【正文】 nalization and savings ?Best practices ―Corporate Center‖ BG1 BG2 BG3 Other Business Group ? ? ? Stand Alone Model DWNA BG1 BG2 BG3 Business Group ? ? ?? ? ? Model Create Joint Venture Organization Corporate Center Rationalization Methodology JV Partner BG1 BG2 BG3 Business Group ? ? ? ? ? ? Model . Kearney 4/1375C/Merger Integration 1083 19 _Macros 29 7. Continuously Benchmark and Monitor Supplier Improvement 6. Operationally Integrate Supplier(s) Strategic sourcing is a powerful methodology for leveraging the bined spending base and procurement capabilities of the merged anization Key Elements . Kearney Intellectual Capital Employed 5. Select Competitive Supplier(s) 4. Select Implementation Path 3. Generate Supplier Profile 2. Develop Sourcing Strategy 1. Define Sourcing Categories ? Embed supplier monitoring processes ? Implement market monitoring tools ? Periodically reevaluate supplier petitiveness and performance ? Performance measurement tools ? Technologyenabled data capture process ? Complete implementation templates ? Gain buyin to supplier changes ? Coordinate new supply chains ? Implement systems to monitor results ? Implementation templates ? Tailor and issue RFPs ? Analyze responses ? Develop targeted negotiation strategy ? Negotiate a deal ? Electronic procurement tools ?Inter RFPs ?Online auction tools ? Benchmarks ? Select supplier developm。March 2023 Merger Integration Intellectual Capital Collection Generic Proposal . Kearney 4/1375C/Merger Integration 1083 19 _Macros 2 Table of contents ? Executive Summary ? Our Understanding of Your Situation ? . Kearney’s Perspective on Merger Integration ? Proposed Overall Approach ? Realizing Integration Synergies ? Integration Management ? . Kearney Qualifications . Kearney 4/1375C/Merger Integration 1083 19 _Macros 3 Executive Summary This section is tailored to the client situation and summarizes the approach proposed in the document . Kearney 4/1375C/Merger Integration 1083 19 _Macros 4 Our Understanding your Situation This section is tailored to the client situation and summarizes the key drivers of the merger. It should highlight relevant quantitative and qualitative analysis that demonstrate our insight into the client’s particular challenges and drivers of success for the integration . Kearney 4/1375C/Merger Integration 1083 19 _Macros 5 . Kearney’s Perspective on Merger Integration . Kearney 4/1375C/Merger Integration 1083 19 _Macros 6 The best valuebuilders bine anic growth with mergers and acquisitions Source: . Kearney Monograph on ValueBuilding Growth 2023 Revenue Growth Value Growth Under performers Profit Seekers Simple Growers Value Growers Growth Matrix (CAGR 19882023) 13 .8% %R e v e n u e V a lu e18 .0% 21 .5%R e v e n u e V a lu % %R e v e n u e V a lu e %12 .8%R e v e n u e V a lu eValue Growers Follow Conscious, Constant Process To Growth . Kearney 4/1375C/Merger Integration 1083 19 _Macros 7 Mergers and acquisitions are key growth drivers What really matters in ―acquisition for growth‖ strategies is execution Source: . Kearney Monograph on ValueBuilding Growth 2023 40%100%60%Exte r n al I n te r n al T otal G r ow thSources of Growth 40% of Growth Is From Acquisitions Value Growers Manage Both Well . Kearney 4/1375C/Merger Integration 1083 19 _Macros 8 Few mergers actually create shareholder value Source: . Kearney Analysis 2023, SDC database, Global Worldscope Acquirer39。98 Value Capture of Top Performers Over Time 15% Year 1 Year 2 Cumulative Value Capture After Two Years 85% Time Closing the Deal 1 2 3 4 5 6 7 8 9 10 10 8 6 4 2 0 2 4 6 Value Capture/Loss ($ MM) Year in Which Synergies Are Realized Timing of Synergy Realization Is Also Critical Source: Marl L Sirower : The Synergy Trap. Calculated based on a $10MM acquisition premium, representing 50% of market value In our experience, the most critical element in achieving targeted benefits is speed . Kearney 4/1375C/Merger Integration 1083 19 _Macros 15 Proposed Overall Approach . Kearney 4/1375C/Merger Integration 1083 19 _Macros 16 . Kearney has a flexible merger integration framework with a prehensive toolkit to support planning and implementation throughout the merger process to ensure value capture . Kearney’s Merger Integration Framework Develop Strategy Establish Structure and Plan ?Merger/Acquisition options ?Create/articulate/validate — Markets/customers — Competition — Resources — Sources of value ?Understand type of merger ?Establish the integration program ?Build integration capability ?Assess sources of value ?Develop anization strategy design ?Develop IT integration strategy ?Design/harmonize HR policies ?Create master plan and prioritize ?Validate sources of value ?Implement quick hits ?Develop SOV IT enablers ?Implement HR plan ?Monitor progress and risk ?Execute the plan ?Realign the anization ?Implement IT integration plan Merger Manage ment Sources of Value Merger Enablers Change of Control Shareholder Approval MOU Integrated Planning and Initial Rollout FullScale Rollout Day One Phase 0 Phase I Phase II Phase III Multiple Tools Exist for All Cells . Kearney 4/1375C/Merger Integration 1083 19 _Macros 17 This allows merging entities to rapidly capture available sources of value by focusing on operational synergies, as well as seamlessly merging