【正文】 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 the anizations Merge the Organizations as Seamlessly as Possible ? Develop and municate a shared strategic agenda ? Define — Organization structures/leadership — Key business processes — Technology platform/architecture — Change integration requirements ? Drive top line growth — New value propositions/products — Cross selling/sales pull through — Ensure customer focus/retention ?Integrate daytoday operations ?Ensure sustainable change ?Position for growth ? Achieve $ XX million (annual rate) of synergy savings within 12–18 months — Sales — Operations — Procurement — Corporate overlap and duplication — Cost of distribution — Technology/Ramp。s global PMI survey 39。 Related Services Construction Textiles Aerospace Industry Specific Ranges of Value Creation(1) . Kearney 4/1375C/Merger Integration 1083 19 _Macros 12 Once the deal is closed, the principal problems relate almost entirely to failures in merger management, rather than to the underlying strategic rationale Problems Identified in Merger Integration 21%26%26%32%37%37%47%47%58%Undermunication Financial/synergy Expectations Unrealistic/Unclear New Org. Structure With Too Many Compromises “ Master Plan‖ Missing Missing Momentum Missing Top Management Commitment Unclear Strategic Concept Missing Pace of Project IT Issues Addressed Too Late Source: . Kearney’s Global Merger Integration Survey 1998 Percent of Respondents . Kearney 4/1375C/Merger Integration 1083 19 _Macros 13 To manage inherent risks, ―critical success factors‖ can be distilled from successful largescale mergers to guide value creation Critical Success Factors from LargeScale Mergers Source: . Kearney Merger Integration ? Create a sense of urgency and reduce uncertainty through clear event milestones, and move quickly ? Select toplevel leadership quickly and fairly。 Health Care Utilities Automotive Printing and Publishing Electronics Financial Beverages Metal Products Manufacture Food Tobacco Machinery amp。 total shareholder returns defined as the tangible returns investors receive through dividends and stock price appreciations Sources: Datastream。 IPO ? Define the scope of bined entity ? Confirm each country’s scope of activity for mobiles ? Design strategy leveraging on broader global presence ? Define financial and operational targets as well as timing of expected benefits ? Prepare the IPO Organisation ? Choose the best anisational model at the European management level ? Identify the central/local functions evolution schedule ? Define anisational charts and management nomination ? Define key decision processes (mittees, procedures, …) Infrastructure ? Reduce total cost of external purchases through best price evaluation volume concentration, petitive bidding ? Share best practices ? … Support functions ? Rationalise shared supports ( ? Align and select Information Systems for the integration ? Align processes and share best practices Communication ? Define external munication strategy ? Define internal munication strategy ? Select munication rules and procedures ? Choose media (intra, documents, speeches…) Integration mgnt ? Integrate overall planning and milestones ? Detail planning by topic and country… ? Manage transition phase ? Track and execute financial synergies ? Manage risks . Kearney 4/1375C/Merger Integration 1083 19 _Macros 10 … explaining why only few mergers and acquisitions succeed fully Note: (1) Shareholder returns from buyer divided by shareholder returns (industry average) after the merger Sources : . Kearney analysis, Global PMI Survey, 1998 。March 2022 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 2022 Revenue Growth Value Growth Under performers Profit Seekers Simple Growers Value Growers Growth Matrix (CAGR 19882022) 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