How to create value for your organization? Why TSR is the best metric for value creation? Why is it difficult to create sustainable value? How to build sustainable value creation strategy & create value for a longer period of time? Why CSR & brand value change not consider as a part of TSR? Why multiple compressions are so difficult to beat? Why investors & analyst discounts valuation multiple? How to transit majority investors without eroding TSR? How to create value in low growth economy? How to play your strategy with sustainable TSR matrix as per investors eye? Why investors communication is so important for value creation? Which strategy you should use for value creation? How to use value creation scenarios? Why cash strategy is so important in low growth economy? If all these question bothers you before developing your company’s corporate strategy/value creation strategy then you must see your New Year’s complimentary gift presentation “A handy e-book on how to create sustainable shareholders value”

1. ` Shareholders Value Creation must see presentation for corporate executives A handy e-book on how to create sustainable shareholders value?

12. Future TSR generation levers TSR % Fundamental Value Sales Growth Margin Brand value change Fundamental Value Change Valuation Multiple Change (Investors Expectation - EV/EBITDA) Growth Margin Cost Control Capital Structure (Debt/Equity) / Cost of Capital Dividend Payout Size (Economies of Scale) ROIC Economic profit ( Short-term measure) Industry Life-cycle Scale ( Global Scale advantage) Diversification ( Conglomerate) Others ( R & D expenditure @ % sales – depend upon industry) Use of Free Cash Flow Dividend payout - Share buyback Net debt change Cash Flow Contribution Corporate Social Responsibility Contribution Inter- linked

16. TOP 10 Sustainable Value Creator # Survey & analysis conducted by one of the top Consulting company by considering more than 6000 companies, after scrutiny final sample arrived at around 700 companies in 14 different industry excluding financial sector. 1 Average annual TSR relative to local stock-market average 1999-2008 2 As of December 31 2008 34.7 6 10.7 Technology & Telecommunication Taiwan Taiwan semi-conductor 10 38.0 6 12.1 Pharma & Medical Technology. Israel Teva Pharmaceutical 9 32.3 6 14.2 Mining & Material Holland Arcelor Mittal 8 119.5 8 14.4 Mining & Material Australia BHP Billiton 7 36.6 8 14.9 Utilities US Exelon 6 36.7 6 16.5 Chemicals India Reliance Industries 5 61.9 8 17.8 Mining & Material Brazil Value 4 53.2 8 17.9 Consumer Goods UK British American Tobacco 3 75.8 7 25.1 Technology & Telecommunication US Apple 2 46.5 10 36.4 Pharma & Medical Technology US Gilead Science 1 Market Value 2 ( $ billion) Year of Positive TSR Ten year TSR 1 (%) Industry Location Company #

25. Top value creators TSR composition in different Industry # Analysis conducted by one of the top consulting company 1 Five years average annual TSR ( 2004-08) * % of TSR & its levers are rounded off for better understanding 5 -1 3 -6 3 7 11.0 Automotive & Supply 3 -1 2 0 3 3 10.0 Media & Publishing 0 -1 3 2 -2 6 8.0 Pulp & Paper 1 -3 5 -3 -1 15 14.0 Travel & Tourism 2 1 2 -5 4 14 18.0 Transportation & Logistics 1 1 3 -2 4 13 20.0 Retail 7 0 4 2 -5 12 20.0 Utilities 2 -1 1 3 2 14 21.0 Pharma & Medical Technology -1 -2 4 5 0 16 22.0 Consumer Goods -1 0 4 -15 2 32 22.0 Mining & Material 12 -2 3 -7 2 15 23.0 Multibusiness 4 -1 2 -1 8 15 27.0 Chemicals 4 1 1 4 -1 24 33.0 Technology & Telecommunication 1 -3 2 8 8 19 35.0 Machinery & Construction Net Debt. Change % Share Change% Dividend Yield% Multiple Change % Margin Change% Sales Growth% TSR 1 % Industry Cash Flow Contribution Valuation Multiple Fundamental Value Value Creation #

27. Impact of Valuation Multiple on Total TSR # Analysis conducted by one of the top consulting company 1 Five years average annual TSR ( 2004-08) * % of TSR & its levers are rounded off for better understanding -3 -1 3 -11 0 10 -2.0 Multibusiness -4 -3 2 -7 1 6 -5.0 Automotive & Supply -5 0 3 -2 -4 1 -7.0 Pulp & Paper -2 1 3 -12 5 4 -1.0 Media & Publishing 0 -2 3 -10 3 7 1.0 Travel & Tourism -1 0 1 -10 1 10 1.0 Pharma & Medical Technology -1 1 2 -8 -1 9 2.0 Technology & Telecommunication -1 0 2 -9 2 8 2.0 Retail 1 -2 2 -7 1 8 3.0 Transportation & Logistics -1 0 3 -2 1 6 7.0 Consumer Goods -1 0 2 -6 -2 13 6.0 Chemicals -1 -1 2 -10 7 10 7.0 Machinery & Construction -1 -2 3 -14 6 17 9.0 Mining & Material 2 -1 4 3 -4 8 12.0 Utilities Net Debt. Change % Share Change% Dividend Yield% Multiple Change % Margin Change% Sales Growth% TSR 1 % Industry Cash Flow Contribution Valuation Multiple Fundamental Value Value Creation #

