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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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Booz & Company’s senior Aerospace & Defense Industry Team

Marty Bollinger ƒ 25 years consulting to aerospace and defense companies globally

Sr. Vice President ƒ Works primarily in market, business and organizational strategy
McLean, VA ƒ Has worked extensively across Europe and Asia/Pacific

Dan Lewis ƒ Led the Firm’s commercial business and served on the Board of Directors
ƒ Client focus includes commercial aerospace suppliers, aircraft manufacturers, and airlines
Sr. Vice President
ƒ Long track record of managing complex, multidisciplinary transformation programs encompassing business
San Francisco, CA strategy, operations, engineering, and organization for clients in the US and abroad

Randy Starr ƒ 13 years consulting in aerospace, defense and related industries

Principal ƒ Specializes in developing corporate growth strategies in commercial and government markets
Florham Park, NJ ƒ Aligned with Aerospace & Defense Team

Eric Kronenberg ƒ 10 years experience in Booz & Company’s Aerospace and Defense practice
Principal ƒ Focuses on strategic transformation of aerospace and defense companies especially in area of program
Florham Park, NJ management and engineering

ƒ Over 15 years experience in aerospace, highly-engineered product and telecommunications services sectors
Erich Fischer
including space science, commercial and federal space markets
Principal
ƒ Specializes in corporate growth strategies, organizational and industry transformation and product
McLean, VA development
ƒ 17 years consulting on large transformations of the shop floor, procurement, supply chain and ERP
Joe Martin
ƒ Recently transformed the design process for the US Navy’s $2B nuclear carrier overhauls, and supply chain
Sr. Exec. Advisor for a major defense electronics maker
Los Angeles, CA ƒ Former senior scientist with GASL and Northrop Grumman

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Booz & Company’s senior Aerospace & Defense Functional Team

Kevin Dehoff ƒ 16 years consulting to aerospace and defense companies globally

Vice President ƒ Specializes in strategy-based transformation and product development
Florham Park, NJ ƒ Aligned with Operations practice and member of A&D Team

Tom Mayor ƒ Over 18 years consulting to aerospace, automotive and industrial companies globally
Vice President ƒ Specializes in developing operations strategies and leading business transformation programs
Cleveland, OH ƒ Aligned with the Operations team

Andrew Tipping ƒ Over 15 years consulting across a wide range of industries globally
Vice President ƒ Specializes in organization design and large scale transformation
Chicago, IL ƒ Aligned with Organization and Strategic Leadership team

Mike Cooke ƒ 12 years of consulting experience to engineered products companies

Principal ƒ Specializes in IT strategy and large-scale transformations
Chicago, IL ƒ Aligned with Booz & Company’s IT team

Bill Lakenan ƒ Specializes in programmatic transformation of large highly complex production systems
Principal ƒ Held positions at McDonnell Douglas Corporation and Andersen Consulting
San Francisco ƒ Principal in Booz & Company’s Global Operations Team

Jeff Bloom ƒ 18 years consulting experience

Principal ƒ IT leader in Aerospace & Defense, and Automotive, Transportation & Industrial Practices
Chicago, IL ƒ Specializes in IT supply chain management, strategy and transformation

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We combine deep functional and industry expertise with strategic
insight to deliver essential advantage to our clients
Booz & Company Industry & Functional Practices

Automotive, Energy,
Aerospace Consumer Int’l
Industrials Chemicals Financial Pharma/ Comm. &
& & Public
& & Services Health Technology
Defense Media Sector
Transport Utilities

Organization,
Strategy &
Leadership
Client solutions combining
industry-specific know-how
Operations with functional expertise to
deliver essential advantage

Information
Technology

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How we work with clients to create essential advantage

Creating “Essential Advantage”

Strategy Client Quotes

Implementation
“Establish the Case
“Make the Change”
for Change” ƒ “Booz enabled different functional areas to work with
each other, breaking down the normal departmental
ƒ A unique perspective on the ƒ Ability to execute or directly barriers and parochialism…” CEO
dynamics of businesses and supervise the success-
the competitive environment critical elements of the ƒ “We had done over 20 projects with other consultants,
ƒ Client-specific solutions to solution but none of them were successfully implemented.
complex issues ƒ Ability to structure and Booz accompanied us from initial concept all the way
mange change programs on through successful implementation.”
a global level Program Executive Sponsor

ƒ “The real benefit is that Booz not only helped us develop

a process, but we ended up with something we could
Functional and Cross- use. I was impressed by the fact that we learned by
Change Management
Functional Skills doing. The savings potential across all our product
“Make the Change Stick” lines is staggering.” Client Executive
“Define What to Change”

ƒ Deep functional expertise ƒ Ensuring results by changing ƒ “Booz’s ability to coordinate people in several
behavioral and organizational countries, different sites and functions – along with
ƒ Combined with specific
characteristics of an organi- suppliers – was one of the major challenges it met.
industry knowledge
zation I don’t think we could have pulled this off at the level we
did without Booz.” Client Executive

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Our client value proposition is unique among A&D consulting
firms
ƒ Only GMC firm with a specialized A&D industry team that brings unparalleled global experience
– Our team is focused on aerospace & defense – we don’t hire and staff generalists
– We can – and do – conduct strategic and operational assessments up to the TS/SCI level
– Deep functional capabilities in IT, operations, strategic leadership and organizational design

ƒ Fresh market perspectives based on deep domain experience and technology expertise
– Unique understanding of market needs
– Objective view of technology potential, and unique perspectives on disruptive technologies

ƒ Industry/domain and technology expertise that allows us to synthesize unique solutions

– Tailored business strategies based on market and technology trends
– Strategic guidance and capability-building to help approach new markets
– Experience in developing market-ready capabilities for diverse organizations

ƒ The ability to provide a full lifecycle of market, industry and programmatic services

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We provide a broad range of service offerings to A&D clients

Strategy & Leadership Organization & Change Product & Service Innovation

ƒ Corporate portfolio strategy ƒ Post-merger integration ƒ Innovation strategies and solutions

ƒ Market and business strategy ƒ Organizational effectiveness and ƒ New program and product line
alignment strategy
ƒ Emerging market entry strategies
ƒ Objective Driven Change (ODC) ƒ Technology portfolio strategy
ƒ International expansion
programs ƒ Smart customization
ƒ Shareholder value management
ƒ Strategic communications ƒ Engineering productivity
ƒ M&A strategy and due diligence

Program Management Operations & Logistics Information Technology (IT)

ƒ Program management Capability ƒ Purchasing optimization ƒ 1% IT (cost reduction)
Maturity Model (CMM)
ƒ Design for Affordability (DFA) ƒ IT strategy
ƒ Risk Integrated with Schedule and
ƒ Overhead and direct cost-reduction ƒ Information assurance
Cost (RISC-IQ)
ƒ Low rate production strategy ƒ Next generation technology
ƒ Independent Cost Estimating (ICE)
ƒ Supply chain & manufacturing
ƒ Total Baseline Integration (TBI)
effectiveness
ƒ Sustainment and logistics solutions

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And we solve some of the most challenging issues for leading
A&D companies across every A&D sector
Aerospace & Defense Sectors & Clients

Sector Experience Type of Clients We Serve

ƒ Military aircraft ƒ Lead system integrators
ƒ Commercial aircraft ƒ Prime contractors
ƒ Aerostructures ƒ Industrial conglomerates
ƒ Military and commercial satellite systems ƒ OEMs and Tier-1 suppliers
ƒ Space launch ƒ Tier-2 suppliers
ƒ General aviation ƒ Sub-system integrators
ƒ Defense electronics and communications ƒ Component parts manufacturers
ƒ C4ISR ƒ Service providers
ƒ Tactical vehicles ƒ Network operators
ƒ Shipbuilding ƒ Private equity and investment banking
ƒ Homeland security and civil defense ƒ Defense agencies and programs
ƒ Intelligence
ƒ Logistics

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Qualifications - international growth strategies

Client Engagement Description

ƒ Assessed C3ISR opportunities in 11 nations and industrial/budgetary environment
Major US Defense Global C3ISR
ƒ Developed short list of target strategic pursuits
Contractor opportunity assessment
ƒ Client very enthusiastic of results
Major US
International growth ƒ Developed 25-year forecast of helicopter market value by country, by mission, and by helicopter
Helicopter
strategy platform-type; created short-list of targeted country opportunities
Manufacturer

Major Aircraft ƒ Developed top down view of the international rotorcraft market size and growth
Japan market strategy
Manufacturer ƒ Defined bottoms up needs-based assessment

Tier-1 Aerospace Global assessment of ƒ Assessed the global market for OEM and MRO parts for a major parts supplier of aircraft, rotorcraft
Component OEM and parts airframe and engine parts
Supplier assessment ƒ Identified growth rates, market size, and significant trends and opportunities
Asian Engineering
U.S. DoD engineering ƒ Segmented engineering services market
Services services ƒ Outlined barriers to entry, and compliance and governance issues to be addressed
Company
Joint Strike Fighter due ƒ Outlined weaknesses in its JSF FACO proposition & recommended improvements
Major European diligence ƒ JSF FACO awarded in early 2007
Aerospace
Company Strategy to expand U.S. ƒ Outlined specific marketing and political initiatives to could expand U.S. presence
business ƒ Full range of recommendations implemented
ƒ Highlighted compliance issues and mgmt and governance structure options
U.S. market entry
ƒ Board implemented all recommendations
Major European
Aerospace ƒ Profiled the U.S. federal, military, state and local civil protection markets
Company U.S. helicopter market
ƒ Provided competitive analysis, strengths and weaknesses, and industry segmentation for potential
assessment
opportunities

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Qualifications - armored vehicle programs

Client Engagement Description

ƒ Study determining options for management of logistics, maintenance, and recapitalization of up-
Up-Armored Fleet
Lifecycle management armored fleet in Iraq
Management
support ƒ Identified issues facing the up-armored fleet, communicated them to senior leadership
Study
ƒ Established a recapitalization and reset plan for senior leadership

Engine ƒ Study to address Army M113, Army Abrams and USMC EFV transmission obsolescence issues
Transmissions ƒ Utilized a structured/data driven framework to make trade-offs between cost, volume and durability
Obsolescence analysis
Sustainment ƒ Identified obsolescence solution resulting in 35% durability improvement
Study ƒ Identified $100M life-cycle cost savings while addressing depot SCM issues that would reduce risk

ƒ Developed a long-term sustainment BCA for the Paladin/FAASV to address obsolescence of the
Paladin Business
engine, transmission, suspension, and electric gun drive components
Case Analysis Business case analysis
ƒ Delivered cost, benefit and risk assessment of the proposed Courses of Action supporting the Army
(BCA)
decision makers ability to perform CoA trade-off assessment.

ƒ Conducted a project cost estimate of unit production cost for the proposed Paladin/FAASVs long-
term sustainment courses of action
Paladin Project
Cost estimate ƒ Discovered significant cost savings in aluminum armor costs from vendor BOM estimate resulting in
Cost Estimate
potentially $24 million cost savings
ƒ Estimate was utilized for future POM budgeting activities

ƒ Reassessed existing operating model as program evolved from development to production

FCS Operating Program Operating ƒ Conducted an organizational diagnostic; interviewed 50+ program leaders
Model Development Model Development ƒ Client agreed with all recommendations and moved quickly to implement operating model
recommendations

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Qualifications - merger and acquisition due diligence

Client Engagement Description

US Private Equity Acquisition due ƒ Identified the competitive landscape, major trends, target’s positioning
Firm diligence ƒ Developed a pro forma revenue model by market segment
US Private Equity Acquisition due ƒ Developed in-depth cost analysis and projections based on a number of potential scenarios
Firm diligence ƒ Created a profitability assessment based on the target’s potential viability in a high-risk market
Asian Private ƒ Provided a a perspective on the Japanese defense market and identified opportunities for growth
Market due diligence
Equity Firm ƒ Outlined the role of intermediary and assessed the strengths and weaknesses of the target
US Private Equity ƒ Developed an independent due diligence assessment of the acquisition target
Market assessment
Firm ƒ Assessed competitive landscape, market trends, risks and opportunities, and projected growth rate
Large Aerospace
Acquisition due ƒ Assessed a European company in the audio and visual surveillance market
and Defense
diligence ƒ Identified the target’s sales growth was not sustainable without significant operational investment
Company
US Private Equity Acquisition due ƒ Evaluated a component supplier to construction, military and specialty vehicle manufacturers
Firm diligence ƒ Developed a model of relevant platforms to predict new vehicle, O&M , and aftermarket spending
US Private Equity Acquisition due ƒ Assessed trends and growth opportunities within DHS and across Civil and Defense markets
Firm diligence ƒ Evaluated target’s contract wins, focused on its ability to maintain and grow market share

US Private Equity Market survey and ƒ Developed a forecast of the European homeland security market and competitive landscape
Firm target identification ƒ Defined 170+ potential acquisition targets, 25 summary profiles, and 10 high potential acquisitions

US European Aerospace
ƒ Analyzed the market and predicted future target revenue under multiple scenarios
Private Equity manufacturing due
ƒ Assessed the target’s manufacturing facilities to determining its cost profile and potential actions
Firm diligence

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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ATI Practice areas

ƒ Broad-based expertise in Automotive, Industrial Manufacturing, Conglomerates,

Transportation, Steel, Mining, Engineering, Private Equity, and Auto Finance
ƒ Strategy Development, IT, Org SG&A, PMI Initiatives, and Operations

ATI Expertise

ƒ 34 ATI Partners and 200+ ATI Consultants worldwide – unparalleled global experience
across all areas of the automotive, transportation, and industrials value chains. Extensive
industry leadership experience
ƒ Functional experts in Information Technology, Operations, Strategic Leadership, and
Organizational Enhancement

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With 34 partners, the ATI practice is present in 19 offices
around the world
Richard Hauser Kaj Grichnik Klaus-Peter
Munich Munich Gushurst
ATI OPS Munich
OPS
Evan Hirsh Scott Corwin Barry Jaruzelski Joerg Krings Bernhard Rieder Dieter
Cleveland New York Florham Park Munich Munich Scneiderbauer
ATI ATI OPS ATI IT Munich
ATI
Bill Jackson Alexander Niehues Georg List
Chicago Stuttgart Amsterdam
ATI Adrian Foster ATI OPS
London Edward Tse
Andrew Tipping ATI Hong Kong
Klaus Nadler Stefan Stroh ATI
Chicago Stuttgart
Enrico Strada Frankfurt
Organization & ATI IT
Milan
Strategic Leadership Ronald Haddock
Jim Weinberg IT
Conrad Winkler McLean Hong Kong
Peter von Hochberg ATI
Chicago IT
Patrick Antier Dusseldorf
OPS OPS
Paris
Justin Zubrod OPS Cosmo Takamatsu
Vinay Couto McLean Tokyo
Jurgen Ringbeck ATI
Chicago ATI
Dusseldorf
Organization & ATI
Strategic Leadership Steven Veldhoen
Tokyo
Jan Miecznikowski Fadi Majdalani
ATI
Chicago Beirut
ATI ATI

Paolo Pigorini
Tim Jackson
Rio de Janeiro
Sydney
Energy, Chemicals &
OPS
Cross-Market
Leticia Costa
Chris Manning
Sao Paulo
Sydney
ATI
Organization &
Strategic Leadership

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We are organized into 16 primary offerings, integrating industry
and functional experience to support our clients
ATI Primary Service Offerings

Business Unit Strategy Due Diligence PMI Portfolio Management

Product Development/Innovation Operations Process Redesign Marketing Strategy

Information Technology Program Assessment Org SG&A (Shared Services) Organization Design

Manufacturing Strategy Manufacturing Organization Knowledge-Based Sourcing Operational Excellence

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We have deep expertise in global Automotive, Industrials, and
Transportation market supporting organizations
Selected ATI Service Offerings

ƒ Global sourcing ƒ Agenda setting ƒ Post-merger implementation

ƒ Turnarounds ƒ Alternative energies and ƒ Organizational development
ƒ IT Strategy powertrains ƒ Manufacturing footprint
ƒ Scrap steel purchasing strategy ƒ Manufacturing strategy ƒ Strategy-based transformation
ƒ OEM supplier strategy ƒ Pre-/post-merger integration ƒ Global organization strategy
ƒ Global product development ƒ Business due diligence & ƒ Logistics strategy
valuation
ƒ Commodity pricing strategy ƒ Global engineering footprint
ƒ Operations strategy
ƒ Finance & accounting ƒ Knowledge-based Sourcing
ƒ Org SG&A
ƒ Business plan development ƒ Product Strategy
ƒ New business opportunities
ƒ Working capital ƒ IT cost reduction
ƒ China sourcing strategy
ƒ Market segmentation ƒ Program value realization
ƒ Shared services
ƒ Customer incentives ƒ SAP implementation
ƒ New business portfolio
ƒ Competitive assessments ƒ Freight payment and routing
ƒ Organization effectiveness
ƒ Demand forecasting ƒ E-ticketing

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We have a broad and deep set of capabilities in each of our service
offerings to address issues manufacturing companies face

Business Unit Strategy Due Diligence PMI Portfolio Management

ƒ Strategic Leadership ƒ Business Case & Due Diligence ƒ Merger Planning & Integration (PMI) ƒ Portfolio Strategy
ƒ Shareholder Value Management ƒ Divestitures & Spinouts ƒ IT PMI ƒ Financial Restructuring
ƒ Corporate Growth Strategy ƒ Strategic Alliances ƒ Applied Business Analysis
ƒ Strategic Discontinuity Management ƒ Privatizations and Buyouts ƒ Integrated Financial & Resource Mgmt
ƒ Modeling, Simulation & War-gaming ƒ Quantitative Management Controls
ƒ Brand & Brand Portfolio Mgmt
Product Development Operations Process Redesign Marketing Strategy

ƒ Innovation & Growth Strategies ƒ Supply Chain Strategy ƒ Shared services ƒ Marketing Strategy
ƒ Global Innovation Networks ƒ Manufacturing ƒ Data centers ƒ Customer Insight and Segmentation
ƒ Organizing for Innovation ƒ Distribution ƒ Captive start-ups ƒ Trade Promotion Effectiveness
ƒ Product & Service Development ƒ Service Operations ƒ Service management models ƒ Sales-force Effectiveness
ƒ Product Profitability ƒ Sourcing ƒ Channel Management & Pricing
ƒ R&D Effectiveness ƒ Customer Lifecycle/Relationship

Information Technology (IT) Program Assessment Org SG&A (Shared Services) Organization Design

ƒ IT Strategy, Architecture & Design ƒ Program management ƒ Operating model ƒ Organization Model/Design
ƒ Information Assurance ƒ Product & employee development ƒ Shared services ƒ Transformation & Change Mgmt
ƒ IT Infrastructure Solutions ƒ Procurement ƒ Offshoring/Outsourcing ƒ Org Efficiency & Process Mgmt
ƒ Program Value Realization ƒ Cost and Operations ƒ Decision rights ƒ Strategic Human Capital Management
ƒ Outsourcing Advisory ƒ Acquisitions and Alliances ƒ Demand prioritization ƒ Strategic Communications

Manufacturing Strategy Manufacturing Organization Knowledge Based Sourcing Operational Excellence

ƒ Complexity Management ƒ Performance management ƒ Cost modeling ƒ Manufacturing operations systems

ƒ Agenda setting ƒ Organizational structure ƒ Purchasing capability diagnostic ƒ Lean and Six Sigma
ƒ Manufacturing footprint strategy ƒ Supply base restructuring ƒ Business process optimization
ƒ Competitive cost assessment ƒ Commodity strategy development ƒ Real time performance
ƒ Effective purchasing interface

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We combine deep functional knowledge with in-depth industry
expertise to deliver real impact
Booz & Company Industry & Functional Practices

Automotive, Energy,
Aerospace Consumer Int’l
Industrials Chemicals Financial Pharma/ Comm. &
& & Public
& & Services Health Technology
Defense Media Sector
Transport Utilities

Organization,
Strategy &
Leadership
Individual and
comprehensive
solutions for our
Operations clients by combining
industry-specific
know-how with
functional expertise
Information
Technology

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 ATI Global client summary

ƒ All of the major global automotive OEMs

ƒ Blue chip industrial firms and conglomerates
ƒ Most major global airlines and railroads
ƒ Leading global freight and maritime firms
ƒ Most major Tier 1 automotive suppliers
ƒ Automotive, transportation, and industrials private equity firms
ƒ Major manufacturers

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We serve global clients in the ATI space

OEMs Suppliers Industrials Transportation

AB Volvo ArvinMeritor, Inc. A.O.Smith Corporation American Airlines, Inc.
BMW AG Dana Limited Amcor Limited Continental Airlines, Inc.
Caterpillar Delphi Corporation Coates DFS Deutsche Flugsicherung GmbH
Chrysler LLC Hendrickson L.L.C. Corning Incorporated Emirates Post
Fiat Automobiles SpA Johnson Controls, Inc. Dover Corporation EUROCONTROL
Ford Motor Company Keystone Automotive Operations, Inc. Hillenbrand Industries, Inc. FedEx
General Motors Corporation Magna International Inc. Honeywell International Inc. Fraport AG
Komatsu Ltd. Mitsubishi Materials Corporation IK Investment Partners JetBlue Airways
Mazda Motor Corporation TRW Automotive Linde AG LFV
Mitsubishi Companies Visteon Corporation Magnesita S.A. Network Rail
Nissan Motor Company, Limited Milacron Rheinbahn
Toyota Motor Corporation Pall Corporation Saudi Arabian Airlines
Volkswagen of America, Inc. Siemens AG SBB
The Reynolds and Reynolds Company SNCF
Underwriters Laboratories Inc. Transport for London
United Air Lines, Inc.

