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Introductions
• Greg Banning– Allsteel, Vice President National Accounts
– Executive Sponsor to Citi for Allsteel & Gunlocke
– Formerly with Kimball
• Jan Johnson– Allsteel, Vice President Market Development
– NYC Based
– Formerly with Teknion
Relationship Timeline
• March 2007 Allsteel/Gunlocke respond to GCG RFP
• May 2007 Allsteel/Gunlocke sign MSA with Citi
• June 2007 GCG selects Gunlocke as PO standard
• September 2007 Gunlocke selected by Private Bank business unit for PO standard in Chicago
• March 2008 Allsteel & Gunlocke awarded G2 floor in Tampa, FL
• To date Gunlocke has installed more than 500 private offices for Citi around the country
HNI Corporation
– Publicly traded company NYSE
– 64 years old
– Based in Muscatine, IA
– Workforce of 13,000 +
– International scope
– 2007 sales of $2.6 billion
Structured to Perform
Management Practices…Manufacturing Best Practices…Lean Thinking…People Development
Split & Focus
Leverage
PROCUREMENT
MEMBER / OWNER CULTUREMEMBER / OWNER CULTURE
INFO TECHNOLOGY LOGISTICS MANUFACTURING SHARED SERVICES
A member owner culture
HNI members are share holders, participating in the success of the company.
Shared responsibility and shared rewards.
HNI Allsteel Global Capabilities
– Members present in local markets
– Regional Presence• Asia Pacific• Europe• Latin America • Middle East
– Manufacturing capabilities in North America, Asia and Europe
– 450 Worldwide Dealers and Service Partners
Casegoods Overview
2008
Gunlocke
Gunlocke
• Established 1902– HNI acquired in 1989
• Wayland, New York
• 900 Members
• 750,000 sq. ft. Manufacturing Plant
• Lean Manufacturing Culture
• Corporate
• Legal
• Financial/Banking
• Consulting
• Accounting
• Brokerage
Markets
The Difference is in the Details
• ClearTech Finishing System
• Veneers are hand selected from managed forests and laid up in house
• Progressive sanding
• Steel Spreader Bar Construction
• 9-Ply Baltic Birch Drawers
• Balanced Panel Construction
• No up-charge for grommets or edge details on over-heads
Comprehensive specials program• Approval and pricing within 48 hours
• Fully engineered in 3-4 days
• Full warranty of workmanship
Tailored engineering capabilities
Casegoods• All casegoods and seating
• Applies to tailored engineered products
12 Year Warranty
Basic Work Station Layouts
Advanced Work Station Layouts
Traditional Transitional Contemporary
Kennsington
MedleyMosaic
Fle
xibi
lity
Gunlocke Casegoods
Menu
Traditional Transitional Contemporary
Kennsington
MedleyMosaic
Fle
xibi
lity
Gunlocke Casegoods
Menu
• 9 edge details
Medley Flexibility
Lacuna
Softened Serpentine
Medley Flexibility
• 9 pull styles
Medley Flexibility
Select Veneer:
Cherry•Cinnamon 260•Dark Red 511•Light Cherry 701•Medium Brown 215•Expresso 498•Medium Red 512•Burnished Cherry 777
Maple•Honey Maple 873
•Natural Maple 800
WalnutNatural Walnut 647
Premium VeneerRift Oak
•Medium Brown Rift Oak 357
•Dark Rift Oak 331
• Desking
• Conference extensions
• Returns
• Bridges / Corners
• Credenzas
• Paper Management
• Storage
Factory Assembled Units
• Easily customize a client’s workspace
• Universal with all unitized Medley products*
Modular Units
*all units produced after January 1, 2003
• Removable pedestal backs on unitized desks and returns
• Wire cutouts
• No charge standard grommets
Technology Integration
• Factory assembled
- Corner
- Returns
- Bridges
• Transaction tops
• Gallery tackboards
Reception Stations
Conference Solutions• Complimentary design
• Finishes
• Edge details
• Pulls
• Flexibility• Aesthetics
• Planning
• Over 6.3 million skus
• Construction• Steel spreader bar
• Balanced panels
• Gunlocke drawer system
• ClearTech finish
Summary
• Commitment to design products in a manner that incorporates life-cycle, environmental stewardship and sustainable thinking into the design of our products. Evident through the implementation of a Design for the Environment procedure.
• Commitment to manufacture products in sustainable manner. Evident through third party audit verification under the SCS Sustainable Choices ProgramTM. The following product lines have met the qualifications for the Silver level of the Sustainable Choice ProgramTM.
• Implemented packing process changes, such as bulk packaging, vertical and horizontal stretch wrapping which reduced annual packaging waste by 40%.
