SAKS GLOWELI CONSULTING & CAPITAL

Saks Gloweli (“SG”) is a boutique advisory firm which brings a unique service to clients doing business in China and Asia Pacific by combining strategic and managerial consulting expertise with financial advisory expertise. SG’s management team is made up experienced corporate managers, strategy consultants, lean manufacturing experts, corporate turnaround specialists and finance professionals with both buy/sell side experience. Our team hails from top American Universities with previous work experience from McKinsey & Co, GE Capital, General Motors, Chrysler, Foxconn, Maersk, Li & Fung, Jabil, JP Morgan Chase and Lazard. We are sector and stage agnostic advisers that have worked with pre-revenue companies to publicly listed corporations offering a wide range of services on a project/transaction basis or ongoing basis that are tailored to the client’s specific requirements. The SG team leverages its deep market knowledge, vast experience and global network to add value and effect positive change for our clients.

Saks Gloweli Services Portfolio :

Copyright © 2012 Saks Gloweli Consulting

Saks Gloweli Capital

Saks Gloweli Consulting

• Portfolio Value Creation & Optimization • Lean Operations & Manufacturing • Lean Supply Chain & Logistics • Market Entry & Growth Strategy • Business & Corporate Development Strategy • Corporate & Management Restructuring • Turnaround Management • Interim Executive Management

• Private Equity & Venture Capital Advisory • Mergers & Acquisitions • Project Finance • Divestitures, Exit Strategy, Sale • Recapitalizations • Financial Restructuring • Virtual CFO • Asset & Business Valuation, Business Planning,

Copyright © 2012 Saks Gloweli Consulting

Private Equity Industry Trends

With the tightening of the credit markets, the use of financial engineering has become increasingly difficult and the amount of financial leverage has been curtailed. The economic recession has caused many portfolio companies to under perform. PE firms have become more dependent on their ability to create value through strategic planning and operational improvement . At many private equity firms, operational value is now the main source of value creation

Value creation becomes more important than ever:

Copyright © 2012 Saks Gloweli Consulting

Private Equity Investment lifecycle : SGC Operational involvement

Pre

Post

Sourcing

Due Diligence

Deal Structuring

First 100 Days

Medium/ Long Term

Exit

• Sector insights and network to assist with deal pipeline

• Make a value creation plan with principal & management

• Refine plan during first 100 days

• Adjust/implement KPI’s to monitor plans

• Immediately react to plan deviations

• Conduct Operational Due Diligence

• Implement Lean Manufacturing methodologies

• Implement Standard Work Model

• Minimize Waste

• Turnaround Management

• Corporate Restructuring

Implementation Strategy Assessment

1-3 Months 2-3 Months 3-9 Months

Timeline

Copyright © 2012 Saks Gloweli Consulting

• Operations : manufacturing, supply chain, process control etc.

• Corporate,: management & business development strategy

• Fiscal Health: Historical & Forecast

• Sales and marketing

• HR Structure

• Benchmarking analysis in all areas included in the assessment

• Refinement of corporate competitive strategy

• Formulation of short, medium and long term goals

• Presentation of assessment recommendations

• Process Implementation

• Training management

• Handover

Saks Gloweli Engagement Process

Operational Efficiency Process Optimization Increased Profitability Sustained Growth

Saks Gloweli : Experience across the Value Chain

After-Sales Service

Marketing & Sales

Outbound Logistics

Operations Manufacturing

Inbound Logistics

Procurement

Support Activity Administration

Primary Activity Value Creation

SGC Experience: Vendor management. Supply Chain Inventory Controls Strategic Procurement

SGC Experience: Lean Manufacturing Process Flow Quality Control Manage waste Standard Work Labour Management

SGC Experience: Tactical Logistics Supply Chain Documentation

SGC Experience: Sales Management Sales Training Retail Strategy

Technology Development, Engineering

Human Resources Management

Company Infrastructure (Finance, Strategy, IT) SGC Experience : Financial and Corporate Strategy, ERP systems

SGC Experience : HR & Labour Management

SGC Experience : Vendor Management, Supply Chain

Lean Manufacturing Consulting : Components & Tools

Lean Mfg

Statistical Analysis

One Piece Flow

Systems Thinking

Increased Productivity labor Cost Reduction Quality Improvement Increased Profitability

Standard Work is a management tool that should be understood as separate and unrelated to either SOPs or Work Instructions. Standard Work is a tool that measures the elemental times for each step in a process and states the standard time involved in the process being measured.