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We integrate product specific and functional expertise

Product Segments

Auto- Indus- Aviation Rail Mass Postal Freight/ Highways Maritime

motive trials Transit Logistics & Roads

Strategy

Marketing
& Sales
Functional Competences

Operations

Finance &
Controlling

Organization

IT &
Telematics

Technology/
Procurement

R&D and
Engineering

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Booz & Company works across all transportation segments

Sectors Served in Transportation

Individuals and industries worldwide expect transportation systems to be and Related Industries
safe, secure, effective, and economical. Whether moving people or ƒ Aviation
– Airlines (Passenger, Charter & Cargo)
goods by land, sea, or air, the transportation infrastructure is challenged
– Airports
by the growing demands of a mobile population and global economy. – Air Navigation Service Providers
– Government Agencies and Regulatory Bodies
Meeting these demands requires an understanding of the complex – Travel and Tourism
technologies and strategies that can be employed to help satisfy ƒ Postal & Freight
– Postal& Mail companies
customers, increase revenue, and reduce costs and inefficiencies – while
– Courier, Express & Parcel companies
preserving and protecting commerce and our communities. – Freight Forwarding
– Contract Logistics Providers (3PL)
Since the firm's founding in 1914, Booz & Company has been committed – Lead Logistics Providers (LLP/4PL)
to helping the world's transportation industry respond to ever-changing ƒ Rail/Mass Transit
– Passenger/Freight Railway/Civil System Supplier
demands.
– Infrastructure Management
Booz & Company is helping executives throughout the transportation – National long-haul operators
– Mass/Urban transit operators
sector to address these and other issues, leveraging our extensive – Public Transportation Authorities
industry experience and our strategy, operations, systems, and ƒ Shipping
– Ports
technology expertise. We have worked with major transportation
– Inland & Ocean shipping
companies all over the world. Our services for the transportation industry ƒ Others
cover the entire value chain, supporting our clients in their successful – Equipment and Technology Providers
– Highways – incl. intelligent transportation systems
strategic transformation. – Trade and economic development

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Booz & Company's aviation team is global in reach and
comprehensive concerning all aviation industry segments
Global Aviation Industry Areas Include

ƒ Airlines

ƒ Airports

ƒ Air Traffic Control (ATC)

ƒ Government Aviation Authorities

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Booz & Company's aviation team is global in reach and
comprehensive concerning all aviation industry segments
Selected Clients in the Aviation Sector
Airlines Airports Air Traffic Control
Air Algérie Airport Authority Hong Kong Airservices Australia
Air New Zealand Limited BAA Austro Control
Alaska Air Group Inc. Beijing Capital International Airport Commission for Aviation Regulation
British Airways Plc Budapest Airport Zrt DFS Deutsche Flugsicherung GmbH
Cathay Pacific Airways Limited Dallas/Fort Worth EUROCONTROL
China Airlines Fraport AG Federal Aviation Administration
Cyprus Airways LFV
Delta Air Lines, Inc. Louis Armstrong New Orleans Intl. Airport
Eurowings Macquarie Group Limited
Garuda Indonesia Malaysia Airports Holdings Berhad
Germanwings Metropolitan Washington Airports Authority
IBERIA
LAN AIRLINES S.A.
Malaysia Airlines
Merpati
Northwest Airlines
Qantas Airways Limited
Saudi Arabian Airlines
Scandinavian Airlines
Singapore Airlines
THAI AIRWAYS
United Air Lines, Inc.
USAirways
VRG Linhas Aéreas S.A.

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 We are positioned as a thought leader in the aviation industry

Examples Of Leading Edge Work In The Aviation Industry

Shaping the Industry Thought Leadership

Open Sky Assignment for EU World Economic Forum
ƒ Study for the European Commission ƒ Travel and Tourism Competitive Study 2007
ƒ Shaping the liberalization for air transport ƒ Aviation Governor Meeting since 2002
ƒ Developing new concepts to take away the constraints ƒ Chairing Middle East summits on Aviation
in the air travel industry
ƒ Quan RFID Technology
Privatization of Middle East Flag Carrier ƒ European-wide study jointly with M-Lap of
ƒ Design of air space liberalization & deregulation St. Gallen University involving over 30 companies
ƒ Strategic growth plan to develop the regional ƒ Projects for various transport and travel companies
aviation market
ƒ Introduction of further competition with “Open Skies” Airport Benchmarking Study
ƒ Bridging the gap between high-level strategy and
detailed operational recommendations
Privatization of the German Air Traffic Control ƒ Sharing of best-practices within the industry
ƒ Key study for the German Ministry of Transport
ƒ Regulatory framework defining the rules World Bank Study
of the German ATC market in future ƒ Success Factors of privatization and
ƒ Development of a sustainable business model for the commercialization of transport infrastructure
German air traffic management system ƒ Building cutting-edge knowledge through global survey

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Overview of selected clients in the Rail and Mass Transit Industry

Rail/Mass Transit Client Examples

Rail Operators/Regulators Mass Transit
Massachusetts Bay
Amtrak SJ AB Croydon Tramlink SBB Metro-North Railroad
Transportation Authority
Metropolitan Transportation
BNSF Railway Company SMRT Corporation Ltd.
Authority
Docklands Light Railway Transport for London New York City Tranist
Consolidated Rail Corporation SNCF Metropolitana di Roma s.p.a.
üstra Hannoversche Regionalverkehr Bern-Solothurn
The Port Authority of New York Münchner HOCHBAHN
DSB Verkehrsbetriebe AG RBS
and New Jersey Verkehrsgesellschaft mbH

EBRD TMB Network Rail KCRC VGF Rheinbahn

Eurostar Group Ltd. UIC Réseau Ferré de France

Leipziger Verkehrsbetriebe
Wiener Linien S-Bahn Hamburg GmbH
(LVB) GmbH
FirstGroup plc Union Pacific Railroad Company SBB

Massachusetts Bay
KCRC Virgin Group Transportation Authority

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We offer leading expertise and a broad project experience base
in the Transportation and Logistics industry
Booz & Company in Transportation and Logistics Selected Clients
ƒ Competency center with global reach and over 1000 Airport Authority Hong Kong New Zealand Post
professionals
arvato AG Poste italiane
ƒ At the forefront of consulting for businesses and public
institutions Austrian Post Saudi Post

Beijing Capital International Airport Swiss Post

ƒ Serving leading companies and institutions across the
entire sector Carnival Cruise Lines TNT Holding B.V
– Postal & logistics companies across all modes: Air, road,
rail, sea Correios U.S. Department of Transportation
– Aviation: Airlines, airports, air navigation service
Deutsche Post AG USPS
providers
– Government agencies and regulatory bodies DHL International GmbH
– Travel & Tourism
– Rail and mass transit Emirates Post
– Aircraft manufacturers, aerospace, equipment and
Gzmtr.com
technology providers
La Poste
ƒ Offering a broad service portfolio including
– Strategy
– Operations
– Organization, change, leadership
– Information technology and implementation

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Our capabilities span all relevant segments across the logistics
value chain

Booz & Company Postal, Transportation & Logistics Industry Framework ©

Professional Consulting, IT System Integrators, SCM Application Providers

Services
4PL
Lead Logistics
Courier
Provider (LLP)
Service Logistics
Providers Contract Logistics Related
(3PL) Freight Forwarding Financial
Express Services
Postal/Mail Value Added Road – LTL/FTL
Services, Airfreight New Entrants
Services
Warehousing, Seafreight
Parcel Transportation, Rail
Distribution Contract Manufacturers
e.g. in Electronics
Logistics
Trucking
Cargo Shipping Cargo Rail
Carriers Companies
Airlines Companies Companies Retail Chains
LTL/FTL
e.g. in Mail and
Logistics
Road/Highway Sea & Inland Equipment
Infrastructure Airports Railways
Providers Ports Providers
...
Regulator Government Authorities, Industry Associations

Note: Many segment boundaries are not clear cut and increasingly blurred

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Booz & Company is a recognized thought leader in the global
Postal, Express and Logistics industry

Shaping the Industry (Examples) Thought Leadership (Examples)

Express Opportunities in China RFID Technology
ƒ Viewpoint about the business potential of the ƒ European-wide study jointly with M-Lap of St. Gallen
global integrators in the Chinese domestic University involving over 30 companies
and international express market ƒ Projects for DPWN and Siemens
ƒ Development of market growth strategies
World Bank Study
Economies of Skill ƒ Success Factors of privatization and commercialization
ƒ Viewpoint on the application of the methodology of transport infrastructure
of “Smart Customization” in the 3rd Party Logistics ƒ Building cutting-edge knowledge through global survey
Industry
World Economic Forum
ƒ Joint study with CEVA Logistics (20% productivity
ƒ Global Competitiveness Report 2007
improvement potential identified)
ƒ Facilitation of Governors Meetings in Davos
“Green Logistics” Booz & Company

ƒ Middle East summit on Transportation Strategy

ƒ Opportunities for Supply Chain Solutions Providers Green Logistics

in a changing Industry
Opportunities for supply chain solutions providers
in a changing industry Contribution in Leading Industry Magazines
ƒ Development of a toolkit around innovative This document is confidential and is intended solely for
the use and information of the client to whom it is addressed.
ƒ Postal Operators – Quo Vadis?
improvements for 3PLs ƒ Views on the Chinese Express Market
“Organizational DNA Profiling” ƒ Market Liberalization Impact on IT
Booz & Company

ƒ Better understanding and minimizing Leading Speakers at Industry Conferences

Organizational DNA Profiling
hidden staff costs Better understanding and minimizing hidden staff costs
ƒ Eye-for-Transport Summits
ƒ Development of new ways to optimize ƒ Regional Conferences
overhead costs for logistics providers
This document is confidential and is intended solely for
the use and information of the client to whom it is addressed.

ƒ Postal & Logistics Events

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Booz & Company has participated in the development of cutting-
edge business models in the transportation and logistics industry

eShip – 4u SmartLink LogiSpring

ƒ Founded in September 2000 ƒ Technology division of Booz & ƒ Founded in 2001

Company has developed smart card
ƒ eShip-4u offers delivery automates solutions for local traffic groups ƒ Global Venture Capital Fund investing
– Pick-up by the customer from local (ISO 14443, Typ B) for several years in innovative supply chain logistic and
automates (with customer card) mail solutions
ƒ Innovative access control, billing and
ƒ Cooperation with Booz & Company for customer information systems ƒ Major shareholder of LogiSpring is the
further development and marketing of Dutch postal group
the systems ƒ Successful pilot testing with various
transportation companies and public ƒ Booz & Company has advised and
ƒ Currently: Pilot contract with major authorities in the USA (e.g. in supported the fund during its
German postal company for packing New Jersey and San Francisco) foundation and launch
station

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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External forces are constantly applying pressures on CPG
companies performance and operating margins
ƒ Globalization
ƒ Health & Wellness consciousness
ƒ Aging consumer base
ƒ Environmental concerns

Market

ƒ Escalating costs in operation

ƒ Dominance of mega retailers
ƒ Increased complexity due to
Operations Customer ƒ Pressure from Private Label
consolidation

Consumer

ƒ Consumer segment fragmentation

ƒ Shifts in buying patterns
ƒ Product commoditization
ƒ Fragmenting media behavior

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Success, in our view, is predicated on an integrated approach to
growth – driven by a strong center with execution discipline
Requirements for Breaking Through the Growth Challenge

ƒ A clear articulation of the

enterprise level focus Portfolio
ƒ Initial hypotheses for the role Coherence
each business must play and Business
Focus W
Pe inn
rfo ing
rm
an
ƒ Anchored by a deep under- ce
standing of external and internal Iterative
Winning
business environment (e.g., Strategies
competitors, cost, technology)
Execution ƒ Organization structure aligned
ƒ Built upon sources of value
creation and sustaining a “Right Excellence with strategy and capability
priorities – across businesses,
to Win” through differentiated
positional assets and capabilities Capability Portfolio functions, and geographies
Choices Priorities ƒ Metrics and scorecards to
and measure alignment and
Resource progress
Allocation
ƒ Comprehensive understanding of capability
maturity and how differentiated capabilities can ƒ Focus refined in the context of strategy
add value and capability options
ƒ A roadmap for systematic improvements focusing ƒ Hard choices on resource allocation
on a short list of key capabilities that drive ƒ Communicated clearly to organization to
differentiation drove focused execution

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Booz & Company has worked with leading consumer companies
across all major consumer focused sectors
Major Consumer Focused Sectors Booz & Company Client Base
Consumer ƒ 5 of Top 10 Food Consumer Products
Food and Consumer
Function Packaged Retailers
Beverage Durables Companies
Goods
ƒ 4 of Top 5 Beverage Companies
Strategy 100 100 54 19 ƒ 2 of Top 4 Tobacco Companies
ƒ 5 of Top 10 Household and Personal Products
Marketing 152 147 77 29 Companies
ƒ 5 of Top 10 Pharmaceuticals Companies
Operations 82 91 50 38
ƒ 1 of Top 3 General Merchandiser Retailers
Systems and ƒ 2 of Top 6 Food and Drug Retailers
116 87 22 62
Other1) ƒ 3 of Top 10 Specialty Retailers
ƒ 3 of Top 3 Home Equipment, Furnishings
Total Assignments 406 410 186 125 Companies
ƒ 1 of Top 2 Toys, Sporting Goods Companies
# of Companies
132 121 71 57 ƒ 3 of Top 5 Apparel Companies
Represented

We have teams with consumer

industry expertise in 5 continents
and 48 major
cities around the globe

1) May not add due to multiple function assignments

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With 21 partners, we are present in 7 offices throughout
North America
Harry Hawkes, Jr.
Cleveland
Operations
Tenure: 18
Alex Kandybin
Steffen Lauster New York
Cleveland Consumer and Media
Strategic Leadership Tenure: 11
Tenure: 15
Rich Kauffeld, Jr.
Cesare Mainardi New York
Tom Casey Cleveland
Chicago Operations
President, North American Commercial Tenure: 7
Information Technology Business Tenure: 21 New
Tenure: 11
Parsippany York Ed Landry
Anne de Aguirre New York
San Francisco Pat Houston
Consumer & Media
Organization and Change
Chicago Cleveland Parsippany
Tenure: 11
Tenure: 16 Operations
Tenure: 12 Chris Vollmer
San Doug Hardman Jack McGrath New York
Cleveland Consumer & Media
Francisco Chicago
Operations Consumer and Media Tenure: 12
Tim Blansett Tenure: 18 Tenure: 44
San Francisco Justin Pettit Jeff Tucker
Paul Leinwand Les Moeller
Information Technology New York New York
Chicago Cleveland
Tenure: 15 SLP Information Technology
Consumer and Media Consumer and Media
Tenure: 1 Tenure: 20
Tenure: 9 Tenure: 15
James Neely, III
Cleveland
Dallas Consumer and Media
Tenure: 9

Hans van Delden

Dallas
Information Technology
Carlos Navarro Mexico Tenure: 12
Mexico City City Jose Baquero
Consumer and Media Dallas
Tenure: 12 Organization & Change
Tenure: 13

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We are organized into nine primary offerings, integrating industry
and functional experience to support our clients
Primary Service Offerings

Strategy & Leadership Mergers & Restructuring Finance & Business Analysis

Product & Service Innovation Operations & Logistics Marketing & Sales

Information Technology Organization & Change Outsourcing

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We have a broad and deep set of capabilities in each of our service
offerings to address issues CPG companies face
Strategy & Leadership Mergers & Restructuring Corporate Finance & Business Analysis
ƒ Strategic Leadership ƒ Business Case & Due Diligence ƒ Portfolio Strategy
ƒ Shareholder Value Management ƒ Merger Planning & Integration (PMI) ƒ Financial Restructuring
ƒ Corporate Growth Strategy ƒ Divestitures & Spinouts ƒ Applied Business Analysis
ƒ Strategic Discontinuity Management ƒ Strategic Alliances ƒ Integrated Financial & Resource Management
ƒ Modeling, Simulation & War-gaming ƒ Privatizations and Buyouts ƒ Quantitative Management Controls

Product & Service Innovation Operations & Logistics Marketing & Sales
ƒ Innovation & Growth Strategies ƒ Operations Strategy ƒ Marketing Strategy
ƒ Global Innovation Networks ƒ Supply Chain Management ƒ Customer Insight and Segmentation
ƒ Organizing for Innovation ƒ Sourcing ƒ Brand & Brand Portfolio Management
ƒ Product & Service Development ƒ Manufacturing ƒ Trade Promotion Effectiveness
ƒ Product Profitability ƒ Distribution ƒ Sales-force Effectiveness
ƒ Portfolio Management ƒ Quality and Safety ƒ Channel Management
ƒ R&D Effectiveness ƒ Sustainment ƒ Point of Sale (POS) Performance
ƒ Technology Management ƒ Service Operations ƒ Customer Lifecycle/Relationship Management
ƒ Technology Commercialization ƒ Pricing

Information Technology (IT) Outsourcing Organization & Change

ƒ IT Strategy, Architecture & Design ƒ Process Selection ƒ Organization Model/Design
ƒ Information Assurance ƒ Sourcing Strategy ƒ Transformation & Change Management
ƒ IT Infrastructure Solutions ƒ Sourcing Partner Selection ƒ Organizational Efficiency & Process
ƒ Enterprise & Back-Office Solutions ƒ Contract Negotiation Management
ƒ Next Generation Technology ƒ Transition Management ƒ Strategic Human Capital Management
ƒ Governance ƒ Strategic Communications

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Strategy & Leadership

Case Assignment Examples

Consumer Health Product Manufacturer
Situation Results
ƒ The client recently completed ƒ Client adopted a mission to
its second major merger in become the #1 consumer
three years, nearly doubling its healthcare company with a
business and adding several growth target of 7% annually
new categories to its mix vs. an industry average of 3%
ƒ Increased breadth resulted in a ƒ The strategic clarity enabled the
lack of clear focus for growth client to streamline its R&D
initiatives, leading to slow portfolio, achieve merger
progress, over-investment, and strategy targets, and define a
low-growth realization path for required growth

Global Packaged Goods Manufacturer

Situation Results
ƒ Client was faced with poor ƒ Aggressive growth plans to
performance in many inter- gain scale (either independently
national divisions or through partnerships) in
ƒ Issues included lack of scale, selected markets
lack of standardization, lack of ƒ Scale back plans in other
clear strategies for each market markets – and new entries in
ƒ Client also lacked clear organi- promising beach-head markets
zational model to execute ƒ 1 year return of plan exceeded
across regional product targets by 25-50%
platforms

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Mergers and Restructuring

Case Assignment Examples

Major Tobacco Company
Situation Results
ƒ The domestic U.S. market for ƒ Look at the business led to a
cigarettes was declining more $1.0 billion reduction in costs
than twice the forecasted rate ƒ Merger following restructuring
ƒ The company was forced to resulted in additional $600M in
offer deep discounting to synergies and a refocusing of
remain competitive the portfolio for growth
ƒ Heavy cost structure was ƒ Company’s share price almost
impairing the company’s ability tripled after restructuring and
to compete the following merger
Global Consumer Healthcare Company
Situation Results
ƒ Integrated the consumer ƒ Identified $200+ million in cost
healthcare operations of three based synergies and eliminated
pharmaceutical companies $70 million in stranded costs
over a three-year timeframe ƒ Reprioritized the resultant
(sales, marketing and G&A for brand and market portfolio
two separate mergers) according to an update of
ƒ Simultaneously divested two strategic objectives
additional businesses during ƒ Developed capabilities in R&D
the second merger portfolio mgmt, resource
allocation and regulatory mgmt

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Corporate Finance & Business Analysis

Case Assignment Examples

Consumer Products Company
Situation Results
ƒ The client, in execution ƒ Valuation of operational and
mode on its new growth financial synergies has
strategy, retained Booz & provided the client with a
Company to evaluate a perspective on deal viability
specific acquisition within the context of likely
opportunity that was premium and consideration
identified in the development needs
of their growth strategy

