MHM AM SUPPLIER – DEVELOPMENT STRATEGY OPTIONS WITH MHM

MHM MHM ‘ACQUIRE AND BUILD’ PROJECT FOR CLIENT SOURCE : MHM  MHM CLIENT GENERATED 41 INTERNAL OPTIONS TO ENTER CENTRAL/EASTERN EUROPE !  BUT CHOSE MHM IDENTIFIED ACQUISITION OPPORTUNITY IN CZECH REPUBLIC – SWEETSPOT OF CENTRAL/EASTERN EUROPE  CLIENT MOVED IN QUICKLY - ONCE OPERATION UP AND RUNNING, BIG NEW PLANT - PLUS FURTHER LARGE ACQUISITIONS

MHM POLISH ELECTRONICS FACILITY ACQUISITION - CLIENT ACCESSES 40% PA GROWTH MARKET WITH MHM PROJECT OBJECTIVE :BRING ON LOW RISK LOW COST EAST EUROPEAN ELECTRONICS ASSEMBLY REASON :TO ACHIEVE HIGHER GROWTH FOR NORTH AMERICAN CLIENT METHODOLOGY :CHOSE OEM DIVESTMENT ROUTE AT OUTSET THOROUGHLY RESEARCHED EAST EUROPEAN OEM DIVESTMENT OPTIONS: - DETERMINED SPECIFICATION FOR ACQUISITION - CONFIDENTIALLY CONTACTED MANY OEMS - IN-DEPTH TELEPHONE INTERVIEWS WITH 12 - POINTS RANKING ANALYSIS AND 100 PAGE UPDATE - ACQUISITION TOUR PLANNED AND ACCOMPANIED DECISION :PROCEED WITH TOP RANKED SITE ACQUISITION AND SUPPLY AGREEMENT BENEFITS :QUICKLY ENTERED 40% PA GROWTH MARKET FROM ONE GROWING AT 15% - NOW 0% PA IMMEDIATE LOW COST EUROPEAN MANUFACTURE FOR EXISTING CUSTOMERS

MHM MHM PROJECT REDUCING EU OPTICAL COMPONENT MANUFACTURE COST – TRANSFERRING TO CHINA THE GLOBALLY FASTEST GROWING MARKET OBJECTIVE :EXAMINE OPTIONS FOR SUBCONTRACTING TO EASTERN EUROPE REASON :FEELING THAT EU OPTICAL COMPONENT MANUFACTURE COST TOO HIGH METHODOLOGY :INCLUDED CHINA AND MEXICO INITIALLY TO GIVE PERSPECTIVE, THREE WEEKS AFTER PROJECT COMMENCED CHINA BECAME MHM’S NUMBER 1. ANALYSIS INCLUDED: – VIEW SUBCONTRACT OPTIONS (OMS/EMS GLOBALLY) - VIEW IN-HOUSE OPTIONS (BUY SHELL, ACQUIRE LOCALLY) - EVALUATE ABOVE OPTIONS WITH POINTS RANKING SYSTEM CLIENT ‘CHANGED ITS MIND’ FROM FAVOURING THAILAND & SINGAPORE DECISION :ACQUIRED COMPANY WITH SIGNIFICANT MANUFACTURING BASE IN CHINA BENEFITS :CLIENT UPDATED WITH CHINESE CAPABILITY GROUP’S UNDERSTANDING CHANGED COMPETITIVENESS INCREASING 6 MONTHS AFTER START OF PROJECT-

