and the two closest competitors:
Table 1: PRICE COMPARISON
Competitor NAFTA EU
Quarter 1 2017 Aftershave Perfume Aftershave Perfume
Le Sammco $225 $330 $225 $330
Firm 45
$205 $260 $205 $310
Firm 48
$225 $330 $225 $330
Table 2: PERFORMANCE MEASURES(BI-ANNUALLY)
Le Sammco Firm 45 Firm 48
Period Quarter 4 Year 2016 Quarter 4 Year 2016 Quarter 4 Year 2016
Net Sales 13,044,240.00 27,634,480.00 8,682,534.00
Advertising 292,500.00 1,480,000.00 580,000.00
Quality Control 493,530.00 840,000.00 400,000.00
Net Income 2,870,224.00 6,309,798.00 1,735,551.00
Assets 8,713,386.00 19,591,420.00 2,877,800.00
Total Liabilities 4,944,183.00 11,054,710.00 967,500.00
Shares
Outstanding
900000 623700 300000
Retained Earnings 1,021,818.00 6,595,878.00 1,585,551.00
Dividends Per
Share
2.00 2.30 1.00
Earnings Per
Share
1.10 1.54 3.93
Stock Price 5.0075 13.10 11.26

71. 70
FIRM 45: has a high price, high quality strategy and a Net Present Value Ranking of 25.
Based on the initial shares outstanding of 700,000, we can determine that they are a
manufacturer. Looking at table 1 above, Firm 45 entered the four product markets at a price
of US$205.00 and US$2600.00 in NAFTA and €205.00 and €310.00 in the EU for aftershave
and perfume respectively. Based on the data in table 2, Firm 45 had net sales of
USD$27,634,480.00 in Quarter 4, 2016, which is double the net sales of Le Sammco for the
same period. Although Le Sammco has the highest price, we believe that our competitor’s
volume of sales is much higher than Le Sammco and this is why they have a higher Net
Present Value Ranking.
As seen in table 2, Firm 45 spent five times the amount of money for advertising
compared to Le Sammco. This marketing tactic helped our competitors to gain more
exposure and probably higher market shares to consumers. Furthermore, Firm 45 spent
almost twice as much money on quality control, but this operational tactic did not affect Le
Sammco as it has always met its measure of success of less than 5% product returns. We also
analyzed Earnings per Share (EPS) ratio against Firm 45 of USD$1.10, compared to
USD$1.54 EPS. It can be concluded that Firm 45 was more profitable than Le Sammco.
Another important variable is Net Income. Le Sammco’s Net Income was
$2,870,224.00 in Quarter 4, 2016 compared to Firm 45 Net Income of USD$6,309,798.00.
It can be explained by the fact the Le Sammco does not have as many expenses as Firm 45.
Our firm could spend more money on advertising, ultimately increasing our net sales and
increasing our Net Income. This financial tactic would also help to increasing our Net Present
Value Ranking.
Retained Earnings of USD$1,021,818.00 for Le Sammco are much smaller than Firm
45 of USD$6,595,878.00. As Retained Earnings allow a firm to reinvest money into the

72. 71
business, pay debts or rewards the shareholders, Le Sammco needs to change the financial
tactics to increase Net Income.
Currently, Le Sammco’s Net Present Value is 2.48 and its Net Present Value Ranking
is 49 and Firm 45 Net Present value is 6.62 with a Net Present Value Ranking of 25. In order
to compete with Firm 45, Le Sammco will apply the different tactics mentioned above in
order to increase its Net Present Value Ranking.
FRIM 48: Le Sammco’s second main competitor, Firm 48 has a high price, high quality
strategy and has a NPV Ranking of 27 with an NPV of 6.38. Based on their initial shares
outstanding of 300,000 it can determine they are a distributor. Firm 48 entered into the
industry as a subsidiary of Firm 71 in Quarter 2, 2016. Firm 48 entered the four product
markets at a price of $215 and $320 for aftershave and perfume, respectively. This tactic by
Firm 48 was a direct initiative to take our customers by undercutting our price by $5.00. To
maintain Le Sammco’s high price high quality we used the marketing tactic of raising the
price of perfume by $5.00, resulting in a price of $330. Unfortunately we did not anticipate
Firm 48 to further raise their price in Quarter 1, 2017 to match Le Sammco, as seen in Table
1.
Moving forward, as a new entrant with the same high price, high quality strategy Firm
48 became a main competitor, in which Le Sammco will need to pay close attention to as we
compete for a higher NPV Ranking. Since Firm 48 has a NPV Ranking of 27 and Le Sammco
has a NPV Ranking of 49 as of Quarter 1, 2017, it can be determined that Firm 48 has been
more successful in implementing their strategy. The tactics to improve our competitive
position against Firm 48 are based on the performance measures outline in Table 2.
As seen from Table 2, Firm 48 has an Earnings Per Share (EPS) ratio of USD$3.93,
compared to Le Sammco’s USD$1.10. EPS is an important measure to a firm’s profitability.

