Building our multi billion Building our multi billion dollar organisation dollar organisation togethertogether

Industry around the world is Industry around the world is consolidatingconsolidating

Industry ConcentrationIndustry Concentration

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 5 10 15 20 25 30

Series1

Railway

Telecoms

Airline Services

Utilities

Insurance

Chemicals/Drugs

Automotive suppliers

Automotive OEMs

ShipbuildingTime

““Our partnerships and alliances Our partnerships and alliances work because we understand and work because we understand and manage the reasons for failure; manage the reasons for failure; and we leverage an international and we leverage an international business plan with a diversity of business plan with a diversity of markets, options and markets, options and opportunities.”opportunities.”Paul BishopPaul Bishop

Reasons for failureReasons for failure

Lack of alliance experience 25%Lack of alliance experience 25% Cultural Mismatch 28%Cultural Mismatch 28% Misunderstood operating Misunderstood operating

principles 30%principles 30% Lack of financial commitment 32%Lack of financial commitment 32% Slow results or payback 40%Slow results or payback 40% Lack of shared benefits 50%Lack of shared benefits 50% Poor Communications 53%Poor Communications 53% Overly optimisticOverly optimistic

Huge benefits in partnering Huge benefits in partnering with us.with us.

CEOs Top reasons for partneringCEOs Top reasons for partnering

Decrease operating costsDecrease operating costs Employee skillsEmployee skills Improve operations or technologyImprove operations or technology Create more products or increase Create more products or increase

lines of businesslines of business Increase sales of existing Increase sales of existing

productsproducts Improve competitive positionImprove competitive position

Benefit from a creative approach Benefit from a creative approach making use of several different making use of several different types of options.types of options.

Our Alliance building ActivitiesOur Alliance building Activities

One off arms length purchase

Collaborative buying

Shared R and D

Preferred Supply relationships

Co-marketing

Minority Investments

Joint Production

Joint ventures

MergersAnd Acquisitions

Before the deal: Things to find out Before the deal: Things to find out while you are datingwhile you are dating

Time orientationTime orientation Decision makingDecision making CommunicationCommunication InformationInformation Organisational structureOrganisational structure Labor relationsLabor relations TechnologyTechnology Management styleManagement style Government relationsGovernment relations Rate of changeRate of change

Relationship ActivitiesRelationship Activities

DatingDating EngagementEngagement ““Prenuptial agreement”Prenuptial agreement”

ValuationValuation NegotiationNegotiation AgreeingAgreeing ConfirmingConfirming

Relationship ActivitiesRelationship Activities

Interface (Delivery begins)Interface (Delivery begins) Hard Choices Hard Choices

Clarifying and growingClarifying and growing Misunderstandings Misunderstandings

(communication)(communication) InterdependenceInterdependence

Business ActivityBusiness Activity

SearchingSearching IdentifyingIdentifying MeetingMeeting ValuingValuing ConcludingConcluding

Contract IssuesContract Issues

ObjectivesObjectives Business PlanBusiness Plan Organisational structureOrganisational structure Contribution of each partnerContribution of each partner Rights and obligationsRights and obligations Reward formulaReward formula Investment and compensationInvestment and compensation Measures of performance and performance standardsMeasures of performance and performance standards BudgetsBudgets TaxTax LegalLegal Leadership, contribution and expertiseLeadership, contribution and expertise GovernanceGovernance Handling ConflictHandling Conflict Accommodating changeAccommodating change