MHM OEM / BRAND NAME MATURE TECHNOLOGY DESIGN OUTSOURCED WITH MHM PROJECT– EMPHASIS OF EFFORT ON GROWTH OBJECTIVE :TO REMOVE OEM’S ORGANISATIONAL INFRASTRUCTURE COST RELATED TO MATURE PRODUCTS, ALSO GUARANTEEING LOWER MEDIUM TERM DESIGN COSTS REASON :EQUIPMENT MANUFACTURER CLIENT AWARE THAT MATURE DESIGN OPERATION OVERSIZED IN COMPARISON TO HIGHER GROWTH OPPORTUNITIES METHODOLOGY :DEVELOPMENT OF PARTNER SPECIFICATION WAS FOLLOWED BY GLOBAL SEARCH IDENTIFYING MOST COMPETENT DESIGNERS. PROJECT COMPONENTS INCLUDED: - IN-DEPTH SPECIFICATION OF BEST PARTNER - RESEARCH IN ASIA, EUROPE AND AMERICAS FOR MOST SUITABLE DESIGN COMPANIES - INITIAL CONTACT TO IDENTIFY COMPANIES OF INTEREST QUESTION INTERVIEWS WRITTEN UP - RANKED PROSPECTS DELIVERED TO CLIENT IN RECOMMENDATIONS ANALYSIS DECISION :SITE DISPOSAL AND EMPLOYEE TRANSFER BENEFITS :NUMEROUS INTERESTED PARTIES BID-UP DESIGN CONTRACT CONDITIONS. CLIENT’S CONFIDENTIALITY 100% PROTECTED (NOT SEEN TO BE SELLING SITE/COMPANIES) COMPREHENSIVE ANALYSIS ALLOWS BACKTRACKING ON DATA BY ALL INVOLVED DECISION CONFIRMATION MADE EASIER

MHM MHM – HISTORICAL CEE PROJECTS FOR CLIENTS SOURCE : MHM HISTORICAL  CZECH REPUBLIC ELECTRONICS ACQUISITION AND DISPOSAL PROJECTS  MANY OTHER CENTRAL/EASTERN EUROPE, INDIA, BRAZIL AND CHINA PROJECTS - EG GREENFIELD METALWORK AND ELECTRONICS INTEGRATION PROJECT - ONE PROJECT PER QUARTER WHEN BUSY !  $100M OF CLIENT FUNDS AVAILABLE FOR UP TO 5 ACQUISITIONS FOCUSING ON ELECTRONICS – CZECH REPUBLIC IN SWEETSPOT FOR THIS PROJECT

MHM UK/IRELAND REGIONAL FACILITY SOLD BEFORE LOSSES ACCUMULATE – MHM PROJECT OBJECTIVE :TO DETERMINE IF MARKET WILL SUPPORT PROFITABLE UK/IRELAND REGIONAL OPERATION REASON :LOSSES FORCAST IN NEAR FUTURE FOLLOWING REMOVAL OF KEY CUSTOMER BUSINESS METHODOLOGY :MHM FIRSTLY CARRIED OUT AN ASSESSMENT OF THE TOP 100 CUSTOMER PROSPECTS FOR THIS FACILITY IDENTIFYING: - WHO WOULD PLACE WORK IN THIS FACILITY? - WHY? AND IN WHAT VOLUME? - LEVEL OF INTEREST? SUFFICIENT? DECISION :MHM’S RECOMMENDATION WAS TO DIVEST THE FACILITY BENEFITS :THE MAJOR BENEFITS FROM MHM’S TIMELY INTERVENTION WERE: - AVOIDANCE OF LOSSES - AUTHORATITIVE ANALYSIS LEAVES ALL CLIENT MANAGERS AGREEING FUTURE PATH DISPOSALS

MHM AM SUBCONTRACTOR OPTIMAL STRATEGY OVERVIEW BY MHM

MHM AM SUBCONTRACTOR OPTIMAL STRATEGY (CONTINUED)

MHM AM SUBCONTRACTOR OPTIMAL STRATEGY (CONTINUED)

MHM AM SUBCONTRACTOR ATTACHES TO GROWTH OEMS AM

MHM SOURCE : MHM AM ‘PLUGS INTO’ ELECTRONICS SYSTEM SUPPLIERS WITH GLOBAL MARKETS – BUILDS GLOBAL NETWORK