Major Agribusiness and Food Products Company

Situation Results
ƒ The client asked Booz & ƒ Valuation work helped shape
Company to help develop strategic priorities and the
and implement a new advancement of the new
growth strategy that would growth strategy, including
achieve its shareholder prioritization and timing of
value goals various business initiatives
and related capital planning,
as well as the
communications plan to be
developed for the capital
markets

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Product & Service Innovation

Case Assignment Examples

Consumer Healthcare Company
Situation Results
ƒ A large global manufacturer of ƒ A new innovation growth
consumer healthcare products strategy was developed
wanted to improve innovation supported by state-of-the-art
effectiveness and accelerate innovation governance and new
growth through innovation product portfolio capa-bilities
ƒ The company had limited ƒ Time to market has decreased
success introducing primarily from 39 to 24 months
small products with little ƒ Revenue from new products
incremental sales increased from 10% to 25% of
ƒ Key elements of successful total sales
inno-vation were not well
understood
Large CPG manufacturer
Situation Results
ƒ A large CPG manufacturer was ƒ Developed a comprehensive
facing declining sales in its database of company’s
main category technology capabilities
ƒ The company wanted to ƒ Identified markets where these
diversify its business and capabilities can be used and
product portfolio – enter into prioritized these markets based
new adjacent markets by on “right-to-win”
leveraging its innovation and ƒ Recommended three new
technology capabilities market entry opportunities

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Operations & Logistics

Case Assignment Examples

Supply Chain Driven Change – Global Beverage Company
Situation Results
ƒ The client – a division of a global ƒ Clear articulation of business
beverage company – was facing strategy and linkages with other
significant challenges to its divisions
business model driven by ƒ Savings of $100 MM representing
– New product categories 10% of cost base
ƒ Streamlined supply chain and
– Increased innovation
innovation processes reducing
– More complexity
– Unclear organizational linkages cycle time and improving resource
utilization

Consumer Products Company Sourcing Transformation

Situation Results
ƒ As part of an overall strategy ƒ Savings of $120 MM representing
based transformation effort, 15% of the addressable spend
worked with the procurement ƒ Comprehensive commodity
organization to develop and sourcing workbooks across 20
execute a comprehensive sourcing categories
program to identify both short-term ƒ New organization design with
quick win savings and longer term enhanced capabilities through
opportunities and build organi- training sessions and tools
zational capabilities

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Sales and Marketing

Case Assignment Examples

Global Packaged Foods Company
Situation Results
ƒ Client built a full trade promotion ƒ The client has institutionalized the
effectiveness capability across four new capability and achieved annual
key building blocks – analytics, savings from this project of $65
process, organization and systems. million
This required a complex multi-year
transformation program which was
rolled out

Major Packaged Goods Company

Situation Results
ƒ After a merger, the client inherited a ƒ Significant restructuring of the brand
brand portfolio which was portfolio resulted in a leaner and
cumbersome and focused on the focused organization
declining value segment. Resources ƒ Investment brands growth at record
were spread thin across the large levels with annual share gains of
portfolio. We helped the client over 1% SOM
restructure their portfolio, focusing ƒ Significant improvement in portfolio
primarily on strong and emerging profitability
brands in the premium space, and ƒ Positioned to build on the core
freeing up resources from the value business by extending into adjacent,
brands high growth areas

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Information Technology

Booz & Company Sample Publications Case Assignment Examples

Global Beverages Manufacturer
Situation Results
ƒ Under pressure to cut G&A ƒ Multiple savings scenarios were created.
costs and divert the savings Currently, they are conducting a due
to revenue generation acti- diligence to implement one of the most
vities, the client embarked on aggressive scenarios – transform all of
a project to reduce G&A G&A (globally) while harmonizing some
expenses by $20 M/year supply chain, manufacturing, and sales
across the globe. IT repre- processes. The total prize is estimated
sented approximately 70% of to be well over $100M/year in savings
the total savings target

Global Food Manufacturer

Situation Results
ƒ Client was one year into a 7 ƒ A review of the level of customization
year SAP software imple- proposed for:
mentation – Indirect P2P
ƒ To better understand if – Representative processes in Finance
customizations were driving ƒ Guarantee that the selected processes
cost increases, they sought support strategic capabilities and are
the help of Booz & Company “smartly customized” to drive differen-
and the firm’s smart tiation at minimum cost
customization expertise ƒ Governance: A framework and
governance process to define additional
customization going forward

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Outsourcing Advisory Services

Case Assignment Examples

$220 M Global F&A and Sales
Global Sourcing Strategy for a
Administration BPO Deal for
Consumer Goods Company
Automotive Supplier
ƒ One of most complex BPO deals ever ƒ Shared services and outsourcing
– Approximately 1,000 FTEs opportunities in the HR, Finance, IT and
– 20+ countries/5 continents Procurement functions are being
– Work migrated from 100+ dispersed implemented with savings ranging from
locations 15%-40%
– Multiple legacy systems & multiple ƒ A complete governance model has been
SAP instances installed that defines the roles and
ƒ Includes productivity improvements & decision rights of each involved group
labor arbitrage efficiencies ƒ A full change management plan is being
ƒ Involves transformation and innovative successfully implemented
gain-sharing agreements

Offshore Captive Location Evaluation

$15 Billion IT Re-Sourcing Deal for an
for a Consumer Packaged Goods
Automotive OEM
Company
ƒ Re-outsourcing $15B in IT services over ƒ SG&A costs were increasing
5 years in 50+ countries & 4 regions disproportionately to sales increases
– Over 130,000 desktops ƒ Cost-benefit analysis of captive vs. BPO
– Hundreds of site LANs evaluated
– Over 10,000 servers ƒ Three locations evaluated – Chennai,
ƒ Migration from a one stop shop to best of Costa Rica and Freeport
breed model ƒ Recommended a combination of
ƒ Cost reductions of 18-30% through a well outsourcing for IT functions and off-
managed re-compete process shoring for Finance, HR and Customer
ƒ Created supplier mgmt council to Service
coordinate among providers ƒ Savings in excess of $140 M being
implemented

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Organization & Change

Case Assignment Examples

Global Apparel Retail Company
Situation Results
ƒ The client, a $6 billion apparel ƒ Developed new operating
retail company, experienced model that drastically reduced
declining performance over the the time from product develop-
last two years with disappoin- ment to shelf and was positively
ting same-store sales growth accepted across the organi-
and frequent use of markdowns zation
driven in large part by product
misses

Global Pharmaceutical Health and Products Company

Situation Results
ƒ The US based client asked ƒ Designed the firms business
Booz & Company to help them and interacted business unit
integrate an acquired division and functional responsibilities
with a global footprint and ƒ Developed and implemented a
diverse organizational culture detailed people transition
strategy
ƒ Integration covered 30,000
employees and achieved
annual business contribution
goals

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We combine deep functional knowledge with in-depth industry
expertise to deliver real impact
Booz & Company Industry & Functional Practices

Automotive, Energy,
Aerospace Consumer Int’l
Industrials Chemicals Financial Pharma/ Comm. &
& & Public
& & Services Health Technology
Defense Media Sector
Transport Utilities

Organization,
Strategy &
Leadership
Individual and
comprehensive
solutions for our
Operations
clients by combining
industry-specific
know-how with
Information functional expertise
Technology

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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Booz & Company is widely respected as one of the leading
management advisors to the telecom industry
Booz & Company Qualifications
Profound Knowledge of Profound Knowledge in
Telecommunications Expertise
Telecom Operations the Fixed and Mobile Market

ƒ Global Communications and Tech- ƒ Leader in operations enhancement and ƒ No. 1 strategic management consultant
nology Practice with more than 200 performance improvement consulting to in the European fixed and mobile telco
consultants the European, US and Asian mobile market
ƒ Leader in strategy consulting to the network operators ƒ Extensive knowledge about the
communication industry ƒ Breadth of experience with all types of intentions of the various big market
ƒ Breadth of experience with all types of market players: Fixed and mobile players such as
market players operators, portals, application service – Fixed & Cellular operators
ƒ Experience in all functional areas providers, and content companies – Application providers
– Strategy including music, television, and – Portals
– Technology/infrastructure magazines – detailed knowledge of – Network equipment suppliers
– Marketing – Automotive industry/telematic
wireless infrastructure and handset
– Content players
vendor community
– E-Commerce ƒ The comprehensive Booz & Company
ƒ We combine technology insights with
– Customer Care service offering includes
commercial insights – as we (internally – Strategy/Concept Development
and externally) deploy joint teams of – Equity Partnerships
technology and management con- – Implementation Management
sultants – Technology Development
ƒ Deep insights in fixed and wireless – Partner Strategy
telecom and internet related techno-
logies in our Technology Business

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Booz & Company has a specialized technology teams working
exclusively on communications technology issues
Communications Technology Team

Technical Depth Functional Skills

ƒ Transport Mechanisms ƒ Technology Assessments
– Mobile wireless
ƒ Design and Analysis
– Fixed wireless
– Fixed line – Fibre, Cable, DSL ƒ Cost Analysis
– Satellite
ƒ Modeling & Simulation
ƒ Networks
– Voice (Circuit, VOIP) ƒ Testing & Test Planning
– Data (IP, ATM, MPLS, …)
ƒ Infrastructure Program Management
– Video (Broadcast, Streaming, VOD)
ƒ Access Devices ƒ Infrastructure Operations Planning
– Portable Handsets
ƒ Security Assessments
– Customer Premise Equipment
ƒ Management & Control ƒ Disaster Recovery Plans
– OSS
ƒ Investment Prioritizations
– Routing & Switching
ƒ Security
– Relevant standards
– End-to-end security on Wi-Fi

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We combine deep functional knowledge with in-depth industry
expertise to deliver real impact
Booz & Company Industry & Functional Practices

Automotive, Energy,
Aerospace Consumer Int’l
Industrials Chemicals Financial Pharma/ Comm. &
& & Public
& & Services Health Technology
Defense Media Sector
Transport Utilities

Organization,
Strategy &
Leadership
Individual and
comprehensive
solutions for our
Operations
clients by combining
industry-specific
know-how with
Information functional expertise
Technology

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As a firm, most leading telecom operators have chosen to work
with us
Selected Client Portfolio
Alltel Communications, LLC. Orange Personal Communications Services Limited TeliaSonera

AT&T Intellectual Property PT Comunicações Telmex

BellSouth Telecommunications Qwest Communications International Inc. Telstra Corporation Limited

BT Group plc Saudi Telecom T-Mobile USA, Inc.

Cable and Wireless plc Sprint U.S. Cellular

Cingular Wireless Swisscom (Switzerland) Ltd. Verizon

Deutsche Telekom Telecom Argentina S.A Vodafone Group Plc

E-Plus Service GmbH & Co. KG Telecom Italia Wind

France Telecom Telecomunicações Brasileiras S.A. AT&T Intellectual Property

Intelsat Telefónica Europe plc Amdna

KDDI Corporation Telefónica S.A. Indosat

KT Corp. Telekom Austria TA AG KPN

Level 3 Communications, Inc. Telekomunikacja Polska S.A. HongKong Telecom

MCI WorldCom Telekomunikasi Selular Bougyues Telecom

NTT DOCOMO, Inc. Telenor ASA

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The view of our telecommunication clients

ƒ “Booz & Company enabled different functional areas to work with each other, breaking down
the normal departmental barriers and parochialism…”, CEO

ƒ “We had done over 20 projects with other consultants, but none of them were successfully
implemented. Booz & Company accompanied us from initial concept all the way through
successful implementation!”, Program Manager

ƒ “The real benefit is that Booz & Company not only helped us develop a process, but we ended
up with something we could use. I was impressed by the fact that we learned by doing. The
savings potential across all our product lines is staggering”, VP Purchasing

ƒ “Booz & Company’s ability to coordinate people in several countries, different sites and
functions – along with suppliers – was one of the major challenges it met. I don't think we could
have pulled this off at the level we did without Booz & Company.”, VP Engineering

ƒ “Suddenly change management had a completely different meaning at our company.”,

Program Manager

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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Energy, Chemicals & Utilities Practice

ƒ Who we are

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Energy, Chemicals & Utilities Practice areas

ƒ Broad-based expertise in Chemicals and Process Industries, Clean Energy, Mining and
Metals, Oil & Gas, and Power & Utilities
ƒ Strategy Development and Performance Improvement Initiatives

Expertise

ƒ 62 Energy partners and 200+ Energy consultants worldwide – unparalleled global

experience across the energy value chain
ƒ Extensive industry leadership experience
ƒ Functional experts in Information Technology, Operations & Logistics, and Strategy &
Leadership

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 With 62 partners, the ECU Practice is present in 20 cities globally
Booz & Company Energy, Chemicals & Utilities Global Leadership
Eric Spiegel Joachim Rotering
Senior Partner Partner
Global Market Development Leader Market Development Leader
& North America Leader Europe
McLean Dusseldorf

Oil & Gas

Jake Melville Viren Doshi Andrew Clyde Peter Parry Andy
Partner Senior Partner Partner Partner Steinhubl
Oil & Gas Downstream Downstream Upstream Senior Executive
Sector Leader Sector Leader Sector Leader Sector Leader Advisor
Europe Europe North America Europe Upstream Lead
London London Dallas London Houston

Tom Flaherty Otto Waterlander

Power & Utilities Senior Partner Partner
Power & Utilities Power & Utilities
Sector Leader Sector Leader
North America Europe
Dallas Amsterdam

Chemicals & Richard Verity Tim

Mining & Metals Jackson
Process Industries Partner
Chemicals & PI Partner (OPS)
Sector Leader Mining & Metals
Europe Sector Co-Leader
London Sydney

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Booz & Company’s Energy, Chemicals & Utilities Leadership –
Europe
Peter Giorgio Georges Viren Doshi Karl Anja-Isabel
Bertone Biscardini Chehade Senior Partner Hoie Dotzenrath
Sr. Partner Partner Partner Downstream Partner Partner
London Milan London Sector Leader (OPS) Zurich
Europe Oslo
London

Per-Ola Peter Mark George Klaus Neil

Karlsson Liberoth Lillie List Mattern McArthur
Partner Partner Partner Partner Partner Sr. Partner
(OSL) (OPS) London (OPS) Dusseldorf European
Stockholm Copenhagen Amsterdam Director
Amsterdam

Jake Torsten Fernando Peter Joachim Suvojoy

Leslie Moe Napolitano Parry Rotering Sengupta
Melville Partner Partner Partner Partner Partner
Partner (OPS) (OSL) Upstream (OPS) (IT)
O&G Lead Copenhagen Rome Lead Europe MDL London
London London Dusseldorf

David Luis Sven Richard Otto Walter

Suarez Uriza Vallerien Verity Waterlander Wintersteller
Vice Partner Partner Partner Partner Partner
President London OPS Chemical Power & Munich
Madrid Dusseldorf Lead Utilities Lead
London Amsterdam

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Booz & Company Energy, Chemicals & Utilities Leadership –
North America
Eduardo Andrew Don Tom Jim
Alvarez Clyde Dawson Flaherty Hendrickson
Partner Partner Partner Senior Partner Partner
(IT) Downstream Dallas Power & McLean
Chicago Lead Utilities Lead
Dallas Dallas

Todd Glenn Matt Cindy Bruce

Jirovec Klimchuk McKenna McNeese Pasternack
Partner Partner Sr. Executive Partner Expert
Dallas Houston Advisor (IT) Contractor
OPS Chicago San Francisco
Houston

Rob Bert Eric Andy Joe

Robinson Shelton Spiegel Steinhubl Vandenberg
Partner Senior Executive Senior Partner Senior Executive Partner
Detroit Advisor Global MDL Advisor McLean
San Francisco McLean Upstream Lead
Houston

Herve Tom
Wilcyznski Williams
Partner Senior Executive
(OPS) Advisor
Houston (OSL)
McLean

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Booz & Company Energy, Chemicals & Utilities Leadership –
International Regions
Asia/Anzsea

Paul Tim Jeffrey John Nick

Duerloo Jackson MacCorkle McCreery Pennell
Partner Partner Partner Partner Partner
(OSL) (OPS) (ATI) Sydney Shanghai
Tokyo Lead Partner Beijing
Mining & Metals
Sydney

Middle East
Ibrahim Raed Joe
El-Husseini Kombargi Saddi
Partner Partner Booz &
Beirut Abu Dhabi Company
Chairman
Beirut

South America
Paolo Arthur
Pigorini Ramos
Partner Partner
Rio de Janeiro Sao Paulo

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Energy, Chemicals & Utilities Practice

ƒ Our clients

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Global client summary

ƒ All of the super majors

18 out of 20 of the largest resource holders (NOCs/IOCs)
ƒ 40 leading regionals in Australia, Canada, China, Eastern Europe, Europe, and the
United States
ƒ Dominant Middle East positions, played leading role in all large privatizations
ƒ Involved in over 80% of all the mergers in the United States
ƒ 4 out of the top 5 Utilities in Europe
ƒ 4 out of 5 of the largest chemical companies

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Representative clients Anzsea and Asia

ƒ All of the super majors

Actis Mitsui Mining & Smelting Co., Ltd.

ƒ 18 out of 20 of the largest resource holders (NOCs/IOCs) Alinta ONGC Videsh Limited

BHP Billiton Orica Limited

ƒ 40 leading regionals in Australia, Canada, China, Eastern
Europe, Europe, and the United States BP p.l.c. PetroChina Company Limited

Citadel Investment Group, L.L.C. Port Waratah Coal Services Limited

ƒ Dominant Middle East positions, played leading role in all
DSM PT International Nickel Indonesia Tbk
large privatizations
Flinders Power Santos
ƒ 25 of 30 Utilities in the United States Hitachi Chemical Co. Shell

ICI India Limited Teijin Limited

ƒ Involved in over 80% of all the mergers in the United States
Korea National Oil Corporation Total Group
ƒ 4 out of the top 5 Utilities in Europe Linde AG Woodside

Mitsubishi Chemical Corporation

ƒ 4 out of 5 of the largest chemical companies

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Representative clients Europe 3i Group plc
AB Mazeikiu Nafta
E.ON AG
E.ON Benelux
Panmira
PKN ORLEN
Abu Dhabi National Energy
EDF Energy RAG
Company
Agip Edison SpA Repsol YPF
Aker Kvaerner Electrabel RWE
Saudi Basic Industries
Altana Electricity Supply Board
ƒ All of the super majors Corporation
Altor Equity Partners ELPE Schneider Electric
EnBW Energie Baden-
ASTORG Severn Trent Plc
Württemberg AG
ƒ 18 out of 20 of the largest resource holders (NOCs/IOCs)
Axpo Holding AG Enel Shell
BASF SE EnerTAD S.p.A. SN Power
ƒ 40 leading regionals in Australia, Canada, China, Eastern Bateman Litwin N.V. Eni SpA StatoilHydro
Bayer CropScience AG Essent STEAG Saar Energie AG
Europe, Europe, and the United States
BG Group plc Fortum Keilaniemi Stork B.V.
Swedish Nuclear Fuel and Waste
BHP Biilliton GasTerra
Management Co
ƒ Dominant Middle East positions, played leading role in all Borealis AG Gasunie Syngenta
large privatizations BP p.l.c. GOUDA Tennet
British Energy Group plc Holcim Ltd The Carbon Trust
Candover ICI India Limited The Merck Group
ƒ 25 of 30 Utilities in the United States L'énergie est notre avenir,
CDC Enterprises, Inc. The Van der Sluijs Groep
économisons-la
Centrica Linde AG ThyssenKrupp AG
ƒ Involved in over 80% of all the mergers in the United States Cheyne Capital Management (UK)
Marel Food Systems TNK-BP
LLP.
Chr. Hansen A/S Metso Corporation Total Group
ƒ 4 out of the top 5 Utilities in Europe Cinven Montagu Private Equity UKAEA
Clariant Moody International UNION FENOSA, S.A.
Conergy Morgan Stanley Unipetrol
ƒ 4 out of 5 of the largest chemical companies CVC Capital Partners National Grid Uponor Corporation
Delta N.V Neste Uponor Corporation
Die Saarbrucker Stadtwerke Norsk Hydro ASA Vattenfall AB
Distrigas Novozymes Verbundnelz Gas AG
DONG Energy A/S Nuon Vestas
Österreichische
DTE Energy Company Wien Energie
Elektrizitätswirtschafts-AG
DuPont Pan Asia Solar, Ltd. Wintershall

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Representative clients Middle East

Abu Dhabi Company for Onshore Oil

ƒ All of the super majors Operations Ministry of Water & Electricity
Abu Dhabi National Energy Company MONE
ƒ 18 out of 20 of the largest resource holders (NOCs/IOCs) AcwaSasakura National Industries Group
ADGAS Ltd. PIC
ƒ 40 leading regionals in Australia, Canada, China, Eastern ADMA-OPCO SAGIA
Europe, Europe, and the United States
Al Azizia Commercial Investment
Company Sakr Power Systems
ƒ Dominant Middle East positions, played leading role in all
Al-Tijaria Saudi Arabian Amiantit Co.
large privatizations
Arcapita Bank B.S.C. Saudi Arabian Oil Co.

