MHM

MHM CORPORATE DEVELOPMENT EXPERIENCE – OUTSOURCING SECTOR

MHM1. OVERVIEW – MHM STRATEGY ENHANCING PROJECTS

BY ENHANCING STRATEGY MHM CORPORATE DEVELOPMENT PROJECTS UNLOCK CLIENT GROWTH POTENTIAL – FOR EXAMPLE:

• SERVICES – ADDING SERVICES CURRENT CLIENT CUSTOMERS BUY, DISPOSING OF THOSE THEY DON’T AND ACCESSING IMPORTANT NEW CUSTOMERS IN:

- EMS & ODM - AFTERMARKET- DESIGN

- PRODUCTION EQUIPMENT - OPTICAL & SEMICONDUCTOR

MARKETS – FOCUSED ON GROWTH ENSURING GEOGRAPHICAL COVERAGE WITH NO DUPLICATION AND DEVELOPING GROWTH MARKET SECTORS:

- DEVELOPING BRICS, RATIONALISING INDUSTRIALISED  

- DEVELOP GROWTH IN AUTOMOTIVE, OPTICAL & SEMICONDUCTOR, DATA CENTRE & CLOUD, MEDICAL AND MANY OTHER GROWTH SECTORS

COMPETITIVE ADVANTAGE – MHM RESEARCH FOCUSES ON MAXIMISING CLIENT CUSTOMER ACCOUNT AND SERVICE MARKET % SHARES

SYNERGY – FOR EXAMPLE ENSURING [CLIENT + ACQUISITION] GREATER THAN [CLIENT] + [ACQUISITION]

- SIGNIFICANTLY GEARING GROWTH

GROWTH VECTOR – WHERE APPROPRIATE, ADDING HIGH SYNERGY NEW SERVICES

- DESIGN, AFTERMARKET, AUTOMATION & EQUIPMENT PRODUCTION OR OTHER

MHMCONTENTS : MHM OUTSOURCING SECTOR CORPORATE

DEVELOPMENT EXPERIENCE

1. OVERVIEW – MHM STRATEGY ENHANCING PROJECTS

2. MHM OEM OUTSOURCING CONSULTANCY – SUPPLY AGREEMENT & DIVESTITURE PROJECTS

3. MHM EMS & ODM OUTSOURCING CONSULTANCY – ACQUISITION, DISPOSAL, JV, PARTNERSHIPS, FOOTPRINT ENHANCEMENT & SUPPLY AGREEMENTS

 

MHM

2. MHM OEM OUTSOURCING CONSULTANCY SERVICES - SUPPLY AGREEMENT & DISPOSAL

MHMMHM BRAND NAME OUTSOURCING

CONSULTANCY MHM CLIENTS:

MHM

MHM – OEM SUPPLY AGREEMENT AND DIVESTITURE SERVICES

MHMMHM – OEM ‘SUPPLY AGREEMENT & DIVESTITURE SERVICES’

THE MHM SERVICE MENU IS PROVIDED TO ENABLE THE OEM TO DO ONE, OR MORE, OF THE FOLLOWING:

  EVALUATE THE BEST OUTSOURCING - OR ODM OPTIONS 

DIVEST HIGH COST - LOCATION ELECTRONICS DESIGN/MANUFACTURE UNDER BEST TERMS

BRING ON LOW COST - DESIGN/PRODUCTION PRIMARILY MHM ACHIEVES THIS BY EVALUATING THE BEST ROUTE, REGION AND CONTRACT TERMS   OEM DIVESTITURE TABLE   

MHMIDENTIFYING BEST SUPPLIER AND CREATING OPTIMUM CONDITIONS

BY EVALUATING THE BEST DESIGN OR MANUFACTURE SUPPLIER, OPTIMUM REGION IDENTIFICATION AND OPTIMISATION OF CONTRACT CONDITIONS, MHM WILL ADD $M VALUE TO THE OUTSOURCING AGREEMENT AND SITE DISPOSAL, IF APPROPRIATE. THE MHM PROJ ECT WILL ACHIEVE THIS BY: REDUCING OEM DESIGN AND MANUFACTURE COSTS - TRANSFER HIGH COST DESIGN AND

