The Roland

Berger 100+
program
Boosting the value of
your investments

Berlin/Düsseldorf, April 2005

BER-97005-458-01-03-E-c.ppt 1
As a private equity or distressed debt investor, this is
what you expect of your investments:
… The highest possible SECURITY in terms of the target's value and opportunities
to increase it
100+ SECURITY
… MANAGERS who recognize the need to take action and rigorously take any
necessary steps
100+ MANAGEMENT
… A PROGRAM that sets the right course within the first 100 days, so that the
expected increase in value can be achieved
100+ PERFORMANCE
… A PARTNER who is able to steer the process professionally, who can offer
his/her conceptual support, help with implementation and is by your side when
things do not go according to plan
100+ COMMITMENT
BER-97005-458-01-03-E-c.ppt 2
We have developed the Roland Berger 100+ program to
meet these expectations
100+ SECURITY 100+ MANAGEMENT
Support in making the right The right management that can
investment decision be on location quickly

100+ PROGRAM
Professional and reliable
Fast value increase project management

100+ PERFORMANCE 100+ COMMITMENT

BER-97005-458-01-03-E-c.ppt 3
This program sets the course for increasing value within
the first 100 days
60
50 70
40
30
80
90
PROJECT START: Entire support team on location
20 100 > Due diligence begins
10
60

100+ COMMITMENT
50 70
40 80 > Results of due diligence available
30
20
90
100 > Investment decision can be made 100+ SECURITY
10
60
40
50 70
80
> Investment decision made
30
20
90
100
> Interim management ready for 100+ MANAGEMENT
10 action
60
40
50 70
80
> Performance improvement program
30
20
90
100
developed 100+ PERFORMANCE
10 > Quick hits initiated
60
50 70
40 80 > Actions are being implemented – Initial results are visible
30 90
20 100 > The course is set – Value gains moving full speed ahead
10

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In our experience, the most important elements must be
addressed within the first 100 days
RESTRUCTURING SUCCESS FACTORS QUOTES FROM SELECTED
MANAGERS
Management "...Start restructur-
63%
commitment ing sooner..." "...implement
Speed 51% faster and more
rigorously.."
Total cost concept 39%
"...everything should be
Intensive project 29% done sooner and more
monitoring rigorously..."
Fine-tuning with 25%
works council "...Management
Shareholder should be
19% changed sooner…"
commitment

…our market surveys show the same results BER-97005-458-01-03-E-c.ppt 5

 Roland Berger is the ideal partner to successfully
manage the first 100 days (1)
> WE have the expertise and the tools needed to steer the process and increase
value
– Proven methodology that has been successfully applied in over 1,500 restructuring
projects
– A number of electronic and networked tools that help deliver efficient and valid
results (quick check, first audit, RBpoint, insolvency check, etc.)

> WE have the required experience and the trust of relevant market actors
– Twenty years experience in restructuring consultancy in German-speaking
countries
– Successful support for all well-known restructuring cases1)

1) Lufthansa, Metallgesellschaft, Philipp Holzmann, Kirch Media, Babcock-Borsig, Swiss Airlines, Dresdner Bank, KarstadtQuelle
BER-97005-458-01-03-E-c.ppt 6
Roland Berger is the ideal partner to successfully
manage the first 100 days (2)
> WE have a team that can provide professional support in all situations
> Approx. 150 professionals in our Restructuring & Corporate Finance
Competence Center with many years of restructuring experience
> Approx. 250 industry specialists with restructuring experience in the internal
Roland Berger network

BER-97005-458-01-03-E-c.ppt 7
The 100+ PROGRAM is divided into modules that can be
applied as required
THE PROGRAM 1. SELECTED MODULES
e Implemen
e dil ig enc c e tation
Strategic du n
100+ SECURITY Interim managem
Improv ed p e rf o rm a m o
Classic restructuri
nitoring
ent ng