5S is another tool that is based on eliminating waste. 5S and Standard Work are best used together. 5S begins with the idea of having all materials and tools placed in the most efficient locations for use by operators

The 7 Wastes are the root of all unprofitable activity, and all tools of lean production should be focused on getting rid of waste

Waiting

Processing

Inventory

Transportation

Over Production

Motion

Defects

LMC Tools

SGC implements Lean Manufacturing (LM) and its Components (Statistical Analysis, One Piece Flow, Systems Thinking), for gains in productivity, throughput, labor cost reduction and quality improvement.

Saks Gloweli : Experience & Expertise

Focus: Saks Gloweli l Experience

Regional Experience

• Specialized in market entry into China and India and advises multinationals, SME’s and startups • Experienced in creating and implementing China and Asia growth strategies for global companies • Transactional experience in raising capital, trade sales, credit facilities, strategic mergers ,

partnerships & acquisitions working with Chinese and Western companies, banks & investors. • Experienced in establishing and optimizing supply chain process in China • Worked with PE in China to drive lean manufacturing and operations across portfolio companies

increasing profitability by 30%.

Network

• SGC has working partnerships with accounting firms (SJ Grand), Chinese law firms (ZhongLung) and International Law Firm (Nixon & Peabody).

• Strong relationships with government bodies at the regional, provincial and central level • Deep network of executive and mid level management in local and western companies.

Project Experience

• Components distribution industry : global acquisitions in excess of US$ 200 million • Implement Lean Manufacturing process into multinational OEM • Automotive Industry : Setup and managed production facilities . • Manufacturing : optimized operations for a PE controlled plant in China • Strategic acquisition for vertical integration of quality control systems • Strategic partnerships for Clean-Tech company in Asia • China market entry strategy for global toy brand • Strategic market growth for fashion industry player • Credit Facility and refinancing for publicly listed Company • Currently assisting on M&A deals in fashion, luxury products, home accessories, green energy

Copyright © 2012 Saks Gloweli Consulting

‐ Lean Manufacturing ‐ Lean Operations ‐ Value Creation ‐ Process Control ‐ Supply Chain Management ‐ Business Development ‐ Private Equity Advisory ‐ Venture Capital Advisory ‐ Capital raise ‐ Project Finance

SGC Team

‐ Banking & Finance ‐ OEM / ODM / CEM ‐ Automotive ‐ Logistics ‐ Strategic Sourcing ‐ Trading ‐ Consumer Products ‐ Retail

Services Experience Industry Expertise

Sid Mewara

Sid holds an E-MBA from the Wharton School of Business at the University of Pennsylvania and is enrolled at Oxford University for the Advanced Management and Strategy Program. Sid has worked with global companies as a management consultant at McKinsey & Co. He then worked in the Semiconductor distribution industry in the US and China, managing the Asian operations of a PLC German company where he serviced the OEM industry and manage their supply chain and inventory control systems. Sid specializes in market entry and business development strategy for stage and sector agnostic companies to help them grow and develop their business in China and Asia . He has assists clients in raising capital from PE and VC. He as assisted and managed M&A deals for SME to MNC level companies on both buy and sell side. Sid is a financial and strategy adviser to firms across multiple sectors from Private Equity, Venture Capital to manufacturing and heavy Industry. Sid holds a position on the board at True Wind Consulting and Beepo Electric Vehicles. He is also an advisor at Guide-Point Global and a guest business columnist at Delta Bridges and Shenzhen Standard. Sid is the Founder and Managing Director of Saks Gloweli Consulting & Capital.

