Nicholas A Clementi

Seasoned CEO * Executive Coach* *Turn Around Consultant*

High Growth Marketer*

Nick Clementi CEO & Executive Consultant

– Executive Experience– Community and Economic Development Involvement– Experience Serving on and Working with Boards – National Perspective and International Experience – Working with both small and large firms– Advertising and Sales background, with strong

operational leadership– Experience in Union and Non-Union environments

Nick Clementi

Who is Nick? Experienced CEOEnergetic LeaderMotivating SpeakerConnected ExecutiveCollaborative CoachTurn around

Management Professional

Teaching Manager

The Right Fit for any Organization

Good Listener & Team Builder

Budget Minded & Growth Oriented

Positive face for Organization

Ethical Businessperson

Well Networked

CEO/President Assignments

• Pictionary, Inc.• Contempo Colours Inc.• Beach Products• M&D Industries• Learning Horizons, Inc.• DesignWare• BalloonZone, Inc.• Diversified Graphics, Inc.• Innoware LLC

Served on Boards of Directorsand Boards of Advisors

• Pictionary/Games Gang• Contempo Colours Holding

Company• Diversified Graphics, Inc• Innoware, LLC• Howe Marketing, Inc• Biggs Gilmore Communication• Learning Horizons, Inc• BalloonZone, Inc• Redwood Candle, LLC

Broad Based Business Experience

• Channels of Trade: Active experience in food service, mass retail, gift market, party store channel, restaurants, toy stores, dollar and closeout channels and distributors

• IP and Character Licensing: Active experience with art licensing, children’s character licensing, sports licensing, game and toy development licensing and movie studio licensing.

• Broad industry experience: Managed operations in plastics, paper, printing, party goods, social expressions, crafts and toys, games and puzzles, multi media publishing, children’s books, video and music, candles, personal care products, manufacturing and flexible packaging.

• Employee Relations: Managed operations with both unionized and non-union environments across multiple geographically dispersed locations

• Advertising and PR: Extensive experience with TV, Print, Radio and Internet advertising

Advertising/PR ExperienceAdvertising Agency Experience• Golden Games – Ogilvy & Mather• Games Gang – Bohbot Media• Golden Books – Daniel Edelman PR• Biggs Gilmore Communications – Board Member• American Greetings – Donor Advertising

PR and Promotion Firm Experience• Golden 50th Celebration - Daniel Edelman PR Firm• Pictionary and Outburst - Sussman PR Firm• Golden Activities -Kessler Promotions• McDonald’s LGB Happy Meal - Simon Marketing

Public Speaking• Delta Sigma Pi -- Business Fraternity, Oxford, OH• FBLA-PBL Regional Conference -- Milwaukee, WI• GEDC-Upson County Presentation -- Thomaston, GA• Downtown Rotary -- Kalamazoo, MI

New Product & Brand Experience

• Golden Book Encyclopedia and software• Step Ahead Educational Workbooks and Multi-Media• Golden Book Video and Music• Outburst, Girl Talk, Pictionary and various game launches• “Naturals” tableware products• Nickspressions Kid stationery• Learning Horizons educational supplements• DGInventive Social Stationery• PET and Polypropylene take out food packages• First Little Golden Books, Golden Board Books and Golden

Preteen Books• Betty Crocker Cookbooks• Gold Key Comics• Whitman Coin Folders and collector products

The Leadership Approach

• Listen

• Observe

• Study

• Consult

• Collaborate

• Act

• Succeed

The Turn Around ApproachUnderstand what business you are in

– Market and customer assessment– Profitability by market segment

Assess the strengths of the Management Team to ensure success in this business– In a true turnaround, the culture must all have a laser focus– Quickly replace and upgrade where necessary

Ensure that interests of management and ownership are properly aligned– Equity and bonus structures are key to alignment

Make sure you understand the numbers and business controls– Look at key metrics

Inventory accuracy, obsolete inventory, returns and turnsPurchase and product cost variancesCollections of AR, credit defaults13 week cash flow and full year cash flow projection

– Look at profitability by customer– Ensure plan is aligned to meet any loan covenants

Define the core business and exit those non-core businesses– Management talent must be aligned with business

Cut needless expenses and costs– Look at overhead, SG&A, and short term leases and contracts– Review purchases of major inputs that affect COGS– Look at scrap levels, waste, penalties, and customer short-pays/deductions– Review contracts with outside suppliers, such as plan administrators, insurance, agencies,

advertising, and facility and operations inputsDevelop a business plan and implement it quickly and decisivelyReduce financial leverage and reduce your investment in working capital, then stabilize the business to

prepare for future growth

Case Study #1

• Beach Products was a $60 million net sales company with more than 50% of its sales volume attributed to the Disney Company from 1993 - 1996.

• Disney moved its business from Beach Products to Hallmark (reducing net sales to $29 million), and the parent company of Beach (GBFE) sold the enterprise to Nick Clementi and his co-investors in 1996.

• Company re-built to $48 million in net sales and sold at high multiple to American Greetings in 1999.

• During the three years of ownership, 500 jobs were saved, $7 million was invested in capital equipment, a new sales force was assembled, major new product lines launched and new customers acquired.

Case Study #2

• M&D Industries, Inc was a wholly owned subsidiary of American Greetings, designated “for sale” in 2002. Once so designated the CEO and others quickly resigned.

• Nick Clementi was brought in as interim CEO in January 2002.

• During the next three months the operations were stabilized, working capital brought under control, the standard cost system corrected, pricing adjusted to raise margins above break even, a sale negotiated, and transaction completed successfully.

Case Study #3• American Greetings merged Contempo Colours into

DesignWare creating a $100+ million entity in 1999.• The new DesignWare, along with other “non-card

business units, was a limited profit contributor in the American Greeting portfolio.

• In 2002 Nick Clementi was brought in as the new CEO of the Celebrate it! Group, which included DesignWare and other business units.

• A new management team was assembled, the sales team re-organized, plant and warehouse operations re-vamped, the product line totally re-energized and new customers cultivated.

• In 2003 and 2004 DesignWare was a top profit performing business unit within American Greetings.

Case Study #4

• Redwood Candle Company LLC was a privately held manufacturer and marketer of specialty candles.

• Redwood successfully gained distribution of its products in Target Stores, but was unable to handle the greater sales and was quickly depleting working capital, burning cash and missing shipments.

• Clementi and Sandhill instituted 13 week cash flow forecasts, revamped cash controls, totally re-laid out the production and distribution operations, negotiated new terms with key customers, and set up improved marketing support for the broker network to enable Redwood to successfully manage its new growth.

Case Study #5

• Mara Mi was sold to DGI in 2004 and was both draining cash and experiencing major customer service issues due to mis-handling the integration of the two divisions.

• Clementi and Sandhill revamped the entire warehouse system, instituted new computer software systems, launched new products and created new sales support mechanisms leading to the ultimate sale of the business to Gartner Studios.

Case Study #6

• InnoWare Paper was acquired by NEP in 2006 as part of a larger transaction by a major PE firm. The predecessor company was experiencing negative profitability at the time of the transaction. Clementi served as Chairman and consulted to the firm.

• A new management team was installed, new sales force hired, unprofitable customers jettisoned, new computer systems and inventory controls installed, new product development process initiated and operations streamlined.

• Clementi assumed day to day CEO responsibilities in January 2010, and the company achieved 14 consecutive months of plan achievement, totally self-funded its growth, and achieved 10% ebitda results.