1. July 1993 Business Case

2. 5/15/2015 @ 10:26- 2 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Approach and Assumptions The goal is to overachieve Business Case built on “Top-Down” Strategic approach as well as “Bottoms-Up” Operational approach Industry And Competitor Analysis to support “Top-Down” approach conducted through internal Gemini analysis “Bottoms-Up” approach supported by Gemini analytics and supported by financial information gathered from: 1989 - 1992 Jones Plastic Financial Reports 1993 YTD Jones Plastic Financial Reports 1992/1993 Jones Plastic Budget 1989 - 1992 Jeffersontown Plant Financial Report 1993 YTD Jeffersontown Plant Financial Report 1992 Frankfort Plant Financial Report 1993 YTD Frankfort Plant Financial Report Gross Margin for revenue enhancement opportunities (incremental) is 18% Benefits are quantified for Jeffersontown and Frankfort plants only Benefits are quantified conservatively by design

3. 5/15/2015 @ 10:26- 3 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE The Project Will Yield Quantifiable, Non-Quantifiable And Intangible Benefits Carrying Costs Lower Accounts receivable Finished Goods Inventory Improved Productivity from effective teamwork Strategic Value Of PD&I Finished Goods Inventory Diversified Customer Base Employee Morale Intangible Reduced Frustration Stable Workforce Improved Team work Customer satisfaction Maintenance Productivity Yield Manufacturing Productivity Enhanced Revenue Increased Uptime Scrap Stable forecasts Capacity Utilization Revenue Enhancement Lower Unit Costs Culture Lower Downtime Cycle Time Reduction Enhanced Firm Value Cost Reduction

4. 5/15/2015 @ 10:26- 4 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Gross Margin/Sales, % 061824 Industry Average 1 24.6% 13.5% 12 XXXXX’s Gross Margin/Sales Is Lower Than Industry Average By Over 11% Jones Plastic 2 Source; 1) 1992 SPI Financial And Operating Ratios Survey, excl. deprn expense and inventory adjustments 2) XXXXX FY 1992 Income Statement If XXXX were to equal industry norms, it would boost Gross Margin by over $ 11 M.

5. 5/15/2015 @ 10:26- 5 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE XXXXX’s Capacity Utilization Is Lower Than Industry Average By 16% Capacity Utilization, % 0206080 79% 63% 40 If XXX were to equal industry norms, it would boost Gross Margin by over $ 4 M. Industry Average 1 XXXX Plastic 2 Source;Plastics World, June 1993 2) Composite for Jeffersontown and Frankfort, Gemini Analysis

6. 5/15/2015 @ 10:26- 6 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE 37% 63% Downtime Losses Amount To Over 350 Thousand Hours Per Year Analysis Current Jeffersontown 289,080 Hours Frankfort 709,560 Hours – Uptime– Downtime 38% 62% Value Downtime%Hrs/YrAdded Breakdown618,212N Changeover719,423N Unavailable617,520N Unscheduled925,823N Wait Time927,426N Total38%108,405 Value Downtime%Hrs/YrAdded Breakdown424,991N Changeover217,634N Unavailable426,280N Unscheduled21146,414N Wait Time646,023N Total37%244,068 Value Uptime%Hrs/YrAdded Uptime44126,395Y Restart11,827N Setup @ CO1131,513N Scrap310,100N Operator C.T..410,841N Total62%179,230 Value Uptime%Hrs/YrAdded Uptime58412,462Y Restart16,028N Setup @ CO214,040N Scrap216,294N Operator C.T.00N Total63448,218 Only about half of all time goes to value added uptime.

7. 5/15/2015 @ 10:26- 7 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Management Feels That A 47% Increase In Value Added Uptime Is Achievable... Changeovers Breakdown Unscheduled Unavailable Wait Time Downtime 17634100%50% 2499185%30% 146414100%75% 2628000 4602390%85% 090%0% 000 1568890%30% 6028100%90% 14040100%45% 412462100%25% Production (hrs) Controllable (%) 19423100%60% 1821290%65% 25823100%75% 1852000 2742690%85% 090%0% 1084175%70% 1010090%50% 1827100%90% 31513100%45% 126395100%60% Production (hrs) Controllable (%) Approx. Import Oppty. (%) FrankfortJeffersontown Approx. Import Oppty. (%) Machine CT Operator CT Cycle Time Scrap Uptime Setup at C.O. Restart a b a. Based on 4 weeks ending 7/10/93 Mattec. b. Based on PlantStar and C. Hubert.... which equates to a composite utilization of 84%.