Desmond Koval

For more than 15 years, Desmond Koval has delivered strategic planning, turnaround management and business development expertise to manufacturing operations in emerging markets throughout the world—United States, Europe, Asia, Canada and South America. He has been repeatedly sought out to lead high-level, strategic initiatives that help companies overcome cultural barriers, surpass market challenges and establish a strong business presence in constantly changing and rapidly evolving environments. Since 2006, Desmond has orchestrated several global initiatives and has served through increasingly challenging roles within Foxconn, a multi-national design, manufacturing and logistics service provider. Currently as the SVP, Entertainment Device Product, he has played a highly visible, instrumental role in restructuring the business unit, creating synergies across functional groups and instituting collaborative capabilities that equip the company for expansive production. He spearheaded the growing $2-billion strategic, corporate engagement with Microsoft Corporation and drove comprehensive planning efforts to install the required manufacturing capacity, qualified personnel and business resources for a year one ten-million unit production project. As the company’s SVP, Global Fulfillment Operations, Desmond transformed ten, international manufacturing facilities into a cohesive collaborative ecosystem with global standards for operational efficiencies, product quality and performance levels—this significant turnaround initiative reversed an annual $32-million loss situation to $10-million profit over two-year period. In addition, he renegotiated and restructured business contracts that ultimately saved the company millions of dollars. During his tenure, he overcame huge economic, market and internal company constraints while simultaneously improving business performance and protecting stakeholder investments. As the VP, Asia Manufacturing, Desmond oversaw and directed the company’s global manufacturing operations in China. In just 12 months, he implemented operating standards and performance metrics that turned the factory from losing $25 million annually to positive return of $10 million—facility gained award for highest factor performance score in company’s history. During his four-year tenure with Microsoft, he served as the Director of Strategic Sourcing, Home and Entertainment division and founded the first strategic sourcing organization to effectively meet manufacturing and distribution for Xbox. He employed a tactical, capacity planning approach that allowed the division to meet aggressive production goals despite national impact of 9/11. Under his leadership, the division experienced several “first-of-its-kind” wins for a global supply base that spanned 12 countries and 40 manufacturing sites. His ardent negotiation skills, strategic supplier alliances and component integration techniques saved the company more than $370 million; he introduced an innovative supplier review methodology that has become the de-facto reference standard for several Microsoft organizations; and he launched a division-wide, corporate social responsibility program that subsequently evolved into a company-wide, company-sponsored initiative Continued…

Des Koval: Continued ..

Throughout his career, Desmond functioned in several leadership roles that also maximized his strengths in new market development, manufacturing operations, and global business expansion. He was retained by Cornice Corporation, played a strategic role in its startup, manufacturing operations and managed new business development activities that ultimately landed Sony as a new client. For Samsung, he brought collaborative leadership to the company and reengineered business operations to increase competitive advantage in an often volatile industry. At Western Digital, he brought high level of manufacturing growth and new program development expertise to its Malaysian operation, streamlining costs and doubling production output.

Foxconn Highlights: • Secured MS Corporate Account and Multibillion Dollar Game Console Business • Unified Twelve International Sites, Led 40 Mil Favorable PL Turnaround in 2.5 years • Creation of entire Product and Manufacturing Business Unit in less than six months • Scaled operation to 12,000 employees across multiple sites. Greater than 25 million units produced. Structured to profitably

accommodate volatile intra-year volume scenarios • Created a highly competitive global environment, operations efficiency +~ 25%, OH reduced 35% • Renegotiated and restructured numerous contracts and problematic contractual terms such as shift structures, Forex

reconciliation, ICC, Buffer, Liability, etc • New Site Creation/Emerging Markets/Crisis Management/Site Shutdown

• Governmental Engagement both in China (Go west/Inland) and internationally • Directly involved in Turkey and Macedonia Greenfield Site Selection & Start Up • Russia/St. Petersburg Construction Governance, Reduced Land expenses $5mil • Global Crisis Management & Business Continuity under extreme circumstances • Oversaw two site shutdowns during global consolidation phase

Microsoft Highlights: • Led the creation of Microsoft’s global component Supply Chain. This supply chain and legacy infrastructure and corporate

alliances are still heavily utilized today by Microsoft, ten years after inception; Des was the 11th employee on the original Xbox program

• Created Xbox Console 2nd Tier Supply Chain – Maintained uninterrupted continuity of supply • Managed $3B worth of component procurement spending. Negotiated contracts, T&C, & allocation • Drove 350M hundred million dollars of cost savings for the Xbox project • Initiated, Negotiated, and Established the Microsoft-Samsung Corporate alliance • Established MS Supplier Corporate Social Responsibility Program

Work experience includes senior management positions at Samsung, Western Digital, Alcoa, Cornice Corporation

David C. Collins, Jr. has worked in the automobile assembly, electronics industry, and management manufacturing consulting area for over 30 years. After graduating from Michigan State University he completed a Master’s of Science in Physical Chemistry and was published for his work on surface dynamics. He obtained his executive MBA from the University of Delaware, in 2000. He has held increasingly responsible positions with international assignments for General Motors, Ford, Chrysler, as well as Foxconn Corporation. He has worked in Mexico, Canada, Germany, the United States and China and has acquired a vast knowledge of leadership and cultural values. He has worked with many companies to improve profitability, reduce costs (20-70% is normal), reduce turnover and absenteeism, and drastically improve quality. Attached are results from some of the companies.

