B2B Plays in the CIP/T Industry

1. B2B Plays in the CIP/T Industry

2. Pohang Iron & Steel†* Birmingham Steel AK Steel Holding Reynolds Metal† Nippon Steel†* Ryerson-Tull† National Steel British Steel* Worthington† Kobe Steel†* Dofasco* US Steel† Bethlehem Usinor†* IPSCO* LTV Steel† Arbed†* ISPAT* Weirton Nucor† Alcoa SDI E-Steel Launched on 9/7/99. Provides a neutral and secure market - place for the exchange of steel (prime & non-prime) for buyers and sellers. P E E E MetalSite Launched on 8/18/98. Started out selling off-grade products. Now offer both prime and non- prime steel. Offers auctioning capabilities as well as buyer and seller led exchanges. E E E E E P Commerce One Leading provider of global b2b procurement solution, recently signed with ISPAT to create and operate the first e-commerce trading community for the whole metals industry. E iSteelAsia MaterialNet VerticalNet MetalShopper MAREX Niche players in the online steel/metals trading market competing for a share of the $700 billion industry. *: Non-US Global 500 Corporations †: PwC Global 1000 Client E: Equity Investor P: Participant Metals

3. Metals • Opportunities • Market size -- $700 Billion • Highly fragmented industry. • Many different types of steel; hot-rolled, cold-rolled, plates, bars, tubular, strips,rods, stainless, primary, secondary • Many niche online exchanges appearing. • Metalsite starts ScrapSite.net • Opportunities for consolidation among the smaller exchanges. • Many of the large players in the industry are uncommitted, including Alcoa, Reynolds Metal, Nucor, and most of the large foreign metal producers. • Barriers • Two front runners have emerged; MetalSite and E-Steel. They are quickly aligning with major producers in the industry.

4. Aerospace BF Goodrich Aerospace Cordant Technologies Chautauqua Airlines* Northrop Grumman† General Dynamics† United Technologies Continental Airlines British Aerospace* Express Airlines* Lockheed Martin† Pratt & Whitney Alitalia Airlines* Federal Express Allied Signal* Delta Airlines Raytheon Honeywell Textron† Sequa Boeing† UPS GE Aims to connect a mass number of suppliers and buyers in the industry, allowing them to buy and sell parts and conduct business over the Internet. Commerce One E E E E An electronic marketplace for aerospace products and services in a trade that encompasses about 25,000 buyers and sellers. PwC led effort. MyAircraft.com (uses i2) E E Recently launched a new online exchange that will allow major airlines to buy and sell parts over the Internet. GE customers only. GE Online Exchange E P P P Includes online ordering, real- time transactions on new and used aviation parts, and Web- auctions in the $187 billion aerospace and parts industry. Partsbase.com (uses ARIBA) P P P P P P Other aerospace parts and services portals. TradeAir.com P P AviationX P *: Non-US Global 500 Corporations †: PwC Global 1000 Client E: Equity Investor P: Participant

5. Aerospace • Opportunities • The aerospace and defense industry is currently a $500 billion industry. • Goldman Sachs reported last year that the aerospace industry had “the lowest levels of e-commerce penetration” currently. • Industry is expected by 2004 to conduct 35% of its B2B sales on the internet. • No dominant player has emerged in the market. PwC is leading an effort with MyAircraft.com. The exchange plans to encompass about 25,000 buyers and sellers. • Many of the large players are uncommitted. Efforts should be undertaken to bring aboard companies like Textron, Northrop, BF Goodrich, Allied Signal, Pratt & Whitney, etc. • Barriers • Commerce one has locked in Boeing, Lockheed Martin, and Raytheon. • GE is going after the after sales markets of airplane parts with the major airlines.