ƒ 25 of 30 Utilities in the United States AREF Energy Holding Group Saudi Basic Industries Corporation
Citadel Capital Saudi Electricity Company
ƒ Involved in over 80% of all the mergers in the United States General Electricity Company of Libya Sharjah Electricity & Water Authority
Ikarus Shell
ƒ 4 out of the top 5 Utilities in Europe Kingdom Hotel Investments Stehwaz Holding
KOC Suhail Bahwan Group
ƒ 4 out of 5 of the largest chemical companies
Kuwait Petroleum Corporation TAKREER
LUKOIL oil company United Industries
Masdar Initiative Zakum Development Company

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Representative clients North America
7-Eleven, Inc. Duke Energy Corp. Public Service Enterprise Group, Inc.
ADCO Edison Electric Institute Pyramid Systems, Inc.
AES Corporation Entergy Corp. R. W. Beck, Inc.
ƒ All of the super majors Alpha Natural Resources, Inc. Evergreen Energy Inc. Regency Energy Partners
Ameren Exelon Enterprises Reliant Energy
American Electric Power Exxon Mobil Corp. Rolls-Royce plc
ƒ 18 out of 20 of the largest resource holders American Water Flowserve Corp. Sandia Corporation
(NOCs/IOCs) AMYRIS Technologies Frontier Communications Corp. Saudi Basic Industries Corp.
Avista Corp. General Electric Company Shell
Bateman Litwin NV GFI Energy Ventures LLC Snow Phipps Group, LLC
ƒ 40 leading regionals in Australia, Canada, Bayer CropScienece AG Hess Corporation Southern California Edison
China, Eastern Europe, Europe, and the United Black Hills Corporation Hunt Oil Company Southern Company
States BP plc Impala SouthStar Energy Services
Brand Energy and Infrastructure Services Integrys Energy Group, Inc. Stone Suppliers LLC
Brazos JPMorgan Chase & Co. Suncor Energy Inc.
ƒ Dominant Middle East positions, played leading Calpine Kohlberg Kravis Roberts & Co. Synenco Energy Inc.
role in all large privatizations CF Industries, Inc. Layne Christensen Company Talisman Energy Inc.
Chemonics Littlejohn & Co. Tesoro Corporation
Chevron Corporation Lydall, Inc. The City of New York
ƒ 25 of 30 Utilities in the United States
Cheyne Capital Management (UK) LLP. MISO TXU Energy Retail Company LLC
CITGO Petroleum Corporation Morgan Stanley United Industries
ƒ Involved in over 80% of all the mergers in the City of Seattle National Power Corporation U.S. Department of Energy

United States Colorado Oil & Gas Association's OGE Energy Corp U.S. Power Generating Company
Columbus Nova Pacific Corporate Group LLC USEC, Inc.
Conoco Phillips Company Pacific Gas and Electric Company UT-Battelle, LLC
ƒ 4 out of the top 5 Utilities in Europe Constellation Energy Group, Inc. Pepco Valero Marketing and Supply Company
Credit Suisse Group Petro-Canada Vinson & Elkins LLP
Current PJM Xcel Energy
ƒ 4 out of 5 of the largest chemical companies DCP Midstream Partners, LP PNM
Devon Energy Corp. PRC
Dominion Progress Energy

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Representative clients South America

ƒ All of the super majors

AES Corporation Holcim, Ltd.
ƒ 18 out of 20 of the largest resource holders (NOCs/IOCs)
Braskem Masisa
ƒ 40 leading regionals in Australia, Canada, China, Eastern
Europe, Europe, and the United States Camara de Comercializagdo Petroquimica de Venezuela
de Energia Eletrica S.A.
ƒ Dominant Middle East positions, played leading role in all large
Companhia Energética de
privatizations Sindigas
Minas Gerais

ƒ 25 of 30 Utilities in the United States Companhia Vale do Rio Doce Suzano Petroquimica

ƒ Involved in over 80% of all the mergers in the United States Transportadora de gas del
Consbrcia Estreta Energia
sur
ƒ 4 out of the top 5 Utilities in Europe
GDF SUEZ Unica Corporation

ƒ 4 out of 5 of the largest chemical companies

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Energy, Chemicals & Utilities Practice

ƒ What we do

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Our Global Energy Value Chain
Energy Secondary
Wholesale/ Marketing
Upstream Transport & Processing Transport &
Trade & Sales
Storage Distribution

ƒ Base chemicals ƒ Chemical processing ƒ Chemicals trading ƒ Logistics & distribution ƒ Chemicals marketing
Chemicals & transportation ƒ Manufacturing ƒ Storage & inventory ƒ Smart customization
Process processing management pricing
Industries ƒ Commodities
management

ƒ Exploration & ƒ In-site Ore ƒ Processing & ƒ Commodity Trading

Mining & Extraction Transportation Blending ƒ Long-term Contracts
Metals ƒ Reserve Exploitation ƒ Rail Transportation ƒ Product Optimization ƒ Technical Assistance
Planning ƒ Port Operations &
Shipping
ƒ Exploration ƒ Oil & gas pipelines ƒ Oil refineries ƒ Trucking ƒ Service stations
ƒ Production ƒ Shipping/LNG ƒ LNG regasification ƒ Storage of refined ƒ Commercial sales
Oil & Gas ƒ New business ƒ Storage crude oil products
development
ƒ Major projects
ƒ Risk management
ƒ Coal ƒ Power generation ƒ Exchanges ƒ Power transmission ƒ Industrial and com-
Gas, ƒ Uranium enrichment ƒ Distributed generation ƒ RTO management mercial customers
Power & ƒ Renewables ƒ Power & gas ƒ Residential customers
Utilities ƒ Cogeneration distribution ƒ Energy services
ƒ Waste processing ƒ Water distribution ƒ Distributed generation

ƒ Corn ƒ Rails ƒ Cellulose processing ƒ Commodities ƒ Biomass blending ƒ Commercial sales

Alternative ƒ Sugar ƒ Gasification ƒ Solar ƒ Storage of refined ƒ Service stations
ƒ Biomass ƒ Ethanol refining ƒ Wind products
Energy ƒ Trucking

ƒ Strategy ƒ Operations ƒ Customer Management ƒ Regulation

ƒ Technology ƒ Sourcing/Supply Chain ƒ Construction Oversight ƒ Benchmarking/
ƒ Program Management ƒ Technical Development ƒ Organization Design Best Practices

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In each part of the Energy, Chemicals & Utilities value chain we
are prepared to deliver projects focused on strategy …
ƒ Performing in-depth market studies, we have aided companies in identifying: New markets to enter (along with the
Market Studies/Analysis associated market size and profitability of the segments) and which to exit; effective allocation of R&D investment;
Emerging competitors & competing technologies; and market dynamics/trends that are shaping the future of the industry

ƒ We work with clients to select which capabilities will be future market driving, and then help them realign resources to
Business Strategy build/strengthen those capabilities to improve their competitive position, build sustainable barriers and enhance
shareholder value

ƒ We have worked with companies to understand product profitability and improve sales through customer segmentation,
Product/Portfolio pricing strategies, and technology enhancements/product modifications. We have analyzed their suite of products to
minimize cannibalization/overlap and identify gaps in their portfolio
Strategy

ƒ We have the technical and business skills to accurately assess business logic. We have developed and are utilizing an
approach that provides hard economic analyses of value creation from acquisitions and alliances that takes less time
Acquisition and Alliance
than traditional approaches
Strategy

ƒ We have assisted many companies leverage their capabilities successfully into new markets, avoiding the pitfalls which
have plagued past attempts at diversification. The key is an objective assessment of capabilities – both those which are
Capabilities Based leverageable and those which must be built or acquired to succeed in new businesses. Our expertise in our other
Expansion industry practices is a valuable resource to aerospace/defense companies

ƒ We have the unique ability to combine the functional resources of our leadership position in War-gaming for the
Pentagon with our chemicals industry experts to develop a customized simulation of a client’s business, enabling the
Competitive Strategic
client to explore the dynamics of alternative futures for their business. Teams are formed representing competitors,
Simulation customers, and other industry participants, and computer models give feedback after each move on market shares and
profitability

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… or projects concerned with operations and systems

ƒ Many acquisitions which are sound in concept fail in execution due to inadequate attention to implementation to realize
Post Merger Integration synergies after the deal is signed. Booz & Company has an impressive track record in this area – in a Business Week
cover story several years ago on “Why Acquisitions Fail”, five successes and twenty failures were cited; We were
involved in post-merger integration assistance in three of the five “successes” and none of the “failures”

ƒ We have extensive experience in benchmarking costs and best practices, based on publicly available information and
Competitive rigorous analysis. We have conducted numerous landmark benchmarking efforts specific to the aerospace/defense
Benchmarking industry as well as world-class organizations outside the industry; these resources are powerful tools during the
diagnostic phase of an engagement

Business Process ƒ Focusing on cross-functional business processes, we work with clients to eliminate activities and streamline processes
Design to reduce costs and shorten cycle times

ƒ Bonding systems to the client’s business strategy, we have a unique approach, team structure and proprietary
Strategy Driven Systems processes to help clients enable capabilities through information technology

Operational ƒ Tackling all functional cost areas (engineering, sourcing, manufacturing, and G&A functions), we have helped clients
Restructuring identify, prioritize and realize overall cost savings, cycle time reduction and improved quality and competitive win rates

ƒ Focusing on cycle time reduction, we have helped clients implement integrated product/process development,
Development
enhanced design reuse, and instill planning management discipline. The results are improved competitiveness in a
Effectiveness period when contractors can no longer rely on large production contracts to make up for deficiencies in development

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Energy, Chemicals & Utilities Practice

ƒ What we think

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Our Practice provides expert thought leadership and counsel in the
Oil & Gas Industry …

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… the Power & Utilities Industry, …

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… as well as in cross sectors areas such as Clean Energy

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Energy, Chemicals & Utilities Practice

ƒ Our qualifications are stellar

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We have deep expertise in the global Chemicals & Process
Industries market supporting clients with speed, certainty and
precision
Selected Chemicals & Process Industries Client Examples

ƒ Market segmentation set agenda ƒ Steel outlook 2006 and 2007 ƒ Post-merger implementation
ƒ Distribution strategy ƒ Sustainable purchasing results ƒ Organizational development
ƒ LNG plan engineering ƒ Wargame – set agenda ƒ Innovation workshop
ƒ Turnaround plan ƒ Pre-/post-merger integration ƒ Strategy-based transformation
ƒ IT infrastructure negotiation support ƒ Business due diligence & ƒ Paint due diligence
ƒ OEM supplier strategy valuation ƒ Global organization strategy
ƒ Innovation workshop ƒ Operations strategy ƒ Logistics strategy
ƒ C&I strategic review ƒ Carbon capture & sequestration ƒ War-gaming – human nutrition
ƒ Healthcare gases ƒ New business opportunity MEH
ƒ Finance & accounting ƒ China sourcing strategy ƒ Cracker expansion project
ƒ Business plan development ƒ SCO planning management
ƒ New business portfolio

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We have deep expertise in the global Oil & Gas Downstream market
supporting organizations with speed, certainty, and precision
Selected Oil & Gas Downstream Market Examples

ƒ Transportation productivity ƒ North American data center ƒ Vision stress test

improvement assessment ƒ New bio fields opportunity
ƒ Center of expertise ƒ Business imbedded IT assessment
ƒ Supplier relationship restructuring assessment ƒ Mid-office design
ƒ Retail improvement strategy ƒ Fuels interface pricing ƒ West coast diesel strategy
ƒ Downstream diagnostic ƒ U.K. onshore wind market ƒ Secondary transport market
ƒ Process fitness strategy ƒ External organization review study
ƒ Application roadmap vision for ƒ EOR diesel strategy ƒ Pipe valves fittings market
fuel ƒ Atlantian rail transport for oil review
ƒ Asian refining strategy ƒ Fuels marketing roadmap ƒ Marketing 202 – mid-west fuels
ƒ IT Investment strategy – global ƒ Applications support delivery strategy
bitumen business model ƒ Oil equipment manufacturing
ƒ ASDM deployment ƒ Corporate growth strategy due diligence
ƒ R&M and GFI SAP supporting ƒ Truck service center business ƒ Primary transportation bench-
sourcing review marking
ƒ Fuels interface pricing ƒ West coast downstream strategy ƒ Acquisition due diligence
ƒ Oil retail strategy

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We have deep expertise in the global Oil & Gas Upstream market
supporting organizations with speed, certainty, and precision
Selected Oil & Gas Upstream Client Examples

ƒ EP Learning change plan ƒ R&S strategy-based ƒ HS SE & IM role definition

ƒ GOM SPU Organization design transformation organization implementation
ƒ U.S. EPW Process improvement ƒ Heater supplier wargame ƒ DCP sourcing support
ƒ MDC Organization review ƒ Feasibility assessment ƒ Deepwater core processing
ƒ War-gaming – race for global ƒ Operational readiness review implementation
shale market ƒ Shared services ƒ Human capability development
ƒ Cost management initiative ƒ EP capability diagnostic ƒ IT strategy
ƒ Support services assessment ƒ Engineer selection ƒ Global infrastructure
ƒ Incremental cost analysis ƒ Base operations performance ƒ Supply chain productivity
ƒ Merger services improvement improvement
ƒ Competitor exploration ƒ Field of the future ƒ Exploration strategy &
organization benchmarking ƒ Land bid strategy organization development
ƒ Mid-stream assessment ƒ Field cost benchmarking ƒ Simplification asset integrity
ƒ Opportunity framing model

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We have deep expertise in the global Gas, Power & Utilities market
supporting organizations with speed, certainty, and precision
Selected Gas, Power & Utilities Client Examples

ƒ Competitive simulation ƒ Integration of two businesses ƒ Customer strategy

ƒ Customer survey and pricing ƒ Gas portfolio strategy ƒ Sourcing for profitable growth
strategy ƒ LNG Terminal assessment ƒ Sector strategy
ƒ Gas storage strategy ƒ Implementation of shared ƒ Gas utility strategy
ƒ Operating model design merger services ƒ Generation operations
& restructuring ƒ Market assessment ƒ Strategy for major utility
ƒ High-level synergy analysis ƒ Power plant performance ƒ Deregulation strategy overview
ƒ Performance improvement improvement ƒ Generation privatization and
ƒ Five-year assistance plan ƒ High-level benchmarking analysis performance improvement
ƒ Coal strategy ƒ Business transformation – ƒ Organization blueprint
ƒ GB Trading strategy Phase 0 ƒ Global organization design
ƒ European gas & power strategy ƒ CAB Stabilization support ƒ Carbon emissions wargame
ƒ Public security screening ƒ Electronic content management ƒ Hydrogen market for powertrain
ƒ Value proposition system
ƒ Price arbitration process
ƒ Natural gas vehicle program ƒ Deregulation strategy
ƒ A&G testimony
ƒ Energy utility privatization

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We have deep expertise in the global Gas market supporting
organizations with speed, certainty, and precision

Selected Gas Client Examples

ƒ Competitive simulation ƒ Gas market assessment ƒ Customer strategy

ƒ Customer survey and pricing ƒ European gas & power strategy ƒ Deregulation strategy overview
strategy ƒ LNG terminal assessment ƒ Gas projects development
ƒ Gas strategy ƒ Implementation of shared ƒ Generation privatization and
ƒ Power sector business strategy services performance improvement
ƒ Performance improvement ƒ LNG impact assessment ƒ Global organization design
ƒ Gas storage strategy ƒ Deregulation strategy ƒ Deregulation gas market
ƒ LNG strategy ƒ Market assessment assessment
ƒ Downstream performance ƒ Energy utility privatization ƒ LNG/Gas marketing strategy
improvement ƒ Gas utility strategy ƒ Natural gas vehicle program
ƒ Southern cone gas strategy ƒ Integration of two businesses ƒ e-Business strategy
ƒ Sector strategy ƒ Gas strategy for major utility
ƒ Natural gas strategy
ƒ Gas portfolio strategy

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We have deep expertise in the global Clean Energy market
supporting organizations with speed, certainty, and precision
Selected Clean Energy Client Examples

ƒ Alternative fuels market impact ƒ Assessment of coal gasification of ƒ Fuel cell bus program design and
study super critical pulverized coal development
ƒ Alternative fuels retail strategy technologies ƒ Market entry plan for Green Power
ƒ Bio fuels investment strategy ƒ Integrated coal gasification marketing
ƒ Effectiveness of low carbon ƒ Coal gasification technology ƒ Renewables strategy and venturing
bio diesel strategy implementation outlook options
ƒ Fuels flexibility study ƒ Carbon sequestration ƒ Renewables market assessment
ƒ Market potential for Columbia bio- assessment ƒ Renewables market entry strategy
diesel imports to U.S. ƒ War-gaming – carbon emissions ƒ Solar energy strategy for building
ƒ Study of constraints limiting rapid ƒ Commercialization of carbon-free market
expansion of the bio-fuels industry hydrogen and electricity ƒ Solar manufacturer plant
ƒ Industrial gasification market ƒ Hydrogen refueling & maintenance performance improvement analysis
assessment facility specifications ƒ Strategy based transformation
ƒ Ethanol strategy ƒ Supply Chain C02 reduction and ƒ Wind market entry strategy
ƒ Fuels & technology forum methodology process ƒ Wind energy technology business
ƒ M&A assessment ƒ Portfolio investment strategy plan

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Energy, Chemicals & Utilities Practice

ƒ Recent engagement examples

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Representative Energy, Chemicals & Utilities Client Engagements

ƒ Efficiency Audit ƒ Bio Diesel Strategy Implementation ƒ Upstream Organizational Restructuring

ƒ Retail Performance Improvement ƒ Coal Gasification Technology Outlook ƒ War-gaming: Carbon Emissions
ƒ Fuels Marketing Strategy ƒ Gas Processing M&A ƒ Projects to Operations
ƒ Access Process Diagnostic/Asset Factory ƒ Energy Finance Growth Strategy ƒ Mining & Smelting SCM Diagnosis
Design ƒ Global Exploration Business Development ƒ Market Assessment
ƒ Carbon Sequestration Assessment Organization Benchmarking ƒ Post-Merger Integration
ƒ GOM Organization Redesign ƒ Downstream Performance Improvement ƒ Organization Design & Outsourcing
ƒ Utilities Merger & Restructuring ƒ DW PU Process Model Implementation ƒ Energy Value Trading Implementation
ƒ Water Strategy & Organization and One Touch Integration ƒ European Gas & Power Strategy
ƒ Board Effectiveness Review ƒ Gas Utility Strategy ƒ EP Capability Diagnostic
ƒ Canadian Lease Bid Strategy ƒ Southern Cone Gas Strategy ƒ Shipping Strategy
ƒ Petroleum Coke Strategy ƒ Private Equity Opportunity Identification ƒ Fuels Commercial Optimization
ƒ War-gaming: Race for Global Shale ƒ Refiner M&A Due Diligence ƒ Natural Gas Strategy
Industry ƒ E&P Technology and Surveillance ƒ NOC Restructuring
ƒ Oil Trading Growth Strategy Operating Model ƒ Bio-Fuels Strategy
ƒ Gulf of Mexico Deepwater Strategic ƒ Retail Pricing Strategy ƒ Upstream Implementation Review
Reorganization ƒ Steel Outlook 206 and 2007 ƒ Mining H Organization Redesign
ƒ LNG Strategy ƒ Crude Oil Marketing Strategy ƒ Overhead Benchmarking
ƒ Ethanol Strategy ƒ Working Capital Reduction ƒ Supply chain Next Level
ƒ Power Plant Performance Improvement ƒ Cross-Sector SCM and Capability Review ƒ Chemicals New Business Portfolio
ƒ Low Cost Retail Operating Model ƒ China Market Entry ƒ LPG Value Proposition
ƒ OEM Supplier Strategy ƒ Deregulation Gas Market Assessment ƒ Call Center Regulatory Support
ƒ Engineering Contractor Selection ƒ Regional Growth Strategy Browse Basin ƒ LNG Strategy
Methodology ƒ Global Organization Design ƒ Data Management Strategy
ƒ Strategic Support and Portfolio ƒ China Chemicals Strategy ƒ War-gaming Human Capital
Development ƒ Generation Privatization and Performance ƒ Government Utilities Privatization Process
ƒ Carbon Capture and Sequestration Improvement ƒ Asian Refining Strategy and Policy
ƒ Cracker Expansion Project Management ƒ JV Restructuring Options

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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We serve leading institutions across all Healthcare sectors and thus
have a deep understanding of market dynamics

Providers Payers
ƒ Hospitals ƒ Government
ƒ Physicians ƒ Employees
ƒ Integrated Delivery ƒ Employer Groups
Networks ƒ Individuals
ƒ Pharmacies ƒ Health Plans

