Letter to Stockholders
To our Stockholders,
Thank you for supporting Company NN. The last four quarters has definitely been a challenging one for the Cereal industry where many cereal companies compete in the same market. Company NN has been striving to become the first choice in cereal that provides customers with the best quality and the best price. In order to achieve this, it requires a long-term strategy that will be executed fully over the next few years. In the last four quarters, we have successfully launched the six customer tailored products for three regions. For each distribution channel, we chose specific packages to meet our distributors’ requirement on packaging. By investing in reduction of setup time, we were able to change our production faster in order to meet changes in customers’ preference and market trend. We also invested in production equipment thereby reducing batch size to support our LEAN manufacturing philosophy. In doing so, we successfully attained production flexibility while incurred only a small amount of extra interest expense due to the early investment in long-term equities that spread out investment cost during the whole machine life. Also, our credit rating was consistently the best in the industry, proving that we are headed in the right direction. With the highest AAA credit rating, we had an advantage of taking banks loans at a low cost, which, in turn, further lowered our total cost. For next year, as we continue to price specific products more carefully, while keeping the average market prices in mind, it will allow us to launch more region specific products and continue to innovate and improve our products which will set higher standards of success and expect higher customer