8. 5/15/2015 @ 10:26- 8 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Increasing Value Added Uptime Significantly Improves Revenue Potential Note: Rev/m/c hr = $109 @ Frankfort, $316 @ Jeffersontown Potential Revenue Enhancement is approximately $40 M. Value-Added Uptime –Jeffersontown128,39560%198,449 –Frankfort412,46225%588,447 Total538,857hrs47%786,696hrs “As-Is” Model “To-Be” Opportunity % Improvement

9. 5/15/2015 @ 10:26- 9 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Revenue Enhancement Benefits Range From $20 Million To $50 Million High ProbabilityMedium ProbabilityLow Probability Quantified benefits will come from increasing capacity utilization due to reduction in downtime & increased uptime Downtime is caused by breakdowns, changeovers, unscheduled, unavailable equipment and wait time. Uptime is negatively affected due to restarts, setups and scrap. Note: Benefits are for Jeffersontown and Frankfort plants only. Source: Jones Plastic production schedules and financial reports. $20 M - $30 M increased sales @ 15% gross margin $30 M - $40 M increased sales @ 18% gross margin $40 M - $50 M increased sales @ 20% gross margin Gross Margin Impact$ 3 M - $ 4 M$5.4 M - $7.2 M$8 M - $10 M Increase in gross margin ranges from $3 million to $10 million.

10. 5/15/2015 @ 10:26- 10 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Even In The Absence Of Incremental Sales Revenue, XXXX Can Improve Margin Significantly Total Gross Margin Improvement = $4 Million. Jeffersontown FrankfortTotal ($ in millions) Direct labor, indirect labor1.91.13.0 (50%), and variable portion of manufacturing overhead Direct material (through0.60.41.0 scrap reduction) Total Benefits2.51.54.0 Jeffersontown: Total Improvement hours - (unscheduled hours) - (unavailable hours) = 68,989 hours Total available hours - (unscheduled hours) - (unavailable hours) = 245,727 hours % improvement = 68,989/245,727 = 28% Direct labor + 50% indirect labor + variable manu. O/H = 2,786 +.5 (3,475) + 2,155 = $6.7 M Cost Savings = 28% X 6.7 = $1.9 M Frankfort: Total Improvement hours - (unscheduled hours) - (unavailable hours) = 66,177 hours Total available hours - (unscheduled hours) - (unavailable hours) = 536,866 hours % improvement = 66,177/536,866 = 12% Direct labor + 50% indirect labor + variable manu. O/H = 4,751 +.5 (1,610) + 3,543 = $9.1 M Cost Savings = 12% X 9.1 = $1.1 M Source:Gemini Analysis

11. 5/15/2015 @ 10:26- 11 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE With No Incremental Revenue, Reducing Scrap Alone May Yield $1 Million In Cost Reduction Source: Jones Plastic Plant and Financial Reports, FY 1992 Jeffersontown scrap = 5.5%, Frankfort = 3.5% A 40% improvement in scrap performance will result in an annual saving of nearly $1 M. Frankfort $ 25.7 M $ 29 M Jeffersontown Scrap = $ 1.4 M Scrap = $ 1.0 M Raw Material Cost

12. 5/15/2015 @ 10:26- 12 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Intangible Benefits Reduced frustration and complexity throughout the organization Benefits from a diversified customer base Improved teamwork and cohesiveness between management team and personnel Increased employee morale A foundation and beginning of a new culture Motivation and movement in one clear strategic direction

13. 5/15/2015 @ 10:26- 13 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE A $4M- $11M Increase In Gross Margin Will Increase Market Value By $15M - $41M Increase in Gross Margin = $ 4 M - $11 M Increase in Market Value = $ 15M - $ 41M P/E for custom injection molders - 15X Net Income/ Gross Margin= approx 25% Source:Jones Plastic

14. 5/15/2015 @ 10:26- 14 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Project Fees And Expenses Fees Expenses Total $1,250,000 $250,000 $1,500,000

15. 5/15/2015 @ 10:26- 15 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Project Payback Curve - Revenue Enhancement -2,000 -1,000 0 1,000 2,000 3,000 4,000 5,000 2224 3642 44 48 4810121416182026 2830 32 34 38 404650 52 Gemini Investment Total Benefit Net Benefit 6 Time in Weeks Investment Payback In 27 Weeks. Note: Payback Curve for “Medium Probability” scenario

16. 5/15/2015 @ 10:26- 16 - © 1993 Gemini Consulting. Reproduction with Express Permission Only. 0720 Business Case – V1.2 (Presentation) BUSINESS CASE Gemini Investment Total Benefit Net Benefit (2,000) (1,000) 0 1,000 2,000 3,000 4,000 46810121416182022242628303234363840424446485052 Time in Weeks Investment Payback In 29 Weeks. Project Payback Curve - Cost Reduction

17. Appendix