AlixPartners is a global turnaround and performance improvement firm with over 30 years of experience. The document provides an overview of AlixPartners, including its footprint, history, clients served, focus areas, and business model. A survey conducted by AlixPartners on nearshoring and offshoring plans is also summarized, finding that Mexico remains the top choice for relocating manufacturing operations closer to the US market.

1. Enterprise Improvement Corporate Turnaround
and Restructuring
Financial Advisory
Services
Information Management
Services
© AlixPartners, LLP, 2011
Executives’ Perspectives on Manufacturing Near-Shoring
April 2011

2. Introduction to AlixPartners
• Survey Overview
• Executive Summary
• Findings – Near-Shoring
• Findings – Off-Shoring
Contents
© AlixPartners, LLP, 2011 2

3. • Globally ~ 900 professionals in 14 offices (USA,
Europe, Asia)
• U.S.: ~ 675 professionals in 6 offices
• Europe: ~ 185 professionals in 6 offices
• Asia: ~ 40 professionals in 2 offices
• Founded in 1981 by Jay Alix
• Created the turnaround “industry”
• One of the most awarded turnaround and
performance improvement firms in history
• Over a decade of performance improvement
programs in non-turnaround situations
• Since 2003 in Europe, since 2006 in Asia
• Primary focus on mid-cap companies
• Serve clients in a broad range of industries
• Strong background in Manufacturing,
Distribution, Industrials, Consumer Goods,
Retail & Wholesale, Construction & Engineering
and Heavy Equipment
• Turnaround and Restructuring Services (TRS),
Enterprise Improvement (EI), Financial Advisory
Services (FAS)
• Optimization of P&L (e.g. cost reduction),
Balance Sheet (financial restructuring) and Cash
Flow (e.g. working capital optimization)
With Over 30 years of Advisory Experience, AlixPartners Is the
Leading Global Turnaround and Performance Improvement Firm
3
FootprintHistory
ClientsFocus
www.alixpartners.com

4. We Help Our Clients To Solve Urgent, High Impact Situations Where
Fundamental Change Is Key and Goals are Aggressive
4
Typical Role of AlixPartners
Operational Improvement Functional Improvement Financial & Operational
Restructuring
Interim Management (if necessary)
QuickStrikeTM & Performance Improvement
Program
Common Characteristics:
• High impact bottom-line results required
• Urgency/Need for flawless execution
• Fundamental change on agenda
Typical Situations / Clients
“Round Two” Realignments
and Company/Division
Turnarounds
Both Healthy and
Underperforming Companies
with Aggressive Goals
Ambitious Private Equity
Owners, Hedge Funds and
Executive Teams
www.alixpartners.com

5. Our Business Model is Unique - Geared Toward High-Impact
Execution and Long-term Sustainability
AlixPartners is Differentiated in
3 Key Dimensions
Typical Team Structure for AlixPartners
Typical Team Structure
General Management Consultants
Senior Partners
Partners
Experienced Project Leaders
Project Leaders
Senior Consultants
Consultants
Junior Consultants
1
2
4
4
4
8
5www.alixpartners.com
1. Small Senior Teams
‒ Experienced consultants, with practical, real-
world experience – 15-20 years on average
‒ Not just career consultants – our average
consultant has senior industry management
experience
‒ Focused on successful execution even
during initial plan creation
‒ Tight partnership with internal resources
2. Aligned Incentives
‒ Success is definitive and measurable -
results driven to the bottom line
‒ Components of compensation can be based
on results
3. Commitment to Results
‒ Best-in-Class implementers
‒ Organization learns how to "get things done“
and is involved every step of the way
‒ We deliver results - not reports
Managing Director
Director
Vice President
Associate
1
3
1.5
0.5

6. • Introduction to AlixPartners
Survey Overview
• Executive Summary
• Findings – Near-Shoring
• Findings – Off-Shoring
Contents
© AlixPartners, LLP, 2011 6

