March 1, 2002

The Alcar Group

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• Company Background

• Challenges of Planning

• The Alcar Solution

• Software Demonstration

• The Implementation Process

• Training and Support

Agenda

The Alcar Solution

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Founded in 1979 by two Professors from Northwestern University’s Kellogg School of Management, Al Rappaport and Carl Noble Jr.

Al Rappaport authored Creating Shareholder Value

Years of Development has Resulted in a User-Friendly Tool with Vast Reporting Capabilities and Flexibility.

Proof of Product’s Success Evident in Customer Base of Over 2,000 Corporate clients across every Industry and Sector.

Current Clients (e.g.,Mead/Westvaco, Deutsche Bank, SBC Communications,Baxter, Macromedia, Humana) have helped shape the Alcar Solution.

The Alcar Group, Inc.

Background

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The Alcar Vision

The Alcar Solution

To improve the efficiency and integrity of the entire planning & analysis process by providing:

- Analytical Power & Flexibility - Built in Financial Intelligence

- GAAP Integrity- Financial Transparency

- Process Standardization

Alcar achieves this by integrating Short and Long Term Planning, Corporate Development, and Treasury functions.

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• Company Background

• Challenges of Planning

• The Alcar Solution

• Software Demonstration

• The Implementation Process

• Training and Support

Agenda

The Alcar Solution

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Challenges of Planning

Budgeting Databases lack Analytical Intelligence

SPREADSHEETSDATABASES

Lead to

Data collection ≠ Analysis

‘Run times’ for full financial analysis can be extremely high.

Financial intelligence must be “built” in by implementation.

Limited flexibility for running multiple scenarios and consolidation structures.

Poor analytical tool for business units.

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Spreadsheets Decrease Efficiency and Increase Risk

Risk of flawed calculation logic in spreadsheets. Difficult to analyze alternative scenarios. Fragmented process with no quality control. Lengthy audits leaving little time for analysis. Limited consolidation flexibility

Challenges of Planning

Increased riskDecreased efficiency

SPREADSHEETSLead to

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KPMG, Coopers confirmed Spreadsheets’ Faults

They concluded:

• 90-95% of detailed spreadsheet models contained at least one significant error

• Approximately 80% of Excel models had no formal system for quality assurance

• Faulty Excel models contribute to bottom line differences in excess of 5%

SPREADSHEETS INCREASE RISK & DECREASE EFFICIENCY

Spreadsheet Limitations

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Limitations of Other Applications

BUDGETING PLANNING CORPORATE DEVELOPMENT

TREASURY

Other Applications Fragment Planning & Analysis Process

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• Company Background

• Challenges of Planning

• The Alcar Solution

• Software Demonstration

• The Implementation Process

• Training and Support

Agenda

The Alcar Solution

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Long-Term Planning

Treasury

Short-TermPlanning

• Monthly / Quarterly

analysis

• Earnings management

• Variance analysis

• Reforecasting

• Rolling forecast

• Covenant and Ratio

Analysis

• Target Capital Structures

• Share Repurchases

• Interest Rate and

Macroeconomic

Scenarios

ALCARSolution

• Mergers & Acquisitions

• Divestitures

• Joint ventures

• Deal structure & synergies

• Value impact on corporate plan

• Earnings accretion / dilution

• Business Unit consolidation

• Legal vs. Management views

• Plan validation

• What if... Analysis

• Funding Alternatives

Alcar combines all Planning Activities into One Core System

The Alcar Solution

Corporate Development

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Alcar’s Consolidations are Flexible and Financially Sound

The Alcar Solution

BusinessUnit B

BusinessUnit B

Business Unit A

Business Unit A

ConsolidatedConsolidated

● Level of Detail is Completely Customizable

TOTAL REVENUE:

Product Revenue

Service Revenue

Other Revenue

PRODUCT REVENUE:

Penetration Rates

Domestic Revenue

International

Product Mix

Regional Analysis

SERVICE REVENUE:

