1. Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved IKON Project Review John Rodgers

2. Pg 1 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved IKON Overview Industry - Equipment distribution and related document management services Revenues - $4.7 billion Mix: 40% equipment distribution; 60% services + finance Mix: 90% North America; 10% Europe Market Position – Largest independent channel for document management systems and services in the world 600 locations in North America and Europe Largest US independent distributor for Canon and Ricoh One of the top 3 industry leaders in Outsourcing Largest provider of legal document services in the US Market Size - $50 billion market opportunity in North America $35 billion market opportunity in Europe Employees – 30,250 employees

3. Pg 2 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved IKON Overview North American 2003 Shipments - Canon & Ricoh Direct - 15%-25% IKON - 25% - 40% Others - 35% - 60% Revenue Profile - Equipment (Copiers, Printers) 39% Aftermarket (Customer Service & Supplies) 34% Document Services - (LDS, BDS & Professional Services)19% Finance (Equipment Financing) 8% Strategic Objective – Become the pre-eminent channel in the Document Management Industry by transforming the model from a distributor of hardware to a provider of solutions

4. Pg 3 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Prospect-to-Cash

5. Pg 4 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved IKON Senior Executives Andrew Twadelle Vice President Six Sigma Matthew J. Espe Chairman & CEO Michael Kohlsdorf Senior Vice President Enterprise Services Bob Woods Senior Vice President & CFO Simon Knight Senior Vice President & CIO Brian Edwards Senior Vice President, North American Sales Cathy Lewis Senior Vice President Marketing Beth Sexton Senior Vice President Human Resources Don Liu Senior Vice President & General Counsel Carlyle Singer Senior Vice President Operations IKON Team Alignment: Bob Conrad – West/FinanceLaura Wells – Operations/HR Jack Lairdieson – East/Canada/ITRaj Palanna – Operations Dan Douglas – Central/MarketingArt Girard – Professional Services Richard Jeroense - Europe David Mills Vice President & President, Europe

6. Pg 5 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved IKON Six Sigma Alignment Mark Botini VP/GM West Dan Merkle VP/GM Central Tom Callinan VP/GM East MBB: Bob Conrad ’05 SS Budget: $7.1Mil Current BB’s: 17 ’05 Target BB’s: 29 Active Projects: 27 Productivity: 77% Closed Projects: 1 $ Savings: $1.2Mil MBB: Dan Douglas ‘05 Budget: $9.6 Current BB’s: 24 ’05 Target BB’s: 57 Active Projects: 43 Productivity: 83% Closed Projects: 5 $ Savings: $2.5Mil MBB: Jack Lairdieson ‘05 SS Budget: $9.9Mil Current BB’s: 28 ’05 Target BB’s: 59 Active Projects: 41 Productivity: 69% Closed Projects: 5 $ Savings: $750k Alignment allows SSAI to drive results from all levels!!

7. Pg 6 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Current Stats Active Black Belts – 152 Active Projects – 265 Forecasted benefits $76M (in active projects) Closed Projects – 34 Annual OI benefits from closed projects $15M ($444K/project) FY04 Realized Savings - $6.2M in OI dollars FY05 Six Sigma Budgeted Savings - $65M in OI benefit dollars Green Belts Trained – 387 Yellow Belt Awareness Trained – 2,472

8. Pg 7 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved P&L 2 projects will make or break 1 st quarter Vendor Credits PC Leased Assets

9. Pg 8 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Metrics/Reports Utilized $12M MBB/BB Alignment IKON SS Budget BB Productivity Report BB Targets PE Summary Pipeline Report

10. Pg 9 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Phase 2 Deployment Approach May Apr JulJunAugSepOctDecNovMarFebMayApr Jun JulAugSepJanOctNovDecJanFebMar Pre-planning Assessment Executive Session Functional Champion Training Project Champion Training FASTART Training Black Belt Wave 1 – Week 1 Black Belt Wave 1 – Week 2 Black Belt Wave 1 – Week 3 Black Belt Wave 1 – Week 4 Black Belt Wave 3 Black Belt Wave 4 Black Belt Wave 5 BB Wave 6 Phase 1 Phase 3 Black Belt Wave 2 B B Wave7 Green Belt Training Develop IKON MBB’s

