The Case forThe Case for

A Comprehensive Supply Chain SolutionA Comprehensive Supply Chain Solution

Spring 1999Spring 1999

2

Agenda

General Cable Corporation Overview

Supply Chain Case Study

Telecom Business

Recent Acquisition

Career Planning

3

General Cable Company Profile

Size = ~ $1.2 Billion Sales ~ $128 Million Operating Income

Products = Copper, Aluminum & Optical Fiber Wire & Cable

Markets = Communications & Electrical

Facilities = 18 Manufacturing Plants 5 Regional Distribution Centers

Employees = 4,600 Associates

An Industry Leader

4

Specialty Building Wire

6%

Non-Residential Building Wire

20%

Residential Building Wire

12%

Instrumentation& Control

11%Cordsets

5%Communications

Assemblies2%

Automotive5%

Electronics3%

Data Communications

11%

Telephony/Outside Plant25%

General Cable Product Mix

Electrical: 59%Electrical: 59%

Communications: 41%Communications: 41%

Everything Our Customers Need - Power of One

5

$858$936

$1150 $1242

$1028

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

1995 1996 1997 1998 1999Analyst

Est.

Constant 1998 Copper Copper Impact

$1044$1135 $1150

$1242

$1061

Results of Operations1995 -1999 Est.

Net Sales ($MM)Net Sales ($MM) Operating Earnings ($MM)Operating Earnings ($MM)

$79

$45

$105

$130

$148

5.2%

8.4%

10.2%

11.9%11.3%

$0

$20

$40

$60

$80

$100

$120

$140

$160

1995 1996 1997 1998 1999Analyst

Est.

0%

2%

4%

6%

8%

10%

12%

6

Agenda

General Cable Corporation Overview

Supply Chain Case Study

Telecom Business

Recent Acquisition

Career Planning

7

GCC Supply Chain Management - 1995

Industry Characteristics-1995

Warehouses: 80

Inventory Turns: 4.2

Typical Cycle: 15 - 45 days

Metrics: None

Technology: Outdated

Processes: Manual andUnresponsive

Fill Rates: 80 - 85%

High operating costs

Poor asset utilization

Large inventory investments

Long cycle times

Poor customer service

Unresponsive planning systems

ResultsDomino Approach

Purchasing

Manufacturing

Warehousing

Distribution

Transportation

Custom

erS

atisfaction

Fragmented and Functional Management

SCM Professionals: 1

8

Supply Chain Management - 1998

GCC

GCC Characteristics-1998

Anaheim, CA

Dallas, TXAtlanta, GA

Tampa, FL

Low operating costsOutstanding asset utilizationReduced inventory investmentsShort cycle timesLegendary customer serviceResponsive planning systems

RESULTS

Horizontal and Integrated Management

CustomerRequirements Purchasing

Forecasting&

SchedulingManufacturing

Replenishment &

DistributionTransportation

CustomerSatisfaction

Processes

Systems and Information Flows

Financial Management

Product & Service Flows

1998 Network

Toronto

Vineland, NJLebanon, IN

Seattle, WA

SCM Professionals: 20

Warehouses: 9

Inventory Turns: Up to 5.5 Typical Cycle: 1 - 3 Days

Metrics: Comprehensive

Technology: State of the Art (Downstream)

Processes: Fast and Improving

Fill Rates: 95+%

Clifton, NJ

9

The team had driven substantial change: Three year strategic plans and annual business plans are a part of our culture 70 warehouse locations have been closed Five new distribution centers are fully operational These five facilities, with a total of 1.1 million square feet, shipped $700 million in 1998 sales We hired more than 200 Associates and re-located approximately $100 million of finished goods inventory to enable this network Metrics are comprehensive and timely, enabling all organizations to understand and react to key challenges Inventory accuracy now exceeds 98% Inventory planning and deployment is now driven by full-time professional supply chain managers 7 to 40 day cycle time reductions have been driven through our scheduling and deployment processes Several thousand SKUs have been eliminated More than 40 enhancements have been made in redesigning our legacy systems, enabling basic upstream capabilities such as planning and deployment State of the art systems have been installed downstream:

Modern, paperless warehouse and transportation management systems support our new infrastructure Every bar code in the company has been re-designed Approximately 500,000 data elements were corrected to enable the systems to operate properly

Partnerships have been developed with key carriers, driving several progressive programs: 60% of our carriers have been eliminated EDI relationships now represent 65% of all transactions, up from zero less than one year ago Dynamic consolidation programs are driving bottom-line savings Metrics are timely and actionable Internal costing is now activity-based

10

Key Customer BenefitsOur customers are rewarding our results. For example:

Our top 20 customers, representing 60% of company sales, are growing at 30% annually