MANUFACTURE TO LOW COST - CREATING ADDITIONAL REALISTIC PARTNER OPTIONS - THOROUGHLY EXAMINING GLOBAL ODM, DESIGN OUTSOURCING, EMS, VC AND OTHER SUPPLY CHAIN POSSIBILITIES - OPTIMISE SUPPLY AGREEMENT CONDITIONS - MIGRATE DESIGN AND MANUFACTURE - TO DEVELOPING REGIONS (CHINA/CENTRAL/SOUTH AMERICAS/EASTERN EUROPE) FROM HIGH COST REGIONS

MHMMAXIMISING DISPOSAL CASH PROCEEDS – INCREASING

NUMBER OF QUALITY BIDDERS FOR ASSETS

MAXIMISE ASSET DISPOSAL VALUE - EQUIPMENT/BUILDING/ INVENTORY

CONDUCT 'SALE AND LEASEBACK' TENDER – IF REQUIRED

REALISE VALUE - FOR SUPPLY CONTRACT BECOME LESS DEPENDENT ON 1 / 2 EMS/ ODM CEM SUPPLI ERS FIND PARTNER - WHO VALUES YOUR ASSETS THE HIGHEST

MHMMINIMISING DISRUPTION TO YOUR BUSINESS

ENSURE SECURITY OF SUPPLY - WELL QUALIFIED PARTNER CHOICE

TIMESCALED PROJ ECT PLAN - AND IMMEDIATE EXECUTION

CONFIDENTIAL SERVICE - ONLY TOP 3 PROSPECTS, OR LESS, KNOW OEM IDENTITY

OPTI ONS ESTABLISHED - BEFORE WORKFORCE, TRADE UNION AND FINANCIAL PARTNER DISCUSSIONS

MHM

MANUFACTURI NG COST REDUCTION - ON A SHORTER TIMESCALE AND WITH REDUCED RESOURCE OPTIMI SE SUPPLY AGREEMENT

ACHIEVING TARGETED LOW-COST-BASE PRODUCTION PROPORTI ON - IN A MINIMUM OF TIME

BRINGING ON BOARD OPTIMUM OUTSOURCING PARTNERS - TO ACHIEVE LOWER COSTS

MAKI NG BEST CHOI CES OF COUNTRY OPTIONS - OR GLOBALLY

ENHANCE CONDITIONS WHILE MAXIMISING DIVESTMENT PROCEEDS & ENSURING SECURITY OF SUPPLY

MHMMHM DESIGNS BEST ROUTES AND REGIONS

REGIONS - THERE ARE 20+ REGIONAL LOW-COST-BASE OPTIONS ROUTES - THERE ARE 12+ ROUTE OPTIONS, LIMITLESS COMBINATIONS AND EVALUATIONS WITHIN OPTIONS WHICH WILL TAKE SIGNIFICANT RESOURCE  ROUTE OPTIONS 

MHM

GLOBAL TOP 3 COMMS OEM R&D COST REDUCED, VIA DESIGN CENTRE DISPOSAL & INDIA/CHINA OUTSOURCING - MAJOR COMMUNICATIONS BRAND NAME OUTSOURCING PROJECT - IP/DECT/DESKTOP PHONE DESIGN OUTSOURCED IN INDIA & CHINA, INCLUDING SOFTWARE – MORE : SUPPLY CHAIN/AGREEMENT CONSULTANCY

  CLIENT FEEDBACK : CLIENT COMMENTED MHM ONE OF FEW REPUTABLE CONSULTANCIES CAPABLE OF SUCH WORK, REPEAT BUSINESS LATER  REGION: FRANCE SECTOR: R&D FOR COMMUNICATIONS 

OEM OUTSOURCING & SITE DIVESTMENT CASE STUDY OVERVIEWS

MHM

MHM ASSESSES BEST MULTI-PLANT DISPOSAL OPTIONS - MHM ARRANGE INTERCONTINENTAL MULTI-PLANT DISPOSAL TERMS AND ADVISE SUPPLY AGREEMENT TERMS FOR 'GLOBAL TOP 5' PC PLAYER. VENDOR APPRAISAL ON THE TOP 8 GLOBAL PLAYERS. 