100+ MANAGEMENT 2. COMBINATIONS THAT MAKE SENSE (EXAMPLES)

a) Strategic due diligence Improved performance Implementation

100+ PERFORMANCE b) Strategic due diligence Interim management

3. TOTAL SUPPORT
"Target" "Lever" "Exit"
100+ COMMITMENT > Target search > Value increase > Exit strategy
> Due diligence > Exit
Total project steering

BER-97005-458-01-03-E-c.ppt 8
 100+ SECURITY
Helping you make the right
investment decision

9
In order to make the right investment decision, you
mainly need…
> Access to the right targets
> The highest possible level of transparency regarding the target's current
financial position
> A secure feeling concerning the validity of the target company's successful
strategy and strategic development opportunities
> The greatest possible understanding of major market and competitive trends
> An initial plan for a possible exit strategy
> And lastly: A valid estimate of possible opportunities to increase the
company's value and an initial assessment of what needs to be done

BER-97005-458-01-03-E-c.ppt 10
With the 100+ SECURITY module, Roland Berger can
help you make the right investment decision …
… BY LOOKING FOR THE RIGHT
TARGETS
> Restructuring & Corporate Finance
Competence Center supports 150-200
cases per year, many of them requiring
new investors
> An internal Roland Berger network contains
a number or potential investors
> Constant market screening for possible
crisis cases
… WITH COMPREHENSIVE DUE DILIGENCE
> "Classic" due diligence that considers strategic, market
and competitive factors
> Legal & financial due diligence access through our own
network
> In addition, if necessary:
– Evaluate target
– Identify value drivers
– Draw up rough targets for performance improvement
– Define value increase potential and possible exit
strategies
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Our tools allow us to constantly screen relevant markets
and targets
Logic
Auto- Construct > Constantly screening relevant
Industry Pharma companies in relevant industries
motive -ion
Indicators (from A to Z)
STRATEGIC > A defined set of figures allows
CRISIS for a clear determination of
individual companies' crisis
EARNINGS stages

CRISIS > Extensive networks on all levels

guarantee efficient access to
LIQUIDITY targets
CRISIS > The results of regular screenings
ACCESS can be made accessible to 100+
> Excellent bank network Security investors
> Own internal network
> Committee network (Supervisory
boards, boards of directors,
trustees etc.) BER-97005-458-01-03-E-c.ppt 12
With the 100+ SECURITY module, we offer more than
classic due diligence
EXIT STRATEGIES
> 2nd placement with fin. investors
> Competitive development and
potential industry solutions
> In addition – strategies along the
value chain (e.g. upstream or down-
stream)
PERFORMANCE IMPROVEMENT
> Identify performance gaps based on
benchmarks
> Define levers for performance
improvement
> Draft rough targets
CLASSIC DUE DILIGENCE
> Uncover strategic risks
> Determine strategic positioning
100+ >
>
Identify market development, trends
Assess competitive situation
SECURITY > Evaluate market and competitive
situation
COMPANY VALUATION
> Calculate DCF
> Assess multipliers
> Determine value based on
comparable transactions
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With our network, we can steer the entire due diligence
process
LEGAL DUE DILIGENCE FINANCIAL DUE INSOLVENCY
NETWORK DILIGENCE NETWORK SPECIALIST NETWORK
> Beiten Burckhardt > KPMG > Wellensiek & Partner
> Freshfields, Bruckhaus, > Ernst & Young > Görg & Partner
Deringer
> PwC > RAe Braun
> Clifford Chance
> Warth & Klein > RAe Piepenburg
> CMS, Hasche, Sigle
> etc. > RAe Jaffé
> Weil, Gotshal & Manges
> RAe Folger
> etc.
> etc.

