CONFIDENTIAL

1. Opportunity analysis concerning the integration of Finance within Movex Core ModelJune 2008Version 0 Executive summary CONFIDENTIAL

2. Context • LISI Automotive is an industrial division of LISI (the others are LISI Aerospace and LISI Cosmetics) which represents about 50% of the Group revenues • In order to drive its international growth and serve its clients, LISI Automotive decided to go forward for a unique information system • Sales management part of Movex has been implemented in most all the plants of BG France and BG Deutschland (except Knipping plants and M&F). • Especially for BG Deutschland, a former study ended up with the following conclusions : do not remove Movex in KKP and Mecano and continue the implementation of the ERP, despite the existence of XPPS and Portolan in Knipping • For the next step of the project which consists of developing a Core Model and roll-out it, LISI Automotive is questioning about : • The functional perimeter : include financial domains in the Core Model in addition to manufacturing, purchasing and maintenance • The approach : does synergies exist with LISI Aerospace, currently leading a similar Movex project with the last release of the Movex software (M3) ? • This document aims at presenting an analysis and possible evolution scenarios regarding these questions

3. Opportunity regarding current project Manufacturing • It is necessary to implement the Cost Accounting, to display all logistical flows and generate variances with standard • This implementation has to be done including the targeted corporate management rules, structured by BOM and routings, such as : • A unique Cost Price calculation for all the global process (from Sales to GL, via manufacturing) • A unified inventory & WIP valuation method using this Cost Price • A unified performance measurement by Cost Accounting • A unified cost component list to dispatch the industrial and purchase results • Manufacturing generate flows that are the basis for industrial controlling Industrial Controlling • Industrial Controlling is an independent module in Movex enabling calculations based on manufacturing flows • Theoretically, this module can be deployed apart from the Finance module but it is required to have the two modules together given the functional reasons : • For all costs not collected at Production Order Level, variance calculation needs cost allocation based on General Ledger ; Then, Finance Module is required • Accuracy of the Industrial controlling is given when costs are the same as in the accounting e.g. controlling result equals accounting result from the operations • Industrial variances explain difference between forecasted & current results Maintenance • A project has been launched to implement Maintenance processes in Movex ; This implementation is mainly independent from the others modules • No other site has never done such a project in the group ; The business team is not aware of the ERP implementation methodology and is still waiting for a specific solution • Project Key success factors for MRO module definition & deployments are not yet met Finance / GL • Heterogeneous cost allocation rules do not enable today to compare results from plants • Integrating Finance Function within the existing Core Model brings the following opportunities: • To achieve deployment of an Unique Software application, providing the same rules & the same functions shared by the plants • To optimize usage costs • To enable correct industrial performance between the sites • To enable clearer view of each plant’s performance

4. Opportunity regarding Knipping • The Movex Manufacturing Core Model has to be consistent and compliant with the business needs of the German LISI sites and before the deployment of the Core model • Gaps have been identified : no MPS, production forecasted on order book, work & purchase orders placed manually (no automatic MRP) Manufacturing Industrial Controlling • Knipping cost allocation rules are not the same within Knipping as for the rest of the Group : • Some of the costs, such as Quality costs and Direct Plant costs, are not directly allocated to the production (cost per 1000) ; • Stocks valuation is also made according to another rule ; • Depreciation methods are different ; • If Lisi Automotive wants to compare each Plant’s performance, it is necessary to : • Ensure that accounting and cost allocation rules are applied within all the entities of Lisi Automotive • Build a Core Model based on these rules • For change management reasons, it is important to go through a redesign of the controlling rules Maintenance • No gaps ; Same approach for common Maintenance Module at Group level can be followed Finance / GL • Although Portolan is efficient, some functions are missing or are not correctly supported, for example the cash collection and managements of the disputes / debit notes with the customers • Financial data are only shared with the rest of the group at reporting level • Movex deployment is the opportunity to have a clearer view on Finance results • Waiting for an effective Movex deployment, application of Group accounting rules should be made within Portolan Software • Movex functional coverage is not totally satisfactory ; not supported function would have to be supported elsewhere (Movex application does not support efficiently Self Billing process)