73. 72
By analyzing this measure, it can be concluded that Firm 48 is more profitable than Le
Sammco. EPS is calculated by subtracting Dividends of Preferred Stock from Net Income
then divided by number of shares outstanding. A financial tactic Le Sammco can use to
increase EPS is decrease the denominator of EPS calculation; outstanding shares. To do this,
Le Sammco can repurchase shares which will decrease the firm’s shares outstanding, thus
increasing EPS. Net Income is another variable that determines EPS. Although Le Sammco’s
Net Income is greater than Firm 48 (Refer to Table 2), the variables that determine Net
Income are the deciding factor which enables Firm 48 to have a higher EPS. Since Net Sales
for Le Sammco are greater than Firm 48, it can be realized that the Expense for our firm are
greater than our competitors. Another financial tactic that can be implemented by Le Sammco
is to reduce expenses. In quarter 1, 2017 Le Sammco incurred depreciation costs of $151,550,
which is relatively high for one quarter. Although there is an uncontrollable depreciation of
0.001%, increasing the maintenance budget can diminish depreciation to only be incurred at
this rate. . This tactic of increasing the maintenance budget, although increasing maintenance
expense, will decrease depreciation to an acceptable level relative to maintenance expense.
This will decrease overall expenses, increase Net Income, and therefore increase EPS to an
amount that will allow Le Sammco to be more competitive against Firm 48.
Retained Earnings are another key determinant to the success of a firm. Retained
Earnings allow a firm to reinvest money into its business, pay debt or reward their
shareholders by paying dividends. In Quarter 4, 2016 Firm 48 had a positive Retained
Earnings of $1,585,551 compared to Le Sammco which was $1,021,818. Retained Earnings
is calculated by adding Beginning Retained Earnings and Net Income then subtracting
Dividends Paid. Therefore, Net Income is a variable that can increase or decrease a firm’s
Retained Earnings. To compete with Firm 48, Le Sammco can implement the financial tactic

74. 73
of increasing Net Income. As previously mentioned this can be achieved by reducing
Expense. Another way to increase Net Income would be to increase the firm’s Net Sales. A
marketing tactic to increase Net Sales would be to increase the firm’s advertising to increase
Net Sales at an exponentially greater rate than expenditures on advertising. Firm 48 has a
similar product to Le Sammco, but have higher expenditures on advertising as seen in Table
2.
Competing against Firm 48 and beat them in the NPV Ranking will be a difficult task
for Le Sammco. Currently Le Sammco has an NPV of 2.48 (NPV Ranking 49), whereas Firm
48 has an NPV of 6.38 (NPV Ranking 27). However, with the different tactics previously
mentioned regarding the different aspects of the firm, Le Sammco can improve their NPV
Ranking to a competitive level compared to Firm 48.

75. 74
BUSINESS ENVIRONMENT
The overall business environment has been a favourable one beginning in Quarter 1 of 2105,
with robust growth being realized in the economies of NAFTA and the EU. The EU grow at
a pace slightly faster than its North American counterpart and both politicians and the mass
population alike were relieved to leave the Great Recession behind them. Despite high tax
rates, those in the top income brackets were still seeing large gains and the middle class
segments were better off if they were able to keep a job during the recession, leaving them
with more disposable income for luxury goods. Throughout the 2015-2016 years, central
banks viewed large inflationary increases as a potential problem.
Prices in the auto sector of both economies remained stable and tax income received
by the government increased steadily due to the robust growth. Consumer confidence indexes
in NAFTA and the EU reported that consumers were willing to spend more money, which
was good news for Le Sammco as a high price/high quality producer. China’s growth also
remained quite strong with minor silent protests across several major cities aimed at
corruption and a wide income decadency. Prices were on the rise for raw materials along
with cost of living increases due to the growing economies, which placed pressure on the
labour markets as employees began to push for wage increases of at least 10%. Le Sammco
is proud to state that this increase was gladly matched. The end of 2015 saw short-lived
strikes in the raw materials market, which Le Sammco prepared for by stock piling essential
materials for production.
2016 began with transportation costs and raw material costs increasing slightly, with
unemployment down in the EU and demand for housing in the EU on the rise and Canada’s
personal income levels accelerating faster than those in the U.S. higher demands in the scent

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industry lead to higher prices and growing profits for most firms in the industry. Inflation,
however, grew at a faster rate than GDP in the EU, with people of retirement age collecting
pensions having to make cost of living adjustments to cover heating and medical costs. Most
firms and politicians in NAFTA and the EU agreed that some upward salary adjustments
were needed given rising inflation.
The year 2016 ended with higher interest rates and more tolerable inflation levels as the
economies of NAFTA and the EU reigned in on the excessive robust growth rates. Firms that
did not meet manufacturing employee demands of at least a 10% wage increase saw a 40%
to 50% production slowdown. Thankfully Le Sammco was not affected.
2017 was anticipated to be a strong year for growth, despite labour unrest expected
in NAFTA and China continuing to experience growing pains. Governments will refocus
their efforts on global warming issues and NAFTA firms that moved to China slowly moving
back into the NAFTA region. Credit is expected to be tight and interest rates high in NAFTA
and the EU.
CORPORATE RESPONSIBILITY
Our commitment to corporate responsibility extend beyond our vision, missions and the
values. It is integrated into our operation and business practices. We acknowledge that the
long term success and sustainability of our business is closely linked to the trust our
customers and stakeholders have in our business.
ENVIRONMENTAL RESPOSIBILITY
Our organization policy commits Le Sammco to be accountable and sustain growth while
protecting and conserving the environment and supports the fundamentals of sustainable
development in NAFTA and EU.

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SHAREHOLDERS & INVESTORS INFORMATION
Corporate Headquarters
Street Address:
Ted Rogers School of Management - 55 Dundas Street West Toronto, Ontario M5G 2C5
Canada
Telephone Number:
(416) 979 – 5000
Fax Number:
(416) 979 – 5001
Mailing Address:
P.O. Box1 55 Dundas St. West Toronto, Ontario M5G 2C5 Canada
Stock Exchange Listings
(Symbol: AF78)
Common shares are listed on:
Canada – Toronto Stock Exchange (TSX)
U.S – New York Stock Exchange (NYSE)
Netherlands – Euronext
Contact:
For more information contact our Le Sammco Corporation Shareholder Investment
program, or visit our website and for future information contact us at: info@lesammco.com