VM Value Management - Short Company presentation, Consulting, Conferences, Credentials!

1. 1111VM Introduction January 2015
World-Class Operational Excellence / Performance Management &
Mergers & Acquisitions
VM Overview * Service Offering * Team * References
Frankfurt, January 2015
VM Value Management GmbH * An der Welle 4 * 60322 Frankfurt, Germany
Tel. +49 (0) 69 7593 8493 * info@vmvalue.de * www.vmvalue.de

2. 2222VM Introduction January 2015
OVERVIEW VM
SELECTED REFERENCESB
A
AGENDA

3. 3333VM Introduction January 2015
OVERVIEW VMA
We advise on and implement strategy / M&A as well as operations /
performance management programs in different industries
Overview – VM
Advisory and Implementation Firm
Specialized consulting and investment advisory firm focused
on the areas of strategy / mergers and acquisitions
support (market study, buy-side, sell-side, post-merger
integration) and performance management (enhancing
sales, cost reduction programs, asset management,
sustainable productivity improvement e.g. Six Sigma, Lean.
Continuous Improvement Process)
Our Services
• TOP Management consulting / implementation
• Interim management
• M&A Advisory
• Team network of international experts
• Management education and university activities
• Management-Events - Value Management FOruM
• Social Commitment – advisory board of IB School
Our Clients
Our German and international clients (e.g. Turkey, Ukraine,
Netherlands, Switzerland, Italy, France, UK,, US, South
Korea, India) are medium and large industrial companies in
chemicals, industrial services, steel, metals, engineering,
automotive, and private equity firms
Selected References
• Chemicals (Lanxess, BASF, Degussa, OMV, Celanese, etc.)
• Industry (chemicals) Services (ThyssenKrupp Services,
Infraserve, etc.)
• Steel / Metals (ThyssenKrupp, Tata, Hisar, etc.)
• Engineering (Siemens, SGB-SMIT, ZTR, ISMET, Hyundai,
ThyssenKrupp Plant Engineering)
• Automotive (Mahle, Nemak, etc.)
• Private Equity (Quadriga Capital, BC Partners, etc.)

4. 4444VM Introduction January 2015
OVERVIEW VMA
Many successful companies use state-of-the-art Performance
Management and grow organically and by Mergers & Acquisitions
10 Key VM Service area - Performance Management and Mergers & Acquisitions
Performance Management
Supply Chain
Management
Product- and
Market Strategy
Revenue
Enhancement
Process
Excellence
Organizational
Effectiveness
Mergers & Acquisitions Support
Post-Merger
Integration
Pre-Deal
Advisory
Commercial
Due Diligence
Financial
Due Diligence
Operational Due
Diligence

5. 5555VM Introduction January 2015
OVERVIEW VMA
The highest potential for optimization can be found in processes and
leadership in five different areas of work
Performance Management – 5 Key Areas
2. Revenue Enhancement
3. Organizational Effectiven.
4. Process Excellence
5. Supply Chain Management
1. Product / Market Strategy
 Focusing on growth and growth strategy
 Increase efficiency of sales organization and CRM
 Multi-project management, network competence improvement
 Restructuring of the organization, direct / indirect areas
 Operational and organizational optimization
 Management Operating System & Performance Management
 Reduction of the costs of production, warranties and ex gratia payments
 Total costs of quality / Robust design (Time to quality) / Six Sigma
 Value Chain Excellence
 Suppliers: Selection, Evaluation, Development, Controlling
 Total costs of ownership, Supply Chain Management
 Cost (in- / outbound) and controlling of logistics, Inventory Management
 Identification of the most innovative and sophisticated products
 Optimizing development cycles
 Embodiment of Product-Lifecycle with PLM

6. 6666VM Introduction January 2015
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Kum. Kosten Kum. Ergebins Cash Flow Status
State-of-the-art Performance Management leads to significant profit
and cash flow improvement through operational excellence
OVERVIEW VMA
Example - Benefits Case of an operational excellence project (Projektergebnis/Cash flow)
• The total consulting cost are typically covered by profit improvements by the end of a project.
• Year one after a project shows typically at least 3 times more profit than the one-off consulting cost.
• i.e. Return on Investment on consulting (ROiC). 3 to 1 in year one
Month

