Introduction to Alta Bering`s EPO framework and application for performance management.

1. Alta Bering and Enterprise Performance Optimization An Introduction 5/16/2009

2. Who Is Alta Bering? Enterprise software company based in Berkeley, CA Principals have extensive background in performance optimization for a wide range of businesses Levend Beriker, CEO Lifelong entrepreneur and business manager 15 years performance consulting with Global 2000 firms BS, Industrial Engineering; MBA, Finance Mahmut Karayel, Chief Scientist PhD in Operations Research from UC Berkeley Former Global Head of Analysis, Babcock & Brown

3. State of the BI Category Focus on “what is” Reporting, visualization Inflation of terms “Planning” is mostly data entry “Analytics” is mostly visualization “Optimization” is inconclusive what-if

4. Alta Bering Delivers True Optimization Improved return on capital “More with less” From existing BI data

5. The Opportunity Inefficient allocation of resources is costing billions of dollars This represents the largest single untapped opportunity for enterprise software vendors

7. The gain for these 4 companies is $784M/year

8. They represent just 4% of total revenues of this group

9. This type of value creation is how BI companies should be selling•Avon Products Inc. •Beiersdorf AG •Cadbury plc •Campbell Soup Co. •Chiquita Brands International Inc. •Clorox Corporation •Colgate-Palmolive Co. •Companhia de Bebidas Das Americas (AMBEV) •Compania Cervecerias Unidas S.A. •ConAgra Foods, Inc. •Core-Mark Holding Company, Inc. •Cott Corp. •Del Monte Foods Co. •Diageo plc •Dr Pepper Snapple Group, Inc. •Fresh Del Monte Produce Inc. •General Mills Inc. •Groupe DANONE•Hansen Natural Corporation •Hershey Co. •HJ Heinz Co. •Kao Corp. •Kellogg Co. •Kimberly-Clark Corporation •Kraft Foods Inc. •Lion Corporation•L'Oreal SA •National Beverage Corp. •Nestlé S.A. •Parmalat SpA •Pepsi Bottling Group Inc. •Pepsico, Inc.•Procter & Gamble Co.•Reckitt Benckiser Group plc •San Miguel Corp. •Sara Lee Corp. •Seneca Foods Corp. •Shiseido Co. Ltd. •Starbucks Corp. •Unilever NV •Universal Robina Corp. •Wimm-Bill-Dann Foods OJSC.• The Coca-Cola Company Source Capital IQ- FY08 -

10. Reasons for Misallocation No internal pricing mechanism for resources Planning process is highly politicized and dysfunctional No strong link between financial and operational planning BI systems provide too much data for management teams to utilize Partial solutions – average-based KPIs and balanced scorecards – make the problem worse

11. The Missing Questions To maximize the return from a set of resources, you need to know: How much improvement is possible? How, specifically, can each business unit achieve it?

12. Answering them Requires… Complex multidimensional analysis and optimization algorithms that act on all available performance data Delivered through an interface that any business manager can use easily and quickly This is Alta Bering EPO™

13. Enterprise Performance Optimization The analysis of performance data to maximize the return on any combination of financial and non-financial resources.

14. Traditional Planning vs. EPO Process Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Performance Period (Quarterly, Sometimes Monthly) Manual Analysis Create KPIs Publish KPIs Negotiate KPIs Traditional Evaluate/ Compensate “Days, not months” EPO Auto Optimize Create Individual Scorecards Publish Scorecards Performance Period (1 day+) 3 hours Evaluate/ Compensate

15. Organizational Benefits Effectiveness Better return on enterprise resources Bridge budgeting and operational planning Align strategy and incentive compensation Agility Reduce planning/budgeting from months to days Respond immediately to any threat or opportunity No reporting/analysis bottleneck Drive Improvement Through the Organization Automatically create peer scorecards for all organization levels Identify sub-optimal performers and the factors contributing to poor performance Support for “performance bidding”

16. Proven Across Industries and Functions Banking Product Mix Optimized for profit and strategic goals Reduced cycle time by 10x Bank Operational Efficiency Reduced wait times with 10% fewer people Better allocation of ATMs Pharmaceutical Sales Optimized rep productivity Helped re-structure distribution channels Retail Grocery Monitor performance of 800 stores Optimized revenue/profit balance based on rational benchmarks Auto Parts Shipment Reduced parts inventory and shipping costs while minimizing line stoppage Saved €10M in first 3 months Beginning work with Coca-Cola Financial & operational optimization

17. Alta Bering EPO™ Product Peer-based optimization system Highly visual “no keyboard” environment One hour of training to start getting benefits If you can talk about the specifics of your business, you can use Alta Bering EPO

18. Thank You! levendberiker@altabering.com