1. Haas TCM Haas TCM Chemical Management Services November 09, 2005 www.haastcm.com

2. Overview of Haas TCM Employees: 300 Gross Revenues: ~$170 million/yr Facilities Served: 250 Countries: - US, Canada, Mexico, Argentina, China, Korea, Brazil, Israel IN PROGRESS – Europe, SE Asia Corporate Operations: - West Chester, PA (HQ) - Austin, TX- Purchasing & Data Center Ownership: Privately Held Haas TCM: the largest “independent” Chemical Management Services company

3. Chemical Management Services Chemical Lifecycle Management Activities Each step of the lifecycle is an opportunity to reduce cost, use and environmental risk. Haas TCM has direct involvement with the entire chemical lifecycle.

4. Chemical Management Services Haas TCM Creates Realigned Incentives Haas TCM compensation is aligned with customer objectives Our program is not volume/activity based. We generate no income from chemical volume. We have client lines not product lines.

5. METRICS: $/ LB (or Gal, etc) % of “Spend” Lbs Chemical Lbs Waste per Unit of Production per Unit of Production 3. CHEMICAL USE 1. CHEMICALS PURCHASED 2. STORAGE & Distribution VALUE CREATION: Chemical Costs 1. UNIT PRICE 2. SPOILAGE, SCRAP 3. CHEMICAL EFFICIENCY 4. Waste Air Water Haz Waste 4. WASTE RATE 5. Management Costs, incl Env Health & Safety VALUE CREATION Structural and Carrying Costs + Contingent (Risk) Costs Chemical Management Services Haas TCM - Focus on the Five “Value Pools” of the Chemical Lifecycle

6. Haas TCM’s Customer Base by Industry Sector: Automotive Aerospace & Defense Electronics Industrial Manufacturing Food & Beverage General Motors* Ford Daimler Chrysler GEMA Boeing Lockheed Martin Raytheon* United Technologies (UTC)* Southwest Airlines* Continental Airlines General Dynamics BAE Systems Israeli Aircraft Industries (IAI) Seagate Technol- ogies* DRS Corp Delphi Corp Sauer Danfoss* Arvin Meritor Dana Corp* Miller Brewing* * - Denotes an “enterprise customer”, or one for whom Haas TCM provides service to all or most of customers’ facilities Customers Power Generation First Energy Pacific Gas & Elec (PG&E) Research & Laboratory Stanford Linear Accelerator Univ Cal Merced (pending)

7. US Aerospace Facilities Served By Haas TCM Puerto Rico Raytheon UTC Boeing SWA, CAL LMC, GD, BAE, DRS, L3 Legend

8. All North American Facilities Served By Haas TCM Puerto Rico Raytheon UTC Boeing SWA, CAL LMC, GD, BAE, DRS, L3 Non-Aerospace Customer Legend

9. Latin America Chihuahua Ramos Toluca Saltillo Cuautitlan á Hermosillo Haifa Haas TCM’s International Operations Haas TCM’s International Operations Europe

10. Haas TCM - What We Do Sourcing & Procurement => all chemicals - Direct and Indirect - Catalog and non-catalog items Inventory management - Offsite and Onsite Just-In-Time (JIT) delivery On-site services - Fluid Management, Process Control and Improvement Automated EH&S compliance and reporting Hazardous waste management Bundle Chemical Lifecycle Work Processes Into a Single Solution Via Three Service Models

11. Customer Site 1 Haas tcmIS Waste Services Suppliers Sites 2,3.. Customer Local Storage for “other” Customer Chemicals Receiving and Storage Boiler, Water Tmt Chemicals Boiler, Water Trmt Chemicals Industrial Chemicals (mineral acids, solvents, etc) Cleaners Industrial Gases Coatings & Adhesives Plating Chemicals Oils and Lubes Oils, Lubes and Fluids JIT Delivery Competitive Price Delivery Order Placement = Electronic Connection & Automated Performance Monitoring 3PL Provider What We Do (1) e-Commerce and Logistics Automation

