VMG Consulting, LLC David M. Vernon Director Indiana University SCOOP January 24, 2006

1. VMG Consulting, LLC David M. Vernon Director Indiana University SCOOP January 24, 2006 VMG Consulting, LLC O: (312) 836-1155 F: (312) 836-1295 One IBM Plaza 330 N. Wabash Ave. Suite 3400 Chicago, IL 60611

2. David M. Vernon – Director • Earned Bachelor of Arts degree in Economics from Indiana University in 1997 • Led engagements targeting value enhancement in raw materials, manufacturing components, finished products, and corporate/value-added services • Managed sourcing projects for clients facilities in North America, South America, Europe, Asia, and Africa • Focused on international manufacturing and private equity portfolios • Worked previously as a supply chain manager at Gibson & Associates, Alaris Consulting, and Eli Lilly and Company

3. VMG Consulting Background • Over 25 years in operational consulting focused on supply chain execution • Strategic sourcing • Low-cost country sourcing • Logistics optimization • Lean manufacturing • Skill-based training • Over 300 years of combined experience in the partner group • Clientele ranging from $50 Million to $10 Billion + in sales • Prompt results with a long term strategic approach • Implementation-focused – committed until savings are delivered

4. Operational Consulting: Eclectic Client Base $325MM $65MM $87MM Millions $50 $40 Annual Savings $30 $20 $10 $0 Aero-space Mfg. Largest North American Telescopic Handler Mfg. Special Military & Commercial Marine Craft Mfg. Defense & Missile Guidance World leader in mining equip. & services Int’l Mining Chemical Co. Major Int’l Hand Tool Mfg. Int’l Power Tools Mfg. Int’l Electronics Mfg. Co. 27 Division Mfg. Holding Co. Largest Furniture Mfg. Co.

5. Strategic Sourcing • Leverage supplier base • Obtain global market benchmark intelligence • Realize annualized, quantifiable savings • Reduce ongoing hidden operational costs • Streamline processes to improve efficiency • Support the implementation process Increase client productivity by enhancing core assets, improving business processes and building strategic relationships.

6. Steps for Strategic Sourcing Process The Strategic Sourcing approach consists of the following Process Steps… Step 2 Conduct Supplier Research Step 6 Supplier Negotiations Step 5 Profile Analysis and/or Auction Step 8 Final Selection Step 4 Web-Cast / Supplier Communication Step 1 Diagnostic Review Step 3 Develop Supplier Profile Step 7 Supplier Site Visits 6 – 10 Month Timeline

7. Low - Cost Country Sourcing • Provide all-inclusive approach • Develop international procurement strategies • Aid in implementation • Work with local suppliers to eliminate surprises • Identify areas for significant cost savings • Ensure a streamlined and successful process

8. Transportation and Logistics • Analyze current strategies to discover weak points • Realize significant savings in shipping and freight • Differentiate market leaders by streamlining shipping process • Optimize mode and distribution methods • Identify low cost and high quality providers • Gain a competitive edge by partnering with suppliers abroad

9. Training • Executive training • Build critical skills, create sustainable results • Introduce clients to methodology • New hire training • Facilitate immersion training by creating real-world scenarios • Encourage strong, positive relationships among colleagues • Career training • Allow consultants to become qualified instructors • Maintain and improve company-wide skill sets

10. Consultant (Associate) Position • Begin a career in a fast-paced industry • Experience a variety of industries • Earn a very competitive salary • Manage data used in strategic analysis • Generate savings figures and reports • Research potential suppliers • Gain expertise in a given commodity area • Bridge the communication gap between clients and suppliers • Facilitate commodity teams • Work together with top management of client and suppliers

11. Skills and Qualifications • Bachelors in a business discipline • Advanced analytical and quantitative skills • Strong interpersonal and communications skills (verbal and written) • Highly proficient computer skills (knowledge of databases is recommended) • Research and problem solving skills • Team-oriented • Leadership ability or capability • Willingness to travel 80 – 100% of the time • Creativity, imagination, motivation, professionalism, and self-confidence

12. Consulting Lifestyle • Common Obstacles • Travel away from “home base” each week • Act in an unpredictable environment with a fluctuating schedule • Work long hours to complete tasks during peak times • Take ownership of possibly very ambiguous tasks • Significant Advantages • Work in several industries on a wide variety of stimulating tasks • Interact in a young, fast-paced environment • Realize perks associated with the travel schedule • Gain the opportunity to travel internationally and to be exposed to unique business practices

13. Typical Career Path Partner Life Time Manager 5-8 Years In Position Senior 3-4 Years In Position Associate 2-3 Years In Position

14. Indiana University Recruiting Schedule • Spring 2006 Recruiting Schedule (On-Campus) • Roundtables Informational Sessions • January 24th – Finance and Accounting • January 25th – Marketing and Management • January 26th – Operations Management and ODT • Interviews by Invitation Only (Summer 2006 Positions) • Fall 2006 Recruiting Schedule (On-Campus) • Full-time (Aug 2007) & Internship Positions (Jun – Aug 2007) • October 16th – Full-time First Round Interviews • October 17th – Internship First Round Interviews • October 18th and 19th – Second Round Interviews

15. Contact Us Please feel free to contact us if you have any questions regarding career opportunities. We would be happy to hear from you. Mailing Address: One IBM Plaza 330 North Wabash Avenue Suite 3400 Chicago, IL 60611 Phone: General: (312) 836-1155 David Vernon: (312) 821-4519 Email: campusrecruiting@vmgconsulting.com dvernon@vmgconsulting.com