28. # Analysis conducted by one of the top consulting company * It consists of around 2000 companies sample with market capitalization of greater than $ 1 billion; companies were assigned to quartiles by industry on the basis of their 1998 EBITDA multiple (EV / EBITDA) 1 Valuation multiple index is the median EBITDA multiple of each quartile minus the median of total sample

30. Sales Time Valuation Multiple Time Total Market Index 20 100 80 40 60 Shares % Time Investor Category value GAAP Growth Other 1 as company gets bigger its, rate of growth slows…. .. causing its above-average multiple to decline .. and shifting the mix of its investors base towards value After periods of rapid growth, a company typically experiences multiple compression GAAP - growth against adequate profit 1 Other consists of hedge, index, international, momentum, sector-specific, specialty, venture capital, private equity & yield investors

32. 99 00 01 03 02 05 04 06 07 0 20 40 0 10 20 30 40 60 Sales $ 000’ million Growth % Valuation Multiple 1 Share % Multiple compression in US software industry caused a significant shift in Investors Base 1 Price to Earning ratio 2 Other consists of hedge, index, international, momentum, sector-specific, specialty, venture capital, private equity & yield investors 07 99 Year 18 67 Software Company 20 33 S & P 500 28% 27% Others 2 30% 14% Value 22% 27% GAAP 100% 100% Total 20% 32% Growth 07 99 Investor Mix / Year

37. Different company creates value in different way in an Industry # Analysis conducted by one of the top Consulting company 1 TSR (2003-08) 2 Weighted average of peer group * Primary source of company’s TSR are circled in red. Each factor shows percentage point of 5 year average annual TSR 16.8 6.0 10.2 16.6 19.7 20.5 20.6 Total TSR 1.1 4.4 0.0 0.0 3.0 -2.0 0 . 0 Net Debt Change 0.1 0.0 5.9 0.1 -4.3 -0.4 0.0 Share Change 1.7 0.4 0.9 0.7 2.1 0 . 0 4.0 Dividend Yield Cash Flow Contributi0n 3.5 -3.1 -0.8 3.9 10.0 6.3 3.6 EBITDA Multiple Change Valuation Multiple 0.2 -6.3 -3.1 -0.3 0.5 -1.4 8.5 Margin Change 10.2 10.6 7.3 12.2 8.4 18.0 4.5 Sales Growth Fundamental Value Peer group avg. 2 Company Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 TSR Lever # TSR 1

38. 0 10 20 30 40 50 10 20 30 40 50 Minority Peer group average % Company % Majority Investors mix compared to peers value Growth Index GAAP Income Hedge Fund Others *Analysis conducted by one of the top consulting company ( Live company example)

40. 20 % Leverage 40 % Leverage

44. Sustainable Value creation Four pathways (strategy) to create sustainable TSR Portfolio & Combined strategy always on the lookout for the next best way to beat investors expectation & deliver superior TSR Cash strategy provides sustainable TSR as long as its valuation multiple doesn’t grow too large Growth strategy provides sustainable TSR only when growth doesn’t come at the expenses of severely eroded margin Success Factor All parts of sustainability are pursued. Used by conglomerate that diversify itself into various businesses TSR is used a central metrics for value of business units Combined Strategy Redefinition of business model Divestiture & Acquisitions move company into more promising market Portfolio Strategy Good margins & increasing productivity to generate good amount of cash Return of free cash flow to shareholders & debt holders Cash Strategy Profitable above average growth that continuously exceeds investors expectation Reinvestment of cash Growth Strategy Value Creation Levers Type of Strategy

45. cash Strategy Growth Strategy Portfolio Strategy Combined Strategy Growth strategy may end up in a matured market with little prospect for further growth Successful cash strategy will eventually run out of room for further improvement Portfolio strategy will one day have to concentrate on margin improvement & balance sheet stability Growth strategy might one day reach a size where divestment & clear focus becomes necessary Possible next step Follows all three combination of value creation for different business units Four pathways of value creation can’t be static as industry, competition, economy & markets are dynamic

50. * Analysis conducted by one of the top consulting company, total global sample = 700+ companies Vale creation of global top ten performer vs. total global sample

52. British American Tobacco & McDonald’s are good example of cash strategy; outperforming local index & generating sustainable TSR with margin improvement * Analysis conducted by one of the top consulting company 1 Ten-year average annual sales growth 2 Ten-year average annual TSR 3.3 11.4 S & P 500 avg. 7.0 6.6 McDonald’s 19.0 5.5 British American Tobacco TSR 2 % Sales Growth 1 % 1998-2008