- PLUS MHM CONDUCTS ‘SALE & LEASEBACK’ TENDERING ON €7.5M PROPERTY- MHM ALSO CONSTRUCTS CONTRACTS

  CLIENT FEEDBACK : CLIENT GRATEFUL FOR REDUCED FEES ON ‘SALE AND LEASEBACK’. PROJECT DECISION BACKS OFF OUTSOURCING DUE TO RISK  REGION: UK SECTOR: PC COMPUTER

OEM OUTSOURCING & SITE DIVESTMENT CASE STUDY OVERVIEWS (CONTD)

MHM

€100M SUPPLY AGREEMENT + DISPOSAL/VENDOR APPRAISAL -MHM EVALUATE €100M SUPPLY AGREEMENT AND MANUFACTURING SITE DISPOSAL PROSPECTS – MORE : SUPPLY CHAIN/AGREEMENT CONSULTANCY  CLIENT FEEDBACK : SUCCESS FEE PAID!  REGION: UK SECTOR: ELECTRONICS

OEM OUTSOURCING & SITE DIVESTMENT CASE STUDY OVERVIEWS (CONTD)

MHMOEM OUTSOURCING CASE STUDY OVERVIEWS (CONTD)

MHM IDENTIFIES OPTIMUM MANUFACTURING PARTNER FOR NORTH AMERICAN AUTOMOTIVE ENERGY PRODUCT OUTSOURCING  – MHM COMPLETED A GLOBAL (CEE, ASIA, MEXICO) VENDOR APPRAISAL ANALYSING THE COMPANIES WHO COULD BEST SUPPLY ENERGY STORAGE PRODUCT CLIENT. 

  RESULT WAS SIGNIFICANTLY REDUCED COST INCREASED FLEXIBILITY AND SIGNIFICANTLY REDUCED COMPLEXITY.  REGION: NORTH AMERICA  SECTOR: ENERGY STORAGE PRODUCTS

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3. MHM EMS & ODM OUTSOURCING CONSULTANCY – ACQUISITION, DISPOSAL, JV, PARTNERSHIPS & FOOTPRINT ENHANCEMENTS

MHM

MHM EMS & ODM OUTSOURCING INFORMATION AND CONSULTANCY

MHM CLIENTS INCLUDE:

MHM

BUILDING CLIENTS GLOBAL MANUFACTURE, SERVICE, R&D & AFTERMARKET NETWORKS

- ACQUISITIONS

MHMMHM OUTSOURCING ACQUISITION CONSULTANCY SERVICES –

BUILDING CLIENT’S GLOBAL NETWORKS

MHM RESOURCES DEVELOPED FOR ITS DESIGN AND MANUFACTURING & DATA CENTRE CONSULTANCY - OVER 25 YEARS

MHM’S DEDICATED TEAM – REGULARLY CONDUCTS PROJECTS

... GLOBAL ‘CONTACT NETWORK’ UNPARALLED

… MANY PROJECTS

… FOR EMS, ODM, R&D, AFTERMARKET, PRODUCTION EQUIPMENT & OEMS

MHMUTILISING THE FOLLOWING STEPS: ACQUISITION STRATEGY DEFINITION - INCLUDING ROUTE AND

METHOD, GOOD PLAN AT OUTSET ANALYSIS OF BEST SECTORS AND COMPANIES – OPTIMISING

SHORTLIST CONFIDENTIAL COMPANY INTERVIEWS – OFTEN WITHOUT REVEALING

CLIENT IDENTITY TARGET OPPORTUNITY POINTS RANKING - AND RECOMMENDATIONS

AS TO BEST OPTIONS - OFTEN RESULTS IN CONDENSED ‘WEEKS MEETINGS’ LEGAL AGREEMENT STRUCTURING AND NEGOTIATION ADVICE – IF

REQUIRED

MHMEMS & ODM CLIENT CASE STUDY OVERVIEWS

INCREASED HIGH GROWTH MARKET REVENUE AND NEW BLUE CHIP CUSTOMER ACCESSED IN OEM DIVESTMENT ACQUISITION DEAL - MHM TARGETS AND ARRANGES CEE ELECTRONICS MANUFACTURING OEM DIVESTMENT FOR GLOBAL TOP 5 EMS IN ‘NET ASSET VALUE’ DEAL YIELDING €100M’S OF PROFITABLE REVENUE

  SECTOR :   ENERGY/POWER REGION:   EUROPE  

40% PA GROWTH ACCESSED VIA CEE ELECTRONICS MANUFACTURING OEM DIVESTMENT ACQUISITION - MHM PROJECT TARGETS DEAL FOR CEE SITE OF MAJOR OEM.  €600M PROFITABLE REVENUE STREAM CREATED FOR GLOBAL EMS CLIENT IN ‘NET ASSET VALUE’ ACQUISITION COST DEAL - MORE

  SECTOR :   COMMUNICATIONS REGION:   CEE

MHMEMS & ODM CLIENT CASE STUDY OVERVIEWS (CONTD)

CHINESE COMPLEX ELECTRONICS PRODUCTION ACQUIRED - MHM PROJECT ESTABLISHED MANUFACTURE IN CHINA - MORE : VIA SUCCESS FOR ACQUISITION 

SECTOR :   OPTICAL ELECTRONICSREGION:   CHINA

   €100MS OF NOKIA BUSINESS GAINED – VIA NOKIA SUPPLIER ACQUISITION IN MHM PROJECT WHICH SCREENED, RANKED AND INTRODUCED BEST PROSPECTS 

SECTOR :   COMMUNICATIONS MOBILE PHONEREGION: NORDIC

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CHINESE BASE STATION MANUFACTURER ACQUISITION PROSPECTS IDENTIFIED - EMS CLIENT PROVIDED WITH SHORTLIST OF MOST ATTRACTIVE CHINESE MANUFACTURING ASSET

ACQUISITIONS.  GROUNDWORK INCLUDES RESEARCH PLUS 12 COMPANY VISITS IN CHINA (+ CHINESE BASE STATION MANUFACTURE SUPPLIER TOUR) 

SECTOR :   MOBILE PHONE INFRASTRUCTUREREGION:   CHINA

EMS & ODM CLIENT CASE STUDY OVERVIEWS (CONTD)

MHM

MHM OUTSOURCING DISPOSAL CONSULTANCY – FOCUSING CLIENT’S

BUSINESS

MHMTHE MHM DISPOSAL CONSULTANCY INCLUDES

MHM REVIEWS THE THINKING AND INTERACTIVELY DEVELOPS THE BEST DISPOSAL ROUTE OPTIONS. OFTEN INVOLVING INTRODUCTION OF PARTNERS OFFERING CASH AND THE ABILITY TO BREATHE NEW LIFE INTO THE OPERATION. OPTIMI SING ROUTES FOR DI SPOSAL - TAKING JOINT VENTURE, ASSET LEASING, OUTRIGHT OR

PART SHARE SALE, MBI/MBO AND OTHER OPTIONS INTO ACCOUNT RESEARCHING AND CONFIDENTIALLY ESTABLI SHING CONTACTS – WITH EACH OF THE

PRACTICAL PROSPECTS IN THE DISPOSAL ROUTE POSSIBILITIES ANALYSING WHICH PROSPECTS WILL LIKELY FIT BEST PRODUCING A HIGH-QUALITY SALE OVERVI EW DOCUMENT - TO ENSURE YOUR ASSETS ARE