Life Sciences Government & Multi-Lateral

ƒ Pharmaceutical ƒ Policy/Regulatory
ƒ Biotech ƒ Associations
ƒ Medical Devices ƒ Global Health
ƒ Scientific Research Organizations
Intended close cooperation with

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We combine deep functional knowledge with in-depth industry
expertise to deliver real impact
Booz & Company Industry & Functional Practices

Automotive, Energy,
Aerospace Consumer Int’l
Industrials Chemicals Financial Pharma/ Comm. &
& & Public
& & Services Health Technology
Defense Media Sector
Transport Utilities

Organization,
Strategy &
Leadership Individual and
comprehensive
solutions for our
Operations clients by combining
industry-specific
know-how with
functional expertise
Information
Technology

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Our Life Sciences offering spans from strategy to implementation
support and covers all elements of the Life Sciences value chain
Booz & Company Service Offerings

Supply Chain & Marketing, Sales & Strategy, General &

R&D
Production Distribution Administration

ƒ Strategic development ƒ Strategic sourcing (raw ƒ Commercial and trade ƒ Portfolio strategies
portfolio assessment materials, packaging etc.) channel strategy ƒ Licensing and partnering
ƒ Resource modeling/ ƒ Make-or-buy/offshoring ƒ Sales excellence for strategies, including Spin-
optimization ƒ Efficiency enhancement by specialty products offs, Buy-outs and
ƒ Chemical, pharmaceutical OAE, new production ƒ Cold chain distribution Venturing
and clinical development concepts, etc. ƒ Global and regional Key ƒ Valuation and commercial
strategies ƒ Shared operations and Account Management due diligences
ƒ Drug safety strategy shared services excellence ƒ Acquisition integration/post
ƒ Compliance and regulatory ƒ Manufacturing effectiveness ƒ Innovative sales force merger integration
affairs management ƒ Process optimization (e.g. modeling/pharma marketing ƒ Alliance and cooperation
ƒ Quality risk management LEAN) and reorganization innovation network management
ƒ R&D cost management and ƒ Headcount reduction ƒ E-Marketing ƒ New commercial model
R&D effectiveness (direct/indirect functions) ƒ SG&A cost reduction based ƒ Overall cost management
ƒ R&D organization design ƒ Complexity reduction by on M&S challenges ƒ Corporate structure and
ƒ Smart monitoring product pruning ƒ Stakeholder assessment corporate governance
ƒ Performance management ƒ Product launch strategies optimization and
ƒ Labeling excellence implementation
and balanced scorecard and support
ƒ Interdisciplinary knowledge implementation ƒ Global project and program
networks (e.g. R&D, ƒ Mature product portfolio
ƒ Working Capital reduction optimization management
TechOps, etc.)
ƒ … ƒ … ƒ …
ƒ …
Source: Booz & Company analysis

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Our Global Health Practice shows outstanding growth and covers
a broad portfolio of service offerings
Revenue Growth vs. Health Consulting Market FY Global Health Practice:
2003 - 2007 Sample Service Offerings

ƒ Strategy
% – Corporate Strategy
– Business Unit Strategy
23% – Functional Strategy
– Acquisitions & Alliances
– Post Merger Integration
– War-gaming/Simulations
– Enterprise Risk Management

13% ƒ Transformation
– Capability Building
– Business Process Redesign
– Organization Redesign
– Change Leadership
– Overhead Cost Reduction
– Marketing & Sales Innovation
– R&D Productivity
– Drug Safety
– Supply Chain Management
Booz & Company Health Practice – Outsourcing/Off-shoring
Health Consulting Market1) – IT Architecture Strategy
– Health Information Technology
1) Kennedy Information, Inc. estimate in 2005 Global Healthcare Consulting Marketplace Report

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An independent study shows that Booz is the strongest player in
almost all of the four segments of the global healthcare market
Areas of Strength for Primarily Strategy Consulting Organizations
(%) (by estimated 2006 revenues)

8,0%
“Booz & Company continues
to the dominant player, by
far, in government health, and
5,3% with the strength of this area of
healthcare consulting expected
4,3% 4,1% to increase even further in
3,8%
3,5% 3,3%
coming years, its growth
2,9% should be higher than the
industry as a whole”
1,6% 1,4%
0,7%
0,4% 0,2% 0,5% 0,5%
0,2%
Booz & Company is
continuing the commercial
Life Sciences Provider Insurer/Payer Government Health strategy consulting
business of
McKinsey & Company Boston Consulting Group Bain & Company Booz & Company Booz Allen Hamilton

Source: Kennedy Information, Inc., “Healthcare Consulting Marketplace 2007”

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Recent Global Health Practice Publications

ƒ “Health Care’s Retail Solution” ƒ “The HIV/AIDS Epidemic: Strategic Simulations to Build
ƒ “Consumer and Physician Preparedness for Consumer Public-Private Partnerships in India, Africa, and China”
Driven Health” (Survey of 3000 Consumers and 600 ƒ “The Cost of Medical Technologies: Maximizing the Value
Physicians) of Innovation”
ƒ “Prescription for Change” ƒ “Modular Product Architectures in Health Care: Lessons
ƒ “Health Meets Wealth” From the Manufacturing Sector”
ƒ “The Next Trillion Dollar Opportunity: Health Care and ƒ “Managing Costs by PBM Design” (Published in Script
Financial Services Convergence” Magazine)
ƒ “The Future of Provider Payment” ƒ “Playing for Keeps: Lessons Learned from Bioterrorism
Wargaming”
ƒ “Drug Firms in the New Retail Marketplace”
ƒ “Patient Safety: A Data Driven Prescription”
ƒ “The Innovators: Research Meets Practice”
ƒ “HMOs ‘R Us: The Grand Opening”
ƒ “The Great Facilitator: Government’s Role in The Retail
Health Care Evolution” ƒ “Branding Health Care: The Next Source of Competitive
Advantage”
ƒ “Health Care IT in the Consumer Driven Future”
ƒ “Vertical Integration: 80’s Fad or Health Care’s Future?”
ƒ “Health Care’s New e-Marketplace”
ƒ “Whatever Happened to Strategy?”
ƒ “The Real Consumer Revolution in Health Care: Defined
Contribution Health Plans” ƒ “Annual End of Year Letter: Perspectives on the Health
Care Industry”
ƒ “Remaining a Not-For-Profit Health Plan: Enduring Vision
or Competitive Disadvantage?”

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There are a lot of good reasons to work with Booz & Company

Why Booz & Company?

ƒ Top tier strategy consultancy with over 90 years of history
One Of The Leading General Management ƒ 3,300 employees
Consultants Worldwide ƒ 57 Offices worldwide

ƒ Booz & Company has a team of over 300 health experts worldwide
Global Life Sciences Team With Significant
ƒ Entire spectrum of strategy & implementation topics
Line Experience
ƒ Several senior strategy consultants with line experience

ƒ Broad project experience with major Pharma players on a broad range of

Broad Experience In Pharmaceutical M&S topics, incl. market entry strategy, performance improvement
Marketing And Sales ƒ Our team includes individuals with multiple years of senior M&S line experience

ƒ Extensive project experience with major Pharmaceutical, Diagnostic and Generics

Extensive Experience In Pharma Production companies on a broad range of topics, incl. productivity optimization
And Supply Chain
ƒ Our team includes individuals with extensive knowledge of XXXXXX

ƒ State-of-the-art methodologies and tools

Significant Experience In Productivity
ƒ Pragmatic, hands on and results focused work-style
Optimization
ƒ Significant project track record across industries, including Pharma/Gx/Dx

ƒ Multiple very successful assignments in the commercial space (incl. BSB, Betatop,
Strong Track Record Of Successful Restructuring Austria) – Proj. Leadership Fricker/Behner
Collaboration With ƒ Multiple assignments in production and supply chain yielding significant bottom-line
savings (incl. BOOST CHEM, MORE MSC) – Proj. Leadership Behner/Morawietz

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Our Global Health Practice – the clients we serve

ƒ Payors – Booz & Company is a market leader in serving many of the industry’s most important national health plans, Blue Cross
Blue Shield organizations, HMOs, pharmacy benefit managers, and other specialty companies in the US and abroad. Our
engagements have included the development of corporate, business unit, and functional strategies, as well as future operating
visions, organization redesigns, capability building programs, and pre- and post merger integration efforts to execute these
strategies

ƒ Providers – we work with major physician and hospital organizations in the provider sector. In the U.S., our work includes creating
innovative new business models to position providers to thrive in an increasingly consumer-focused, retail industry environment. In
Europe, we work with hospitals to restructure their enterprises in order to thrive in increasingly competitive markets. In the Middle
East, we collaborate with leading providers, investors, and local governments to improve access to high quality care in the region

ƒ Life Sciences – we work with blue-chip life sciences companies worldwide. We bring a truly differentiated ability to not only
develop strategy but also help deliver value, build and embed new capabilities, and effect change. We combine deep functional
expertise in strategy, operations, information technology, and organization with a unique strategic perspective based on our leading
position working with the managed care customers of life sciences companies and our collaboration with the leading consultants to
U.S. government health agencies

ƒ Government Health Care – Booz & Company serves government organizations around the world, including Europe, the Middle
East, and Asia. We also collaborate with the premier health care consulting firm to the U.S. federal government that brings more
than 50 years of experience working with most health-related agencies. Together, we team up to provide a full range of strategy,
technology, analytic, transformational, and programming expertise to these clients

ƒ Health NGOs and Advocacy Organizations – our Global Health Practice partners with non-governmental organizations world-
wide to help advance a variety of health-related missions. We work with NGOs to define their strategic focus as well as help them
build the capabilities needed to promote their mission, acting both on their own as well as in concert with other organizations. Booz
& Company brings particularly deep expertise in fostering collaborative partnerships across the NGO, private, and public sectors

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Selected Global Health Clients

Aetna Inc. F. Hoffmann-La Roche Ltd Medcohealth Prime Therapeutics LLC The Cleveland Clinic

Genentech, Inc. Express Scripts Inc. Pfizer Inc. Medibank Private Limited Bayer AG

Mayo Foundation for Medical Pharmacia Consumer

The McGraw-Hill Companies The MetroHealth System Siemens AG
Education and Research Healthcare

Alliance of Companies
Cardinal Health, Inc. UnitedHealth Group, Inc. Biogen Cadent
Health Plans

Tufts Associated Health

Medtronic, Inc. AvMed’s health plans Kaiser Permanente WellPoint, Inc.
Plans, Inc.

Johnson & Johnson

Abbott Laboratories Celera Novartis AG
Services, Inc.

The National Institutes of

Merck & Co., Inc. Health Net Applied Biosystems
Health

Schering-Plough Corporation Danisco A/S Children Medical Services Bristol-Myers Squibb Company

National Account Service

Bayer Schering Pharma AG Caremark, L.L.C. Prime Therapeutics LLC
Company LLC.

Sanofi-aventis Procter & Gamble Quest Diagnostics Incorporated PacifiCare

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Our Payor & Provider Vertical

ƒ Our Payor & Provider Practice is 2x our next biggest strategic consulting competitor

ƒ The Payor & Provider clients we serve include:

– Four of the leading national health plans
– Over 20 regional Blues plans
– Several joint Blue organizations: BCBS Association, NIHCM, NASCO, CHP, Prime, LSV
– Regional not-for-profit health plans
– Three of leading national PBMs
– Specialty companies
– Large employers
– Multi-specialty group practices
– Hospital systems
– Public sector payor and provider entities
– Payor and provider entities around the world

ƒ Our recent leading edge client work in the Payor & Provider space includes (see next chapter for details):
– Corporate & Business Unit Strategy
– Consumer Focused Health Plan Strategies and Transformation Programs
– Pre-Merger Business Case Assessment and Post Merger Integration Planning
– Patient-Centered Collaboration Between Health Plans and Pharmaceutical Manufacturers
– Smart Customization Complexity Optimization
– Administrative Cost Reduction
– Re-architecting the Delivery System to Create Product-Based Competition Among Providers
– Informatics Strategy and Capability Building Programs
– Enterprise IT Architecture

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We have a strong track record of successful projects in Pharma
Marketing & Sales … EXAMPLES
QUALS – EXAMPLE MARKETING & SALES
Client Nature of Engagement
ƒ Client faced a declining profit situation across its European and Northern American markets
Leading Global
ƒ Hence, global selling excellence by improving regional sales and marketing performance aspired
Pharmaceutical
ƒ Sales force effectiveness was significantly improved, sales and marketing expenses as a % of sales
Company
reduced by three percentage points
ƒ Client faced declining market shares and a stagnating prescriber base on the German market
German Subsidiary Of A
ƒ Identification of major improvement levers, generation of sales model options, optimized marketing
Global Pharmaceutical
ƒ Implementation plan for short-, mid-, and long-term measures for optimized marketing and increased sales
Company
effectiveness
ƒ Client faced declining market share for its largest specialized therapeutic drug
Global Pharmaceutical
ƒ Booz & Company was asked to support in building a comprehensive sales & marketing program to
Company
increase effectiveness of affiliates’ sales performance in 11 European countries
ƒ Client was challenged by an upcoming blockbuster drug launch and the need for an improved cross-
Global Pharmaceutical
country marketing organization
Company
ƒ Establishment of a transparent marketing organization with clear roles & responsibilities
Top 5 Global ƒ Client wanted to re-focus its high-performing, highly-trained specialty sales force
Pharmaceutical ƒ Identified opportunities to improve sales performance based on targeting adjustments
Company ƒ Defined positioning in specialty segment and adjusted specialty selling operations accordingly
ƒ A blockbuster biotech product was losing market share in a therapeutic area of specialty products
Global Pharmaceutical
ƒ Identified, prioritized, and detailed business opportunities based on set of key criteria
Company
ƒ Reallocation of resources and investments by categories and regions

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… as well as in Production & Supply Chain Optimization
EXAMPLES
QUALS – SUPPLY CHAIN
Client Nature of Engagement

Global ƒ Client wanted to optimize its production process and significantly decrease costs
Biopharmaceutical ƒ Extensive analysis of production plants across the globe, identification of optimization potential
Company ƒ A total savings run-rate of €10 m was achieved already after the end of the assignment
ƒ Client was looking for redesigned supply chain process as a key component of an overall effort to
US Subsidiary Of Top 10 transform the client into the preferred supplier to its important customers
Pharmaceutical
ƒ Implemented key processes and procedural changes and organizational changes
Company
ƒ Realized first year benefits of $8 million
ƒ Client was under pressure to become a low-cost producer in its traditional businesses
Global Biotechnology
ƒ Identified key processes improvements which will result in an annual cost reduction of $10-$20 million
Company
ƒ Developed detailed procurement strategies f which will result in annual savings of ~$100 million
Large Pharmaceutical ƒ Most of the manufacturing processes at the client’s different plants were underutilized
And Medical Products ƒ Constructed a cost model to identify and quantify the link between operations cost and cost drivers
Company ƒ Annual savings of almost $8 million
ƒ Client sought to rationalize the portfolio to improve supply performance and to reduce complexity cost
Leading Generics
ƒ Increased profitability – stable top line and cost reduction, e.g., pruning of 10% of unprofitable SKUs
Company
decreased negative contribution by ~ $ 1 million
ƒ Client, wanted to rapidly, but sustainably improve its supply performance
Leading Generics
ƒ A rapid improvement program was set up to install supply governance
Company
ƒ Complexity reduction through significant supplier consolidation, almost 70% of suppliers terminated

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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The Financial Services practice consists of 30 Partners, serving
Asia-Pacific, Europe & Africa, the Middle East, and the Americas
Europe & Africa Asia-Pacific
Alan Gemes Andrew Cainey
Carlos Ammann Ed Tse
Charles Teschner Chris Manning
Johannes Bussmann Daisuke Matsumoto
Greg Baxter Jong Hyun Chang
Klaus-Peter Gushurst Peter Burns
Louise Fletcher Sarah Butler
Muir Sanderson Vanessa Wallace
Victor Koss Yoshiyuki Kishimoto
Peter Mensing

Americas
Amit Gupta
Mike McKeon
Joni Bessler
Narayan Nallicheri
Seamus McMahon
Paul Hyde
Ivan de Souza Middle East
Peter Jenkins
Peter Vayanos
Richard Shediac

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Booz & Company’s Financial Services Practice includes thought
leaders with broad financial services expertise and visibility
Financial Services Expertise
ƒ The Financial Services Consulting Practice is comprised
of industry specialists with broad financial services
experience in:
– Insurance
– Retail/Corporate Banking and Cards (Artwork deleted due to non brand-compliant IC)
– Capital Markets
– Insurance
– Investment Management
– Wealth Management
ƒ We have conducted a variety of engagements for
financial institutions who are leaders in the financial
services industry
ƒ Our consultants are active in conducting proprietary and
industry research on emerging trends in the field of
banking and financial services
ƒ We publish our research in Booz & Company publications
and with leading industry journals
ƒ Our consultants are frequently asked to present their
perspectives on key industry issues at leading industry
conferences and publications

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We have assisted numerous clients globally across all sectors of
financial services
Investment Banking and
Retail Banking Consumer Finance Insurance Support Services
Capital Markets
Scottish Widows Investment
Barclays Bank PLC MasterCard Deutsche Bank AG Dow Jones & Company, Inc.
Partnership

Standard Chartered Bank American Express Company AXA Private Equity Switzerland Euronext Reuters

Lloyds TSB Bank plc ABN AMRO Bank N.V Allianz NYSE Euronext Fiducia

The Hongkong and Shanghai Friends Provident Life and

Bank of America Corporation Merrill Lynch & Co., Inc. Association of British Insurers
Banking Corporation Limited Pensions Limited

Wells Fargo Investments, LLC Barclaycard AMP Limited Shinsei Bank, Limited Automatic Data Processing, Inc.

Massachusetts Mutual Life

Absa Bank Limited Capital One Bank N.A. UBS AG's
Insurance Company

MetLife India Insurance

ABN AMRO Bank N.V Visa Samba Financial Group
Company Ltd.

Citibank, N.A. National Oman Insurance Company Rand Merchant Bank

Rabobank Old Mutual plc State Street Corporation

Westpac Banking Corporation Prudential Financial, Inc Dresdner Ban

Riyad Bank Zurich Insurance Company Nomura Holdings Inc.

Wachovia Bank, N.A.