• Turned around the largest electronics site in the Americas, taking it from $100,000/day loses to profitability in 13 months. As well as

creating excellent morale as measured by turnover and the best quality in the division. • Totally reworked Foxconn’s production process to free up 15% more space and reduce order time to delivery by 27%.

‒ Was able to bring in three more products for HP as customer and launched all on time and in budget. • Reworked the sites VMI hub’s as well as logistics, and warehousing to reduce inventory 56%.

‒ Worked with Jabil to put in lean manufacturing, reduce scrap, and improve production. ‒ Improved quality 19% and set records for production out of the factory for CISCO products.

• Developed and launched the world’s first waterborne paint process. • Worked at Toyota Nummi plant and internalized the principles of lean manufacturing and transferred those principles to a Greenfield

assembly plant in Mexico in his role as a department manager. • Built & Launched a $350,000,000 paint facility , hired a grass roots organization that achieved the best segment performance for paint in the J. D. Powers initial quality survey. • Built and launched 3 additional manufacturing facilities worldwide. • Implemented Total Chemical Management system that saved plant $2 MM and initiated corporate-wide savings of over $25MM • Created and implemented a Predictive Maintenance System resulting in zero production loss due to machine maintenance related issues.

David attained benchmark status for this work and was featured in the automotive Harbor report. • Received ISO 9002, 14000 registration • Fully implemented “Toyota Type” Operating Systems in each of his assignments. • Established the first Quality Alert System within Chrysler Motors. • Improved union relations in assembly plants , implemented Modern Operating Agreements with UAW, CAW & CTM in Mexico. • Ran a $4.1 billion Assembly Center with over 2000 employees.

David Collins

David Collins : Continued ..

• Three special recognition awards from the General Motors Corporation • Executive Vice President Award from Chrysler Motors for Best New Model Launch in Chrysler history. • Featured in trade publications for innovative techniques in manufacturing. • Featured on CNBC’s Today’s Business for innovative operations approaches combining technology and human infrastructure systems.00

• 18% improvement in quality • 25 % improvement in productivity • 40% improvement in safety • On time delivery of 99.4% • Created innovative techniques to measure and improve morale.

David’s achievements include Engineering, Facilities, Production and Quality improvements resulting in:

Dave’s greatest accomplishment is creating lean organizations that are able to sustain recognized performance well after he left them, as measured by J. D. Powers and Harbor Associates in three assembly plants. In two other assignments he was able to be part of the team that transformed facilities targeted for closure into high performing teams that continue to operate today. His proven performance, leadership and organizational development skills have been a foundation for his ability to partner with companies requiring similar results.

David’s Awards

Stephen Browne

Stephen Browne has a degree and master's degree in civil and environmental engineering from Trinity College Dublin, Ireland. Stephen also holds an MBA from IESE, Spain. Stephen worked for 4 years as engineering project manager completing large infrastructure projects in Japan and Ireland. He then worked for 6 years with the Maersk shipping group as supply chain consulting manager, implementing world class projects for customers such as IKEA, GE, and Walmart corporation. During this time Stephen's team brought in over EUR100m of new business for the group. Since 2007 Stephen has been based in China and is currently leading a private equity turn around of Spanish-owned manufacturing enterprise in southern China. Stephen manages the supply chain consulting practice at SG consulting and is actively involved in turnaround and value optimization engagements at SG Capital. He is comfortable working in English, Spanish, French and Mandarin Chinese.

