Metric: Operating Profit w/o Bonus/Taxes (% of Net Revenues) Income Total Annual Net Revenues

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1 DECK s KPI s & Metrics The following 26 KPI s and metrics are standard inside of Spieker Point s DECK web ecosystem. Deploying DECK to get this information at a customer site is as simple as creating a data bridge to the accounting or ERP system. Metric: Operating Profit w/o Bonus/Taxes (% of Net Revenues) Income Before Tax & Profit Share This is how much the firm generated in profit, as a % to net generated revenue, before taxes and profit sharing, including non- operadng profits (ie. investment income). Net generated revenue is used to provide a more predictable method for comparing results in the case of highly fluctuadng levels of direct expenses (ie. costs on subconsultants), w/o Ownership Dividends, Management Fees, and Management Profit Sharing. Metric: Operating Profit ( % of Net Revenues) Income This is how much the firm generated in profit, as a % to net generated revenue, before taxes and profit sharing, including non- operadng profits (ie. investment income). Net generated revenue is used to provide a more predictable method for comparing results in the case of highly fluctuadng levels of direct expenses (ie. costs on subconsultants). Metric: Net Revenues per Direct Labour Hour Total Hours Charged to Projects 1 of 7

2 This is the average net revenue earned by the firm for each hour charged to a project (ie. direct labour hour). Metric: Net Direct Labour Multiplier This is the firm's achieved muldplier for the fiscal year. It measures the ability of the firm to cover both direct project labour, the firm's overhead, and provide a margin of profit. Metric: Net Payroll Multiplier (e.g. Revenue Factor) (Direct Labour Expense + Indirect Labour + Fringe Expense: VacaDon, Sick, Holidays+ Business Development Expense: Labour) This is the rado of net revenues to total payroll dollars and is an alternadve to monitoring both net muldplier achieved and labour udlizadon rate. It is equal to the net muldplier achieved Dmes the labour udlizadon rate. Metric: Net Revenues per Total Staff Current Staff Count This is average net revenues generated for each of the firm's employees (includes principals, technical and non- technical employees). Metric: Net Revenues per Total FTEs Current FTEs 2 of 7

3 This is average net revenues generated for each of the firm's employees (includes principals, technical and non- technical measured in full- Dme equivalents, based on 2,080 hours per annum). Metric: Operating Overhead Rate (before Incentive/Bonus) Total General Overhead This is the rado of all general overhead costs to the direct labour expenses charged to projects. Metric: Chargeability Ratio (Payroll Dollars) (Direct Labour Expense + Indirect Labour + Fringe Expense: VacaDon, Sick, Holidays+ Business Development Expense: Labour) Metric: Chargeability Ratio (Payroll Hours) (Direct Labour Hours + Indirect Labour Hours + Opportunity Labour Hours) Metric: Direct Labour Costs per Direct Labour Hour Total Hours Charged to Projects This is the average cost of labour for all billable hours. 3 of 7

4 Metric: Average Collection Period (Days) Average Accounts Receivable (Total Annual Gross Revenue/365) This is the average number of days it takes for the firm to be paid for services rendered (ie. collect accounts receivable) Metric: Work in Process (e.g. unbilled fees) (Days) Metric: Equity per Total Staff Average Work in Progess (Total Annual Gross Revenue/365) Total Equity Current Staff Count Metric: Target Direct Labour Multiplier Target Direct Labour MulDplier The firm's aggressive target muldplier. Can be compared to KPI #3 - Net Direct Labour MulDplier Achieved Profitability Metric: Gross Revenue Change % Change in Gross Revenue over past 12 months 4 of 7

5 Metric: Backlog Change % Change in Backlog over past 12 months Metric: Staff Size Change Current Staff Count - (Current Staff Count - Staff Joined + Staff Leh) (Current Staff - Staff Joined + Staff Leh) The current rado is a measure of short- term financial strength. A commonly used measure that indicates the firm's ability to meet current liabilides using current assets. Metric: Current Ratio - excl. Deferred Taxes Current Asset (Current LiabiliDes - Deferred Taxes) The Current RaDo is mainly used to give an idea of the firm's ability to pay back short- term liabilides (debt and payables) with short- term assets (cash, inventory, receivables). The higher the current rado, the more capable a company is of paying its obligadons. Indicator/ Ra0o Type: Liquidity Metric: Current Ratio Current Asset (Current LiabiliDes) The Current RaDo is mainly used to give an idea of the firm's ability to pay back short- term liabilides (debt and payables) with short- term assets (cash, inventory, receivables). The higher the current rado, the more capable a company is of paying its obligadons. Indicator/ Ra0o Type: Liquidity 5 of 7

6 Metric: Days Sales in Receivables Receivables (Sales / 365) The Days Sales in Accounts Receivable RaDo, also known as the number of days of receivables, indicates the average number of days it takes to collect an account receivable. Since this indicator is an average, caudon should be exercised when using it. Metric: Occupancy Cost Ratio Rent + UDliDes + Taxes Total Revenue Occupancy costs are those costs related to the firm's occupancy of space including; rent, taxes where ownership is applicable, insurance on building and contents, depreciadon, and amordzadon expenses. Metric: Overhead Cost Ratio Overhead Expense Total Revenue The Overhead Cost rado explains the difference between the gross margin and operadng margin. It shows what propordon of sales is spent on overhead, also called sales, general and administradve costs. These are all operadng costs other than the cost of goods sold. Metric: Gross Profit Margin Revenue Direct Expense Gross profit is a very simple measure of profit. Given that it excludes many costs, including all overheads and all financing costs, it is not a good measure of how profitable the firm may be as a whole, but rather of how much of a markup can be made on sales. Gross margin is also a measure of efficiency. If a company has a higher gross margin than its peers it must either have 6 of 7

7 differendated its products so as to get a higher price, or it must be more efficient and have lower costs. Metric: NET Profit Margin Net Profit Total Revenue This firm's Net Profit Margin following the issuance of Management Fees or Dividends. Metric: Aged WIP > 30, 60, 90, >120 Days Aged Work In Progress (WIP) shows the value of work complete but not invoiced, and allows the firm to quickly determine what hasn't been invoiced in order to establish why and when. 7 of 7