Credit Suisse Group

First National Bank

St.George Bank Limited

Unibanco

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We combine deep functional knowledge with in-depth industry
expertise to deliver real impact
Booz & Company Industry & Functional Practices

Automotive, Energy,
Aerospace Consumer Int’l
Industrials Chemicals Financial Pharma/ Comm. &
& & Public
& & Services Health Technology
Defense Media Sector
Transport Utilities

Organization,
Strategy &
Leadership
Individual and
comprehensive
Operations solutions for our
clients by combining
industry-specific
know-how with
Information functional expertise
Technology

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Strategic IT management and operations are part of a wider set of
industry and functional strengths
Financial Services – Functional Offerings
Category Service Offerings

ƒ Organization DNA
ƒ Change management
Organization & ƒ Organization design
ƒ Stakeholder engagement
Change ƒ Organization effectiveness
ƒ Leadership capabilities
ƒ Capability improvement

ƒ Sales force effectiveness ƒ Service transformation

ƒ Total cost transformation ƒ Sourcing
Operations
ƒ Process re-engineering ƒ Complexity reduction
ƒ Overhead cost reduction ƒ Footprint design

ƒ IT Strategy and governance ƒ IT efficiency improvement

Information ƒ Organisation design ƒ IT architecture roadmaps
Technology ƒ IT outsourcing ƒ Large program management
ƒ IT portfolio optimisation ƒ Programme reviews

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Our work with financial services companies covers a wide variety
of engagements (1 of 2)
Specialism Booz & Company Methods (Selected Examples) FS Assignments (Selected Examples)
ƒ Corporate Strategy ƒ Strategic leadership center ƒ New product development planning
ƒ War-gaming ƒ Staged strategy development program to
ƒ Strategy-based transformation rebalance corporate portfolio

ƒ Mergers And ƒ Smart Alliances methodology ƒ PMI and reorganization

Acquisitions ƒ Due diligence ƒ Pre-merger integration planning and due
ƒ Post-merger integration diligence

ƒ Growth Strategy ƒ Growth strategy generation ƒ Market segmentation and opportunity

ƒ 10x value identification
ƒ Return on innovation investment ƒ Market segmentation and growth strategies

ƒ Organization Design ƒ Organizational DNA ƒ Sales force redesign to increase productivity

ƒ Center less corporation ƒ Operating cost reduction program
ƒ New operating model ƒ Risk management effectiveness

ƒ Corporate Governance ƒ Enterprise resilience ƒ New business model and organization design to
ƒ Corporate center positioning support customer segmentation
ƒ CFO planning

ƒ IT Strategy And ƒ IT business model strategy ƒ Group-wide IT shared service architecture

Transformation ƒ IT portfolio strategy ƒ Service center CRM strategy

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Our work with financial services companies covers a wide variety
of engagements (2 of 2)
Specialism Booz & Company Methods (Selected Examples) FS Assignments (Selected Examples)
ƒ Business Unit Strategy ƒ The Natural Business Unit ƒ P&L, reporting lines and decision rights design
ƒ Shared services models ƒ CIO organization and governance study

ƒ The case for transformation ƒ Implementation planning and implementation of

ƒ Programme And new national service centers
Change Management ƒ Operationalization of a corporate vision ƒ Renewed applications management regime

ƒ Human Resource ƒ Management processes toolkit ƒ Staff retention strategy

Management ƒ Leadership change and training ƒ “Empowerment plans” for sales managers to use
with branch staff
ƒ Supply Chain ƒ Advanced planning systems ƒ Integrated strategic sourcing strategy
Management ƒ Cross-functional supply chain management ƒ Combined supply-side/demand-side approach to
optimize the supply chain
ƒ Customer Relationship ƒ Sales force effectiveness and optimization ƒ Overall customer insight strategy and CRM
Mgmt ƒ Customer segmentation tools system

ƒ Outsourcing ƒ Sourcing strategy definition and readiness ƒ Outsourcing opportunity analysis and strategy
assessment ƒ Process and governance audit for pending off-
ƒ Contract renegotiation shoring contract

ƒ Systems Development ƒ Technology roadmap, architecture design ƒ Integrated project to address: systems architec-
And Integration and consolidation ture, software components, communications,
ƒ Project management, vendor selection and testing practices, development environment and
systems integration fit with business requirements
ƒ Complete systems replacement program

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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We combine our functional and industry knowledge globally to
provide you the best support possible
Industry Automotive, Energy,
Financial Public Consumer
Transport & Telecoms Chemicals Health …
Services Sector Retail
Function Industrials & Utilities

Corporate Finance
Individual
Information
Solutions For Deep functional IT knowledge and industry experience
Technology
Our Clients
Mergers &
Restructuring
Deep
Operations &
industry
Logistics
knowledge
Organization & and
Change experience
Product &
Service Innovation
Public Sector
Mission Effectiveness

Sales & Marketing

Strategy &
Leadership
Geographical Deployment

Americas Europe Middle East ANZSEA

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Our Global IT practice works across all industries to help
executives deliver on the promises of Information Technology
Booz & Company Technology Service Offerings
Strategy Technology IT Operations
ƒ IT strategy ƒ IT architecture ƒ IT Sourcing
– Corporate and business unit – Planning and defining IT architec- – IT sourcing strategy
strategies tures – Vendor selection
– Strategic technology innovation – Benchmarking of IT architecture – Transition management
– Investment portfolio development environments ƒ IT Organization
and review – Security audits – Governance design
ƒ IT transformation ƒ Enterprise systems implementation – Redesign of IT processes
– IT function analysis and bench- – Strategic planning ƒ IT performance management
marking – Project management ƒ Pre-merger due diligence and post-
– Performance improvement and – Benefits management merger integration of systems and
cost restructuring organizations

Define what you Leverage position with (Re)design the delivery

want to do and establish appropriate Information mechanism to deliver that
your value proposition Technology value proposition

Technology Enabled Strategy Based Transformation

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As a global consultancy we provide the full spectrum of services –
from IT strategy to hands-on implementation

“IT Strategy to Build”

Global Structure
Capabilities
ƒ Global IT Practice: ƒ Uniting classic IT strategy con-
sulting services with operations
– Global IT leadership plus and technology consulting
industry teams expertise
– Cross-country staffing to ƒ Delivering end-to-end strategy-
secure maximum expertise based-transformation …
– Coordinated know-how Our mission:
ƒ … leveraging a global network of
investments based on critical Create essential strategy consultants, design
mass advantage experts and transformation
ƒ Company-wide Knowledge- coaches …
Management System containing ƒ … combining industry expertise
the essence of the IT practice with deep IT knowledge
ƒ Close cooperation with IT “think ƒ Working closely with our clients
tanks” around the globe – on assignments, in programs
and in coaching situations

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Our Information Technology Group delivers end-to-end
capabilities to best serve IT business needs
I/T Business Needs Booz & Company Service Offerings
ƒ Define IT value proposition in terms the business understands
Dialog With The Business
1 Align Business and I/T strategy imperatives
ƒ Integrate IT with overall business strategic plan
ƒ Define IT strategy and enterprise architecture

Differentiated I/T Products and Services ƒ Define, measure and capture IT value
2 Assess technology option with respect ƒ Assess technology feasibility and business positioning
to competitive positioning ƒ Identify and assess impact of emerging technologies on capabilities

Aligning and Managing Costs ƒ Align projects, funding, and pricing based on economics and strategic impact
3 Manage I/T costs rigorously through dialog ƒ Implement IT demand management governance processes
with business around demand/SLAs ƒ Capture value (cost, quality, timeliness) and deliver to the bottom line

ƒ Product and service management ƒ Design applications architectures

Complexity Reduction
4 Optimize I/T service delivery to attain I/T cost reduction
ƒ Align Processes ƒ Define information architectures
ƒ Establish IT Governance ƒ Implement business applications

Get the Basics Right – Right-Size Total Costs ƒ Design IT organization, management processes, and operations
5 Simplify I/T architecture and operations to manage ƒ Align IT delivery to business
enterprise wide capacity ƒ Rationalize application portfolio
Sourcing ƒ Evaluate Outsourcing/Offshoring ƒ Establish IT organizational capabilities and skill
6 Run I/T as a “healthy” business with ƒ Establish IT contracting and pricing requirements
processes to strategically manage supply ƒ Install quality assurance practices

Infrastructure Enablement ƒ Design cost-effective, scalable and flexible infrastructure design, build and support
7 Maximize benefits of the planned initiatives through ƒ Design security architecture aligned with business assurance needs
provision of optimal I/T infrastructure ƒ Integrate IT across enterprise functions and/or operating units

I/T Demand I/T Supply

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Booz & Company’s Information Technology Group helps our
clients to maximise the value extracted from their IT investments
Mergers & Acquisitions

ƒ Consolidation of applications, infrastructure

Program Management platforms and IT organizations during IT Architecture & Infrastructure Planning
Corporate Transactions
ƒ Planning, specification and project manage- ƒ Planning and definition of IT architectures
ment for the implementation of strategic IT (applications, network, desktop, server
projects operations, middleware etc.)
ƒ Benchmarking of IT architecture environ-
ments
ƒ Security concepts and audits

IT Transformation Booz & Enterprise Systems

Company
ƒ IT function analysis and benchmarking ƒ Strategic planning, benefits management and
ƒ Performance improvement and optimization IT Service project management during the
of IT cost structures Offering implementation of large scale Enterprise
ƒ IT organization and governance design Systems (e.g. ERP, SCM, CRM, Data
ƒ Redesign of IT processes Warehouse)
ƒ IT controlling (Balanced Scorecard)

IT Strategy IT Sourcing

ƒ Development of corporate or business-unit IT ƒ Development of IT sourcing strategies

strategies ƒ Vendor selection, contract negotiation and
ƒ Assessment of innovative technologies to management of large scale outsourcing
enable & support business strategies programs
ƒ Investment portfolio development and review

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Breadth of experience and functional depth truly differentiate us –
recently we have been ranked #1 in IT and client teaming

ƒ Dedicated teams for key industries, ƒ Significant presence in U.S., Europe,

e.g., automotive, financial services, i.e., Germany, Latin America, Japan,
Industry
telecommunications, energy & Global Footprint China, Mid-East, Australia
Expertise
utilities, transport, health, media ƒ Proven teaming across international
markets

ƒ Deep experience and skills in IT ƒ Deep experience and skills designing

strategy through implementation and building operating models
ƒ Deep knowledge base of COTS ƒ Renowned functional expertise –
Operations
software packages (esp. ERP) IT Expertise outsourcing, supply change, back office,
Expertise
ƒ Client-side advisory positioning sales and marketing
(vendor selection, supervision and
control of service suppliers)
ƒ Leading complex processes with ƒ Deep experience and skills in large
large and very multinational scale organization design and change
corporations Organization management
Program
ƒ Usually with major technology and Change ƒ Proven track record of making it happen
Management
components Expertise with clients
ƒ Recognized thought leader in several
areas

Ranking of Booz & Company in Manager Magazin (July 2007)

#1 in Information Technology #1 in Client Teaming

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Our IT practice brings a complete set of IT related services to the
automotive industry
IT Service Offerings

Business Strategy

ƒ Business strategy enablement ƒ Cross-business unit IT

ƒ Strategic business requirements integration
analysis ƒ Technology vision
IT ƒ Long term application roadmap and ƒ Project evaluation and
Strategy template strategy business case dev´t
Synchronizing IT with
ƒ IT governance ƒ Outsourceability analysis
s

Te
nd

business strategies
ƒ IT operating model ƒ Application portfolio mgmt

ch
t re

n
blueprint Demand supply mgmt

ol
ry

ƒ IT organization ƒ Vendor management

o
st

IT Governance

gy
du

ƒ Skills and capability ƒ Cost benchmarking/TCO

tre
In

Defining the high performance IT entity management analysis

nd
Organi- Pro- Out-/In- KPIs Skills ƒ IT cost reduction

s
sation cesses sourcing Mgmt
ƒ Platform consolidation
IT Operations ƒ IT quality management
Managing the IT service offerings
ƒ Implementation and value delivery
Enterprise Applications Project Infrastructure/ Service ƒ Data architecture
Architecture Portfolio Platforms/ Management ƒ Security, reliability & disaster recovery
Networks ƒ Long term operations and PMO services

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Our Intellectual Capital demonstrates thought leadership on
deploying information technology as a business strategy enabler
Booz & Company: Recent Publications in IT

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 Alternative

Our Intellectual Capital demonstrates thought leadership on

deploying information technology as a business strategy enabler
Booz & Company: Recent Publications in IT

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Our approach to IT strategy is proven on many assignments and
differentiated in the marketplace
How Booz & Company IT Approach Is Differentiated
1 We focus on analytical rigor, ensuring that the right solution is arrived at with the fact base to back it up

2 We seamlessly integrate the Business and IT perspectives bringing sustainable results to bear

3 We bring a unique “scenario planning” capability to simulate “future state” scenarios to adequately prepare
the organization well in advance of the deal
4 We provide an honest market perspective of supply bases that is forward-looking and separates reality
from hype
5 We engage senior management in the journey from Day 1 by having them debate options, shape the
preferred strategy, and own the engagement

6 We bring to bear macro- and micro-level insights of global sourcing markets and enterprise service
providers by leveraging our proprietary research and accumulated knowledge from our experiences
7 We leverage Booz & Company databases and off-the-shelf tools to quantify the performance gap
between the current processes and best-in-class services

8 We begin to understand and work on change management and risk management issues from Day 1 in
appreciation of the significant change in culture and behavior required at all organization levels

9 We have a deep bench of IT professionals, enabling us to provide the right skills sets

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Booz & Company’s pragmatic top down approach leads to results
that endure
Booz & Company Success Factors

ƒ Our goal is to achieve implementable results that provide the essential advantage
Pragmatic And
ƒ Focus on quick wins as well as on long term benefits
Results Oriented
ƒ Building on past initiatives and current activities within client organizations

Top Down ƒ Strategy comes first, followed by design of processes, organizations and systems
Approach ƒ Product portfolio pruning may be the strategic first step

State Of The Art ƒ Dedicated knowledge base and success proven methodologies
Methodologies
And Tools ƒ State of the art tools, e.g., simulation and modeling software like Jonova

ƒ Profound hands on experience through many projects addressing operational

Experience With excellence (see project examples in appendix)
Similar Programs
ƒ Deep functional knowledge combined with industry expertise

ƒ Truly global resource base with offices and experts around the world
Global Team
ƒ E.g., pharmaceutical supply chain experts in Brazil, Mexico, Colombia

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Booz & Company’s pragmatic top down approach provides you
with the essential advance to succeed in your marketplace
Booz & Company Success Factors

Pragmatic And Top Down Top Down Experience With

Global Team
Results Oriented Approach Approach Similar Programs

ƒ The overall goal is to ƒ Strategy comes first, ƒ Dedicated knowledge ƒ Profound hands on ƒ Truly global resource
achieve implementable followed by design of base and success experience through base with offices and
results that endure processes, organi- proven methodologies many projects experts around the
zations and systems addressing operational world
ƒ Focus on quick wins ƒ State of the art tools, excellence
as well as on long term ƒ Product portfolio e.g., simulation and ƒ E.g., pharmaceutical
benefits pruning may be the modeling software like ƒ Deep functional supply chain experts in
strategic first step Jonova knowledge combined Brazil, Mexico,
ƒ Building on past with industry expertise Colombia
initiatives and current
activities within client
organizations

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We believe our success is based on our pragmatic, results-driven
and collaborative culture
Booz & Company Culture
 Work with the client, not for or on the client – focus on jointly achieving results

 Our work is based on analytical rigour and hard facts

 We apply a strategic, top down perspective

 Our approach is hypothesis-driven and thus focuses on priorities

 We use a pragmatic and systematic methodology always tailored to the needs of our clients

 We work closely together with all relevant stakeholders in order to get actionable results

 We believe early results are important to create momentum and confidence in the program, and
lower the overall risk for our clients

 Our goal is to make the results sustainable – therefore we leave something behind when we
have finished our work, e.g., trained organization, IT tools, implemented results

 We always devote our best professional efforts to all assignments – our reputation depends on
successful delivery of the objectives

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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What does the OPS PSO do?

Mission of OPS

ƒ Come up with new and innovative ideas to

strengthen and differentiate our service
offerings based on a market back view of our
clients key needs
ƒ Materialize those ideas into detailed service
offerings, marketing collateral and tools … and
generate exposure for the ideas in the market
ƒ Support the teams in getting those ideas to
market, and delivering work
ƒ Help client teams in creating lead generation
opportunities
ƒ Coordinate activities across OPS teams around
the world
ƒ Coordinate activities between OPS and the
market teams around target service offerings

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We provide a broad range of service offerings to our clients across
all industries
Process Fitness Sourcing Supply Chain Management
ƒ Energy Business Process Improvement ƒ Procurement Transformation ƒ Sales and Operations Planning
ƒ Cross Industry Business Process ƒ Outsourcing ƒ Supply Chain Resilience
Improvement ƒ Next Generation Sourcing ƒ Working Capital and Inventory
ƒ Plant Performance Improvement ƒ Global Sourcing Reduction
ƒ Transmission And Distribution ƒ Strategic Sourcing ƒ Material Requirements Planning
ƒ Procurement Productivity ƒ Supply Chain Organization
ƒ Supplier Management Programs ƒ Supply Chain Management IT
ƒ Cost Modeling and Analysis

Manufacturing Service Operations Product & Service Innovation1)

ƒ Manufacturing Organization ƒ Applying Lean Manufacturing in ƒ Innovation & Growth Strategies
ƒ Manufacturing Turnarounds Services ƒ Global Innovation Networks
ƒ Make/buy and Core Capability ƒ Service Operations ƒ Product and Service Development
Assessment ƒ Smart Customization ƒ Product Profitability & Portfolio
ƒ Lean Manufacturing Assessment ƒ Call Center Operations Management
ƒ Asset Effectiveness ƒ R&D Effectiveness
ƒ Opening and Closing Plants ƒ Technology Management &
ƒ In-Plant Improvements/Systems Commercialization

1) Service Offering Hosted by OPS PSO

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With 19 partners, Ops Europe is present in 9 offices in Europe

Torsten Moe
Copenhagen
OPS

Peter-John Liberoth
Copenhagen
OPS Peter Heckmann Klaus-Peter Gushurst
Dusseldorf Munich
OPS OPS
Matthew Costello
Muir Sanderson Stockholm
London OPS
OPS Joachim Rotering Kaj Grichnik
Dusseldorf Munich
OPS OPS
John Potter
London
OPS Detlef Schwarting Gregor Harter
Dusseldorf Munich
Simon Harper OPS OPS
London
OPS
Sven Vallerien Marc Morawietz
Dusseldorf Frankfurt
OPS OPS

Peter von Hochberg Klaus Hölbling

Düsseldorf Vienna
Georg List
OPS OPS
Amsterdam
OPS

Marco Kesteloo
Amsterdam
OPS

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Sourcing summary Contacts
ƒ US Lead: Pat Houston
ƒ EU Lead: Detlef Schwarting

Key Service Offerings

ƒ Market-back Platforms
– Knowledge Based Sourcing
– Green Sourcing
– Capital Projects Sourcing
– Fair Return Sourcing

ƒ Strategic Sourcing Transformation

– Opportunity Diagnostic/Spend Analysis
– Traditional Category Sourcing
– Low Cost Country Sourcing
– PMI

ƒ Supporting Functional Capabilities

– Operating Model Sourcing
– Procurement Systems
– Training

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Supply Chain summary Contacts
ƒ US Lead: Rich Kauffeld
ƒ EU Lead: John Potter

Key Service Offerings

ƒ Supply Chain Strategy
– Integrated supply chain strategy
– ISSR/Competitive Capability Diagnostic
– Benchmarking
– Network/footprint optimization
– Tailored business streams
– Cost/Profit to serve
– Green Supply Chain
– Supply Chain Resilience
ƒ Supply Chain Operating Model
– Tactical Performance Diagnostic
– S&OP/Forecasting
– Inventory and WC Management
– Fulfillment: Order to Ship
– Production & Scheduling
– High Level IT requirements
– Organizational design/capabilities
ƒ Shelf Centered Collaboration 2.0
– Assortment Simplification
– Efficiency based pricing
– POS data based decision making
– DSD operations

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Manufacturing summary Contacts
ƒ NA Lead: Conrad Winkler
ƒ EU Lead: Kaj Grichnik

Key Service Offerings

ƒ Manufacturing Strategy
– Product and process strategy
– Network strategy
– Complexity management
– Make vs. Buy
ƒ Organization and Operating System
– Mfg Org for competitive advantage
– Running a global plant network
– Measures metrics and accountability
– Standard manufacturing processes
ƒ Competitive Position
– Inherent product/process cost and performance
– Competitive cost assessment
– Lean assessment
ƒ Asset Effectiveness
– Working capital diagnostic
– OEE benchmarking
– Maintenance strategy
ƒ Performance Improvement
– Lean and Six Sigma – diagnostic tool, RWD
relationship
– Business Process Optimization
– Mfg footprint implementation

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Process fitness summary Contacts
ƒ US Lead: Herve Wilczsynski
ƒ EU Lead: Peter von Hochberg

Key Service Offerings

ƒ Energy business process improvement

– Improve operational excellence throughout the value chain for
mega project execution, reservoir management, trading, support
functions
– Reduction of internal complexity and ability to increase
production and maintain safety in a supply constraint
environment
ƒ Cross industry business process improvement
– Streamline/reconfigure business processes to reduce cost to
serve
– Effort usually conducted in the context of a large scale
technology transformation
ƒ Plant Performance Improvement
– Improve fixed asset performance and operating costs.
– Effort usually conducted within a strategy-driven transformation
ƒ Transmission and Distribution
– Enhance utility network operations, including process
optimization, Smart Grid business case development, capital
allocation, and regulatory support

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Service operations summary Contacts
ƒ US Lead: Tim Hoying
ƒ EU Lead: Muir Sanderson

Key Service Offerings

ƒ Product & Infrastructure Complexity

Management
– Modular Product & Service Architecture
– Footprint Optimization
ƒ Performance & Productivity
Improvement
– Administrative Cost Transformation/
SG&A Efficiency
– Process Architecture/Utilities
– Operating Model Re-Design
– Shared Services/Outsourcing
– Sourcing/external spend management
– Lean/Six Sigma
ƒ Customer Experience Enhancement
– Customer Care Improvement
– Service Quality Improvement
– Sales & Channel Optimization

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In addition to coining the term “Supply Chain Management”,
Booz & Company has a long-standing record in Operations
Selected Operations’ Intellectual Contributions

1984 ISSR1) 1998 TBS2)

invented Basic and invented
80%
Stable

Variable but
15% Predefined

Emergent
5%

The Complete PERT Network

1992 OAE4)
1955 PERT3)
for process
invented
industries
OAE = Availability * Rate * Acceptance

= Actual Run Hours * Average Speed or Throughput Rate * Net Pounds Fit For Use
Total Hours in Period Maximum Speed or Throughput Rate Total Pounds Produced

= Actual Fit For Use Production

Maximum Fit For Use Production

In an actual situation, a PERT network might appear

OAE shows the balance between increasing production hours,
similar to this chart. The broad red line that “flows” end to
end through the project represents the critical path. faster production, and product acceptance

1) ISSR: Inherent, Structural, Systemic, Realized 3) PERT: Program Evaluation and Review Technique
2) TBS: Tailored Business Streams 4) OAE: Overall Asset Effectiveness Source: Booz & Company

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Finally, a sampling of our clients …

Barclays Bank PLC General Dynamics Corporation Novartis The New York Public Library

Bayer AG General Motors Corporation PepsiCo, Inc. The Scotts Company LLC

Boeing H. J. Heinz Company Pfizer Inc. Vestas Wind Systems A/S

BP p.l.c. Honeywell International Inc. Quest Diagnostics Incorporated Vought Aircraft Industries, Inc.