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 100+ MANAGEMENT
Getting the right management
on location quickly

15
Management can make or break an investment decision

> Current management is often burnt out and lacking the necessary energy, or is
overwhelmed by the situation
> Current management follows its own investment goals and agenda
LOSS OF TRUST in current management
> New management is not always immediately available; it does not have access
to relevant industry experts
> New management needs time to familiarize itself with the situation and become
effective
LOSS OF TIME means that value gains cannot always be capitalized

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The 100+ MANAGEMENT module helps you make the
required management decisions quickly
100+ MANAGEMENT
PROFESSIONAL
MANAGEMENT ASSESSMENT INTERIM MANAGEMENT EXECUTIVE SEARCH

> Validated assessment of the
current management's
strengths and weaknesses
> Recommendations for next
steps
> Extensive existing network of > Rapid implementation of
experienced interim sustainable management
managers from all industries solutions
> If desired, we can assume the > Cooperation with all well-
main functions for a limited known professional
time executive search companies

BER-97005-458-01-03-E-c.ppt 17
Our database provides instant access to over 100 interim
managers
POSITION
d t. > Roland Berger knows all the
ar ber mgm
O o
QUALIFICATION CE B em op ce
interim managers personally
m T n from previous restructuring
na
Fi projects (Roland Berger seal of
Automotive s
e m approval)
y st
S
Construction > Ongoing, case-by-case
evaluation of managers
…
la es > Ideal selection of appropriate
S managers based on detailed
Pharma
information about industry
experience and qualification
INDUSTRY ∑ 100 profiles
Approx. 100 highly-qualified managers with
experience in a number of different industries
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100+ PERFORMANCE
Boosting value fast

19
Sustainable performance improvement is required to
boost the value of your investment (1)
> Once the investment has been made, potential for earnings improvements
should be determined, on the basis of the value drivers identified in the due
diligence process. Once this has been done, the actions needed to boost
value should be initiated
> In addition, the various problem areas within the company should be dealt
with in detail and all options for action should be evaluated
> The scope of the required earnings improvement should be based on the
investor's exit logic; in this way, the target sales price determines the required
result improvements

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Sustainable performance improvement is required to
boost the value of your investment (2)
> Speed determines success – Immediate actions must be implemented quickly
because they show initial successes. All other actions must be carried out within
two months at the most, in order to avoid an erosion of earnings and liquidity

BER-97005-458-01-03-E-c.ppt 21
Our 100+ PERFORMANCE module is based on the
investor's required return on investment
> Investor purchase price
> Internally-financed Necessary return X
portion improvement/
necessary performance
> Required return improvement

> Determine exit price

> Determine exit time Y
> Evaluate multipliers
> Determine earnings Current Target
improvement EBIT/ EBIT/
EBITDA EBITDA

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At the same time, we ensure rigorous liquidity
management to tap the full cash potential
CURRENT LIQUIDITY
SITUATION AND SHORT- TAPPING LIQUIDITY ONGOING MONITORING OF
TERM CASH NEEDS POTENTIAL CASHFLOW
> Validate existing cashflow statements > Determine cash requirements, incl. > Update cashflow statements on an
and liquidity status peaks and required screening ongoing basis
> Adjust existing cashflow statements processes > Conduct real-time variance
where required and set up > Determine the potential of working analyses
daily/weekly planning capital management > Take early counter-action
> Take immediate action – Debtor days
– Stop orders and payments – Inventory days
– Enforce debtor management – Creditor days
– Introduce individual approval > ... from divestments:
process, etc. – Non-operating fixed assets
– Portfolio sales Planning security for
> ... from process adjustments
– Send reminders faster investors; minimize
– Tighten payment terms liquidity burden for
– Introduce individual approval investor
process for payments

BER-97005-458-01-03-E-c.ppt 23
An initial, rough targeting process will define the main
levers for improving performance
Targeting
BASIS
> Benchmarking
> Timeline comparisons
> Project experience
and in-house
database
Improvement Gross profits Personnel Material costs Interest
needs

LOGIC > Exhaust sales > Outsourcing/ > Budgeting > Working
potential shifting > Reducing capital
> Make-or-buy production comfort level > Balance sheet
> Purchase > Increasing > Renegotiating restructuring
potential productivity

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The actions are then defined in detail, rigorously tackling
all areas
SPECIFY ACTIONS REMOVE ALL PERFORMANCE GAPS
> Realign the business model