• On-site renewable biomass energy accounts for almost 50% of our total annual energy consumption. The fuel supply comes from wood outfall collected during manufacturing that otherwise would end up in a landfill.
Gunlocke Environmental Stewardship
Sustainability Initiatives – Recently Implemented
• USGBC Membership. (We have been members since June 2008).
• BIFMA Sustainability Standard / SCS Sustainable Choice Silver Certification (Gunlocke has achieved a major environmental benchmark, certifying product to the current Business & Institutional Furniture Manufacturers Association (BIFMA) Sustainability Standard.)
• Finishing material waste reduction. (expected 20%+ reduction in 2008 - $94,000 in annual savings)
• Particleboard transitioned. (73% reduction in particle board formaldehyde emissions)
• Enhance culture of sustainability. (Installed 15 carpool / hybrid designated parking spots and implemented an expanded recycling program that now includes deposit cans & bottles, non-deposit #1 & #2 plastic, glass as well as metal food containers from the cafeteria.)
• BIFMA Sustainability Standard / SCS Sustainable Choice GOLD Certification, Target 2008 – 4Q
• Green Calculator, Target 2008 – 4Q
• IAQ – Finish Transition to low VOC & low Formaldehyde, Target 2009 – 1Q
• FSC Chain of Custody Certification, Target 2009 – 1Q
• Life-Cycle Assessment, Target 2009 – 4Q
Sustainability Initiatives – On Going
Overview
2008
Allsteel
Durable
– Designed and manufactured with material integrity
– Well-built and long- lasting
– Resilient to constant churn
– Solid in appearance and physique
Functional
– Visually intuitive and easy to use
– Improving performance and productivity
– Reconfiguring easily
– Being ergonomic and comfortable
– Responsible and pragmatic
Forward Thinking
Innovation is what happenswhen research into social and technological trends, new materials, and client needs and wants is combined with operational excellence and break-through thinking. We get products and services that are:• Relevant and adaptable• Customer-focused• Pragmatic
Design Driven
Design is function made beautiful.
Details are designed into every product that are beautiful and purposeful; that help employees work more comfortably, effectively and efficiently, in an environment that inspires.
Quality Fanatics
Quality is made visible in the design, functionality, and durability of our products; and in the importance we place on our relationships with clients, designers, suppliers and each other.
Service committed
Service should do more than fix problems, it should anticipate them.Our commitment is simple: we’re here to make your job easier.
Systems platforms
Align
Terrace 3.4
Terrace 2.6
Concensys
Systems Enhancers
Reach
Adept
Work chairs
− Work targeting
− Families of seating
− Active or passive adjustments
Multi-purpose seating
Nimble
Get Set
Tolleson
Relate
Storage
Persona
Essentials
Reach
Desking
Cadence
Ahrend
Align
Tables
− Merge• Play
• Adaptive
• Height adjustable
− Get Set• Tables
• Chairs
• Presentation boards
Portfolio– Workplace Consultation
– Tailored Products
– Project Management
– E-procurement; on-line stds
– Installation
– Dealer Services
– Field Service Support
– Asset Management
– Refurb, Buyback, liquidation
– Reporting
Services - Overview
A lean culture Rapid continuous improvement
Carton Reduction, Packaging
Conventional Packaging Bulk Packaging
Awards
Neocon Gold in Tables 2006
• Merge Tables
Awards
Neocon 2005
• Reach
– Neocon Gold Award in Storage
– Innovations Award for Workplace Flexibility Solutions
Awards
Neocon 2005
• Align
– Neocon Gold Award in Systems
• Empowering members (employees) and contributing to our community
• Minimizing our impact on the natural environment• Operating a lean and profitable business• Building durable and functional products• Measuring results and making improvements• Avoiding greenwash by substantiating claims
We know it is the actions of many individuals, working together, that willhave the greatest and most lasting effect on the environment we all share.
What Does Sustainability Mean at Allsteel?
Environmental awareness is not a new concept at Allsteel and our parent company, HNI. We’ve been incorporatingenvironmental innovation into our business and culture for many years:
• Integrated pollution prevention into manufacturing in the 1980s• Empowered employees to operate lean and minimize waste
in the 1990s• Moving toward sustainability in the 2000s:
– Evaluating product life cycle impacts– Modeled guiding principles on the “triple bottom line” of
sustainable development• People, Planet, Profit• Plus 3: Product, Process, Proof
– Seeking LEED® certification for showrooms, office, and factory
Allsteel’s Continuing Progress
Allsteel’s Guiding Principles: The Triple Bottom Line + 3
2008
Citi G2 Project Images
REACH
ADEPT
TERRACE 2.6
Thank you