1. THE ALTA INVITATIONAL Resetting A Company To The New Normal

2. 2 The Equipment Finance Ecosystem WHAT IS THE NEW NORMAL? Economic Activity Industrial Policy Customers Economic Structure Legislation Reputation Channel Partners Competition Risk Environment Technology Regulation Sources Capital Adequacy Product Features Investors PUBLIC POLICY MARKET EXTERNAL Risk / Reward CAPITAL OPPORTUNITIES

3. 3 THE NEW NORMAL – ARE WE TREATING IT AS NEW? PREVIOUS NORMAL NEW NORMAL DECISIONS ABOUT CUSTOMERS DECISIONS ABOUT VALUE TO BE ADDED DECISIONS ABOUT POLICIES and PROCESSES – USE OF TECHNOLOGY DECISIONS ABOUT ORGANIZATION / PERSONNEL DECISIONS OF SCOPE OF BUSINESS TRANSITION

4. 4 OR – ARE WE WAITINGTO GO BACK TO THE OLD NORMAL? NEW NORMAL PREVIOUS NORMAL I liked the way it was, please come back

5. 5 Resetting My Company to the New Normal RESET DECISIONS CUSTOMER SELECTION VALUE TO BE PROVIDED HOW DO WE MAKE MONEY ORGANIZATION ADMINISTRATION BUSINESS SCOPE ? ? ???? ??? ??? ?? ?

6. 6 Genuine Change Are We Doing This TODAY TOMORROW FUTURE OBJECTIVE FOCUS PEOPLE Extend and defend core business Build emerging businesses Business maintenance Bottom line performance Create viable options Top line growth – Capital efficiency Future potential Business builders Visionaries

7. 7 OR, ARE WE DOING THIS? TODAY TOMORROW FUTURE YESTERDAY TODAY TOMORROW

8. 8 GROWTH

9. 9 Discuss Basic Growth Strategy Question Is the Purpose of a Company to Create a Customer?

10. 10 What are the most important “growth” words? 1. 2. 3. 4. 5.

11. 11 Utopia – What You say is what your customer needs, hears and experiences How You Build Your Value Proposition? How You Build Your Value Proposition? Customers & Competitors define Your value proposition Customer Perception of Your Value Proposition Your value proposition is Unclear Customer Perception of Your Value Proposition Value Proposition Gap Value Proposition Assigned by Customer Base and/or Competitors currently Future State Customer Alignment Historical State Transition State

12. 12 What are the five most important “value” words? 1. 2. 3. 4. 5.

13. 13 Developing A growth Strategy INNOVATION -Product -Process EFFICIENCY -Low Cost ProviderCUSTOMERINTIMACY -Service -Knowledge -Integration Michael Porter’s Three Basic Go To Market Strategies Which Growth and Value Words Fit Which Strategy Best?

14. 14 Some of those “frequent” words! Value –Unique –Service –Scale / Scope –Global –Customized –Integrated –Cost –Package / bundle –Flexibility –“state of art” –Knowledge –Risk Management Growth –Profit –Scale / Scope –Sustainability –Risk Tolerance –Organic –Opportunity –Demand –Personnel –Organization –Capabilities –Footprint –Select Sector –Premium –Strategic –Partnering

15. 15 Who is your value proposition for? What market? What segments? The Components Of A Value Proposition TARGET FRAME OF REFERENCE BENEFITS  Required to gain acceptance from customers.  Begins to positively separate you from your competition.  Significant points of leverage with customers to get business. comprised of ….. Point of Entry Point of Differenc e Point of Preference What competitive options are your target customer evaluating you against? Who are we competing against? What’s in it for them? Why should they work with and buy from us?

16. 16 The Equipment Finance Ecosystem WHAT IS THE NEW NORMAL? Economic Activity Industrial Policy Customers Economic Structure Legislation Reputation Channel Partners Competition Risk Environment Technology Regulation Sources Capital Adequacy Product Features Investors PUBLIC POLICY MARKET EXTERNAL Risk / Reward CAPITAL OPPORTUNITIES

17. THE ALTA INVITATIONAL Resetting A Company To The New Normal A SUMMARY

18. 18 New Normal – “Sound Bites” The New Normal is the increased Pace of Change. A Challenging Time, not a Paradigm Shift. There IS a New Normal with important new conditions: –Less leverage / Capital adequacy. –Lower risk tolerance. –Changed customer behavior: Need replaces want! –Slow growth. –A sense of the future is less clear and change is faster.

19. 19 New Normal – “Sound Bites” New Normal is what the market does. This New Normal is that a lot happened all at once. The industry is at a “transformative” place ending a 20 Year Old Normal of good times. Companies now have the opportunity and impetus to alter business models and change unsustainable practices.

20. 20 New Normal – “Drivers” The New Normal is a flat economy with shifts of New Sectors and Old Sectors changing opportunities. Consolidation. Too much capacity. Specialization. Discipline. Strategic.

21. 21 New Normal – “Drivers” Realities of running a business, the entire package: –Strategic management –Customer selection –Attention to Value Proposition –Customer centric, focused on service and solving needs –Risk management

22. 22 New Normal – “Drivers” Importance of scale and efficiency. Importance of deploying technology. Public Policy: –Financial Accounting –Financial Reform –State legislation related to practices

23. 23 New Normal – “Customers” Importance of defining the customer. Company behavior, a reduced tendency to borrow. No more “single source” for customer borrowing. Customers see Equipment Finance Company as an outsource of risk.

24. 24 Marketing Matters INNOVATION -Product -Process EFFICIENCY -Low Cost ProviderCUSTOMERINTIMACY -Service -Knowledge -Integration Michael Porter’s Three Basic Go To Market Strategies

25. 25 - Which Strategy is easiest to implement? - Which Strategy is easiest to defend? - Which Strategy is hardest to replicate? INNOVATION -Product -Process EFFICIENCY -Low Cost ProviderCUSTOMERINTIMACY -Service -Knowledge -Integration Michael Porter’s Three Basic Go To Market Strategies

26. 26 Genuine Change Are We Doing This TODAY TOMORROW FUTURE OBJECTIVE FOCUS PEOPLE Extend and defend core business Build emerging businesses Business maintenance Bottom line performance Create viable options Top line growth – Capital efficiency Future potential Business builders Visionaries WORK HERE

27. 27