pwc Performance Measurement Frameworks Acumen Fund - Discussion Document June 16, 2008 *connectedthinking

PricewaterhouseCoopers | 2 Corporate Performance Management (CPM) is a concept in which all of the processes, metrics, methodologies, and systems needed to measure and manage the performance of an organization are coordinated to enable sustainable improvement.

PricewaterhouseCoopers | 3 Corporate Performance Management The following are key aspects to establishing a Performance Management Framework Governance – articulates approach for consistent management – includes policies and procedures for management, review, delegation, and authority Culture –style, tone, and culture of the enterprise –aligned with the organization’s vision and business objectives Technology –source, capture, process, analyze and report relevant information –facilitate an efficient, disciplined approach to business processes Processes –basis for managing business process and activities to meet the organization’s objectives Data Management –business intelligence and standard information to monitor performance, signal intervention, and drive action and behaviors

PricewaterhouseCoopers | 4 Corporate Performance Management Framework The Framework –A common understanding: Concepts, categories, principles and terminology –Key components for anticipating unforeseen events and trends –Direction for enhancing existing management efforts –Criteria for determining the effectiveness Framework

PricewaterhouseCoopers | 5 The Enterprise Risk Management Framework Three Foundational Aspects: Starts with objectives: –Strategic –Operations –Reporting –Compliance Applies to activities at all levels of the enterprise Has eight interrelated Components

PricewaterhouseCoopers | 6 Foundation for Creating and Preserving Entity Value --- Balancing Growth, Risk and Return! Change in relationship between per client revenue growth and quality of underlying earnings Change in # of clients Formulate Business Plan Return Growth Risk Employee Customer Share Price Shareholder Increased market penetration in more profitable niches Improved customer satisfaction High client retention Improved quality for critical customer processes Level and extent of concentrations Credit/ Market risk volatility Sales Practice/Sustainability Retention rate of high potential and high performers Percentage performance plans in place Change in diversity Employee satisfaction Percent training hours completed Identified level of change in employee performance and potential Level of voluntary turnover Total Shareholder Return Change in Shareholder Value Added EPS Growth Percentage Revenue Revenue growth New Products/ Services Capital adequacy Earnings Volatility Improved Risk Adjusted Return Political and Reputation Risk Inflationary Pressures Distribution Network Improve Asset Yield Sustain High Quality Of Business Change in Company Market share Third Party Growth and Distribution Diversification of Distribution channels and Procedures Improve Retention of High quality performance Product Design Integration of Product Process Increase Credentials The objective of integrated risk and performance is striking a balance between risk and growth objectives.

PricewaterhouseCoopers | 7 Relating Mission, Objectives, Appetite and Tolerance Mission To be the leading provider of premium consumer products in the regions in which we operate Strategic Objectives To be in the top quartile of product sales for retailers of our products Measures Market Share Strategy Expand production of our top- five selling retail products Risk Appetite Accepts that the company will consume large amounts of capital investing in new assets, people and process Accepts that competition could increase (e.g. through predatory pricing, etc) as we seeks to increase market share, thereby reducing profit margins Does not accept erosion of product quality Related Objectives Increase production of Unit X by 15% in the next 12 months Increase new staff by 200 (net) across all manufacturing divisions Maintain product quality of 4.0 sigma Measures Units of Production Number of staff hired Product quality by sigma Risk Tolerances Tolerances – Acceptable Range 23% – 30% +10,000 / - 7, / – 4.5 sigma Target 25 Percentile 150,000 units 200 staff 4.0 sigma Measure Market share Units of production Number of staff hired (net) Product quality index

PricewaterhouseCoopers | 8 XBRL is More Than Just Tagging Business Information Multi-dimensional business and financial data representations Flexibility of business reporting vocabularies (i.e. taxonomies) Mathematical relationships between concepts Flexibility about how to present information to users Calculations Cash = Currency + Deposits Calculations Cash = Currency + Deposits Presentation Cash & Cash Equivalents Presentation Cash & Cash Equivalents Formulas Cash ≥ 0 References GAAP I.2.(a) CoA 1100 References GAAP I.2.(a) CoA 1100 Definitions Related to Liquid Assets Definitions Related to Liquid Assets Contexts US $X FY2009 Budgeted Contexts US $X FY2009 Budgeted XBRL “200” XBRL “200” Label Cash in Bank Label Cash in Bank

PricewaterhouseCoopers | 9 © 2008 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. pwc