Presentation to bt 2 Steering Committee Meeting July 7 th , 2009

1. Presentation to bt2 Steering Committee MeetingJuly 7th, 2009

2. Objectives • Revamp plan and gain alignment on direction • Earliest 7/20 • Latest 8/3 (avoid Rapid City Impact) • Increase confidence and comfort level • Increase voice of stakeholders through scorecard • Exit of INT2 • Address Finance issues • Day in the Life • Solution / System Readiness • Data Readiness • People Readiness • Customer Readiness

3. Changes from Last Steering Committee Meeting • INT2 Exit Extended • Volume testing at daily production levels revealed numerous defects • Resolution of defects is taking longer • Complexity of sequencing for KAAT realized only with daily volume • Higher expectations with 5-Day model • Competing Priorities • Production related • Duncanville Customer kaizen / issues • Finance closing issues • Project related • proCAB and string table • Stabilization in Orlando Branch extended

4. Los Lunas Readiness • Scorecards • In order to have a successful cut-over to the new system, key criteria need to be met which have been incorporated into scorecards • bt2 team and selected business leaders have been reviewing scorecards for quite some time • Over the past few days, the team has reviewed these criteria with the key stakeholders to make sure that there is consensus that if these criteria are met, Los Lunas and the Western Branches are ready to go live. • Duncanville and Orlando stabilization • In addition to the above criteria, it is essential that key actions be completed for stabilizing DVA and Orlando • The main action items for DVA came from the kaizen conducted the week of 6/22 (see slide 7) • Orlando issues are being tracked by the PIT team and one critical issue needs to be resolved • Finance Stabilization • Resolution of financial issues is critical .

5. Los Lunas/ Branches Status: 7/20 Go Live Overall status Data as of 7/2

6. Los Lunas/ Branches Status: 7/20 Go Live Overall status Data as of 7/2

7. Los Lunas/ Branches Status: 7/20 Go Live Overall status Data as of 7/2

8. Los Lunas/ Branches Status: 7/20 Go Live Overall status Data as of 7/2

9. Key Issues to resolve • Month End Close stabilization • See next page • Resolve Critical and High Issues for Orlando • One critical issue being worked on by team Ramu N • Complete kaizen action items • Customer Order Reconciliation database Doug Bennett • CSR Proficiency evaluation and training Doug Gorsuch • Accountability Matrix for Process Deadlines Robert Wilson • Backward Integrate Production Audit Report R4 Doug Bennett • proCAB roll-out to get back on-track • Keep close eye on any resource conflicts between this task and Los Lunas

10. Finance “Get Well” Plan • Current Issues • 12.0.4 Stability versus 12.0.6 • Difficulty closing AR, AP, and Inventory each month • Variance Patches are an option • SABRIX Potentially causing some issues • Action Plan • Increase user involvement in INT2 Testing (mock close) • Complete Patch Review – variance to 12.0.6 by module • Determine recommended changes to environment • Likely upgrade SABRIX to 5.1 • Apply changes to PROD TEST (or new environment) • Perform volume testing and evaluate errors • Apply changes to INT2 and validate • Make a decision on PROD

11. INT2 Recovery Plan • Continue to Drive Volume • Flush out defects through running daily volumes • Increase user involvement • Drive Defects to Closure • Realign effort around bottleneck resources • Restructure test-lead meetings to increase accountability • At INT2 Exit Will We Be Comfortable with Solution? • Data comfort level – validated through additional conversions • Exceptions need to be cleared with manufacturing • Finance issues - patches or environment to 12.0.6 • Very little new functionality • Multi-org – additional complexity (ASCP)

12. R4 – Los Lunas - Key Milestones 1 2 3 4 Exit from INT Test Cycle 2 is Key Milestone; Need a minimum of 2 weeks from Exit 1 Day In the Life to include 3 cycles. Last Cycle after INT2 Exit 2 Finance stabilization and kaizen action items 3 One Week between Day In the Life and Go Live (9 elapsed calendar days 4

13. Los Lunas Readiness • In summary • Exit Integration Test Cycle 2 • Complete Regression Test and Day In the Life in parallel • Performance Testing in separate instance • Data Conversion (7/8 in Prod Test; 7/15 in Prod) • Business Readiness (training, facilities, sourcing) • Finance stabilization • Make sure no resource conflicts for kaizen action items, ProCab • Review and Confirm Scorecard Criteria met