Thomas Bispham, Jr. began working with Saks-Gloweli Consulting in 2008 as affiliated project consultant. In 2012, he joined the firm as a full Consultant to bolster SGC's existing portfolio value optimization services. He came to SGC following 6 years of experience working in a variety of operations and general management positions at Li &Fung Ltd out of Hong Kong. He reported directly into Li & Fung strategic management and operated as an internal consultant being moved throughout the company to optimize efficiency, corporate operations, and bottom line growth. During his time at Li & Fung, Thomas was General Manager of the Indonesia sourcing office for two years, based in Jakarta. In Shanghai, he managed several acquisition businesses as they integrated into the company and streamlined their supply chains. He also has a strong background in licensed brands and private labels which he launched for Li & Fung out of the Shanghai hub. Before Li & Fung, he worked for RT Sourcing in a number of operations management positions specializing in supply chain management, information systems, and financial reporting and management accounting. He has spent the past 17 years working or living in Asia and speaks Mandarin Chinese and Bahasa Indonesian. He holds a Bachelor's degree from University of Pennsylvania and a Chinese language certificate from the FALCON Program at Cornell University.

Thomas P. Bispham Jr.

Marc Boix is a quality expert with over 15 years experience working in various multinational automotive companies and has more than 2 years experience working in China. Marc has delivered on complex, quality and production projects in various regions. For a more than a decade Marc worked at Showa Spain ( Honda Motors) in various quality and supplier related management roles ,leading up to the quality and new model development manager. Previous to his management role at Honda, Marc learned his technical skills in production and quality at Ducati & Suzuki. He also worked at Zanini Parets, an automotive multinational as the quality manager, before moving to China to run the quality department and new product development of a multinational operated by a private equity group. Career Highlights : • Worked for 10 years + in Showa Group (Honda-owned Motorcycle Automotive parts supplier – www.showa1.com/en/) and achieved 70%

reduction of warranties costs in 4 years. Detecting most important problems, evaluating and improving production processes associated with these problems, using improvements in product design and even the motorcycle design through the creation of a comprehensive international and inter-departmental group of design between BMW (Munich), Quality BMW (Berlin), design Showa (Japan), Showa Engineering (Barcelona) and Quality Showa (Barcelona).

• In Showa achieved a 30% improvement in BMW’s evaluation. In 2 years led the change from a grade “C” evaluation to a grade “A” evaluation. It was the first time in the factory to reach a grade “ A ” evaluation. Clarified how the customer was making the evaluation, improved communication with customer, and trained staff to improve the audit preparation.

• In Showa started production of the most innovative shock absorber in the market (ESA). This model was a bestseller (ESA models began as 30% of sales and increased to 80%). Stayed several months staying in BMW Berlin plant following the start up and implementation of this project at BMW side.

• 100% of all audits received (at Showa, Zanini and Sedal (Chinese plastic injection factory ) have been approved (ISO audits, and customer audits). At Sedal side could implement a plan to get International Official Certifications for their product.

• In Showa I was the person in charge to make the presentation in Japan ( Headquarters ) of the Business Plan. I made the presentation of a new model (ESA) in front of BMW’s president and we could reach customer confidence to run this project.

• Improvement of the laboratory calibrations budget control with a 33% laboratory cost reduction in Showa (without reducing the calibration frequency ).

• In Showa achieved a 75 % reduction of claims to supplier by an action plan to improve the most problematic suppliers. • Set up an internal procedure leading to an increased flow of technical information and documentation between Showa Japan and Showa

Europe before the launching of a new model. • Write suppliers contract looking for a legal link with them and clarify responsibilities in front of potential problems .

Marc Boix

Anniruddha Jain

Anniruddha holds an MBA in finance from Pepperdine University. He has extensive principal investing and financial management experience and has worked in investment banking, private equity and financial services. He has raised over $100 million in M&A and has led transactions in active sports & recreation, sustainable living, organics, fair trade, renewable energy, healthy nutrition, wellness and relaxation/leisure. At North Castle Partners (NCP) a private equity fund he was responsible for investigation and lead generation of non-solicited deals, financial modeling and due diligence. Prior to NCP Anniruddha worked at GE Capital International Services (GECIS) for five years where he had several diverse roles ranging from project management to portfolio management. AJ is a graduate of GECIS’s highly competitive internal leadership development program ‘Fastrax’ (1% selection rate). He also earned GECIS’s “Management Excellence Award” for exceptional people and process management skills. AJ holds a BA Honors degree in Economics from Delhi University, India.