Caterpillar Inc. Ingersoll-Rand Company Limited R.J. Reynolds Tobacco Company Wells Fargo Investments, LLC

Centers for Disease Control

Johnson Controls Reed Elsevier World Vision India
and Prevention

Daimler AG. Kaiser Permanente Reliant Energy

Department for Work and

Keystone Synenco Energy Inc.
Pensions (DWP)

Diageo Linde AG The Clorox Company

Exxon Mobil Corporation Luxottica Group The Coca-Cola Company

The Department for Work and

Gap Inc. Nestlé S.A.
Pensions

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Aerospace & Defense
ATI
Consumer & Media
Com Tech
EC&U
Health
Financial Services
IT
Operations
OSL

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Booz & Company’s Organization and Strategic Leadership Service
Offering
OSL Service Offerings

ƒ Strategic Leadership ƒ Corporate Finance & Strategy

– Corporate Purpose – Corporate Growth Strategy
– Leadership Development and Alignment – Shareholder Value Management
– Corporate Portfolio Strategy
ƒ Organizational Efficiency – Performance Measurement & Management
– Overhead Optimization – Financial Policy, Restructuring & Optimal Capital
– Outsourcing and Offshoring Structure
– Business Process Redesign
ƒ Mergers & Restructurings
ƒ Organization Design – Acquisition screening and Deal support
– Organizational Effectiveness – Post Merger Integration
– Operating Model Design – Restructuring & Turnarounds
– Governance – Divestitures & Spins
– Strategic Alliances

ƒ Human Capital and Change Management

– Strategic Human Capital Management ƒ Risk, Resilience and Assurance
– Learning Strategies – Strategic Risk Management and Compliance
– Change Management – Business Assurance/Operational Readiness
– Strategic Communications – Information Assurance

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Our OSL partner team serves our clients from a global footprint

Booz & Company OSL Partners Worldwide

(including industry affiliation)
Gary Neilson
Chicago
Health Per-Ola Karlsson Toshiya Banno
Stockholm Tokyo
Energy, Chemicals & Utilities Cross Market
Vinay Couto
Chicago Paul Duerloo
ATI Irmgard Heinz Tokyo
Richard Rawlinson Munich Energy, Chemicals & Utilities
London Communication & Technology
Andrew Tipping
Chicago Consumer & Media Chieko Matsuda
Anne de Aguirre ATI Christian Burger Tokyo
San Francisco
Thomas Ripsam Munich Cross Market
Florham Park Health
Health
Consumer & Media Rolf Habbel Hiroyuki Sawada
Zurich Tokyo
Karla Martin ATI
San Francisco Fernando Napolitano Cross Market
Consumer & Media Rome
Energy, Chemicals & Utilities
Gerald Adolph Carlos Ammann
New York Zurich Edward Tse
Health Health Hong Kong
ATI

Justin Pettit
New York
Health

Frank Ribeiro
New York
Health

Christopher Manning
Sydney
ATI

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We are recognized Thought Leaders in Organization and Strategic
Leadership
Publication Sample

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Organizational Efficiency is one of our major service offerings

Sample of Recently Published Research on Organizational Efficiency

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We have worked with clients across a wide variety of industries on
organizational efficiency
REPRESENTATIVE SAMPLE
Booz & Company
Functional Scope Results Achieved
Engagement

ts
es

gree ful
men
s

iliti
ving

ies n
t Ca and

s
Lev ligned

o
pab

rcin ucces

apa Focus
m
t Sa
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els
tion

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Imp
Pilo
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Ser
Sector Clients

I/T
Medical Diagnostics Company 9 9 9 9 9 9 9 9 9 9 9 9 9
Global Pharma & Chemical Company 9 9 9 9 9 9 9 9 9 9
Healthcare
Large PBM (Procurement) 9 9 9 9 9 9
Global Pharma Company 9 9 9 9 9 9 9 9
Global Canadian Bank 9 9 9 9 9 9 9
Financial Services
European Bank 9 9 9 9 9 9 9 9 9 9 9 9 9 9
Leading Consumer Products Company 9 9 9 9 9 9 9 9 9 9 9 9
Consumer Diversified Consumer Products Co. 9 9 9 9 9 9 9 9 9 9 9 9
Products Global Food Producer 9 9 9 9 9 9 9 9 9 9 9 9
Global Single Product Agricultural Co. 9 9 9 9 9 9 9 9 9 9 9 9
Global Commercial Aircraft Corp. 9 9 9 9 9 9 9 9 9 9 9 9 9 9
Tier 1 Automotive Supplier 9 9 9 9 9 9 9 9 9 9
Industrials Aerospace & Defense Corporation 9 9 9 9 9 9 9 9 9 9
Automotive Tire Manufacturer 9 9 9 9 9 9 9
Global Consumer Goods Giant 9 9 9 9 9 9 9 9 9 9 9 9 9 9
Global AgChemicals Corp. 9 9 9 9 9 9 9 9 9 9 9 9 9 9
Energy &
Global Diversified Energy Company 9 9 9 9 9 9 9 9 9 9 9 9
Chemicals
Global Oil & Gas Company 9 9 9 9 9 9 9 9 9 9 9 9 9 9

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Cost restructuring opportunities follow a natural hierarchy

Key Service Delivery Levers

Potential Restructuring Actions

ƒ Strategically focused HQ
ƒ Elimination of matrix structures
I.
ƒ Re-definition of roles and decision rights of businesses, functions
“What do we do?” Operating
& process owners
Model
ƒ Focus on value driving activities
15-20% Typical Savings ƒ Commitment on common vs. custom processes

ƒ Consolidation of back-office
II. III. ƒ Offshoring of knowledge and routine work
“Where do we do it?” Consolidation Outsourcing &
(Shared Services) Offshoring ƒ Fit for purpose IT platforms
ƒ Rationalization of facilities
15-20% Typical Savings

“How do we do it?” ƒ Flat organization

IV. V. VI. ƒ Standardized processes
VII.
4-10% Typical Savings Delayering & Business Smart ƒ
Demand Harmonized IT infrastructure
Resource Process Customi-
Prioritization ƒ Automated manual work
Reallocation Redesign zation I/T
“How well do we do it?” ƒ Prioritized demand

1-3% Typical Savings

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Organization Design is one of our major service offerings

Sample Booz & Company Publications

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Org DNA is recognized as a breakthrough idea to improve the
ability of a company to execute
Four Building Blocks of Organizational DNA ƒ In Harvard Business Review’s list of 20
The overall organization model, “Breakthrough Ideas for 2005,” Org DNA
including the “lines and boxes” of was cited under the category “Everybody
Structure into the Gene Pool”
the organization
– “There isn’t one optimal design. Just as
high performance in the natural world can
The underlying mechanics of how take the form of a hummingbird or a
and by whom decisions are truly husky, in the business world it can be
Decision Rights generated by wildly different kinds of
made, beyond the lines and boxes
companies…”
of the organization chart
– Booz & Company seeks to understand
the elements’ interactions so well that the
What metrics are used to measure consequences of interventions become
predictable …
performance? How are activities
Information
coordinated, and how is know- ƒ Random House published our book on the
ledge transferred? topic entitled: Results: Keep What’s Good,
Fix What’s Wrong, and Unlock Great
What objectives, incentives, and Performance
career alternatives do people
Motivator have? How are people influenced ƒ Harvard Business Review published two
articles on the topic in October 2005 and
by the company’s history?
June 2008

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We have developed the Org DNA Profiler®, a web-based survey to
baseline and analyze organizational effectiveness
Organization Effectiveness Survey Survey Benefits
1 At the middle management level, the average number of direct reports is… F 5 or more F 4 or fewer
Structure 2 Promotions include lateral moves (from one position to another on the same level in the hierarchy)
3 "Fast track" employees here can expect promotions…
F Agree
F Every 3 yrs or more
F Disagree
F Less than every
3 years
ƒ Accelerates the identification of organization and
4 The culture of this organization can best be described as… F "Persuade & Cajole" F "Command and Control"

Decision Rights
5
6
Important strategic and operational decisions are quickly translated into action
The primary role of corporate staff here is to…
F Agree
F Audit the Business Units
F Disagree
F Support the Business Units
cultural themes that influence organizational
7 Managers above me in the hierarchy "get their hands dirty" by getting involved in operating decisions F Frequently F Rarely
8
9
Once made, decisions are often "second-guessed"
Everyone has a good idea of what decisions/actions for which he or she is responsible
F Agree
F Agree
F Disagree
F Disagree
performance, focusing on the root cause issues
10 Overall, this firm deals successfully with discontinuous change in the competitive environment F Disagree
11 Important information about our competitive environment gets to headquarters quickly
12 Field/line employees usually have the information they need to understand the bottom line impact of
F Agree
F Agree
F Agree
F Disagree
F Disagree
related to strategy execution
Information their day-to-day choices
13 We rarely send conflicting messages to the marketplace F Agree F Disagree
14 Information flows freely across organizational boundaries
15 Line management has access to the metrics they need to measure the key drivers of their business
F Agree
F Agree
F Disagree
F Disagree ƒ Cross-industry data base to help frame and explain
16 If the firm has a bad year, but a particular division has a good year, the division head still gets a bonus F Agree F Disagree

Motivators
17
18
19
Besides pay, many other things motivate individuals to do a good job
The individual performance appraisal process differentiates among high, adequate and low performers F Agree
The ability to deliver on performance commitments strongly influences career advancement and
F Agree

F Agree
F Disagree
F Disagree
F Disagree
relevant patterns (with multiple consumer products
compensation
20 Annual Revenues: 0-500M, 500M-1B, 1B-10B, >10B
21 Industry: Energy, Materials, Capital Goods, Commercial Service & Supplies, Transportation, Autos and Components, Consumer Durables & Apparel,
data points); Over 100,000 survey observations
Demographic Questions Hotels/Restaurants/Leisure, Media, Retail, Food/Beverage/Tobacco, Consumer Packaged Goods, Healthcare, Pharmaceuticals, Banks, Insurance,
Diversified Financials, Real Estate, Software & Services, Technology Hardware, Telecommunications, Utilities, Professional Services
Customized by Client

ƒ Defines “cultural” issues in actionable terms –

22 Your Position :Senior, Middle, Line Management, Corporate Staff, Business Unit Staff
23 Your Division: Finance, HR, IT, Legal, Marketing, Mfg, Sales, R&D/PD/Engineering, Marketing, Other

Cross-Industry Benchmark Database based on an understanding of how organizations

Decision Rights: Client Responses vs. Benchmarks actually get things done: Through individuals
7
Managers above me in
Overall THP Strong Execution
making decisions, taking actions, every day
the hierarchy "get their
hands dirty" by getting

ƒ Focuses on institutional, rather than individual,

involved in operating
decisions
(Frequently)
8
Once made, decisions
are often second-
guessed
levers of change
(Disagree)

9 Everyone has a good

idea of the decisions for
ƒ Quantifies the relative importance of organizational
5
which she or he is
responsible
(Agree)
themes and issues, and the extent to which they
Important strategic and
operational decisions are
quickly translated into
differ across the organization
action (1)

ƒ Minimally invasive, five minute survey

(Agree)
30% 48% 65% 83% 100%
Overall Client Strong Execution

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The Booz & Company operating model helps companies organize
for high performance
Operating Model Adopted by High Performance Organizations
ƒ Strategic Leadership
ƒ Enterprise Capabilities
Corporate ƒ Corporate identity
Center
ƒ Fiduciary Stewardship
ƒ Capital Funding
Strategic
Guidance Service

Results Corporate
Policy

Request Manage
Business Units Shared Services Outsourced
Services
Service Service

ƒ Drive the business and be ƒ Provide cost-effective

accountable for P&Ls transactional and expertise
ƒ Manage customers, markets, services demanded by the
and channels divisions and the Center
ƒ Manage operating assets ƒ Capture best practices and
builds capabilities
ƒ Improve operating
effectiveness/efficiency ƒ Manage outsourcing
relationships
ƒ Develop talent

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We have helped numerous clients optimize the role of head-
quarters so that the business as a whole could work better
Booz & Company “Pure-Tone” Corporate Headquarters Models
3. Control Via Active 4. Operationally
1. Financial Holding Company 2. Strategy and Oversight
Staff Involvement Involved
Philosophy ƒƒ Value
Value isis created
created by
byindividual
individual SBUs
SBUs ƒƒ Value
Value isis created
created primarily
primarily by
bySBUs
SBUs ƒƒ Value
Value isis created
created byby SBUs
SBUs using
using ƒƒ Value
Value isis created
created by
bycorporate
corporate expertise
expertise
ƒ Source of Value ƒƒ Create/enforce
Create/enforce disciplined
disciplined ƒƒ Add
Add value
value in in the
the linkages
linkages between
between shared
shared expertise
expertise to
to help
help make
make key
key and
and control
control
ƒ Role of management
management model model SBUs
SBUs andand drive
drive the
the strategic
strategic agenda
agenda decisions
decisions ƒƒ Collectively
Collectivelymake
make key
key decisions
decisions for
for
Corporation ƒƒ Provide
Provide guidance
guidance toto SBUs
SBUs via
via SBUs
SBUs
expertise
expertise andand drive
drive opportunities
opportunities
across
across SBUs
SBUs

Who are we We’re an Investment company We’re the strategic leadership of a We’re both management and strategic We are the strategic managers; SBUs
(Corporate Core) collection of related entities leadership of tightly linked entities primarily tailor implementation

Client Examples

Selected Booz & Company Headquarters Organization Engagements

Major
Major Food/Household
Food/Household
Major
Major Food
Food Company
Company (A)
(A) FedEx
FedEx
Goods
Goods Company
Company (C)
(C)
ƒƒ Identified
Identified key
keysource
source of of ƒƒ Helped
Helped McGraw-Hill
McGraw-Hill move move ƒƒ Corporate
Corporate center
center role
role re-
re- ƒƒ Defined
Defined corporate
corporate role
role for
for ƒƒ Defined
Defined role
role of
of center
centerfor
for ƒƒ Express
Express Headquarters
Headquarters
value
value for
for corporate
corporate center
center from
from holding
holding company-like
company-like focused
focused on on key
keystrategy
strategy consumer
consumer healthcare
healthcare North
North American
American Food
Food (10,000+)
(10,000+) staff
staff was
was
ƒƒ Re-aligned
Re-aligned roles
roles ofof structure
structure to
to aa more
more integra-
integra- and
and growth
growth platforms
platforms business,
business, including
including Ingredients
Ingredients Business
Business perceived
perceived asas less
less agile,
agile, with
with
corporate
corporate toto focus
focus onon ted
ted model,
model, after
after exploring
exploring outside
outside existing
existing businesses
businesses functional
functional responsibilities
responsibilities ƒƒ 11
11 businesses
businesses wanted
wanted to
to significant
significant overlap
overlap inin roles
roles
consumer
consumer based
based insight
insight different
different ways
ways forfor the
the –– with
with specific
specific marketing/
marketing/ and
and key
keystrategy/budget
strategy/budget increase
increase collaboration
collaboration Booz
Booz across
across organization
organization
development
development and and overall
overall corporate
corporate center
center to to add
add insight
insight development
development processes
processes && Company
Company helped
helped design
design boundaries
boundaries
customer
customer development
development with with value
value support
support across
across consumer
consumer ƒƒ Simplified
Simplified and
and aligned
aligned “Food
“Food Enterprise”
Enterprise”orgorg ƒƒ Booz
Booz && Company
Company worked
worked
all
all other
other key
key activities
activities ƒƒ Redefined
Redefined thethe role
role ofof cor-
cor- segments
segments decision
decision making
making with
with BUs
BUs structure
structure and
and supporting
supporting with
with senior
seniormanagement
management to to
decentralized
decentralized to to BUs
BUs porate
porate functions
functions to to drive
drive ƒƒ Global
Global axis
axis re-established
re-established ƒƒ Many
Many decision
decision rights
rights processes
processes toto leverage
leverage their
their develop
develop new
newHQ HQ org
org model
model
market-facing
market-facing collaboration
collaboration for
forkey
key“global”
“global”product
product decentralized
decentralized toto BUs
BUs but
but scale
scale and
and provide
provide better
better and
and redesigned
redesigned capabilities
capabilities
across
across businesses
businesses and and lines
lines to
to support
support regions
regions with
with added
added accountability
accountability support
support and
and solutions
solutions to
to such
such as
as planning
planning andand
leverage
leverage scale
scale inin support
support for
forresults
results customers
customers people
people processes
processes
functions
functions

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Human Capital & Change Management are major service offerings
at Booz & Company
Sample Publications

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Our human capital and learning team improves organizational
performance through enhanced people performance
Optimizing Human Capital Performance Optimizing HR Service Delivery
ƒ Competency identification and ƒ HR strategy
assessment ƒ HR effectiveness & service delivery
ƒ Talent acquisition and deployment model development
ƒ Learning and development ƒ Workforce planning
ƒ Performance culture, motivation, and People HR
rewards Performance Performance
ƒ Leadership development and
succession planning
ƒ Measurement and analytics to align Business
performance
Success

Strategy-
Building Institutional Knowledge and Learning & based
Successfully Executing Strategic
Skills Development Business Initiatives
Change
ƒ Competency based learning programs ƒ Merger integration
ƒ Coaching, mentoring, and workplace/ ƒ System and process change
action learning design ƒ Change in operating model
ƒ Process documentation and toolkits ƒ Ensuring regulatory compliance
ƒ Certification and curriculum design
ƒ Strategies to increase the effectiveness
and efficiency of Learning & Develop-
ment in the organization

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Successful change management is about managing individuals
through the change process to deliver results …

Positive Awareness Denial & Exploration Commitment

Resistance

Change
management
ensures the Morale &
right people Business
Outcomes Time
enablers are in
place to gain
commitment to
adopting new
ways of working

Negative

With Change Management Without Change Management

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… Operating at three levels – the organization, the group and the
individual

Purpose Level Capabilities/Offering

ƒ Understand the scale of the
Change Diagnostic change challenge

Organizations People Architecture ƒ Ensure the building blocks for

people transformation are in
Change Organization Development place
management ƒ Identify and design the
ensures the organizational enablers
Leadership Alignment required to sustain change
right people
enablers are in Groups Group Facilitation ƒ Design and deliver critical
place to gain interventions to support the
Stakeholder Management change effort
commitment to
adopting new ƒ Provide support in aligning
ways of working management and mobilizing
Transformation Coaching the organization
Individuals
Influencing Skills ƒ Coach clients on how to role-
model the change

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Booz & Company deploys an 8-step change approach

Booz & Company Change Model

Aligning
Defining Systems &
The Creating
Structures
Change A Shared
Need

Creating
Sustaining
Accountability The Change
Developing
A Shared
Vision

Engaging
and Mobilizing
Stakeholders
Leading
The Change

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Communication is one of the key tools as it informs and motivates
people to change – each organizational layer has a role
CLIENT EXAMPLE
A The Role of Communication in the Change Process
Role in Hard Deliverables Role in Communications
CEO

ƒ Establish vision ƒ Communicate objectives and purpose of the initiative

Provide Executive program
Concept and ƒ Set strategic goals
Committee ƒ Direct communication program
Direction ƒ Identify metrics
ƒ Prioritize initiatives – Select topics
ƒ Set-up program architecture – Determine accountability holder
– Ensure institutionalization of the process
Cascading Sponsorship
ƒ Communicate transformation program
Set-Up Senior Management ƒ Set-up initiative taskforces ƒ Institutionalize communication process
Organization and ƒ Implement program architecture – Communication guidelines
Manage ƒ Set up program office – Tracking
Processes ƒ Develop solutions and quick fixes – Alignment with KPIs
ƒ Design longer-term solutions ƒ Communicate accomplishments
requiring structural fixes
Cascading Sponsorship ƒ Set-up virtuous cycle publicly reward behaviors

Organize Middle Management

Execution ƒ Build detailed action plans ƒ Monitor progress
ƒ Change content of work ƒ Report on accomplishments of obstacles
ƒ Drive execution of action plans ƒ Escalate road blocks
ƒ Manage process ƒ Own and drive implementation
Cascading Sponsorship
ƒ Train and upgrade skillset
Execute Front Line
ƒ Participate in blueprints ƒ Execute

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Strategy & Leadership (S&L) offerings position Booz & Company
in the C-Suite with bold corporate insight and deep capabilities
Components of Strategy & Leadership PSO

ƒ Impact at the C-Suite ƒ Focus on corporate issues – not

ƒ Leading edge ideas and business unit strategy
Identity

capabilities to address Core ƒ Collaborate with industry and

corporate issues (placing Purpose Values regions
bets, top team alignment, ƒ Work with universities and outside
leadership) experts to bring best in class
thinking and network
Strategy &
Leadership
ƒ Today we lack basic skills & Offering Insights
leading edge thinking to fully ƒ Strategic Leadership
Strategy

engage the top team

Case For Capabilities & ƒ Succession/Top Team
ƒ We bring demand generators
to build C-Suite relationships Change Competencies Development

ƒ We help build enduring 21st

century organizations

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The vast majority of strategic change initiatives fail – why?

