-1-MUC-0271-90097-01-05StrategicBusinessPlanandSynergyEvaluationforProjectJupiterÐDraftProposalÐFrankfurt,September24th,1997RolandBerger&PartnerGmbHÐInternationalManagementConsultantsBarcelonaÐBeijingÐBerlinÐBrusselsÐBucharestÐBudapestÐBuenosAiresÐDelhiÐDŸsseldorfÐFrankfurtÐHamburgHelsinkiÐHongKongÐKievÐKualaLumpurÐLisbonÐLondonÐMadridÐMilanÐMoscowÐMunichÐNewYorkÐParisPragueÐRigaÐRomeÐS‹oPauloÐShanghaiÐStockholmÐStuttgartÐTokyoÐViennaÐZurich-2-MUC-0271-90097-01-05A.Initialsituationandobjectives3B.Methodology10C.Projectorganizationandschedule27D.IntroductiontoRolandBerger&Partnerandprojectreferences30ContentPage-3-MUC-0271-90097-01-05A.Projectbackgroundandobjectives-4-MUC-0271-90097-01-05TheGermanglassmarketiscurrentlyundertremedouspressurebecauseofovercapacityandchangingdemandstructuresPlasticpackagingbecomingenvironmentallyacceptableConcentratedproducerenvironmentExcessglasscapacityGermany,PriceandcostpressureGlasspackaginglessconvenientGrowingdemandforPET/plasticpackaginginnewalcoholicbeveragesandpharmaceuticalsGrowingoverallmarketforpackaging/bottlesRisingcostsofrawmaterials,personnel,marketingandsales-5-MUC-0271-90097-01-05Inordertoimprovetheircompetitiveposition,Gerresheimer,PLM,NienburgerandHeyneareevaluatingamergeroftheglasscontaineractivities¥Realizeefficiencesintechnology,operationsandmarketing¥Reduceexcesscapacities¥Takeadvantageofsignificantsynergypotential¥Stabilizeindustryprices¥PrivateequityinvestortoprovideadditionalcapitalIncreasethestrategicvalueforshareholders-6-MUC-0271-90097-01-05Firstphasefocusesonfeasibilityandevaluation.RolandBerger&Partnertodevelopstrategy,determinesynergiesandprovidebusinessplanPhaseIcomponentsFeasibilityoftransaction:DMGStandalonevaluation:DMG¥Familiariseourselveswiththebusinesses,theoperations,andthefinancialconditionsoftheJupiterparticipants¥Discussobjectivesofthetransactionwithallparties¥Defineobjectivesandagreeonbasicstrategy,procedureandtimetableoftransaction¥Appointlegalcounselandaccountants¥Analysecartelissuesandgetpreliminaryrulingbyrelevantcartelauthority¥Preparequestionnaireandlistofrequireddocumentsandinformation¥Analysecompanyinformation¥DMGtodevelopcommonvaluationmethod¥Carryoutvaluationexerciseonacomparablebasis¥Discussforecastsandpreliminaryvaluationwithallparties¥Decidejointlyonpreliminaryvaluation¥DMGtodeliveranofficialfairnessopiniontoallpartiesStrategicbusinessplanandsynergyevaluation:RolandBerger&Partner¥Overviewmarketandcompetitiveenvironment¥Defineroughobjectives¥Determinestrategy¥Identifysynergiesanddis-synergies¥Determinevaluecreatedthroughalliances¥Developbusinessandactionplan-7-MUC-0271-90097-01-05Projectwouldaddressfollowingissues¥WhatistheexpectedmarketscenarioinGermany?¥Howwilltheallianceimpactthescenario(price,marketshare,etc.)¥Howwillthealliancebepositionedinthemarket?Expectedcompetitorreaction?¥Whatisthepositionoftheallianceintheindividualmarketsegments?¥Wherearethemainsourcesofsynergiesanddissynergiesofthevaluechain?ÐR&DÐPurchasing,technologyÐProduction/sitelocationÐLogisticsÐProductrationalizationÐAdministrationandorganization¥Whatinvestmentsarenecessarytorealizethesynergies?¥Whatbenefits(value)areexpectedtoaccruetotheshareholderswiththealliancecomparedtothestandalonescenario?-8-MUC-0271-90097-01-05ProjectResults:Astrategyan...