Rene Eringaard - Timeline - 2008

XS2 - Year 2008 net sales: € 14 million

2008:

In this 12th full year of activities the net sales of XS2 is € 14 million.


Global financial crisis:
XS2’s net sales turnover and gross profit margin proceed according to plan until September 2008. 
In October 2008 the economic crisis is starting to put pressure on XS2’s net sales turnover and gross profit margin.
Market demand is weak. This is an abnormal situation. In Q4 normally IT companies were making most of their sales and profit.

Anyway, the stock markets were dropping worldwide, the housing market collapsed.
Unemployment started to rise causing a decline in consumer wealth and spendings.
Resellers of XS2 failed in their business causing financial damage to XS2.

The Dutch State bails out/nationalizes Dutch banks with taxpayers money, preventing a collapse of the Dutch banking system.

Global financial crisis:
The financing banks ABN-AMRO and ING.

In October 2008, the Dutch State acquired FBN (including ABN AMRO Netherlands) for € 17 billion to prevent a collapse of this bank.
In October 2008, the Dutch bank ING received a capital injection from the Dutch State of €10 billion to prevent a collapse of this bank.

In other words:
Rene Eringaard and XS2 had to deal with new banking contact persons, new tight banking and financing rules.
This unpredictable behavior of the banks will continue the next 3 years.
It is blocking XS2’s normal way of doing business immediately and significantly for the next 3 years.

Global financial crisis:
Trade insurance company Atradius.
(Insurer of credit lines from XS2 to it’s resellers)

XS2’s resellers are facing minimized credit lines.
Atradius is cancelling and/or decreasing credit lines to XS2’s resellers.

In other words:
Atradius is reducing it’s risk.
It makes it more difficult for XS2 to supply goods on a credit line to these resellers.
This behavior by Atradius has nothing to do with the financial situation of XS2.
This unpredictable and rude behaviour of Atradius will continue the next 3 years.
It is blocking XS2’s normal way of doing business immediately and significantly for the next 3 years.

Global financial crisis:
Trade insurance companies Coface and Euler Hermes.
(Insurer of credit lines from manufacturers to XS2)

Regularly meetings with Coface and Euler Hermes became necessary.
Several times they suddenly stopped the credit lines to XS2 without notifying in advance.
Resulting in the fact that manufacturers could not ship goods to XS2
Supply of goods to XS2 became unreliable.
This unpredictable and rude behavior of Coface and Euler Hermes will continue the next 3 years.
It is blocking XS2’s normal way of doing business immediately and significantly for the next 3 years.

Global financial crisis:
Rene Eringaard’s capital injection into XS2.
Rene Eringaard decides to have a shareholders meeting to propose:
1: A capital injection into XS2 paid by all the shareholders.
2: Decrease of monthly salaries in order to reduce operating costs.

The 3 indirect minority shareholders refuse to inject capital into XS2.
The 3 indirect minority shareholders, as an employee they refuse to decrease their monthly salary.

Rene Eringaard decides to deposit in a private capacity a sum of Euro 400.000 as a share capital into XS2.
Thus supplementing XS2’s own capital.
Rene Eringaard decreases his management fee with 50%.

Because of the fact that 3 indirect minority shareholders of XS2 refused to inject capital,
their percentage of shares decreased significantly from indirectly 40% to indirectly only 20%.

Before Rene Eringaard’s capital injection in year 2008:
Indirect control of shares within XS2:
Shareholder Rene Eringaard : 60%
Shareholder 2                    : 20%
Shareholder 3                    : 10%
Shareholder 4                    : 10%

The 40% minority shares has been given to 3 employees during establishment of XS2.
In other words:
Rene Eringaard gave these 3 employees during establishment of XS2 the amount of money to be invested,
so that they could become a shareholder.

After Rene Eringaard’s capital injection in year 2008:
Indirect control of shares within XS2:

Shareholder Rene Eringaard : 80%
Shareholder 2                    : 10%
Shareholder 3                    : 5%
Shareholder 4                    : 5%

 

XS2 becomes distributor for following manufacturers:
Topstar - notebooks - (China), Raidon Technology (Taiwan), Patriot Memory (USA/Taiwan)


Awards:
XS2 receives the "Clevo Excellent Partner" award.


XS2 receives the "AMD Platinum Partner" award.


XS2 receives the "Intel Channel Partner Premier Member" certificate.


XS2 receives the "Microsoft Gold Certified Partner" certificate.


XS2 receives the "MSI Outstanding Partnership" award.


Reviews in magazines:
Dutch Consumer Guide Magazine
XXODD notebook XNi8515 tested as notebook with best energy saving.


PCM Magazine
XXODD 8212 ultra light magnesium alloy notebook receives "Best Buy" award.

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© XS2, Sourcing, Factory Audits, Branding, Marketing, Sales Channel Development, Consultancy, Taiwan Republic of China, the Netherlands, Rene Eringaard.

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