XXXXXXXXX COMPANY XXXXX/ Gemini ©1992 Gemini Consulting Proprietary Information March 27, 1992 Building Momentum for Business Redesign XXX Business Case

10/18/2015 ©1992 Gemini Consulting Proprietary Information 2 XXX Business Case Agenda Top down: What do we need to accomplish Bottom up: What can we accomplish –Plant and support process redesign opportunities –Supply chain architecture redesign opportunities

10/18/2015 ©1992 Gemini Consulting Proprietary Information 3 XXX Business Case To Achieve A Return On Capital Which Will Yield A Consistent Return On Equity Of 20% Or More, We Need To Address Expenses, Capital and Revenues $105 Million $83 Million $60 Million $40 Million Operating Profit Improvement $186 Million $272 Million $354 Million $433 Million andCapital Reduction Pre-tax Cost Savings $55-$80 Million Capital Reduction $100-$150 Million Revenue Enhancement (beyond Economic rebound) $220-$590 Million The path to consistent 20% ROE or more Note: Assumes ROC of 16.5% equals 20% ROE Top Down

10/18/2015 ©1992 Gemini Consulting Proprietary Information 4 XXX Business Case Supply Chain Architecture Redesign Opportunities Cut Across Three North American Plants Supply Chain Architecture - Domestic Plastics Reduce schedule breaks (379 per year at $9,300 per break) Increase productive capacity Move toll-manufacturing in-house Hold right amount of stock items Eliminate slow moving inventory Enhance service levels Reduce lead times on most important products (from 6 to 1 week for 90% of product volume) Understand true product costs –Make right toll versus in-house decisions –Increase prices of or eliminate unprofitable products Institute decision rules for handling lower volume products / customers Institute minimum order policies Link demand with raw material inventory management $11-$17 Million TBD Plant and machine loading –Dedicate machines –Produce to stock vs produce to order Inventory management –Produce fast movers to stock –Produce slow movers to order –Set dynamic reorder points Product line rationalization Customer management / differentiated service Information management $3.5-$10 million $600K-$800K (reduced storing costs) Incremental sales (TBD) TBD ProfitRedesign OpportunityWorking CapitalImprovements Benefits

10/18/2015 ©1992 Gemini Consulting Proprietary Information 5 XXX Business Case Supply Chain Architecture Redesign Opportunities Exist For The XXXXX Business By optimizing the worldwide XXXX supply chain architecture, both revenue enhancement and cost reduction benefits can be realized. By optimizing the worldwide XXXX supply chain architecture, both revenue enhancement and cost reduction benefits can be realized. Ghent 1225M Sq Ft Ghent 2100M Sq Ft I.O.180M Sq Ft Trenton140M Sq Ft Japan80M Sq Ft Brazil40M Sq Ft 765 Today's Capacity A likely opportunity exists to increase worldwide XXXXX capacity without significantly increasing fixed costs Capacity 1992 Budget Breakeven Revenue There are also opportunities to reduce variable, MAT, and fixed costs through localized work process and corporate support function improvements Capacity Increase Taxes Cost Reduction Other MAT Fixed Variable $100M $42M NIAT Supply Chain Architecture - Global SAFLEX

10/18/2015 ©1992 Gemini Consulting Proprietary Information 6 XXX Business Case The Magnitude Of The Benefit Of Global Optimization Of XXXXX Has Not Yet Been Determined Preliminary findings suggest benefits may be significant: At the XXXXX plant, XXXXX changeovers are estimated to cost at least $3.1 M per year (raw material, fixed costs, reprocessing, and landfill costs). This represents approximately 7.6% of total plant operating costs. At the XXXX plant, XXXXX changeovers represent at least 768 hours of lost time per year. If this lost time was used to produce good product, an estimated cash flow benefit of $2.4 M would be realized. Using 1989 (pre-recessionary) gross margin as a benchmark, there is an opportunity for a 5% ($20 M) reduction in cost of goods. This estimate uses 1992 as the base year. Using 1989 capital turnover as a benchmark, the 1993 projected capital base is capable of supporting $137 M of additional sales. This represents 30% over forecasted 1993 sales. Supply Chain Architecture - Global XXXXX