Annual

Report

Organizational Structure

CFO - Chief Financial Officer

COO - Chief Operations Officer

CEO Chief Executive Officer

CMO - Chief
Marketing Officer

CIO - Chief
Information Officer

Agenda

Organizational Structure
Vision & Mission
Strategy 1.0
Goals
Val u e C r e a t i o n
Highlights
M a r k e t An a l y s i s
Financial Overview
Future Plans

Vision
Our vision at SilverStream is to be the leader in the MidLuxury Market and offer our customers an experience to
remember.

Mission
It is our Mission to deliver high quality service to midluxury and luxury customers & to build an everlasting
relationship with our customers.

Strategy 1.0
Cost & Differentiation Focus:
Maximize quality and reliability while maintaining affordable fare price,
Established local hubs in Markets - D, E, and F to become a market leader in the MidLuxury Segment.

To gain & maintain market share

Establish SilverStream Airlines as a premier mid-luxury carrier in every
market it serves

Consistently donate to society for the betterment of education

Maintain low debt to equity ratio & increase stock price by at least
50%

Initial Strategy to Meet Goals

Our Variables
Aircraft Own 1 Embraer Brasilia and Lease 1 Brasilia
Financing how much is our long-term debt in quarter 1 or 2?
Do not enter cargo transport business
Marketing Stat slow with marketing - $9000
Market Differentiation in Mid-Luxury
Focus on fleet differentiation - Exclusive operation of Brasilia
Highest level of maintenance as our quality increases
Provide high quality training
Serve mid-luxury and move to luxury in the later quarters

Challenges for SilverStream Team

Airlines 3 and 6 are our direct competitors
Expand and increase market share while maintaining our
stock price
Matching the route demand with our fleet supply
Maintaining a low fare price even while delivering a high
quality service
Special Decisions

Strategy 2.0

Strategy 1.0

Strategy 2.0

Establish in D, E, F

Focus on E

Lowest mid-luxury fare with high

quality

Highest quality with moderate fare

Moderate Maintenance

Full protective Maintenance

More time for maintenance by underflying

Utilize the full capacity of our fleet

Special Decisions
- Adam, explain the hell out of this

Challenges for SilverStream Team

Plots
- Stock by time
- Net income by time
- Debt/equity by time
- Markets by time, seats sold per flight by quarters

Strategy 2.0
Plots
- Markets and quarters
- Route structure
- Results of strategy 2.0
- Added promotion per seat with quarters
- Quality management per employee
- Just plot a lot more shit

Financial Overview

Financial Overview
When We Took
over
Net Revenue

Now

$1,235,842

$4,487,153

EBIT

$37,056

$324,538

EPS

$0.15

$1.30

Stock Price

$20.00

$35.32

Slow but steady growth

$800,000.00

$550,163

$600,000.00

Silver Stream
$400,000.00

Competition Average

$245,500

$262,147

$399,272

$156,738.00

$200,000.00

$298,352.00

$323,547

$194,723.00

$187,958.00

$60,375.00
$22,234.00
$-

$(200,000.00)

$22,234

$(214,901.00)
($304,124)

$(400,000.00)

$(426,929.00)

$(600,000.00)

($629,965)

$(800,000.00)

Debt to Equity
SilverStream vs Air Endeavor & Air Peregrine DD
6.00

D/E Ratio Comparison

5.39
5.00

Silver Stream D/E Ratio

Direct Competitors Average D/E
Ratio

3.82

4.00

3.23

3.04

3.00
RATIO

2.82

2.76

2.42

2.20

2.07

2.00
1.48
0.97

1.00
0.27
0.00

1.31
0.92

0.88

0.27
0

Quarter

Stock Price
$50.00
46.6

44.16

$45.00

42.13

Silver Stream Stock Price

$40.00

39.84

Air Endeavor Stock Price

$35.00

38.41
$38.33

40.15
36.65

38.13

Air Peregrine Stock Price

$31.79

$35.32

$33.21

$30.00
27.49

$26.62
$25.00

$20.00
$20.00

20

16.45
$15.41

$15.00

14.79
$10.00

12.99
$11.56
10.9

8.49

$5.00

$-

Return on Equity
40.00%

19.60%

20.00%

1.30%
1.30%
0.00% 1.30%
0

5.50%
-2.20%
1

-3.70%
3

12.50%
12.40%

13.00%

13.20%

7.20%
8.70%

17.10%
11.30%
9.80%

7.40%
5.40%
6

-14.60%
-20.00%

-40.80%

-40.00%

-50.10%

ROE SilverStream

-52.60%

ROE Air Peregrine

-60.00%

ROE Air Endeavor

-80.00%

-100.00%

-77.80%

10.00%

What we should have done

Decrease the marketing budget
Enter more markets initially instead of in later quarters to
establish market leadership
Pay off more debt in the starting
Issue stock initially

Future Plans
-

Explore the possibility of acquisition of other airlines

Invest in cargo business based on market research
Increase dividends
Increase wage compensation
Pay off long-term debt