7. Survey Overview
© AlixPartners, LLP, 2011 7
Date: January 25 - April 4, 2011
Population: C-level and other senior executives in manufacturing-oriented companies that
sell into the U.S. market from more than 15 different industries
Methodology:
• Web-based survey conducted by AlixPartners
• A total of 80 respondents surveyed
Survey Focus: The two-part survey polled respondents on their (1) near-shoring and (2)
off-shoring current practices and plans – key areas of focus included:
• Understanding scope of current manufacturing near-shoring (and off-shoring)
practices
• Gauging extent and timing of plans to near-shore and/or off-shore operations
• Identifying barriers to relocating operations to new locations
• Determining favored locations for relocation of operations

8. Survey Overview (con’t.)
© AlixPartners, LLP, 2011 8
Industry Breakdown of Sample % of Sample
Auto/Transportation 24%
Aviation 16%
Consumer Goods 12%
General Manufacturing 10%
Chemicals 6%
Environmental systems 6%
Medical 6%
Durable Goods 4%
Packaging 4%
Agriculture 2%
Communications 2%
Construction 2%
Electrical Systems 2%
Energy 2%
Manufacturing, Other 2% 1%
1%
1%
1%
3%
4%
4%
5%
9%
9%
12%
20%
20%
25%
33%
39%
43%
68%
75%
Costa Rica
Dom Republic
Indonesia
Puerto Rico
Canada
Africa
Vietnam
None of the above
Western Europe
Malaysia
Singapore
Other Latin American…
Russia
Other Asian country
Brazil
Eastern Europe
India
Mexico
China
Operational Location(s) Currently
Serving U.S. Customer Base

9. 87% Own or Operate Operations Outside the U.S.; 83% have Third-
Party Operations Relationships Outside the U.S.
How many manufacturing operations and/or suppliers
do you own/operate in Asia, India, Eastern Europe,
Russia, or Latin America (combined)?
61%
5%
20%
13%
5 or more 3-4 1-2 None
How many third-party contract-manufacturing and/or
sourcing relationships do you have in Asia, India,
Russia, Eastern Europe, or Latin America (combined)?
53%
8%
22%
17%
5 or more 3-4 1-2 None
The majority of those surveyed are consider international companies; less than 20% source
strictly from the US.
© AlixPartners, LLP, 2011 9

10. • Introduction to AlixPartners
• Survey Overview
Executive Summary
• Findings – Near-Shoring
• Findings – Off-Shoring
Contents
© AlixPartners, LLP, 2011 10

11. Executive Summary
© AlixPartners, LLP, 2011 11
Near-Shoring Findings
 Despite security concerns, Mexico remains the destination of choice for “near-
shoring,” the relocation of previously outsourced manufacturing to areas closer to
products’ U.S. end-market.
• 87% of respondents own or operate operations outside the U.S.; 83% have third-party
operations relationships outside the U.S.
• 42% of respondents are either already near-shoring or likely to near-shore in the next
three years
• 63% of those already near-shoring select Mexico as their top choice (vs. just 19% for the
U.S.)
Off-Shoring Findings
 Respondents also answered questions related to plans for off-shoring current
U.S. operations.
• 27% of respondents expect to off-shore U.S. operations within the next three years,
with Mexico also being their top choice for off-shoring locale
• Just 21% have experienced supply-chain disruption due to security issues in Mexico
• 50% expect security/safety issues in Mexico to improve in the next five years

12. • Introduction to AlixPartners
• Survey Overview
• Executive Summary
Findings – Near-Shoring
• Findings – Off-Shoring
Contents
© AlixPartners, LLP, 2011 12

13. 42% Say They Are Either Already Near-Shoring or Will Be Within the
Next Three Years…
If near-shoring is a consideration, what is your time horizon for near-shoring Asian/Indian
operations to the Americas, including Latin America?
54%
9%
12%
21%
1%
3%
Not under
consideration
In process, or
completed within
last three years
1 year 2-3 years 4-5 years 5+ years
© AlixPartners, LLP, 2011 13