12. What We Do (2) Offsite Inventory/JIT Delivery

13. N.A. Facilities Served By Haas TCM & Hub Locations N.A. Facilities Served By Haas TCM & Hub Locations Puerto Rico Raytheon UTC Boeing SWA, CAL LMC, GD, BAE, DRS, L3 Non-Aerospace Customer Existing Haas TCM JIT Hub Legend “Planned” Haas TCM JIT hub

14. International Logistics By Haas TCM Philadelphia Hub  Consolidation  Shipping to Israel, China  Compliance To China To Israel To China

15. Chem Mfgr, Supplier, TCM Hub Fluid Management & Process Improvement Chem Inv Mgmt Bulk Storage Haas Client Facility Waste Storage Receiving tcmIS POU Delivery Waste Pickup Data capture and transaction automation Waste Transport O&M WWTP...Automated/Enabled through tcmIS, our advanced information & transaction platform. What We Do (3) – Onsite, Turnkey Management

16. What We Do (3a)-“Floor Stock” Management Onsite Chemical Crib or Direct to POU Barcoded Cabinet Barcode Container Mgmt All containers bar coded Cabinet & Bins bar-coded Min/Max set for each bin Cabinets scanned Automated Replenishment Shelf Life Management Usage tracking at Point-of-Use Stocked Items Non-Stocked Items Return to Cabinet From Chemical Manufacturers or Haas TCM Hub

17. Cabinet Management Streamlines “Multi-Product” Factory Operations Sikorsky Warehouse & Crib BEFORE Sikorsky Warehouse & Cabinet AFTER

18. Haas TCM Services to Enterprise Customers Haas TCM Enterprise Customer Total Sites Sites Served by Service Level E-CommerceJIT Turnkey, On-Site GENERAL MOTORS 27 RAYTHEON 4510278 SEAGATE 10226 DANA CORP 521438 SOUTHWEST AIRLINES 27 MILLER BREWING 55 UNITED TECHNOL- OGIES CORP 221012

19. Process efficiency improvements and chemical use reduction –Core staff of subject matter experts: Metalworking Coolant and Fluids Management Lubrication Systems Management Solvent applications Plating & Coating Adhesive and bonding Gas and cylinder management Water and Waste treatment What We Do - Process Improvements

20. DATA INFORMATION KNOWLEDGE EXPERTISE tcmIS (and HaasTech) efficiently capture and analyze data Haas TCM Subject Matter Experts Supplier Expertise Augments Haas TCM’s SME’s Haas TCM Suppliers

21. d-Buy - tcmIS electronically integrates with suppliers’ order processing and fulfillment systems. What We Do – Transaction Auto- mation and Info Management tcmIS Data Center Internet Corporate Oversight TCM Hub Supplier (chems, gas, waste, etc) Facilities tcmIS integrates with customers’, enterprise resource planning (ERP) and accounting systems. Our tcmIS Platform Decreases Cycle Time and Improves Information Exchange

22.  Automated operational support (Sourcing, purchasing, expediting, tracking, shipping, inventory mgt, & waste mgt)  Automated Material Management System  Customer Inventory Management Tools  Online electronic catalogs with built in AULs by Person, Facility, and Work Area - plus quantity and frequency and cost  Online catalog addition with built-in approval routing  Bar-coded cabinet management, Dispensing & Repackaging  Material Tracking to Point-of-Use & Waste Tracking from Point-of- Generation to Disposition  Online MSDS & Waste Profiles - plus data extraction including composition for material and waste  Speciated usage and generation information in real time tcmIS – Features & Functions

23.  Compliance automation support (Waste clocks, lists, auto notification of exceeded usage levels, risk & usage reports, etc.)  Electronic billing & online cost management reports  Systems are Internet-based - integrated information available world-wide tcmIS – Features & Functions (con’t)