6. Forest & Paper Champion International† Smurfit-Stone Container Svenska Cellulosa†* Consolidated Papers Willamette Industries International Paper† Sonoco Products Boise Cascade† UPM-Kymmene†* Louisiana-Pacific Georgia-Pacific† Kimberley-Clark Weyerhaeuser† Temple-Inland Fort James Oji Paper†* Stora Enso†* Westvaco Bowater Mead† The 3 equity investors will jointly develop a global, b2b Web market for paper and forest products. PwC recently was chosen as the preferred SI provider plus ?. IP, GP, and WY joint venture. E E E Electronic trading system for trading lumber, plywood, and other forest products. Fpix.com (~36 members) Internet lumber exchange for buyers/sellers. Backed by Internet Capital Group. Talpx.com (~40 mills & lumberyards) Online marketplace for public and private auction of all categories of commercial printing papers. Paperdeals.com P P P P P P P European based Global e-marketplace for pulp and paper products. Accesspaper.com (Launch on 4/2000) Informational site on the pulp and paper industry. Includes news, statistics, and prices on options/futures trading. Pulpex.com Will provide the solid wood industry a single source for industry news, analysis, commerce and advanced informational services. Woodconnect.com *: Non-US Global 500 Corporations †: PwC Global 1000 Client E: Equity Investor P: Participant

7. Forest and Paper • Opportunities • The paper and forest product industry is currently a $200 billion industry. • Major announcement on 3/24/200; International Paper, Georgia-Pacific, and Weyerhauser to form a global B2B Web market for forest and paper sector. PwC was recently chosen to be the preferred SI provider. • Almost all the handful of existing exchanges are venture capital backed. There may be opportunities for consolidation. • Besides the 3 players mentioned above, almost all other players in the market are uncommitted. Many players are participants in existing exchanges but do not have any equity stakes. • Barriers • The “herd mentality” factor in the paper industry may attract many players to the portal created by IP, GP, and W.

8. Technology Lucent Technologies† Sun Microsystems† Applied Material† Texas Instrument† Eastman Kodak Seagate† Motorola Compaq 3Com† Gateway Apple† Xerox NCR† EMC† Intel Cisco Dell IBM HP 3M Vertical, online marketplace designed for buyers/sellers/ designers/service providers in the high-tech industry. It offers online collaboration, dynamic trading, e-procurement, spot buying, selling, order fulfillment, logistics services, etc. Hightechmatrix.com (uses i2’s Tradematrix.com, PwC led effort) E E P E A spin off of Trilogy Dev. Group. It streamlines sales of computer goods over the Web by providing technology, product info and community of business partners. PcOrder.com E E E 3Re.com Partnered with major OEM to allow customers to configure different manufacturer’s components into a single sale item. P P P *: Non-US Global 500 Corporations †: PwC Global 1000 Client E: Equity Investor P: Participant

9. Technology • Opportunities • The technology industry is very fragmented; Computer, Semiconductors, Office Equipment, Network Communications, Scientific/Photo/Control Equipment, Electronics, Electrical Equipment, etc. • Existing players are niche players that are focusing around the PC market and the PC parts market. • PwC led Hightechmatrix.com must align with many existing players that do not have committed portal strategies.

10. Archer Daniels Midland Johnson & Johnson Farmland Industries† Proctor & Gamble Hershey Foods† Colgate Palmolive† Anheuser-Busch† Ralston Purina† General Mills† Tyson Foods† Quaker Oats† Coca-Cola† Philip Morris RJ Reynolds Sara Lee† Campbell† ConAgra† Pillsbury Unilever Bestfoods† Hormel† Borden† Clorox† PepsiCo HJ Heinz Kellogg Nabisco† Dole Nike IBP† eCPG.net E E E E E E E E E E E E E E E E E E *: Non-US Global 500 Corporations †: PwC Global 1000 Client E: Equity Investor P: Participant CPG

11. CPG • Opportunities • The Consumer Products Goods is currently a $460 Billion industry. • The industry spends over $200 billion on goods and services to support operations. • PwC is leading the efforts to develop eCPG.net. The initiative will bring multiple buyers and sellers into a virtual marketplace to support catalog purchasing, bidding and price quotes, on-line sourcing and auctions for raw materials, packaging supplies, and other goods and services critical to their operations. • eCPG.net must continue to align with remaining players in the industry. • Barriers • Currently, eCPG.net is the only exchange of its kind in the CPG industry.