Olivier Jacque

Olivier holds a BA from the University of Pennsylvania and is currently pursuing his MBA from the Wharton School of Business. . Prior to joining Saks Gloweli Capital, Olivier worked for Lazard Real Estate Partners; a real estate private equity fund based in New York City and was responsible for identifying strategic acquisition, disposition and recapitalization opportunities. During his time there, he worked on a major corporate recapitalization of an assisted living company while also implementing the fund raising aspects for a large redevelopment project of the portfolio as well as securing a credit line from institutions. In addition, Olivier is the General Partner of multiple real estate investment vehicles in multifamily housing with total assets close to $10 million in the Mid-West. Prior to that Olivier worked at Deutsche Bank in their emerging markets fund. Olivier is a guest lecturer at the Business School at Shenzhen University and is a speaker at local business forums. Olivier is Director at Saks Gloweli Capital.

Vicky Tseng

Yih Lin (Vickie) Tseng has worked in electronic assembly industry for over 14 years with Wistron Corp. She has experience as a lead buyer, Material sourcing ( electronic , mechanical , packing ) as well as SAP start up, new plant and product launch, and HR experience. She has significant international work experiences including Taiwan , Philippines, US , Mexico and China. Vickie has a Bachelors degree in Mathematics from National Cheng Kung University Tainan, Taiwan. Fluent in Mandarin and English.

Vicky brings here experience in supply chain in the following areas. •Inventory control (active, slow moving, no demand, RTV, salvage) •EOL and EOM control •VMI Hub set up •Resell •Strategy buy •Shortage expedite •PO audit and management, including price audit

.

Saks Gloweli : Advisory Board

Thomas P. Bispham

Tom Sr. is a senior banking and finance professional with vast experience in project finance, investment banking/M&A, structured & leveraged Finance among others. Mr. Bispham moved to Asia in 1995, when he joined Peregrine Investment Bank to start up its infrastructure project finance business. Prior to that he had been traveling to the region on behalf of Bear Stearns (NY) as Managing Director and Co-Head of Project Finance. He was recognized in 1996 by Independent Energy magazine “for pioneering achievement in the global private power industry.” Mr. Bispham also served as Chief Operating Officer of JPMorgan’s Asia Pacific investment banking business. His transaction history includes representing ESI Energy in its 1988 investment in Zond Systems (now GE Renewable Resources), and helping to design the Danish wind industry guaranty program; Hopewell Holdings in the $2.7 billion sale of its 80% interest in its pan-Asian affiliate, Consolidated Electric Power Asia (“CEPA”), to Southern Electric (now Mirant); advising Entergy in its $50 million equity investment in the Hub River (Pakistan) power project; advising Unocal in financing the development of the Shahbazpur (Bangladesh) Gas Field plus pipeline and power plant projects; and assisting Florida Power & Light’s affiliate, ESI Energy, to become the third largest utility IPP in the US. Tom sits on the board of several companies and is a board advisor to Saks Gloweli.

Laurent Jacque

Laurent L. Jacque is the Walter B. Wriston Professor of International Finance & Banking at the Fletcher School of Law and Diplomacy (Tufts University) and Director of its International Business Studies Program. From 2004 to 2007 he was Fletcher's Academic Dean and as such responsible for the design and the establishment of the new Master of International Business degree and the Center for Emerging Market Enterprises. Since 1990 he has also held a joint appointment at the HEC School of Management (France) as a Professor of Economics, Finance, and International Business. From 1976 to 1987 he was on the faculty of the Wharton School where he held a joint appointment in the Management and Finance departments. A recipient of four teaching awards at The Wharton and Carlson Schools, Jacque received the James L. Paddock award for teaching excellence at The Fletcher School in 1996. He is a consultant to a number of firms in the area of corporate finance and risk management and has taught in many Management Development Programs, including Merck, Sharp & Dohme, General Motors, Bunge and Born (Brazil), Rhone-Poulenc (France), Siam Commercial Bank (Thailand), Daewoo (South Korea), General Electric, Dupont de Nemours, Norwest Bank, Bangkok Bank (Thailand), INSEAD, Pechiney, Petrobras and the IFC (World Bank group). Laurent Jacque is a graduate of HEC (Paris) and received his MA, MBA and PhD from the Wharton School (University of Pennsylvania).