5. Opportunity regarding LISI Aerospace Manufacturing • Manufacturing process is slightly different from the LISI Automotive ; then synergy with Aerospace are not relevant • Production is controlled in a Make-To-Order process, rather than in a Make-To-Stock one for Automotive • Inventory valuation is done on a specific way (depending on Sales price) – the “standard costs” valuation method is not suitable and a “dynamic” one is more appropriate • Plant scheduling can operate several operations simultaneously on the same furnace ; • Workload times spent, collected and booked to the actual costs ; Machine times are back flushed ; This is the opposite for Automotive ; • Production Orders are released, raw materials and tools are booked on a 110 days time fence ; • No Master Planning process is needed for Aerospace, but only forecasts to be able to plan materials for the long term ; semi finished are planned on a safety stock basis Industrial Controlling • LISI Aerospace Controlling parameters within Movex software are different from those required for LISI Automotive : • Cost centers are different as well as plant & production organizations ; Cost allocation rules are then different, based on margin analysis instead of Cost per piece analysis ; • For change management reasons, it is important to go through a redesign of the controlling rules for LISI Automotive • But there are some re-requisites : • Ask for use of common controlling rules (cost centers, cost allocation methods, etc.) independently from the deployment of the software application • Have resources from the different entities involved in the design of the industrial controlling, even if deployment within their entity is not planned yet Maintenance • The MRO Aerospace Core Model should also meet Automotive needs for Maintenance • So there is opportunity to launch an Automotive/Aerospace Core Model Finance / GL • Accounting Finance functions are standard functions ; Differences with LISI Automotive requirements should be minor • LISI Aerospace has already deployed GL / Finance Modules ; it includes all General and auxiliary Ledgers • But some functions are not included : Payroll & HR, Fixed assets, Cash Collection, nor Self Billing ; Reports are built under BO as Movex is not sufficiently flexible for this ; • There is then opportunity to apply the Aerospace parameters to fasten deployment of GL / Finance module

6. Finance Module Scenario 1 : Do not Implement Finance Module in addition to the other Movex modules Main Strengths MOVEX Core Model perimeter • No risk to disintegrate Knipping as XPPS/PORTOLAN covers perfectly the functional requirements and is fully integrated • BG Deutschland is financially fully LISI compliant in terms of management rules and Delle has a remote access to the system; Delle keeps the control of the Group and is able to implement new Group financial rules • BG Deutschland would have the same management rules and codification facilitating the commercial reporting within Business Object Finance Logistics Former, Mec. & KKP Knipping KIS KPI, intranet Sales & Distrib Manuf & purch Maintenance P & I Payroll MBB Time tracking Knip-ping XPPS MP2 Electronic Banking System MOVEX MOVEX PORTOLAN adapted Accounting Controlling Assets Self Billing Invoicing KKP EASY OPEN Accounting Controlling Main Weaknesses • The capacity of PORTOLAN to be adapted to the LISI Automotive management rules has to be checked (flexibility of the tool regarding prototyping ?) • BG Deutschland has to cope with several information systems such as today • No big questions to ask for the controlling process – keep or preserve the old controlling rules (ECF = 75% of Value-added) Me-cano MOVEX MOVEX ABEL Assets MAGNITUDE Consolidation BUSINESS OBJECT Commercial reporting

7. Finance Module Scenario 2 : Implement Finance Module in addition to the other Movex modules Main Strengths MOVEX Core Model perimeter • Build a Controlling process which will be consistent over all the global process : from Sales to Finance through Manufacturing • Build a Controlling strategy with : standard and actual costs; industrial variances on all the standard cost components; acquisition of actual machine time spent and actual material consumption to be able to control those variances • Build Controlling (costing) rules for the long term, supported by concrete objectives to be launched, and strictness of financial department • Have both industrial controlling and Finance / accounting fully integrated within the same software application ; • Give results in real time on main analytics accounts : purchase variance, material and tools variance, machine variance by section, inventory and WIP valuation, cost of goods sold Logistics Finance KIS KPI, intranet Local Fixed Assets Application Sales & Distrib Maintenance Manuf & purch Local Legal statements App. Local Payroll Application Knip-ping MP2 XPPS Self Billing Invoicing German entities KKPMecano MOVEX MOVEX Movex Accounting & Finance Main Weaknesses • It is a more difficult project : more internal and external resources, some of them coming from German sites (then project language becomes the English) • Movex does not bring additional functional capabilities, that were expected to fasten cash collection & solve customer litigations, etc. Former… MOVEX MOVEX Electronic Banking System Group Treasury MAGNITUDE Group Consolidation BUSINESS OBJECT Commercial reporting Interface to be performed