Consulting Revenue

Billable Hours

Business Cycle and Seasonal Factors

● Analytical Analysis can be performed throughout entire Consolidation Structure

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The Alcar Solution

Business Unit BBusiness Unit BBusiness Unit ABusiness Unit A

Corporate Corporate

Business Unit CBusiness Unit C Business Unit DBusiness Unit D

Plant 1Plant 1

Plant 2Plant 2

Plant 3Plant 3

Division 1Division 1 Division 2Division 2

Revenue DataRevenue Data

Cost DataCost Data

Multi-Level Consolidations are easy to Perform and AdjustAcquisitions can be layered anywhere within the Organization

Acquisition

Acquisition

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The Alcar Solution’s Advantages Increase Efficiency

The Alcar Solution

● Scenario Management – Unlimited Possibilities focusing on Specific Variables, all Self-Contained within Each Model

● Time Period Flexibility – Changing Time Detail, Adding, Deleting, and Moving Deal Periods are easy Changes

● Financial Intelligence - IS, BS, and Cash Flow are all integrated, DCF analysis and various valuation tools are built in

● Funding Options – Prioritization and Application of various Instruments across Funding Surpluses/Deficits and Capital Structures

● M&A/Divestiture Analysis – Various Deal Structures, Transaction Timing, Target Valuations, and Synergies can be layered in at any level of the Corporate Organization.

● Other Analytical Tools – Sensitivity Calculators, Valuation Options, Tax NOL Calculator, Depreciation Scheduler, etc.

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Alcar Manages Planning Process & System Continuity

The Alcar Solution

Fire

wal

l

CorporatePlanningManager

Analyst(Short-term Tracking)

CFO(Reports)

SBU APlanningManager

SBU BPlanningManager

Analyst(Long-termFunding &Covenants)

Bus.Dev.Analyst(M&A)

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• Company Background

• Challenges of Planning

• The Alcar Solution

• Software Demonstration

• The Implementation Process

• Training and Support

Agenda

The Alcar Solution

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• Company Background

• Challenges of Planning

• The Alcar Solution

• Software Demonstration

• The Implementation Process

• Training and Support

Agenda

The Alcar Solution

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DevelopmentDesign Testing Documentation

•Review planning goals

•Determine level of detail and structure

•Develop value driver maps with key linkages

•Define Q&A process for system validation

Roll-Out

•Construct models based on value driver maps andstructure

•Develop mapping toexisting or requiredsystems

•Customize reports

•Develop test plan

•Load data into system

•Run system

•Calibrate system by analyzing results withprevious models and market data

•Document all Models and Processes

Structure Overview

Maps

Key analysisdefinitions

How to use

•Train key users

•On-site assistance during Roll-Out

•Assistance with any fine-tuning of the models

•Assistance with the first round of updates, analysis, and consolidation

Alcar is implemented by FINANCE professionals, not IT

Alcar’s customized training empowers users to make model changes themselves quickly and easily

The Alcar Solution

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• Company Background

• Challenges of Planning

• The Alcar Solution

• Software Demonstration

• The Implementation Process

• Training and Support

Agenda

The Alcar Solution

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Customized Training and Documentation Ensures Users are Prepared to use the System Effectively

Customized Training Programs are developed with each client

• Multiple courses, e.g., Beginner, Intermediate, Advanced, easily integrate with Client’s Training Schedules

• Case-Study Approach using Client specific examples

• Web-Based training and Self-Study materials available

Documentation explains the ‘How To’ behind all Models

• Each model and template is individually detail to guide users and facilitate Alcar Support

• Yearly and Quarterly Audits keep Documentation current

The Alcar Solution

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HelpLine and On-Site Support are also available

HelpLine

• Staffed by Financial Professionals who have your Documentation at their fingertips

• Available 365 days a year

• Global Support: Alcar Offices in Chicago, Sao Paulo, & Amsterdam

On-Site Visits

Our Implementation staff is also available for On-Site support for more personalized assistance

The Alcar Solution

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Selected Client List

The Alcar Solution