2. Final Thoughts The Future of Our Industry The Global Envelope Conference June 4-6, 2007 Berlin, Germany

3. The Shifting Global Marketplace There is a very significant economic shift taking place from developed country to developing country. These shifts are occurring because of technology, economic liberalization, capital market developments and demographic shifts.

4. Developed Nations are Getting Older Populations in developed nations are getting older, not younger as population growth slows. This older generation will demand more social services and will require more benefits. This will lead to tax increases and increases in the size of governments to support these changes.

5. A New Consumer Will Emerge One billion new customers will enter the global marketplace with discretionary income to spend. Consumer spending in developing nations will double to $9 trillion between now and 2010 – just about the spending power of Western Europe right now. In North America, the Hispanic population will be the next new consumer group.

6. The Emergence of New Technology in the Workplace We are in the early stages of a technological revolution, not the mature stages of that revolution. We are going to learn a great deal about how we integrate information technology into our operations over the next decade.

7. There Will Be A Shortage of Talent To Staff Our Plants All of us have a challenge in that it is difficult to recruit and retain the skilled workers we will need in our industry for the future. Many of our skilled employees are nearing retirement and the work force that replaces them is not as skilled as those who are leaving.

8. All Businesses will come under more scrutiny in the next decade. We are all painfully aware of the Enron's, MCI’s, Martha Stewart Omni media and a host of other large enterprises who have broken the law. A number of Russian companies are now being brought to justice for pollution. Indian companies have been cited for environmental challenges. There is a significant shift going on in North America toward environmental responsibility.

9. Demand for natural resources will have a significant impact on our businesses. Emerging economies are using energy at unprecedented rates. Oil demand will grow by 50 percent over the next 20 years and without significant new discoveries, we will be forced to consider alternative energy sources.

10. Non Traditional Business Models Will Emerge Non-traditional business models will emerge in the future. Most of us will be in industries where there are a few giants at the top, a narrow band of companies in the middle and a considerable number of smaller companies on the other end of the spectrum thus representing a “barbell” shape.

11. Management Grows from an art to a science The old paradigms that we used to operate our businesses are no longer relevant to today’s marketplace. We must adopt a new operating philosophy based more on scientific management principles than by general standards.

12. Information means power in the years ahead In an Internet society that is interconnected, those that understand how to use the Internet to gain knowledge over their competitors will thrive. The ability to search the Internet quickly and efficiently puts a great tool into the hands of competitors.

13. Collectively, what does this all mean? We will be slightly smaller but much more productive. We will develop new products with a fierceness that we have never used before. We will integrate more technology into our operations and organizations. We will operate in a more socially responsible manner. We will work hard to develop a future workforce. We will become continuous learners. We will forget the math of the past for the algorithms of the future. We will know how to use and cultivate information as a resource. We will make more money!

14. In Every Envelope there is an opportunity! Thank You for Your Time!