7. 7777VM Introduction January 2015
OVERVIEW VM
Typical Performance Improvement Phases
Typically a 2-4 weeks analysis already reveals operational and
financial benefits improvement potential
A
 Quantification and qualification of
potential improvements (operational +
financial)
 Definition of common and shared targets,
involvement in support of all parties
 Definition of an agreement on approach,
project team and structure, milestones
 Cost-benefit analysis + guaranty:
business case, cash flow- / ROIC1-
analysis, implementation costs
 Design and development of solutions to be installed
 Realization of potential
 Monitor KPI’s and financial benefits
 Sustaining best practices and tools
 Training and coaching of employees, "On the Job“
 Intensive support during the implementation on all levels
 Assurance of results
 Background,
strategic targets,
operational issues
and challenges
 First Hypothesis –
identification of
main focus areas
 First draft potential
benefit case
Design Development Installation
Analysis phase
Scoping
2-4 weeks 3-6 months
Analysis Project Plan
Implementation phase
1) ROI = Return on Investment for Consulting

8. 8888VM Introduction January 2015
OVERVIEW VMA
Successful M&A support needs the following five areas of analysis, e.g. in
operations / commercials / finance
Merger & Acquisitions – 5 Key Areas
2. Commercial Due Diligence
Synergy Assessment
3. Operational Due Diligence
Synergy Assessment
4. Financial Due Diligence
5. Post-Merger Integration
1. Pre-Deal Advisory
 Commercial Analysis
 Market Analysis
 New Markets / Platforms
 Operational Analysis
 100-Day Plan
 Value-Gap Performance Implementation
 100-Day Cash Flow Generation
 Strategy Plan
 Market Analysis
 Operational Due Diligence
 Commercial Due Diligence
 Financial Due Diligence
 Strategy Plan
 Integration and Synergy Estimates
 100-Day Plan

9. 9999VM Introduction January 2015
OVERVIEW VM
Typical M&A Pre-deal advisory and Commercial Due Diligence scope
Source: VM
Commercial due diligence proposed by VM – A proven approach to
assess opportunities and risks in a “red flag report”
A
Phases Modules
CDD plan
Findings
Feasibility
workshop &
Commercial
Due Diligence
I
II
III
Presentation of Findings
Pre-deal advisory: Feasibility workshop
a. Review Erdemir´s strategy for Europe
b. Summarize and profile the respective acquisition target
i. Preliminary SWOT-analysis (strengths, weaknesses, opportunities, strengths
ii. Preliminary high level evaluation of customers, suppliers, competitors, production and sales footprint
iii. Preliminary evaluation of financial information incl. potential purchase price expectation
c. Summarize potential strategic, operational and financial synergies with Erdemir
TOP line risk/opportunity
A
Commercial Due diligence
a. Market review
i. Validation of market information provided by target
ii. Market size and drivers and growth
iii. Barriers to Entry
iv. Clients
v. Suppliers
vi. Competitors
b. Business plan validation
i. Assumptions on sales
ii. Assumptions on operations/capex
iii. Site visit and interviews with target
c. VM approach includes public research/ interviews (competitors, clients, suppliers
B
EBITDA risk/opportunity
Targets
• Background, targets & issues
• Define and align on detailed DD plan
• Estimated potential benefits/risks
• Steering Committee
• Information gathering including operational and
financial reports

10. 10101010VM Introduction January 2015
Additional benefit for VM-Business Partners – the VM FOruM is THE
format for exchanging ideas in business, politics and society
OVERVIEW VMA
Value Management FOruM – 2013/14
Renowned speakers, e.g.
• Rudolf Scharping, former Federal Minister Germany
• Ernst Welteke, former President German Central Bank /
Bundesbank
• Dr. Judith Hartmann, CFO, Bertelsmann
• Dr. Henrik Adam, CCO, Tata Steel
• Dirk Wallesch, CFO, Deutsche Edelstahlwerke
• Dr. Samuel Ying, CEO, Posco Europe
• Jochen Fischer, CFO, SGB-SMIT Transformers
• Florian Rentsch, Minister for Commerce Hesse
Hot topics
Networking
Inspiration