Target
TARGET PERFORMANCE > Outsource
Improvements by area > Make-or-buy
STRUCTURAL > Clean up portfolio
RESTRUCTURING
Project
Elements of
Parallel actions lead to targeted
performance
improvements improvement

FINANCIAL OPERATIONAL
Action RESTRUCTURING RESTRUCTURING

> Reduce working capital > Increase productivity

Concrete actions that lead to a defined > Divest > Reduce material costs
result improvement within a fixed timeframe > Improve financing > Reduce material use
structure

BER-97005-458-01-03-E-c.ppt 25
The 3-step project guarantees that necessary
improvements are made quickly
Approx. 2-3 weeks
I. TARGETING
> Describe the starting point
> Determine the details of what
caused the crisis
> Determine the competitive/
market situation
> Determine performance
improvement need
> Establish a rough target
> Initiate quick hits
Approx. 3-4 weeks
II. DEFINING ACTIONS
> Support target with
actions
> Develop actions
> Make a business plan
> Determine financial needs
for implementation
Several months
MAPPING OUT ACTIONS
III. AND IMPLEMENTATION
> Break actions down into
individual steps
80 > Introduce the implementation
structure
DAYS
> Introduce project monitoring
> Ensure ongoing
implementation controls
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 100+ COMMITMENT
Professional and reliable
project steering

27
Professional project steering supports you during the
process and ensures that targets are reached (1)
> Investment processes are generally complex project management tasks; a
number of parties have to be coordinated so that the desired results can be
reached in the defined timeframe

> Professional project management serves to minimize the need for investor
capacities. Project managers work toward reaching goals efficiently and provide
investors with progress reports along the way

> Once the investment has been made, project steering must ensure that the
right decisions are made within 100 DAYS and that necessary actions are
implemented

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Professional project steering supports you during the
process and ensures that targets are reached (2)
> Project steering must also ensure that planned performance improvements are
achieved in the implementation process. In this way, decision makers can be
informed of any deviations on time

> If the process does not run as planned, project steering must ensure that
counter-actions are implemented

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Our 100+ COMMITMENT module ensures professional
project steering in the first 100 days
PROJECT MANAGEMENT
> Create a project structure
> Involve all the necessary parties
> Organize and prepare regular project
status meetings (jour fixe, steering
committee)
PROJECT MONITORING
> Introduce RBpoint project monitoring tool
> Enter all actions into the tool and describe
details
> Introduce ongoing implementation monitoring
– Work down a to do list
– Achieve planned effects
– Analyze deviation and initiate counter-
action
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We ensure efficient project management by involving all
parties
Integrating the project structure into the line organization

Steering committee Management

Central
project PM
monitoring D1 D2 D3 Dn

Mixed project teams

(employees/consultants)

Task force
Dn = Division n (e.g. financing)
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RBpoint is a tool that ensures efficient project
monitoring
Project monitoring with RBpoint
> Web-based project monitoring tool that
can integrate many parties
> Simple traffic light principle enables a
one-stop overview of the project status
> Easy to use, as project is broken down into
individual steps
> Differentiated access management to
govern reading and writing rights
> Specified start and end dates and
unambiguously quantified effects for each
action in order to monitor progress
efficiently

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 In closing, we assure you that we are 100% COMMITMED
to your success
Our management team

ASIA
EUROPE

Karl-J. Michael Bernd Joost Dr. Sascha Wolfgang Ivo Koichi

Kraus Blatz Brunke Geginat Haghani Herrmann Naumann Mizutome
BERLIN BERLIN BERLIN ZURICH BERLIN BERLIN SHANGHAI TOKYO

Uwe Nils von Dr. Uwe Dr. Ralf Beatrix Dr. Julian Wei Takashi
Johnen Kuhlwein Kumm Moldenhauer Morath zu Putlitz Zhu Hirai

THE AMERICAS
BERLIN DÜS./LOND. MOSC./WAR. BERL./PARIS ZURICH BERLIN SHANGHAI TOKYO

Rene David Max Rupert Wim van Thomas

Seyger Stern Falckenberg Petry Acker Kunze
AMSTERD. LONDON DÜSSELD. VIENNA USA S. AMERICA