SHOWN IN THE BEST POSSIBLE LIGHT - ENSURE THIS IS THOROUGHLY, BUT CONFIDENTIALLY, CIRCULATED AMONG THE APPROPRIATE PROSPECTS

- CLIENT IDENTITY NOT IN OVERVIEW DOCUMENT MAXI MISING VALUE - OBTAINING COMPETING BIDS IDENTIFYING THE OPTIMUM BUYER - WITH THE BEST PRICE AND CONDITIONS

MHMEMS, MECHANICAL, OEM & PCB DISPOSAL CASE STUDY

OVERVIEWS

OEM SITES DISPOSAL TO OTHER MHM CLIENT FOLLOWS MARKET PROSPECTS ANALYSIS - MHM RECOMMENDS DISPOSAL OF (1M SQ FT) OEM MANUFACTURE - TWO ITALIAN FACILITIES SOLD TO OTHER MHM CLIENT

 CLIENT FEEDBACK : CLIENT NOT WILLING TO TAKE MHM’S ADVICE – HIRED WELL-KNOWN CONSULTANCY WHO GAVE THE SAME ADVICE.  PROJECT COMMENCED CONTINUED WITH MHM’S INITIAL RECOMMENDATION! REGION:   ITALYSECTOR:   COMPLEX COMPUTING

  MHM EMS CLIENT DISPOSAL PRICE PUSHED OVER $100M MARK WITH MHM CREATIVE

EXPANSION PROSPECTS ANALYSIS – ANALYSIS OF GLOBAL EXPANSION PROSPECTS, PRESENTED DURING DISPOSAL NEGOTIATIONS, HELPED INCREASE PERCEIVED VALUE FOR THIS NORDIC OWNER RUN BUSINESS. 

 CLIENT FEEDBACK : CLIENT VERY PLEASED WITH SALE PRICE REGION:    FINLAND SECTOR:    MOBILE PHONE

MHMEMS, MECHANICALS, OEM & PCB DISPOSAL CASE STUDY

OVERVIEWS (CONTD)

€20M EMS FACTORY SOLD TWO YEARS FOLLOWING BUILD –24,000 SQ M CEE ELECTRONICS ASSEMBLY OPERATION DISPOSED OF.  CONFIDENTIAL BROCHURE MAILING TO 7000 ELECTRONICS MANUFACTURERS GLOBALLY - MORE,  MORE 2

 CLIENT FEEDBACK : … SURPRISED BY BUYER IDENTITY!  ALL IN-PROJECT PERFORMANCE TARGETS MET BY MHM REGION:   CZECH REPUBLICSECTOR:    ENERGY RELATED ELECTRONICS 

POTENTIAL LOSS MAKER DISPOSED OF FOLLOWING MHM ANALYSIS - MHM ASSESSES VIABILITY OF CLIENT'S REGIONAL EMS OPERATION - INCLUDING FUTURE PROSPECTS - OPERATION SOLD.  MORE

 CLIENT FEEDBACK : MHM’S ADVICE GOOD REGION:   IRELANDSECTOR:   AUTOMOTIVE ELECTRONICS 

MHM

LOSS MAKING LSE QUOTED PCB MANUFACTURER SOLD - MHM ARRANGES SALE OF LSE QUOTED ELECTRONICS SUBCONTRACTOR TO THE OLIVETTI GROUP

CLIENT FEEDBACK : CLIENT HAPPILY PAID SUCCESS FEE – A SMALL FRACTION OF LOSSES ACCUMULATING REGION:   UK SECTOR:    ELECTRONICS

EMS, MECHANICAL, OEM & PCB DISPOSAL CASE STUDY OVERVIEWS (CONTD)

MHM

FOR ADDITIONAL INFORMATION CONTACT: Michael Hannon

Programmes Manager & Consultant MHM Outsourcing Consultancy Services 

Mobile:  Int + 44 (0)775 363 2384Email:    mike@mhm.info Web:     www.mhm.info