Prepared for Senior Management of Intueor Consulting Inc

Prepared for Senior Management of Intueor Consulting Inc. Firm Analysis, Valuation and Recommendation

Agenda I. Industry Overview II. Fundamental Analysis III. Working Capital IV. Cash Flow Management V. Risk Assessment VI. Valuation VII. Recommendation VIII. Summary Saturday, June 19, 2021 2

I. Industry Overview Saturday, June 19, 2021 3

The Industry - Management Consulting Revenue Profit Annual growth (09 -14) wages Annual growth (14 -19) Business $153. 4 bn $18. 7 bn 5. 1% Intueor Public Sector: § § § Plan, design & implement Operate & Maintain Administration (Human Resource, Finance) Capital Programs Transportation/Transit Operations Administrative Functions Saturday, June 19, 2021 $69. 5 bn 3. 3% 590, 160 Strategy Targeted public sector organizations to create and maximize Business Value 4

Benchmark Firms Private: Information Management Resources, Inc. § § § Client Base § Government entities and commercial clients Services § Streamlining operations § Cost management § Return maximization on technology investment Location § Aliso Viejo, California Revenue § $8. 2 Million (2013) § 18. 9% CAGR (3 Years) Productivity § $117, 143/Employee (2013) § 70 Employees Public: Booze Allen Hamilton § § Saturday, June 19, 2021 5 Leading consulting firm in public sector Client Base § U. S Government § Civilian Agencies § Defense and Intelligence § Commercial entities § Energy/Financial/Health § High-tech manufacturing § Specialized services Services § Management/engineering/IT/Product consulting § Strategic innovation Financials § Market Capitalization $4. 3 B § Revenue 2013 $5. 33 B § Diluted EPS $1. 54

II. Fundamental Analysis Saturday, June 19, 2021 6

Du. Pont Model The core value of a firm, aside from being societal responsible, is the ability to generate return for its stakeholders. § Operating efficiency § Profit margin § Assets utilization efficiency § Assets turnover § Financial leverage § Equity Multipler § Return on assets § %Return on per dollar equity invested by stakeholders Saturday, June 19, 2021 7

Du. Pont Model Comments Saturday, June 19, 2021 8 § Profit margin is higher due to tax shield from the corporate structure § Intueor’s higher assets turnover is contributed by steady revenue and low capex § BAH has unusual heavy financial leverage, while Intueor has been stable with its debt level § Accounts payable is the major financial obligation

Profitability Metrics Saturday, June 19, 2021 9 § EBITDA margin is in-line with net profit margin due to low Capex resulting in minimal depreciation and amortization § Higher ROE is a benefit from financial leverage of high accounts payable (cheap financing from supplier)

Efficiency Metrics Saturday, June 19, 2021 10 § A/R DSO is 4 -6 x higher than A/P DSO due to the nature of conducting business with government entities § The cheap financing function of A/P is not utilized according to A/R and A/P as % of Sale

III. Working Capital Analysis Saturday, June 19, 2021 11

Working Capital Structure § Excessive accounts receivable indicates insufficient attention on the collection process § A/P should be utilized to increase cash management efficiency Saturday, June 19, 2021 12

Working Capital Schedule § Working capital level is ideal in year 2012 -2013 § Accounts receivable collection policy alert Saturday, June 19, 2021 13

IV. Cash Flow Analysis Saturday, June 19, 2021 14

Net Income vs. Cash from Operation § In 2012, accounts receivable has decrease and accounts payable has increased, which indicated ideal cash management § 2013 -2014 has suffered from slow revenue growth (decline in 2014) § Accounts receivable increased $418, 035 in 2014 § Decrease in current liability totaled $248, 655 Saturday, June 19, 2021 15

V. Risk Analysis Saturday, June 19, 2021 16

Dimension of Risk Business Risk § Future revenue growth uncertainty Geopolitical Risk Government Regulation § Arising competition § Micro-level political risk Financial Risk Firm-Specific Risk § Interest rate hike § Recruiting qualified employees § Inadequate cash flow management Saturday, June 19, 2021 § New Administration in 2016 § Expansion to private sector 17

VI. Valuation Saturday, June 19, 2021 18

Valuation Methodology Method Discounted Cash Flow Assumptions § § § Based on industry projections (IBIS World) § Additional assumption based on historical performance § EBITDA multiple determined through guideline company data Perpetuity method discount rates computed without mid-year convention WACC according to industry figures Cost of Equity § Beta estimated according to benchmark firm and adjusted to reflect the size of the firm § Risk free rate: 2. 4%, market risk premium: 9. 3% Cost of Debt § Cost of debt assumed slightly below 30 -year fixed mortgage § Marginal tax rate: 0. 00% Guideline Transactions Guideline Public Companies Saturday, June 19, 2021 § Multiple metrics: - EV / Revenue § Range of +/- 5% around chosen multiples (based on guideline transactions) § § Multiple metrics: - EV / Revenue Metrics: metrics: - EV / EBITDA Metrics: metrics : - P/E ttm Range of +/- 5% around chosen multiples (based on guideline companies) 19

Intueor – Financial Data Comments § Revenue has declined in 2014 because of unexpected events, future growth is promising § Revenue growth is conservatively forcasted § EBITDA is closely inline with unlevered cash flow because of low Cap. Ex Saturday, June 19, 2021 20

Intueor – Valuation EBITDA multiple 11. 0 x Perpetuity growth 1. 5% WACC 9. 7% Enterprise value $7, 333. 2 – $8, 105. 1 Comments Saturday, June 19, 2021 21 § GPCM (P/E ttm) exceeds other methods because of taxation lowered their earning in comparison to Intueor § Target price range for acquisition is valued at $8. 0 ~ 9. 0 million

VII. Recommendation Saturday, June 19, 2021 22

Recommendation Revenue Growth § § Expansion into private sector Marketing Raise service price Further differentiation Current Employee & Recruiting § Employee training for new business § Recruiting new employee to reduce outsourcing cost and build intangible value Capital Investment § Increase financial leverage to purchase a office space § Tax treatment Accounts Receivable Collection § Strictly enforce contract terms § Tighten credit policy to public sector clients § Differentiation Public vs. Private Internal Policy § Travel expense and G&A has increase 1300% and 25% respectively over the past two years § Enforcing reimbursement policy § Rigorous spending guideline Saturday, June 19, 2021 Long Term Goal § The next generation § IPO § Merger & Acquisition 23

Contact Details Runhao Zeng (Phillip) Address: 24255 Pacific Coast Highway, Malibu, CA 90263 Tel: (213)-500 -1246 • Runhao. Zeng@Pepperdine. edu • (213)-500 -1246 Jiachen Zong (Jason) • Jzong 2@Pepperdine. edu • (323)-889 -9009 Xi Chen (Christina) • Xchen 41@Pepperdine. edu • (626)-898 -0630 Raghu Prasad Kandaswamy • Raghuprasad. Kandaswamy@Pepperdine. edu • (213)-509 -2692 Mingyan Yang (Eva) • Mingyan. Yang@Pepperdine. edu • (818)-629 -6671 Saturday, June 19, 2021 24

Appendices Saturday, June 19, 2021 25

WACC Calculation Back Saturday, June 19, 2021 26

WACC Sensitivity Saturday, June 19, 2021 27

DCF Calculation Saturday, June 19, 2021 28

Valuation Saturday, June 19, 2021 29

Multiples Saturday, June 19, 2021 30

Working Capital Schedule Saturday, June 19, 2021 31