The Home Depot will exceed $150 million in 1999 sales. We are shipping at 98% fill rates through our new network. Products are sold on behalf of 5 product teams, manufactured in 12 plants. Volume is up from less than $10 million three years ago

US West views our capabilities as so progressive that they asked us to re-design their supply chain capabilities, and at one point asked us to provide the logistics services

Together with Sales Systems, we’ve brought a number of value-add services to our customer base: Comprehensive EDI capabilities VMI Direct Store Delivery Consolidated, cross-dock DSD Advance Ship Notifications Custom bar coding

Inventory turns are up 25%, supporting a RACE near 30%

11

Key Customer Benefits

GE SupplyGE Supply

12

Lessons Learned

Dallas RDC Unionization

Poor Atlanta WMS Start-up

Poor fill rates

Leadership and union avoidance training Negotiated a contract which produced

$180,000 in savings over 3 years Building the foundation for decertification

NERDC Results: Transparent to our customers, went live with WMS, constructed a new facility, staffed up by 50%, launched The Home Depot, increased line volume throughput by 300%, and moved $10 million of inventory out of 3 buildings into new facility

Comprehensive root cause analysis Compensation system alignment Resource deployment

To be sure, we had some “set backs”, but we’ve learned from the disappointments to build an even stronger capability:

Set Back Reaction

13

Cross-functional teamwork will be more important than ever

Service and turns will be heavily dependent on manufacturing execution

Forecasting and demand management will contribute to service success

State of the art supply chain systems (planning, scheduling, manufacturing and

deployment tools) will drive step change performance in service, output, and

working capital

“Turns and service” will drive all priorities

The foundation has been built for success in 1999 and beyond:

1999 AND BEYOND

14

What Is It?

An integrated system solution consisting of a suite of tools.

The suite is connected to instantly view results of activities up and down the supply chain.

Demand ManagementDemand Management

–Forecast accuracy and integrity–Data based insights–Consensus planning–Uncertainty reduction–Impact modeling–Planning by customer

Inventory & ReplenishmentInventory & Replenishment PlanningPlanning

–Simulation modeling–Inventory optimization–Planning by targets–Continuously reconcile demand with supply–Constraint balancing–Available to promise capability

Manufacturing PlanningManufacturing Planning

–Optimizing resources–Balancing demand priorities with objectives–Finite capacity planning–Cross enterprise utilization–Activity based costing models–ADC/paperless shop floor

On Line, Enterprise Wide, Real TimeOn Line, Enterprise Wide, Real TimeSales and Operations PlanningSales and Operations Planning

15

Benefits Summary

Cycle Time Reductions Significant (40%)

Data Entry Reductions Significant (75%)

WIP Reductions Significant (25%)

Lead Time Reductions Significant (30%)

Product Quality Input Significant (15%)

Sounds Like a “Silver Bullet” - Too Good to Be True?

16

Risks and Concerns

This is only software - it doesn’t actually manufacture or distribute products

It does not keep equipment up and running

It is fully dependent on high quality data - many parts of our company do not have it

Significant culture and behavioral changes are required

“Top grading” will be required

System is LAN/WAN based

We Must Not Be Lured Into Thinking $2 Million and 6 - 12 Month Systems Integration Project Will Take

Us to a Significantly New Level of Performance

17

Agenda

General Cable Corporation Overview

Supply Chain Case Study

Telecom Business

Recent Acquisition

Career Planning

18

Outside Voice & Data Products

GCC markets telecommunications wire & cable products to RBOCs, independent telephone companies and communications distributors

General Cable, CSI and Superior deliver 90% of the U.S. demand

GCC operates a customer-driven team focused on outstanding service and value creation

Superior39%

CSI18%

Nordx3%Essex

5%

Other2%

GCC33%

Business OverviewBusiness Overview CompetitorsCompetitors

BellSouth Graybar Ameritech USWESTGTE Supply SBCPower & Telephone Supply

Key CustomersKey Customers

19

Business Strategy

Perfect quality Low cost producer Competitive pricing Relentless productivity Strong brand recognition Reputation as service leader Capital investment for future

quality and growth

Reduce fixed costs in customer operations (facility closures)

Drive non-price approaches to customer productivity (Copper forward purchase, Copper tolling programs…)

Drive working capital and operating cost reductions through process re-design

Provide VMI to drive outstanding turns and service for our customers

Responsiveness through on-site integration managers

Our assets, expertise and creativity are focused on providing outstanding quality and service at competitive pricing, while simultaneously driving “value” on behalf of our customers.