12. Chemicals Sherwin Chem. Rohm & Haas† BP Amoco** † Air Products† Union Carbide† Imperial Chem.* † Hoechst* † Monsanto Engelhard† Chevron** † Texaco** † Du Pont† BASF* † Bayer* † Praxair† FMC † PPG† Dow† Trading exchange for chemicals and plastics. Offers real-time auction as well as aggregation (catalog) services. Strategic partners: AC, Enron, Chemical Week Financial: GS, MSDW, Highland Capital, IVP E E E E E E E ChemConnect Trading exchange for bulk and commodity chemicals. Aggregation services also offered. Strategic partners: CSC, Stolt Nielsen, Sprout CheMatch P P E P P P E P P Trading exchange for life sciences chemicals/products markets. Offers some e-procurement and back-end integration functionality. PwC leading SI in EMEA. P P Chemdex Marketplace-cum-procurement solution for bulk and commodity chemicals. Aggregation as well as some network services (credit check, logisitcs). Currently no auction/dynamic trading functionality. PwC preffred SI. Parters: ICG (Equity), Apsentech e-Chemicals E Marketplace (exchange and integrator) for chemical and petrochem industry. PwC is preferred integrator. Envera *: Non-US Global 500 Corporations **: Petrochemical Corporations †: PwC Global 1000 Client E: Equity Investor P: Participant

13. Chemicals Sherwin Chem. Rohm & Haas† BP Amoco** † Union Carbide† Air Products† Imperial Chem.* † Hoechst* † Monsanto Engelhard† Chevron** † Texaco** † Du Pont† BASF* † Bayer* † Praxair† FMC † PPG† Dow† Buyer-focused internet hub that aggregates buyers/buyer orders into groups (using CAPS -- a centralized purchasing database) to gain leverage with suppliers. Buyers tend to be small to mid-size companies. fobchemicals Trading exchange for bulk and commodity chemicals. Aggregation services also offered. Strategic partners: CSC, Stolt Nielsen, Sprout Sciquest B2B hub JV between Du Pont and Internet Capital Group. Capspan E The leading chemical distributor in the US. B2B play is primarily as an aggregator (multi-catalog vendor) but also provides value-added services such as third party logistics and warehousing. No exchange or auction capability. Van, Waters and Rogers Supply chain integrator for chemicals, plastics and derivative buyers and sellers through the Global Transaction Management System platform. Seems to have a global presence and is backed by several small-to-mid size global companies. Onechem E: Equity Investor P: Participant *: Non-US Global 500 Corporations **: Petrochemical Corporations †: PwC Global 1000 Client

14. Chemicals • Opportunities • Large market size -- $1.5 Trillion US market • High degree of industry fragementation with several buyer-supplier interfaces along value chain (primary chemicals, intermediate chemicals etc.) • Products are generally standardized (and therefore more “liquid”) • Reducing cost of purchased goods is a key imperative for success in the industry -- high COGS/Sales ratio • PwC involved in many exchanges • Consolidation will occur • We should help choose the winner. When? • Potential Barriers • Several major players (Dow, Du Pont etc.) are already charter members or anchors in one or more exchanges

15. Building / Construction Morrison Knudsen WebCor Builers Owens Corning† Martin Marietta † Emcor Group Lenar Group Foster Wheeler Bouyques* MASCO † Halliburton Kaufman Vivendi* Bechtel Centex Pulte Fluor GE Deep vertical that provides content and information aggregation. No procurement, auction or network capabilities. Sponsor: McGraw-Hill Construction. Construction.com Cephren (formerly ebricks.com and blueline online) “Internet-based project collaboration site”. Integrated collaboration and e-commerce services (bid auction, procurement, communication coordination). Financial backers: Goldman Sachs, GE Equity Invstms, GruppoPick Packing E P P Plans to offer integrated procurement (ERP-to-ERP connectivity) with the lauch of BuildNet-Enabled solutions. Integration of inventory, procurement, product pricing, financial systems. Technology Partners: EDS, Emerald Solutions Buildnet P Verticals that provide primarily content and some aggregation services. Buildscape.com, Bidcom, Hsupply E: Equity Investor P: Participant *: Non-US Global 500 Corporations **: Petrochemical Corporations †: PwC Global 1000 Client

