Linda Martin, Senior Vice President of Worldwide Sales, presented an executive summary and strategy for the coming year. The company saw steady revenue and profit growth over the past three years. A review of current products, last year's profits, 2005 sales research, proposed new products, costs and investment projections, terms and conditions, and sales and marketing strategy and needs were discussed. Questions from attendees were invited at the end.

1. TWITTUH
LINDA MARTIN
SENIOR VICE PRESIDENT
WORLDWIDE SALES
MARCH 24, 2005

2. EXECUTIVE SUMMARY
The Concept
• Just-in-time retail inventory
The Opportunity
• Reduced overhead costs
• Increased customer satisfaction
The Potential

3. WHAT WE’LL COVER
TODAY
A review of our current products and profits
2005 sales research
Proposed new products
Costs on return and investment projections
Terms and conditions
Strategy and schedule
Sales and marketing needs
Questions and answers

4. OUR CURRENT
PRODUCTS
Camping Climbing
• Duffel Bags • Harnesses
• Daypacks • Climbing shoes
• Family camping tents • Helmets
• Foam sleep pads • Rappel gloves
• Internal frame packs • Rope bags
• Cookware • Carabineers
• Dehydrated food packs • Gaiters

5. PREVIOUS YEAR
PROFITS
(IN MILLIONS)
2002 2003 2004
Revenue 10.1 27.7 50.0
Cost of Goods 1.8 3.1 4.6
Gross Profit 8.3 24.6 45.4
Total Expenses 3.03 8.1 15.3
Pre-Tax Profit 5.27 16.5 30.1
Pre-Tax Profit as
64.6% 59.6% 60.2%
Percent of Revenues

6. 2005 SALES
RESEARCH
Customers
• 2005 is projected to attract 920,700 new customers
• 27% of first-time customers have become repeat customers
Transactions
• Average sale transaction = $52.17
• 75% of customers have bought at least 1 non-sale item in
addition to a sale item

7. PROPOSED NEW
PRODUCTS
Survival gear
Sportswear
Outerwear
Off-road bicycles
Fishing equipment and tackle
Canoes and personal rowing shells

8. COSTS OF RETURN ON
INVESTMENT PROJECTIONS
Costs
ROI
80
60 Costs
40 ROI
ROI
20
Costs
0
'06 '07 '08 '09

9. TERMS AND
CONDITIONS
Terms and conditions #1
Terms and conditions #2
Terms and conditions #3
Terms and conditions #4
Terms and conditions #5

10. STRATEGY AND
SCHEDULE
Strategy
• Tactic #1
• Tactic #2
• Tactic #3
Schedule
Adopt plan Implement Evaluate Adjust
3Q05 4Q05 3Q06 4Q06

11. SALES AND
MARKETING NEEDS
Close sales faster
Present complex concepts quickly and clearly
Leverage database information (sales numbers, customer
locations, etc.)

12. CLOSE SALES FASTER
Need and solution #1
Need and solution #2
Need and solution #3
Need and solution #4
Need and solution #5

13. CONCEPTS
QUICKLY AND
CLEARLY
Need and solution #1
Need and solution #2
Need and solution #3
Need and solution #4
Need and solution #5

14. LEVERAGE DATABASE
INFORMATION
Need and solution #1
Need and solution #2
Need and solution #3
Need and solution #4
Need and solution #5

15. QUESTIONS AND
ANSWERS