Customer “Value” CreationCustomer “Value” Creation

Business FoundationBusiness Foundation

Proven Results - Demonstrated Value

20

Value-Add Services

Reels Management

Customer FValue-Added Services Customer A Customer B Customer C Customer D Customer E

"Power of One" Sales

"Supplier as Customer"

Copper Tolling

VMI

On-Site Integration Manager

MWBE Programs

Copper Forward Purchase

Fixed Asset Elimination

Process Integration

100% Supplier

We continue to provide an increasing array of services to our customers.

We Seek to Differentiate GCC and OurCustomers With Creative Value-Add Services

21

Result: Poor service and long lead times

Foundation For Service ExcellenceWe have departed from industry norm and taken a radically different approach to planning, scheduling, manufacturing and finished goods strategies.

Industry Standard

Feb 1 Schedule March Production

Time (Weeks)

General Cable Approach

Result: Outstanding service and short lead times

Jan 28 Schedule Feb 8-19

Production

Time (Weeks)

Demand driven sequencing

Make to stock strategy Ship on demand

performance

Manufacturing driven sequencing

Make to order preference Ship when ready

performance

This Capability Provides the Foundation For Sustained High Levels of Service

22

1999 Plan

232

277

336

0

50

100

150

200

250

300

350

1997 Actual 1998 (Est) 1999 Plan

36.2

48.0

61.8

0

10

20

30

40

50

60

1997 Actual 1998 (Est) 1999 Plan

5.9

7.17.2

0

1

2

3

4

5

6

7

8

9

1997 Actual 1998 (Est) 1999 Plan

Copper Adjusted Sales - Up 21%Copper Adjusted Sales - Up 21% Operating Income - Up 29%Operating Income - Up 29%

Working Capital Turns - Up 1%Working Capital Turns - Up 1%

60

70

80

90

100

Jan Feb

Mar Ap

rMay Ju

n Jul

Aug

Sep

Oct

Nov Dec

1999 Plan

93%

95%+

Service - Steady at 95% or BetterService - Steady at 95% or Better

$ M

illi

ons

$ M

illi

ons

Tu

rns

On

-tim

e F

ill R

ate

23

Agenda

General Cable Corporation Overview

Supply Chain Case Study

Telecom Business

Recent Acquisition

Career Planning

24

General Cable / BICC Company Profile

Size ~$3.0 Billion Sales

~$170 Million Operating Income

Products Copper, Aluminum & Optical Fiber Wire & Cable

Markets Communications, Electrical, Industrial & Utilities

Facilities 58 Manufacturing Plants in 19 Countries

Employees Over 13,000 Associates

Strengths People Customers Technology & Materials Knowledge Manufacturing Capabilities Product Offering Innovation & Marketing Skills

A Worldwide Leader

25

Integration Plan

L eadersh ipCo ntinu ityAcco un tab ility

Org /HRCo m p/Ben efits

Cu stom er &Rep "h arm o ny"F ou nd ationfor g ro w th

G o to M arket

Syn ergy?In teg ration

UtilitiesBu sin ess

Sales synergyCu stom erco ntinu ityPro du ct/M ktg .m an agem ent

Ind ustrialBu sin ess Desig n

Accretive resu lts"M ake the Nu m bers"Cash gen eration

Sou rcin g

In fo rm ation accessBasic op eration sF ou nd ationfor g ro w th

IT &F in an cial System s

G row thCu stom er satisfactionCash gen eration

Sup p lyCh ain

Pro du ctivityServiceRation alizatio n

M an ufactu ring

Em plo yeeu nd erstan d in gM arketu nd erstan d in gInvesto r relation s

Co m m un icatio n s

Integration Teamand

Resource Planning

Focus:

Why?:

26

Agenda

General Cable Corporation Overview

Supply Chain Case Study

Telecom Business

Recent Acquisition

Career Planning

27

Selecting A DirectionWhat do you want?What do you want?

What are the implications of your ambition?What are the implications of your ambition?

Profession?

Lifestyle?

Pressure?

Responsibility?

Lifestyle?

Personal Time?

Hobbies?

Spouse?

Children?

Friendships?

28

A Path To Success

Aggressiveness

Intelligence

Analyses

Communication skills Verbal Written

Broad business insight

Common sense

Strategic thinking

What capabilities are required?What capabilities are required?

. . . A “Balanced Portfolio” Is a Likely Path to Success

29

Think Strategically

Shareholder and Wall Street values

Executive Suite

Management Team

The people who make you successful

Increasing shareholder value

Increase EPS, ROI, cash flow, sales growth, income growth, working capital progress

Strong value proposition Reducing operating costs Improving customer service Winning new business Turning inventories faster

Attract, retain, teach, develop, train, educate, promote

Value PropositionValue PropositionRoll In OrganizationRoll In Organization