11. Pg 10 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Phase 2 Phase 1 & 2 Established May Apr JulJunAugSepOctDecNovMarFebMayApr Jun JulAugSepJanOctNovDecJanFebMar Pre-planning Assessment Executive Session Functional Champion Training Project Champion Training FASTART Training Black Belt Wave 1 – Week 1 Black Belt Wave 1 – Week 2 Black Belt Wave 1 – Week 3 Black Belt Wave 1 – Week 4 Green Belt Training Develop IKON MBB’s Black Belt Wave 3 Black Belt Wave 4 Black Belt Wave 5 BB Wave 6 Phase 1 Phase 3 Black Belt Wave 2 B B Wave7 Phase 1 – Initialize and Stabilize Milestones & Accomplishments Infrastructure established Deployment Processes – Black Belt Selection – Project Selection – Six Sigma Training – Benefit calculation/tracking – Project Management Leadership Commitment Communication & Education Steering Committee Central management and identification of Projects and Black Belts Metrics (Manual) – Management Metrics – Deployment Metrics Phase 1 – Initialize and Stabilize Milestones & Accomplishments Infrastructure established Deployment Processes – Black Belt Selection – Project Selection – Six Sigma Training – Benefit calculation/tracking – Project Management Leadership Commitment Communication & Education Steering Committee Central management and identification of Projects and Black Belts Metrics (Manual) – Management Metrics – Deployment Metrics Phase 2 – Function/Region Transition Expectations & Milestones Functional/Regional Alignment (Structure) Transition Processes to Functional/Regional – Black Belt Selection – Project Selection – Benefit Calculation/Tracking – Project Management Green Belt Training Online Tracking System Renewed Commitment Translation / Leverage Projects Realize Benefits Phase 2 – Function/Region Transition Expectations & Milestones Functional/Regional Alignment (Structure) Transition Processes to Functional/Regional – Black Belt Selection – Project Selection – Benefit Calculation/Tracking – Project Management Green Belt Training Online Tracking System Renewed Commitment Translation / Leverage Projects Realize Benefits

12. Pg 11 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Phase 2 Moving into Phase 3 May Apr JulJunAugSepOctDecNovMarFebMayApr Jun JulAugSepJanOctNovDecJanFebMar Pre-planning Assessment Executive Session Functional Champion Training Project Champion Training FASTART Training Black Belt Wave 1 – Week 1 Black Belt Wave 1 – Week 2 Black Belt Wave 1 – Week 3 Black Belt Wave 1 – Week 4 Green Belt Training Develop IKON MBB’s Black Belt Wave 3 Black Belt Wave 4 Black Belt Wave 5 BB Wave 6 Phase 1 Phase 3 Black Belt Wave 2 B B Wave7 Phase 3 – Self Sustenance Expectations & Milestones Identify and Train IKON Master Black Belts Transition from SSA to IKON – IKON Supported Training – IKON Master Black Belts Re-Patriot Black Belts Into IKON 300 Black Belts Green Belt Critical Mass & Penetration Cultural Change - Data Based Decision Making Dashboard Management used on Processes & Objectives Sustained Improvements Accelerated Financial Benefits Significant Positive Customer Impact – Continuous Pulse on VOC Black Belts Become Management Phase 3 – Self Sustenance Expectations & Milestones Identify and Train IKON Master Black Belts Transition from SSA to IKON – IKON Supported Training – IKON Master Black Belts Re-Patriot Black Belts Into IKON 300 Black Belts Green Belt Critical Mass & Penetration Cultural Change - Data Based Decision Making Dashboard Management used on Processes & Objectives Sustained Improvements Accelerated Financial Benefits Significant Positive Customer Impact – Continuous Pulse on VOC Black Belts Become Management

13. Pg 12 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Challenges/Risks Budget - Tailwind included for FY05 IKON benefits (approx $638k) IKON budget is lower than SSAI (approx $1.3 Mil) Contract Extension is built in SSAI FY06 Deployment - Operations Political Environment Black Belt Moral (time on projects, resignation etc) Personality conflict with AT Realignment of resources (at least 30 project transfers) Region vs. Operations processes Oracle Implementation IFS transition Lack of processes early on (MBB/BB, closing, financial validation, project charter) Tracking System Lack of full time Six Sigma resources (finance champ, deployment support) Project closure rigor Finance validation process (quarterly pull)

14. Pg 13 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Strengths/Opportunities Relationship - Matt Espe (g100 connection, reference for Albertsons) Andrew Twadelle Various customer/supplier potential Deployment - Beginning to generate cash (over $500k cash in 2004) Developed processes (leveraged at Alpharma and being improved) Developed key metrics (BB Productivity, BB targets, cycle time etc.) Developed team members (unity, BVS mindset) Alignment to the business (regional/functional to support business) MBB resource planning (as needed vs. all at once) Steering committee alignment (Oversight vs. Working) Established baseline for all others to pass Opportunities - Align incentive comp to MC’s (align revenue goals with IKON goals) Facilitate client’s drive to meet budget (within region/function and executive level) Stronger CEO relationships going forward