SG Case Study : Lean Manufacturing & Operations

Copyright © 2012 Saks Gloweli Consulting

Case Study Description/Overview: • Client was a US based, Fortune 500, electronics company doing the majority of its manufacturing in Asia especially China. • The company was losing some of its core accounts due to poor quality, low production volume, and the company was not as profitable

due to high costs emerging in the China market. SG Consulting: • SG Consulting conducted a manufacturing and supply chain assessment of the Company

o SG Consulting drafted the Company’s manufacturing and supply chain strategy. o SG Consulting identified inefficiencies on the production line, identified areas of significant cost, and identified areas of

organizational improvement. o SG Consulting identified the appropriate leadership to train and to put new operational philosophy in place.

• In the process, SG Consulting

o reduced costs 52% o improved productivity 28% o reduced turnover from 50%-10% o Increased quality (as measured by customer) by 28%.

To this transaction SG Consulting was able to bring the follow expertise: Strategy Consulting Supply Chain expertise Lean manufacturing concepts Preventative and predictive maintenance Team building for the reduction of turnover Quality control

SG Consulting brings to every transaction a level of sophistication and understanding of the manufacturing and cultural environment

that other firms are unable to provide.

Saks Gloweli Case Study : Global Sourcing Organization

Copyright © 2012 Saks Gloweli Consulting

Case Study Description/Overview: • Client is a major UK Based retailer with a separate Asian Sourcing organization. The company wanted to find ways to improve key

suppliers profitability, on time delivery and quality. • The company wanted to find ways to incentivize the whole supply chain to continuously come up with real cost savings. SG Consulting: • SG Consulting worked directly with several of the client’s key Chinese hardlines suppliers, working on a value sharing payback

scheme: o 3 days to assess initial production lines, stock control, supplier IQC etc. o 2 days for initial supplier trainings (in Chinese), creation of work teams and project streams, brainstorming of cost saving

projects ideas. o Weekly Follow up, sit down with management to calculate total potential cost savings.

• SG Consulting proposed a solutions provider that matched the needs of both the supplier and the Client: o Reduction of labor on production lines by 25% after 2 months. On target for total 40% labor reduction in the factory

through application of lean manufacturing techniques. o Reduction in quality claims. o Improvement in on time delivery.

To this transaction SG Consulting was able to bring the follow expertise:

Lean manufacturing concepts Supply Chain expertise Strategy Consulting

• SG Consulting achieved the project goals within 2 months and is on track to create permanent lean culture into the whole supply

chain: • Supplier reduced 25% total labor resulting in savings >500,000 USD per year. Reduced absenteeism from 35% to 10%. o Client, accounting for 20% of suppliers volume, was able to capture these savings and the supplier kept the rest. o SG Consulting is working with client to create an automotive type supply chain cost saving program rewarding suppliers for

cost saving ideas.

Case Study Description/Overview: • Client was a South Korean bio technology company (a.k.a “Company”)with market presence in South Korea, Japan and Europe selling mid-

market medical devices. • Headquartered in Seoul, the Company wanted to expand into China and hired SG Capital to help it evaluate the strategic and financial

considerations SG Capital: • SG Capital conducted a strategic and financial assessment of the Company

o SG Capital drafted the Company’s Market Entry Strategy o SG Capital identified inefficiencies in the Company’s Capital structure and penned a valuation o SG Capital devised an IP strategy to preserve the Company’s core assets o SG Capital identified the appropriate leadership to bring to the Company for the China market

• SG Capital sourced a JV partner that matched the needs of the Company: o Mid-market Chinese Company headquartered in Shenzhen and listed on the Hong Kong Stock Exchange with strong distribution

channels throughout Mainland China and South East Asia o JV partner also had a strong track record of securing Chinese FDA approval

• In the process, SG Capital re-financed above market rate debt to HIBOR/SIBOR indexed debt and raised incremental equity-based capital To this transaction SG Capital was able to bring the follow expertise:

Strategy Consulting Financial Advisory Legal/IP Expertise Accounting Expertise Industry Specialist

• With the combined expertise of Strategy Consulting and Investment Banking , SG Capital brings to every transaction a level of sophistication

and understanding that other firms are unable to provide .

SG Capital Case Study

Copyright © 2012 Saks Gloweli Consulting

Hong Kong

Level 3, Three Pacific Place, 1 Queen's Road East, Hong Kong Phone : 852 2588 3415 Fax : 852 2588 3499