11. 11111111VM Introduction January 2015
Speeches on current economic subjects serve as the basis for the debate
between leaders from different industries
OVERVIEW VM
Value Management FOruM – 2011/13
Renowned speaker, e.g.
• Professor Dr. Dres. h.c. Bertram
Schefold, Goethe-University Frankfurt
• Hans Strothoff, CEO MHK Group and
Strothoff International School
• Prof. Dr. Burkhard Schliessmann,
International piano artist
Successful format
Supported by FOM University
Twice a year
Royal ambience
A

12. 12121212VM Introduction January 2015
VM organizes and moderates further top management events and
conferences – e.g. at the biggest financial conference in Frankfurt
OVERVIEW VM
VM Panels – Private Equity &„Mittelstand“, 17. Euro Finance Week 2014
Renowned speakers, e.g.
• BCHans Haderera, BC Partners
• Uwe Kolb, Bridgepoint
• Dr. Andreas Fendel, Quadriga
• Mr. Klös-Hein, EEW Group
• Dr. Mark Währisch, Standard & Poors
• Mr. Wittershagen, Deutsche Bank
Successful format
TOP Management attendance
Once a year
800 participants
A
“ Im Rahmen des Frankfurt International Investors Day (FIID) am 21.
November 2014 im Congress Center der Messe Frankfurt hat VM zwei der
zahlreichen Foren entwickelt. Sie werden von Prof Dr. Jochen Vogel
moderiert. Nutzen Sie die Gelegenheit, in Diskussionen zu Themen wie
»Private Equity« und »Operational Excellence« mehr über Chancen, Risiken
und Trends für das kommende Investmentjahr 2015 zu erfahren. Wir werden
u.a. mit BC Partners, Bridgepoint, Quadriga, Standard & Poors, Deutsche
Bank und Mittelständlern diskutieren. “

13. 13131313VM Introduction January 2015
OVERVIEW VM
Our consultants are a sound mix of experienced executives from
operations, strategy and M&A as well as industrial CEO´s / former clients
A
VM Core Team
K. GrywatzC. Hurth S. Henkel F. Balereau
J. Vogel O. J. Staudacher
S. Kangas
C. Hurth S. Henkel
Core Team
Performance Management
Project Support
Managing Director
G. von Leoprechting G. Flierl
F. Krone
Core Team
Mergers & Acquisitions Industrial Advisors
S. Akkaya
H. Smetan
N. Ölcer
M. Bisschop
F. BalereauJ. Kraus
A. Hund
P. Schulz S. Sagnak A. Kucher

14. 14141414VM Introduction January 2015
OVERVIEW VM
Prof. Dr. Jochen Vogel
Managing Director
A
Professional Experience and Education
Key Skills: Tools and Industries
Key Projects
– Consultant, industrial manager and university professor with background in manufacturing, services and private equity industries
– Founder and Managing Director of the interim management and consulting company VM Value Management GmbH, provides senior
teams , tools, coaching and results
– Analysis and implementation of programs for sustainable profit improvement
– Concept and implementation of corporate takeovers / mergers, including capital raising
– Several Advisory Board memberships, Strothoff International School, Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft
2009 VM Value Management, Managing Director/ Performance Management /
M&A, Senior Advisor Roland Berger Strategy Consultants
2004 Proudfoot / Celerant Consulting, Managing Director, Head of D/A/CH,
Performance Management
2000 Lehman Brothers, Director Investmentbanking, M&A, Corporate Finance
1997 ThyssenKrupp Materials & Services, Director Controlling/Strategy/M&A
1993 PWC (Coopers & Lybrand), Audit/Corporate Finance
2011 Prof., FOM Hochschule – Academy of Management, Frankfurt
1997 Dr. rer. soc. oec, University of Economics, Wien
1993 Diplom-Kaufmann, Gerhard-Mercator University Duisburg
– Several years of productivity improvement, market analysis, sales enhancement
and M&A in industrial products and services incl. energy (RWE, E.ON, INA, BP),
steel (ThyssenKrupp, Posco, Tata, Hisar Celik), engineering (ThyssenKrupp,
Siemens, ZTR- Zaporozhtransformator, Hyundai, SGB-SMIT, Ismet, Berco, Titan)
– Restructuring and sustainable profit improvement by cost and sales effects in
industrial private equity companies, e.g. Mäurer & Wirtz, Klöckner, Pentaplast
– Restructuring and sustainable profit improvement for subsidiaries of large groups,
e.g. ThyssenKrupp, Bayer, Evonik Degussa, Posco
– Search and analysis of M&A (e.g. Gizem frit, Hisar Celik) opportunities by pre-
merger market analysis and commercial, operational and financial due diligence
– Operational and strategic concept and implementation of accounting and controlling
standards (Value Based) in an international diversified industrial group