Partner Principal
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 Contacts
EUROPE
Karl-J. Kraus, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-311
e-mail: karl-josef_kraus@de.rolandberger.com
Michael Blatz, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-347
e-mail: michael_blatz@de.rolandberger.com
Bernd Brunke, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-527
e-mail: bernd_brunke@de.rolandberger.com
Joost Geginat, PARTNER
Neumünsterallee 12, CH-8008 Zurich
Tel.: ++41-1-38481-74
e-mail: joost_geginat@ch.rolandberger.com
Dr. Sascha Haghani, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-594
e-mail: sascha_haghani@de.rolandberger.com
Wolfgang Herrmann, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-572
e-mail: wolfgang_herrmann@de.rolandberger.com
Uwe Johnen, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-580
e-mail: uwe_johnen@de.rolandberger.com
Nils von Kuhlwein, PARTNER
Karl-Arnold-Platz 1, D-40474 Düsseldorf
Tel.: ++49-211-4389-2122
e-mail: nils_von_kuhlwein@de.rolandberger.com
Dr. Uwe Kumm, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-534
e-mail: uwe_kumm@de.rolandberger.com
Dr. Ralf Moldenhauer, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-560
e-mail: ralf_moldenhauer@de.rolandberger.com
Beatrix Morath, PARTNER
Neumünsterallee 12, CH-8008 Zurich
Tel.: ++41-1-38481-42
e-mail: beatrix_morath@ch.rolandberger.com
Dr. Julian zu Putlitz, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-586
e-mail: julian_putlitz@de.rolandberger.com
Rene Seyger, PARTNER
WTC-Strawinskylaan 581, NL-Amsterdam
Tel.: ++31-20-7960-620
e-mail: rene_seyger@nl.rolandberger.com
Dr. Robert Simon, PARTNER
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-584
e-mail: robert_simon@de.rolandberger.com
David Stern, PARTNER
Berk. Sq. – Lansd. H., UK-London W1J 6RB
Tel.: ++44-207-2904-865
e-mail: david_stern@gb.rolandberger.com
Max Falckenberg, PRINCIPAL
Karl-Arnold-Platz 1, D-40474 Düsseldorf
Tel.: ++49-211-4389-2301
e-mail: max_falckenberg@de.rolandberger.com
Rupert Petry, PRINCIPAL
Freyung 3/2/10, A-1010 Vienna
Tel.: ++43-1-53602-300
e-mail: rupert_petry@at.rolandberger.com
Wolfram Weber, PRINCIPAL
Alt Moabit 101b, D-10559 Berlin
Tel.: ++49-30-39927-583
e-mail: wolfram_weber@de.rolandberger.com
ASIA
Koichi Mizutome, PARTNER - Japan
1-12-32 Akasaka, J-Tokyo 107-6023
Tel.: ++81-3-35876-679
e-mail: koichi_mizutome@jp.rolandberger.com
Ivo Naumann, PARTNER - China
1515 Nanjing West Road, RC-Shanghai 200040
Tel.: ++86-21-52986677-828
e-mail: ivo_naumann@cn.rolandberger.com
Wei Zhu, PARTNER - China
1515 Nanjing West Road, RC-Shanghai 200040
Tel.: ++86-21-52986677-821
e-mail: wei_zhu@cn.rolandberger.com
Takashi Hirai, PRINCIPAL - Japan
1-12-32 Akasaka, J-Tokyo 107-6023
Tel.: ++81-3-35876-687
e-mail: takashi_hirai@jp.rolandberger.com
AMERICAS
Wim van Acker, Partner - USA
2401 West Big Beaver Road, Troy, MI 48084, USA
Tel.: ++1-248-729-5000
e-mail: wim_vanacker@us.rolandberger.com
Thomas Kunze, PARTNER - South America
Av. Pr. J. Kubit., 510, 04543-906 São Paulo, Brazil
Tel.: ++55-11-3046-0
e-mail: thomas_kunze@de.rolandberger.com
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