Client Overview Presentation

1
Client Overview Presentation

• -Confidential-
• Retained Executive Search
• EVP GM, N. America

2
Key Highlights

• Leading global market position
• Strong momentum in North American market
• Strength in developing innovative value-added
  products
• Demonstrated research and development expertise
• 1 in growing North American chain retail channel
  and managed care channels
• Strong direct to retail business in Europe and
  Australia
• Experienced management team

3
A Global Innovator

• Driven by technology and innovation, The Client
  has grown to be the second largest supplier of
  their products in the world
• Headquartered in the US
• Approximately 6,000 employees as of 3/31/03
• At 9/30/03, LTM revenue was 601.7 million and
  EBITDA was 98.4 million
• Unique product manufacturing competency having
  have produced more than 2 billion units
• The Client operates in every major region of the
  world, concentrating in North America and Europe
• Sales offices in over 25 countries
• Three primary manufacturing locations Mexico,
  Brazil and China
• Five primary distribution centers 2 in the US,
  1 in UK, 1 in Latin America, 1 in Australia
• 29 secondary processing sites, including 7 in the
  US

4
Worldwide Presence
Secondary Processing Sites
5
Our Marketplace

• Global market estimated at 500 million units per
  annum, with revenues of approximately 3 billion
  (ex-factory prices)
• Global market growing at 3 to 4
• Value-added products primarily marketed in North
  America, Europe, Japan and Australia
• Retail chains are slowly growing their market
  share and becoming international
• Little to no consumer awareness of brands
• Virtually unaffected by alternative solutions

6
Illustrative Value Chain
Average Selling Price
7
Significant Barriers to Entry

• To be successful in this business requires a new
  entrant to possess
• Patented designs and materials from sustained R
  D investment
• Manufacturing competency
• Marketing expertise
• Recognized and dependable brand names in industry
• Global market presence and broad distribution
  capabilities
• Vertically integrated secondary processing sites
• Breadth of product range

8
Competitive Landscape

• Over 50 companies compete in the Clients market
• Only three global players

• Competition based primarily on breadth of
  portfolio, product innovation, quality, service
  and price

9
Globally Diversified

• The Client has three primary markets North
  America, Europe and Rest of World

Twelve Months Ended March 31, 2003
Revenue 562.7mm
EBITDA 86.6mm
10
Value Added Products
of Revenue
72

• Product Category A
• Relatively few competitors
• The Client has innovative, patented designs2
  recent launches
• The Client generates over 225mm in revenue
  annually
• Higher than average gross margins
• Product Category B
• Niche market
• Higher ASPs and higher gross profit
• Product Category C - Specialty Materials
• The Client has two proprietary materials
• The Client has significant capacity in specialty
  material based manufacturing
• Polycarbonate is fastest growing material in
  optical industry
• Product Category D
• Relationship with DuPont began in 2002
• Premium pricing
• Easy for retailer to sell
• High growth potential

11
Historical Results
Historical Revenue (mm)
Historical EBITDA and Margin1,2 (mm)
16.4
13.3
15.4
13.2
Fiscal Year Ended March 31

• NOTES
• Excludes amortization of debt issuance
• 2001 EBITDA excludes non-recurring charges,
  including the following inventory write-off of
  25.6mm, restructuring charges of 91.1 million
  and charges related to the devaluation of the
  Brazilian Real of 3.1 mm

12
Quarterly North American Revenue Growth
5 quarters of consecutive growth
7
7
12
11
10
Growth
13
Organizational Responsibility
EVP GM, No. America Total Headcount
Responsibility 1000
14
Seasonal Revenue Trends
15
Consolidated Operating Results

• NOTES
• Excludes inventory write-off charge of 25.6mm in
  2001
• Excludes restructuring charge of 91.1mm in 2001,
  charge related to the devaluation of the
  Brazilian Real of 3.1mm in 2001, and other
  special charges of 28,000 in 2002
• Includes charges detailed in Notes 1 and 2
• Excludes all charges detailed in Notes 1 and 2
• Excludes amortization of existing debt issuance
• Based on revenue of 537.8 million for the twelve
  months ended 09/30/02

16
Lab Acquisition Strategy

• 10-15 additional secondary processing sites in
  North America
• Target annual spend of up to 35 million
• Key Criteria
• Quality of management
• Location
• Operating margins at or over company margins
• Sales range from 4 million to 25 million
  annually
• Competitive strength in high leverage
  technologies
• EBITDA multiple of approximately 4.0x 6.0x
• Accretive in year 2

17
Summary

• Leading global market position
• Strong momentum in North American market
• Strength in developing innovative value-added
  products
• Demonstrated research and development expertise
• 1 in growing North American chain retail channel
  and managed care channels
• Strong direct to retail business in Europe and
  Australia
• Experienced management team