8. Finance deployment Scenario 3 : Replace Maintenance by Finance Module Main Strengths MOVEX Core Model perimeter • Due to lack of culture required for the project (best practices for Maintenance, project approach & methods), there was risk for deploying in appropriate Movex Maintenance Module ; • Postponing Maintenance deployment will give the opportunity to discuss, at Lisi Group level, to launch common project for Maintenance ; This project can be the first component of a Movex Competence center Logistics Finance KIS KPI, intranet Local Fixed Assets Application Sales & Distrib Maintenance Manuf & purch Local Legal statements App. Local Payroll Application Knip-ping MP2 XPPS Self Billing Invoicing German entities KKP, Mecano MOVEX MOVEX Movex Accounting & Finance Main Weaknesses • Maintenance is still proceeded manually, it stay apart from the Application ; associated costs are not integrated with other Plant’s costs Former…. MOVEX MOVEX Electronic Banking System Group Treasury MAGNITUDE Group Consolidation BUSINESS OBJECT Commercial reporting Interface to be performed

9. Scenario recommended • The third scenario, which consists of… • Integrating financial domains into the Core Model • But excluding Maintenance from the scope … seems preferable given that : • It will provide LISI Automotive with an Unique system • System will also be unified, employing same Group rules among all sites & entities • Core Model built on Finance by LISI Aerospace can be taken • There is no more risk on maintenance key-users availability and considering LISI Automotive business maturity • It should reduce cost compared to the existing project • In addition, it is strongly recommended to : • Renegotiate the current contract signed (responsibilities and workload) and to add Finance and a topic concerning German specific requirements • To involve in the project team representatives from BG Deutschland • But LISI Automotive will have to cope with : • A more complex project, for its piloting, regarding deployment planning, etc.

10. Key success factorsHave resources form Processes and countries within the Project • Knipping and / or German resources must be involved into the project, even if Movex Deployment date is not stated yet • To integrate differences coming from German authorities (Legal, Tax, etc.) ; • For Change Management purposes : show the local entities that Movex will fit with their local requirements ; • Waiting for the Movex deployment, installation of common set of accounting and analytical rules within German plants should be done ; • From a business point of view, the implementation of a unified Finance module must integrate Knipping resources: • Finance / accounting • Controlling

11. Key success factorsAdjust contract with editor & integrator • Revue of the contract should go through the most critical elements : • Specify functional perimeter included in the current contract (with or without Controlling ?) • What if Lisi wants to complete scope of deployment with Finance / General Accounting • Allocation of the responsibilities between Lisi, the editor & the integrator ; • Clear definition of the targeted functional perimeter, the integration required with other IS, etc. ; • … • Depending on the results of the discussion, cost for additional deployment of the Finance Module will be known

12. Next stepsALCOM Consulting recommendations Planning of IS projects for BG Deutschland 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 Go-Live Adapt PORTOLAN in Knipping with LISI Automotive financial rules Movex N°2 Core Model development including Finance but excluding Maintenance Go-Live Movex N°2 KKP Go-Live Project duration is strongly linked to the project resources involved (plant one after another, or in parallel) Project duration is strongly linked to the IS project resources involved (plant one after another or in parallel) Go-Live Movex N°2 Mecano Movex N°1 & 2 for Knipping plants ?

13. Project organizationMinimum project team • For the Core model • Participation of German business experts as Key Users (for example) : • For the Deployment SPONSOR PROJET Y DREYER Directeur Projet Aide au Changement E FIDON Y VERTEY Responsable Fonctionnel Finance Responsable Contrôle de gestion Responsable Responsable Responsable Technique Responsable Fonctionnel ACHATS Fonctionnel GMAO SI Fonctionnel GPAO S BISARO H CALLERAND ( 10%) S HANIFA A ZINCK 1 FTE 1 FTE 1 FTE 1 FTE 1 FTE 1 FTE Key- Users Former Former Rapid MIS BG Deutschland BG Deutschland 1 FTE 1 FTE 1 FTE Former Rapid BG Deutschland

14. Costs details Scenario 2 • If we compare with scenario 1 (costs given by the IBM/Lawson contract), for the scenario 2, the additional costs have been valuated so : • Lawson consulting : 250 days ; • Other resources : prorata valuated from Lawson consulting workload ; • IBM contract – Fixed price : prorata valuated from Lawson consulting workload ; • Internal resources : including 3 key users x60% during 6 month (plus assistance) ; • Minus : saving earned from using Aerospace Finance modules ;

15. Costs details Scenario 3 • For scenario 3, the costs estimated for the Core Model are presented below : • Finance : same valuation as scenario 2 • Maintenance : No more costs