15. 15151515VM Introduction January 2015
OVERVIEW VM
SELECTED REFERENCESB
A
AGENDA

16. 16161616VM Introduction January 2015
Selected References
Our recipe of success is already implemented in many companies
Industrial Services Engineering
Private EquityOil/ Chemicals Automotive
ThyssenKrupp
Automotive
ThyssenKrupp
Technologies
ThyssenKrupp
Materials & Services
einschl. ThyssenKrupp
Industrieservice
Steel / Metals
SELECTED REFERENCESB

17. 17171717VM Introduction January 2015
SELECTED REFERENCES
VM FOruM Speakers - Organizations and Companies
VM FOruM speakers are TOP Managers from large and mid-cap companies
– as well as sometimes musicians, priests or scientists
B

18. 18181818VM Introduction January 2015
Selected References – Chemicals
Chemical companies need to maintain high margins due to high
pressure e.g. through consolidation and oil price volatility
B
Clients
Project examples
• Re-structuring of the foreign subsidiaries to secure position
• Planning and implementation of a program for reducing the
maintenance costs
• Market analysis and development of growth opportunities
• Strategic, operative and financial analysis of potential M&A
targets
• M&A Buy-Side-Support / Commercial Due Diligence
SELECTED REFERENCES

19. 19191919VM Introduction January 2015
SELECTED REFERENCES
Selected References – Industrial Services
Industrial Service Providers need to find their market niche and prepare
for further consolidation
B
Clients
Project examples
• Design and implementation of a value-based management-
system including financial, operative and strategic KPI‘s
• Introduction of a cost calculation model on the retail-level
• Reduction of fixed costs of a regional organization
• M&A analysis for subsidiaries
• M&A investors looking for subsidiaries
• M&A Buy-Side-Support
ThyssenKrupp
Materials & Services

20. 20202020VM Introduction January 2015
Companies spezialised in engineering can usually be improved in the
fields of indirect costs, production and value chain
B
Clients
Project examples
• Optimization of the European Overhead-Structure
• Increase in efficiency in production-and supply chain, e.g.
increase in performance by 10% within 6 months at the same
fixed costs
• M&A Sell-Side-Support
• Strategic M&A analysis of selected targets
• Improvement in quality of the demand process of the cost-
and time-budget
ThyssenKrupp Technologies
SELECTED REFERENCES
Selected References – Engineering

21. 21212121VM Introduction January 2015
Selected References - Automotive
Efficient automotive suppliers need to catch the “high hanging fruits“
B
Clients
Project examples
• Introduction of Lean Management
• Optimization of production, including Six Sigma training
• Supply chain optimization integrating purchasing, production
and distribution
• M&A Buy-Side incl. legal Pre-Merger-Analyse
• M&A Buy-Side Commercial Due Diligence
SELECTED REFERENCES

22. 22222222VM Introduction January 2015
Selected References – Private Equity
Investors are being supported while buying or selling companies as
well as preparing for exit
B
Clients
Project examples
• Performance-improvement programs for investors
• Development of growth strategies
• First contact support with the targeted companies
• M&A Buy-Side-support for strategy, operations and finance
• M&A Buy-Side Commercial Due Diligence
• Support in finding the right companies
SELECTED REFERENCES

23. 23232323VM Introduction January 2015
CREATIVITY
DOING
RESULTS