14. Of that Number, 63% Say their First Option is Mexico, with the U.S.
Next at 19%
If near-shoring is a consideration, rank each region in attractiveness.
0%
0%
2%
4%
6%
6%
19%
63%
Other South American country
Canada
Other Central American country
Other
Brazil
Staying within region, but relocating to even lower cost
country
US
Mexico
Most Attractive Locations
(First Choice)
Most Attractive
Least Attractive
Note: Most of Brazil’s manufacturing demand is consumed in Brazil, not exported for U.S.
consumption
© AlixPartners, LLP, 2011 14

15. The Most Attractive Advantages Expected From Near-Shoring:
Lower Freight Costs and Improved Speed to Market
Rank the advantages you expect from a near-shoring decision.
11%
16%
18%
25%
30%
Improved cultural alignment with North American managers
“Time-zone advantages” (easier management coordination,
etc.)
Lower inventory (in-transit) costs
Improved speed-to-market
Lower freight costsMost Attractive Advantages
(First Choice)
Most Attractive
Least Attractive
Rising fuel prices and a renewed focus on working capital has increased the attractiveness
of Near-Shoring
© AlixPartners, LLP, 2011 15

16. • Introduction to AlixPartners
• Survey Overview
• Executive Summary
• Findings – Near-Shoring
Findings – Off-Shoring
Contents
© AlixPartners, LLP, 2011 16

17. 37% Are in the Process or Have Completed Off-Shoring Within the
Last Three Years; 27% Expect to Off-Shore Within Three Years...
What is your time horizon for off-shoring operations and/or supply outside the U.S.?
37%
15%
12%
7%
2%
28%
In process, or
completed within
last three years
1 year 2-3 years 4-5 years 5+ years Not under
consideration
© AlixPartners, LLP, 2011 17

18. Of that Number, 43% Say their First Option is Mexico; No BRIC
Country Higher than 30%
If off-shoring is an option, rank each region in attractiveness. (1=most attractive; 11=least attractive)
3%
3%
3%
5%
14%
30%
43%
Brazil
Canada
Other
Eastern Europe
India
China
Mexico
Preferred Location
(% of Sample)
© AlixPartners, LLP, 2011 18
Most Attractive
Least Attractive

19. Primary Concerns Associated with Off-Shoring: Safety/Security of
Operations and Extension of the Supply Chain…
Rank the concerns you expect from an Off-Shoring decision. (1=most concerned; 8=least
concerned)
38%
17%
13%
12%
10%
8%
2%
Safety / Security Extension of
Supply Chain
Performance
deterioration
Political stability Loss of direct
control
Language /
Cultural barriers
Customs / tariffs
Top Concern for Off-Shoring Decision
(% of Sample)
Most Concern Least Concern
© AlixPartners, LLP, 2011 19

20. But, Just 19% of Respondents Have Experienced Supply-Chain
Disruption Due to Security Issues in Mexico
Have you experienced any supply chain disruption due to security issues in Mexico?
59%
22%
19%
No Not applicable Yes
Experienced Supply-Chain Disruption?
© AlixPartners, LLP, 2011 20

21. 5%
45%
29%
14%
7%
I expect dramatic
improvement
I expect modest
improvement
The security situation
will not change
The security situation in
Mexico will actually
worsen somewhat over
time
The situation in Mexico
is spiraling out of control
50% Expect Security/Safety Issues in Mexico to Improve in the Next
Five Years
What best represents your outlook on the security / safety situation in Mexico over the next 5 years?
© AlixPartners, LLP, 2011 21

22. AlixPartners is a Global Firm of Senior Business and Consulting
Professionals That Specializes in Improving Corporate Financial
and Operational Performance, Executing Corporate Turnarounds
and Providing Litigation Consulting and Forensic Accounting
Services When It Really Matters—in Urgent, High-impact Situations
Dallas
2101 Cedar Springs Road
Suite 1100
Dallas, TX 75201
214.647.7500
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© AlixPartners, LLP, 2011 22