Failure to Sustain Success Booz & Company Observations

ƒ 1982: Peters’ “In Search of Excellence” about ƒ Campaign issues

43 “best-run” companies – Lack of focus: Too many initiatives
– By the ’90s, half of these companies were – Not separating running/fixing from changing
struggling
– What they did no longer fit the demands of ƒ Top Team issues
the business environment
– Making the distinction between managerial
leadership and strategic change leadership
ƒ 1994: “Built to Last”, described 18 companies – Not addressing the need to change
that had prolonged success over 70 years behaviors and other clear communications
to the organization
– Shares in these 18 companies have
appreciated by 150% in the ten years since ƒ Organization
1995 …
– Not picking up the change challenges
– … shares in the S&P and DJIA appreciated through an OrgDNA lens
over 250%
– Not engaging the organization to focus
required changes in values/culture

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We help strategic leaders create a new way of winning by engaging
their organization in capability building initiatives of choice …

Align the top team, empower

campaigns, ready the
Top Team organization to enable
success

“Way We
Win”

Campaign
Organization
Teams

Execute the key initiatives Sense market opportunities

that deliver fundamental and institutionalize new capabilities
change for sustainable advantage

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… breaking the exhausting cycle of punctuated equilibrium creates
essential advantage

Trying to get over the hump –

inconsistent execution –
Many initiatives under way, but Fatigue –
one or more are failing to deliver Recovering from an incomplete or
incorrect full-scale transformation

Change Effort
(necessary for
survival)

Behind the curve crisis – New state of equilibrium –

Missed the trigger or new CEO: Facing Are you readying the organization
fierce competition, major market for the next phase of renewal?
discontinuity and/or bankruptcy

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The strategic leadership offering rethinks how capabilities are
built and renewal takes shape across your organization
Top Team Issues Addressed
ƒ Develop CEO and Top Team Succession pipeline
ƒ Provide structured assessment for aligning the leadership team
ƒ Develop a balanced action leadership team and balanced
action campaign teams
ƒ Coach individuals on their development in their specific context
ƒ Deliver robust feedback to bridge the gap between assessment
and development

Top Team

Campaign Team Issues Addressed Organizational Issues Addressed

ƒ Link CEO and Top Team Succession ƒ Identify organizational architecture issues
candidates to campaign success ƒ Determine organization’s capacity for change
ƒ Confirm the right number (3-5) of campaigns ƒ Embed new capabilities to enable future
based on organizational readiness “Way We
Win”
adaptability
ƒ Design campaigns for success – balanced ƒ Diagnose organizational effectiveness
action teams, clear goals, linked to future Campaign barriers
aspirations Organization
Teams
ƒ Identify organizational root causes of sub-
ƒ Develop metrics and incentives to motivate optimal execution
employees to support campaigns
ƒ Identify and address culture issues

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Booz & Company supports efforts to create essential advantage by
resolving top leadership, strategy, and organizational challenges
ƒ Unique circumstances determine where to focus …

ƒ … however, all of the elements must work and be cohesively tied to a clear Way of Winning

ƒ Given a clear strategic direction, its often unclear as to why success isn’t imminent
– Are you trying to do too much?
– Is your identity unclear or even obsolete?
– Is culture getting in the way?
– Is your top team fully engaged to deliver results?

ƒ Booz & Company brings a cadre of deep in-house expertise as well as outside specialists to
diagnose and uncover the root causes for why your decisions are not producing expected results

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Corporate Finance & Strategy delivers support at the intersection
of corporate strategy and corporate finance

Corporate Finance & Strategy Service Areas

ƒ Corporate Growth Strategy

We help boards and company
ƒ Shareholder Value Management leadership define and deliver a
ƒ Corporate Portfolio Strategy coherent corporate strategy to build
sustainable shareholder value,
ƒ Performance Measurement & including portfolio composition, and
Management managing the related capital market
ƒ Financial Policy, Restructuring & issues
Optimal Capital Structure

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Capabilities-based strategy is founded on leveraging company
assets and organizational capabilities
Continuous, Alternating New … Leading To Continuous Related
Capability And Market Steps … Coherent Corporate Growth

(technology, assets, skills, etc.)

(technology, assets, skills, etc.)

4) … but more capabilities

needed to succeed in
additional new markets
etc, etc.

Capabilities
Capabilities

3) New capabilities from

(2) open new market
opportunities …

1) Seek to 2) Add
enter new capabilities
Starting market to succeed Starting
Position Position

Markets/Businesses Markets/Businesses

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Conventional wisdom in corporate portfolio strategy fails to
maximize investor wealth due to 3 chronic mistakes

ƒ Metrics focus on performance instead of value:

– Value already incorporates current, and expected future, performance
Performance – Growth, margins, ROCE/ROE, and EP are drivers of value but not proxies
≠ Value for value; they also lack definitive, external, benchmarks
– Selling the dogs, and acquiring stars can be the most costly strategy

ƒ Decisions fail to acknowledge the costs of opportunity forgone:

– Must go beyond presence/absence of portfolio synergies
Opportunity – More valuable alternatives for company resources (people, capital, time)
Cost – Forgone synergy value of ownership by natural owners

ƒ The numbers are absent or wrong:

– Allocations skew profitability versus its stand-alone potential, or to a different
Wrong owner
Numbers – Transfer pricing distorts real economics for tax planning and political reasons
– Absorption accounting burdens products/customers with unrelated utilisation
issues

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Value gap analysis identifies the greatest sources of opportunity in
the portfolio in terms of potential impact to investor wealth
Value Contribution by SBU Value Gap Analysis

26x
ƒ We estimate external market values by SBU
from total enterprise value, market multiples,
24x Pacific
Estimated Market Value per Dollar of Assets

precedent transactions, and LBO values

22x
ƒ Next, we estimate intrinsic value from
20x management forecasts and historical financial
18x Latin Am. performance, in order to:
16x
Eurasia
– Identify “value gaps” through the reconciliation
14x of external market values and internal intrinsic
12x
EU values
10x Africa – Disaggregate value gap opportunity into
constituent components to identify greatest
8x
sources of value gap opportunity
6x
North America – Derive value-based improvement targets to
4x
justify any continued portfolio “hold”
2x Minority Inv.
– Continue value gap analysis down to the
0x lowest possible discrete sources of value
Assets ($Bn) contribution (platform, customer, plant, etc.)

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We complement value gap opportunity with a capabilities-based
strategic fit assessment to prioritize portfolio alternatives
Value Gap Analysis
< Intrinsic Value
Market Value

ƒ We compare external market values by SBU

Hold Invest against estimated internal intrinsic value, to
identify the greatest sources of opportunity gap

ƒ We supplement the value gap analysis with a

Value Gap Assessment

strategic fit overlay:

– Capabilities
– Right-to-Win
Par

– Portfolio Coherence
Hold
ƒ Portfolio decisions are based on both the
degree of strategic fit as well as the results of the
> Intrinsic Value

value gap analysis

Market Value

Fix – Businesses to hold or grow are worth more

SELL internally than externally
Sell – Businesses to fix or sell are worth more
externally than internally

Low Medium High

“Strategic Fit”

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Performance measurement and management closes the loop on
managing for value with planning, budgeting and scorecards

Planning & Performance Management Cycle Key Deliverables

ƒ Mapping of Strategic Agenda to critical value
drivers:
– Realistically achievable (conceptually) and
practically feasible (empirically)
Planning – Includes clear objectives, accountabilities,
Strategy & Goal- timeline & milestones, and measures of
Setting Operating/ success (KPIs)
Capital ƒ Establishment of key metrics and value-based
Budgets aspirational goals for the corporate strategy and
its optimal portfolio of businesses
Incentives/ ƒ Targets determined from business valuations,
ƒ Text Behaviors &
Rewards reasonable WACC estimates, and indicative
Accountabilities growth, investment and terminal value
assumptions for each business
Reporting ƒ Integrated operating and capital budgeting
processes with the strategy, goal-setting, and
Dialogue/ reporting processes
Intervention ƒ Rolling reporting that integrates KPI progress
against targets
ƒ Design and implementation of incentive plan that
fosters personal involvement in, and ownership
for, value creation

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Deep capital markets expertise within a dedicated advisory team

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Our Mergers & Restructuring practice focuses on “one-time”
events guiding clients to capture value with less risk

Mergers & Restructurings

ƒ Acquisition Strategy, Screening & ƒ Divestitures & spins – capture post-

Deal Support – bridge strategy divestiture value, including the
formulation to deal integration with help identification of objectives and market
developing strategic rationale, dynamics
screening, evaluation, approach, due
diligence, negotiation, clean-room ƒ Joint Ventures & Strategic alliances
operation and other support – develop strategic rationale for an
alliance, defining screening criteria and
ƒ Post Merger Integration – capture
governance architecture
post-deal value through integration
planning and execution, benchmarking
ƒ Privatizations & buyouts – support
and other efforts
one-time corporate finance events
including leveraged and management
ƒ Restructuring & Turnarounds –
buyouts, Initial Public Offerings and
assist under-performing companies,
privatizations
including stabilization of financial and
operating performance

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We are thought leaders in Merger Integration planning and
execution

Mergercast by Booz & Company

Exploring the
world of mergers,
acquisitions &
restructurings

For articles, podcasts and additional information visit http://www.booz.com/mergers

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We help convert growth strategies to action through deal buy- and
sell-side deal support across all phases of the transaction
Strategy Evaluation Execution Implementation

Valuation Integration Post Close

Strategy Sourcing Validation Structuring Negotiation
Support Planning Implementation

ƒ Assess strategic imperatives – ƒ Detailed Market/Commercial Due ƒ Development and implementation ƒ Best practice for planning –
growth/capabilities, new markets Diligence reviews and process of strategy for value generation “day 1”, short term, end state
ƒ Business portfolio analysis – which management – Growth strategy – identification ƒ Project and Performance
businesses to invest, divest, – Strategic positioning of follow-on acquisition Management (PMO Office)
restructure – Qualitative and quantitative candidates; potential alliance ƒ Performance reporting tools
ƒ Landscape evaluation – identifica- – Opportunities and risks for future partners; product or service ƒ Communications
tion of potential targets, pros/cons, value generation extensions
– Internal
impact – Value trade-offs on buy vs. build – Turnaround/restructuring/
– External
ƒ Criteria assessment – size, market – Financial and non-financial
efficiency improvement
– “Equity Story”
positioning, management team, IP evaluation criteria of options – Organizational mobilization
etc. ƒ Considerations when structuring
ƒ Evaluation of proposed targets –,
ƒ Investment hypotheses – market/ synergy assessment, financial acquisitions, joint ventures and
industry analysis, competitive benefits, etc. alliances (e.g., Collars, Earn-outs)
analysis, regulatory and legal
ƒ Shareholder return – sources/uses ƒ Emerging market entry strategies
ƒ Focused first draft of open issues of proceeds to find value and manage risk
in target strategy
ƒ Consequences and game theory of ƒ Structuring employee retention/
ƒ Strategic alternatives and potential strategic choices incentive programs
considerations – acquire, alliances, ƒ Determining and implementing
JV etc. best practice processes and
teams

Attractiveness Bid Prep/Support Deal Closure Shareholder Value Realization

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Our deliverables provide seamless support linking pre-transaction
to post-close activities
M&A Lifecycle Key Deliverables
Pre-Transaction Conception to Announcement
Pre-
Target Trans- Integration Announce-
M&A Announce- Synergy Transaction Regulatory Deal
Identification action Pre- ment
Strategy ment Due Analysis Valuation Strategy Negotiation
& Screening Structuring Planning Planning
Diligence

ƒ Overall approach to M&A ƒ High-level due diligence assessment and analysis

ƒ Strategic imperatives analysis ƒ Proposed target high-level synergies analysis and estimates
ƒ Business portfolio analysis ƒ Shareholder return impacts and analysis
ƒ Strategic alternative analysis ƒ Game theory and consequences based on strategic choices
(e.g., JV, alliance) ƒ Value generation strategy
ƒ Landscape evaluation/target ƒ Structuring considerations and analysis (e.g., collars, earn-outs)
screening framework/approach
ƒ Market entry strategic analysis and risk assessment, including emerging markets
and assessment
ƒ Integration philosophy
ƒ High-level integration framework/approach
ƒ High level strategic framework and business/operating model
ƒ Integration leadership and governance
ƒ Integration success factors and end-state goals
ƒ Communications strategy, approach and planning

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Our deliverables provide seamless support linking pre transaction
to post-close activities
M&A Lifecycle Key Deliverables (cont’d)
Conception to Close Post-Close Activities
Post-
Post-
Announce- Synergies Regulatory Integration Business
Acquisition
ment Due Validation Management Planning Integration
Review
Diligence

ƒ Due diligence checklist ƒ Integration process (execution)

ƒ Due diligence analysis ƒ Lessons learned
ƒ Synergies assessment and validation
ƒ Regulatory strategy
ƒ Integration strategy and principles
ƒ Detailed integration framework/approach
ƒ Integration project and performance management
ƒ Integration tools and templates
ƒ Day 1 checklists

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Booz & Company combines its expertise across multiple offerings
to help clients balance post merger integration priorities
ƒ New Product/service offering Growth Booz & Company
ƒ New market/segmentation Service Offerings In
ƒ Cross selling… ƒ Supply chain Merger Integration
integration Planning
“Implement ƒ Supplier consol.
Long Term
ƒ Strategic sourcing ƒ Integration planning
Vision” ƒ Integration program
ƒ HQ Consolidation
execution
ƒ Sales force
optimization… ƒ Value management and
capture
“Keep the
Capability Business
Capturing “Capture
Efficiency ƒ Organization and business
Immediate
Running” the Value Value”
process design
ƒ Benchmarking and best
practice
ƒ Project management and
ƒ R&D integration and “Get the performance tracking
improvement New
ƒ Communication strategy and
ƒ Information technology Company
change management
strategy Going”
ƒ Merger integration capability
ƒ Best practice identification
building
…
ƒ People programs
Change
ƒ Cultural change …

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We have codified 10 “must do’s” to achieve that balance

Objectives “Musts”
1. “Strategic intent” – Translate strategy and upside vision into integration guidelines
Set Direction
2. “Stakeholder enthusiasm” – Build enthusiasm in the market, with regulators, communities, others

3. “One company” – Develop integrated organization, processes, culture, infrastructure plans for
immediate and longer term
4. “Value capture” – Identify and capture appropriate short/medium-term upsides and cost synergies
5. “Energized team” – Ensure the right people are in the right positions and build enthusiasm among
Develop Integrated employees
Operating Plans 6. “Stable transitions” – Identify how to implement changes without disruption
7. “Close” – Manage impact of deal finalization and process on integration and transition plans;
Consummate the deal
8. “Moments of truth” – Identify and manage major decisions and actions that can ensure (or
undermine) success

Execute the Plan 9. “Transition” – Sustain the momentum into and through implementation; Track, monitor and adjust

10. Supported by rigorous, disciplined project management & implementation transition

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Our program management expertise supports clients whether it is
a merger integration, a divestiture or a restructuring
Example: Pre-Closing Program Organization
Booz & Company Approach

ƒ Coordinate all actives of the pre- and Integration Board A Integration Board B
post-merger integration workstreams Program
Integration M’ger A Integration M’ger B

“Clean Team”
Mana-
ƒ Ensure that local programme manage-
gement
ment follows same structure as global
where necessary Mgr. Team Team Mgr.
Support
ƒ Rigorous management – but pragmatic Mgr. Work- Team Team Work- Mgr.
Streams Streams
Mgr. Team Team Mgr.
Major Tasks of Program Management

ƒ Set up integration governance and

processes Example: Post-Closing Program Organization
ƒ Define integration team members Integration Board

ƒ Develop the integration roadmap Program

Integration
(workstreams, deliverables, timing) Integration Manager Mana-
Management gement
ƒ Set up reporting tools and processes and
Project Sponsor Project Sponsor Project Sponsor
integration program budget Support
ƒ Establish integration risk profile Int. Team Int. Team Int. Team Int. Team Int. Team Int. Team
Leads Leads Leads Leads Leads Leads External
ƒ Monitor progress and risk, track budget support
Team Team WorkStreams
Team Team Team Team
ƒ Establish program resource planning Internal
Support Support Support Support Support Support staff

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We support businesses in building their alliance and joint
venturing capabilities
ACQUISITION
Extended Enterprise Model Booz & Company Service
Offerings in Alliances

M&A ƒ Capability assessment and

Permanent
gap diagnostic
ƒ Partner screening
Long- Strategic R&D STRATEGIC ƒ Alliance design
Commitment

term Sourcing Funding ALLIANCES

ƒ Negotiation support
Common ƒ Integration planning &
Annual Collab- interest
Medium- Purchase orative initiative
implementation
term Agreements Advertising e.g., ƒ Alliance capability building
TRANSACTIONAL lobbying
ALLIANCES Jointly
com-
Short- Commodity missioned
Cross
term Purchase Licensing market
Order
research

No Shared Shared Shared Cross Shared Wholly

linkage Information Resource Funding Equity Equity Owned

Level of Ownership and Integration

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The Risk, Resilience and Assurance (R2A) offering focuses on
ensuring the sustainability of organizations
Risk, Resilience and Assurance (R2A) Service Offering

Mission/business assurance Resilience Solutions

Security organization & operations
ƒ Clients: Leading corporations and institutions worldwide,
Crisis management government agencies and departments
Continuity planning ƒ Services
Risk analyses – Mission Assurance and Security: Diagnostic, strategy,
Information security planning, and policy for Crisis Mgmt, Business Continuity,
Integrated Security Mgmt, Critical Infrastructure Protection,
Testing, Training and Exercising
– Risk Management: Enterprise risk, risk agenda/architecture
development, including org., process, tools, people and
controls Cultural resilience diagnostic and capability building
– Information Assurance: Information risk assessment and
testing, including threat and vulnerability assessment and
analysis; Information risk treatment diagnostic and
enhancement including policy, organization, process,
monitoring and training

Resilience is an organizational capability which permits entities to anticipate, manage and respond in most
effective manner to large strategic or operational discontinuities/threats

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We have also developed considerable experience and knowledge

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We have pioneered a “Business Assurance” organizational
resilience standard …
Booz & Company Approach
Business Assurance Model
Ensure that those
services/assets critical to
mission/business
continue to operate

Government/
Business
Services

Ensure continuity and safeguard … by applying an … and developing integrated

of services/assets … operational lifecycle … core capabilities

Core Services Operations Governance

Functional
Enablers

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… which ensures the safety, security, and continuity of an
organization
Business Assurance Model
Benefits of the BA Framework

9Creates a “holistic view” of risks and

activities across the organization
9Raises critical risks to senior leadership
9Reduces likelihood of not capturing
overlapping risks
9Enables early notification of risk patterns so
Government/ that appropriate action can be taken
Business
Activities 9Facilitates collaboration/communication
among functions with common goals

9Builds governance and enabling capa-

bilities into system

9Improves overall response capability with

emphasis on an active early warning system

9 = Benefits

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DATE
Maintain
We have worked extensively across private and public sectors

Core Functional Capabilities

Governance Enablers
(Risk, Security, Continuity, Crisis Mgmt)
ƒ Security/resilience gover- ƒ Risk Assessments & Risk Mgmt programs ƒ Design/execution test,
nance models – Threats, vulnerabilities and impact assessments training and exercising
ƒ Organization & capability – Risk programs and organization ƒ Table top simulations and
assessments – Early warning systems, OSint complex wargames
ƒ Development of integrated ƒ Emergency operations
security strategy & opera- ƒ Integrated Security capabilities center design
tional model – ISMS, Identity and access mgmt, Incident response, SOC ƒ Emergency commu-
ƒ Development of policies, – Controls/countermeasures nications interoperability
standards, procedures – Security audit and plans ƒ Decision support systems
ƒ Performance metrics and ƒ Incident reporting tools
KPIs ƒ Business continuity and crisis mgmt
ƒ Security cultural awareness – BCM models, BIA and BC plans (BS25999)
programs – Crisis/emergency mgmt/civil protection capabilities

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