24. tcmIS onsite Inventory Counting Cabinet scanning & upload tcmIS Catalog drag & drop Client system extraction & FTP Ariba, Oracle I-Commerce, SAP EBP, XML, EDI, MRP, etc Five Options: tcmIS – Creating MR’s

25. Screen Captures of tcmIS intentionally removed from this presentation.

26. Case Study #1 – Raytheon Corporation

27. Case Study: Raytheon Corp Become one company despite multiple cultures, procedures, and systems Reduce chemical lifecycle costs Desire to focus on core competencies Better data management of hazardous materials Diverse and large supply base Lack of material & process standardization Drivers to Initiate Raytheon’s Chemical and Gas Management Program (CGMP):

28. Raytheon Program At-a-Glance Goals: Ensure that quality chemicals and gases are supplied dependably to Raytheon’s operations – On Time Continuously reduce Raytheon’s use and costs of chemicals Program Overview: Multiyear agreement awarded in February 1999 Deployment initiated May 1999 Three regional hubs implemented: Salem, Dallas, & Tucson Over 45 sites participating, representing 98% of the dollars spent in North America

29. CGMP scope of services Procurement Hazardous Waste Management Chemical Gatekeeping· Waste Pick-up and Disposal Mgmt Sourcing · Long Term Liability Reduction Supplier Consolidation · Volume Leveraging & Rationalization · Emergency Response Volume Leveraging Inventory Management Database Management Incoming Inspection/Testing· Chemical Usage/Haz waste Tracking Labeling and Shelf-life Control· MSDS File Catalog Maintenance/Part Number · Electronic Catalog Consolidation · EH&S Reports Controlled storage Distribution Technical Support Point of Use Ordering/Delivery· Process Improvements Just-in-Time Delivery· Hazardous Waste Reduction Emergency Service· Toxic/Hazardous Chemical Reduction

30. Automated ordering and tracking through tcmIS (Online: ~20,000 chemicals & gases, ~700 waste profiles) Chemical gate keeping - managed work flow approval Online MSDS & EHS data for reporting Chemical usage/waste generation tracking Centralized electronic invoicing Leveraged sourcing, procurement & inventory management Result 1. Streamlined & Automated Operations

31. On-Time Delivery Min/Max Material (24 HR) Year 1 Baseline: 82% Year 4 Goal: 95% Year 4 Average: 96% Scrap Rate Year 1 Baseline: 3% Year 4 Goal:.47% Year 4 Average:.45% Result 2. Improved Service & Quality

32. Result 3. Reduced Costs - Breakdown

33. Result 4. Reduced Scrap & Waste Consolidated Regional Inventories Greater Supply Flexibility & Turn Rate Lower Scrap Rate + Process Improvements Reduced Usages & Wastes

34. Gainshare for Process Improvements Challenges Collecting baseline data How to share savings and for how long Management/process owner approval Validating savings are sustained Examples Business Process Improvement – automation of labor-based, material management processes (“gate keeping”, handling, etc); Manufacturing Process Improvements: BENEFITS EXAMPLESReduced CostReduced UsageReduced Waste 1) Precious metals recovery X X 2) Technology transfer for chemical stripper process X X X modification 3) Changed mode of chemical delivery (pipeline to on-site X X storage) (Presented by Raytheon at 9th Annual CMS Forum, San Francisco, CA)

35. Raytheon Program Goals Performance Historical Material Cost Reductions 0% 10% 20% 30% 40% 50% Nov-99 Mar-00 Jul-00 Nov-00 Mar-01 Jul-01 Nov-01 Mar-02 Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Cost Reduction, Adjusted for Producers Price Index-Chemicals Cost Reduction, Not Adjusted for Producers Price Index-Chemicals Reduce Material Costs Reduce Cycle Time Continuous Improvement Across Chemical Lifecycle Gross Program Savings (Excluding Haas TCM Service Fees) 0% 20% 40% 60% 80% Y-1Y-2Y-3Y-4Y-5Y-6 Program Year Percent of Chemical Spend Avoided Material Costs Structural Savings PEI Material Cost Reductions