16. Building / Construction • Opportunities • Large market size -- $3.5 Trillion global market • High degree of fragementation lends itself to aggregation/network benefits of b2b exchanges • “ Wide open territory” • Current players are primarily content providers (with a few exceptions such as Cephron). There seems to be scope for true value-added networks (integrated procurement and fulfillment solutions). • Little penetration by other b2b integrators/enablers (Andersen, IBM, Commerce One etc.) • Name a leader….. • Potential Barriers • Products are not as standardized as in some other industries (e.g. chemicals) • May be hard to build a critical mass of anchors

17. Automotive Johnson Controls † Daimler Chrysler *† Honda Motor* † PSA Peugot* † Robert Bosch AB Volvo* † Mitsubishi Renault Toyota* † BMW* † Nissan* Dana † TRW Mazda Ford † VW * † Fiat* † GM† Joint venture by GM, Ford and Chrysler. Expected to handle $240 Billion in annual transactions once operational. PwC: Preferred SI for GM Auto Exchange E E E Autovia (formerly RapidAutoNet) Multi-catalog aggregator portal for auto repair industry. Provides auto repair shops simulatenous access to spare parts suppliers catalogs. Financial investors: ICG, Crosspoint Partners: Advanced Dealer Services, Signal Software E: Equity Investor P: Participant *: Non-US Global 500 Corporations †: PwC Global 1000 Client

18. Automotive • Opportunities • Market size -- $250 Billion US; $500 Billion global • Although consolidation has reduced the number of OEM players, the OEM supplier base is still very fragmented • OEM segment “sewn up” with GM/Ford/Daimler exchange? Or will rival OEMs prefer their own co-led exchanges (e.g. Honda/Toyota) ? • The aftermarket / spare parts segment is even more fragmented and offers better entry opportunities

19. Pharmaceutical / Healthcare Smith Kline Beecham* † American Home Prod. † Pharmacia Upjohn † Glaxo Wellcome* † Warner Lambert † Schering Plough AstraZeneca* † Roche Holding Abbott Labs † Novartis* † Amgen † Eli Lilly † Pfizer † BMS † Merck J&J† Marketplace for medical products and supplies. Aims to be a supply chain integrator Alliances: healtheon, drugstore.com, E&Y, Owen Healthcare. Medibuy Marketplace for medical products and supplies. Aims to be a supply chain integrator Alliances: healtheon, drugstore.com, E&Y, Owen Healthcare. Neoforma ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Pre-announcement stage PwC-led deal E: Equity Investor P: Participant *: Non-US Global 500 Corporations †: PwC Global 1000 Client

20. Pharmaceutical / Healthcare • Opportunities • Market size: $280 Billion US • “Wide open” territory for the present • PwC has initated dialog with and between major industry players. Wait and see…..

21. Retail Pharmacia Upjohn Marks & Spencer* Dayton Hudson* Groupe Pinault*† Federated Dept† Sears Roebuck† Nordstrom JC Penney† May Dept†. Kohl’s Isetan*† Walmart† Saks† Daiei* Dillard KMart Target I2 Tradematrix’s dynamic marketplace offering in the retail space. Catalog services, Intelligent demand forecasting and SC collaboration. Alliances: IBM, Deloitte Consulting (preferred SI). i2 Tradematrix Retail Services Provides e-commerce applications and B2B marketplace for retail industry. Alliances: Donna Karam, Leslie Fay Company, Dillard Department Stores Tradewave E Marketplace powered by Retek, an e-commerce solutions providers for retailers, distributors and suppliers. Offers solutions for retail planning, procurement, selling etc. Participants include HomeBase, ShopKo, Hudson’s Bay, Selfridge’s Retail.com P Worldwide Retail Exchange Exchange due to be formed by Walgreen, CVS, Target and others. !00,000 suppliers E Exchange formed by Sears, Carrefour, Kroger, Metro AG, Sainsbury’s. PwC has won the exchange creation work. “Sears” Exchange E E: Equity Investor P: Participant *: Non-US Global 500 Corporations †: PwC Global 1000 Client

22. Retail • Opportunities • Several major unaligned players (Walmart, Kmart, Saks etc.) -- Should PwC work to move these players to the Sears exchange (for which we are the preferred vendor)? Or build a new exchange?