36. Summary of Other Benefits to Raytheon Summary of Other Benefits to Raytheon Supply base consolidation to a single first-tier provider Improved delivery to point of use Reduced overhead costs, such as accounting, accounts payable, suspense and incorrect charges Reduced labor (75 FTE), inventory elimination ($12 million), floor space recovery (~60,000 ft 2 ) Material leveraging & process efficiency improvements Reduced chemical purchases and non-production waste Improved EHS Stewardship, including reduced chemical usage, reduced liability & 100% MSDS access Improved data management & reporting “Best In Class” information management system

37. Case Study #2 – Sikorsky Aircraft Corp, Stratford, CT

38. Chemical Management Sikorsky Aircraft Sikorsky Aircraft 9 th Annual CMS Forum San Francisco, CA Bob Melnick, Scott Little October 20, 2005 Sustained focus on Savings and Process Improvements

39. Why Chemical Management at Sikorsky? Focus on core business processesFocus on core business processes Lean manufacturing principlesLean manufacturing principles Process improvementProcess improvement UTC Initiatives (UT500 & EHS 10X)UTC Initiatives (UT500 & EHS 10X)

40. FunctionBeforeAfterProcurement 2 P.T. Buyers, 1 F.T Buyer P.T. Planner oversight ~10% PPV Internal Delivery 2 F.T M.Handlers, 1 P.T. Handler Haas Point-of-Use delivery Inspection Quality 2 P.T Material Inspectors Haas DQR Certified MSDS Mgmt $75K/yr 0$ (tcmIS) Scrap Chemicals 18%6% Inventory$1MConsigned Environmental Tracking Consultant + 1 P.T. EHS manager Consultant + tcmIS Chemical management business case – Sikorsky Displace Internal Costs to Supplier

41. Performance Gets Recognition

42. Case Study #3 – Seagate Technologies

43. Scope of Seagate CMS Program Air Products and Chemicals Haas TCM Gas Services Cylinder Mgmt Emergency Response POU Delivery Waste pickup Other Onsite Svcs On Site Services Haas TCM UPW Waste Water Optimization tcmIS Seagate, Other NA Seagate, MN Ops Seagate Int’l - Ireland - Asia Integrating Platform e-Commerce Lifecycle Tracking Record Keeping & Reporting EHS Stewardship Product Information Haas TCM Rinchem Inc. Offsite Inventory Mgmt JIT Delivery/Stocking Container Mgmt Emergency Response Chemicals Gases Waste Services Material Suppliers “D-Buy” SUPPLY CHAIN MGMT

44. Seagate View - Productivity Progress After CMS 18 Chemical Related CMS Employees Single Integrated Supplier Single E-procurement Vendor Contracts Novated Under CMS Supplier/Less Risk Single Consolidated Web-Based Electronic Catalog Web-based Approval CRA/MSDS Process No Working Capital – Seagate Pays Only at Point of Use. Before CMS 22 Chemical Related Seagate Employees 149 Direct Tier 1 Suppliers 868 Chemical POs 7 Direct Supplier Contracts and Risk No Electronic Chemical Catalogs Manual Chemical Approval/MSDS Process ~$800K Chemical Inventory On Site

45. Lower “scrap”= Reduced Chemical Use

46. "Total" Chemical Costs - Seagate Normandale and Shakopee 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 BaselineFY 2002- Actual FY 2003- Actual FY 2004- Actual Year $ per Year Management Fee Management Costs Chemical Costs CMS is platform of continuous cost improvement

47. Our Compensation Model Produces Alignment Three Part Compensation: 1.Service Fee – Based on Costs to Serve; Service Level Based on Customer BCA 2. Chemicals Costs – At Haas TCM’s cost 3. Savings Gainshare: -Chemical Costs; and - Process Efficiency Improvements