15. Accomplishments Since Last Meeting • Performing Component Plant CRP this week • Star Item Creation (configurator) complete to support Los Lunas Go Live in PROD • Completed proCAB recovery plan actions to enable additional customers to be added • Supported Customer Order Management kaizen event for QID / Duncanville customers

16. Action Items from Previous Meeting

18. Current Workstreams • Customer Facing • proCAB (4.1) • Intelliquote – coding complete by June – Q4 launch (4.6) • Masterpiece • Branch Roll Out (4.2) • Inventory solution in late May for Florida • Align Quality/Merillat Go Live at each Branch • All Branches implemented by year-end • Los Lunas Implementation (4.3) • Component Plants (4.4) • Do design now – may also test with above • Duncanville Go – Back (4.5) • QBAC – will also affect Cedar Hill and the Mill • Strategy for Upper / Lower • Support Rapid City transition • May also tie into Cedar Hill consolidation • Objective to test as a group – design and build now – integrated test in October

19. Leadership Agenda – bt² • Duncanville • Using post-production kaizen events to improve customer satisfaction • Financial close is challenged due to Oracle issues – resolution in progress • Los Lunas • Delay to 8/17 to ensure no customer impacts • Tests using production orders revealing issues in shop floor paperwork (sequencing) • Day in the Life (UAT), Stress, and Regression Testing planned for 7/13 – 7/31 • Future Releases • Delay to 8/17 to ensure no customer impacts • Tests using production orders revealing issues in shop floor paperwork (sequencing) • Day in the Life (UAT), Stress, and Regression Testing

20. Leadership Agenda - bt² Implementations in Process

21. bt2 Risk Management Starting to see possibility of risk realization Don’t foresee risk realization G Y Risk has been realized R

26. Action Items from Meeting

28. Appendix Content • Internal Staffing Changes • EVD Description and Overall Timeline • Scope Change Management • Issue Metrics • Risk Management • Solutions & Deployment Teams Details

29. Staffing Update • 34 positions filled for “business roles” • Added Brook Stephens • To Date Resignations • 2007 Joe Oddo OTC Team • Fresh-Outs • Filled 10 of 10 positions • 16 positions filled for “IS roles” • Technology resources and 3 development rolled back to IS • To Date Resignations • Feb 2008 Christine Flamm Systems Architect • Mar 2008 Steve Hester OTC Process Manager • Jun 2008 Godfrey Chinomona OTC Bus Analyst • Aug 2008 Randy Guinn Unix Admin • Aug 2008 Patty Jones Developer (Doc Link support) Doug

30. Business Transformation Timeline Q3 2007 Q4 2007 Q1 2008 – Q4 2009 Finance Go Live, April 2008 – Cedar Hill, July 2008 – Duncanville, March 2008

31. bt2 Build Phase Activities Vision Plan Design Build Deliver Operate The purpose of this phase is to develop needed RICEW elements defined in design, put in place the software and hardware environment, prepare learning materials, and test the solution. Support Leadership Monitor Change Readiness Deliver On Going Communications Support Stakeholders People, Change& Learning Conduct Change Impact Assessment Design Performance Management Process Develop Organization Strategy Transfer Capabilities Develop Performance Management Strategy Develop End-User Learning Program Processand Package Configure Software Develop Functional Test Work plan Build Cutover Develop Functional Test Materials Conduct Functional Tests Support Non-Production Environments Conduct Technical Tests Design and Build Batch Schedule Procure Production Hardware Information Technology Build and Test Production Environment Build Software Development Programs Develop and Test Process Controls Develop and Test Interface and Data Migration Controls Build, Install and Configure Technical Security Infrastructure Develop and Test Information Technology Controls Securityand Controls Define Technical Security Infrastructure Policies and Procedures Develop and Test Production Application Security Test Technical Security Infrastructure Test Production Application Security ProjectManagement Plan Project Execute Project Control Project

32. Bt2 Deliver Phase Activities Vision Plan Design Build Deliver Operate The purpose of this phase is to complete integration and user acceptance testing, prepare the workforce, complete cutover activities and implement Support Leadership Monitor Change Readiness Deliver Ongoing Communications Support Stakeholders Prepare Workforce People, Change& Learning Implement Organization Structure Transfer Capabilities Deliver End-User Learning Program Design and Implement Performance Management Metrics Implement Performance Management System Processand Package Develop Functional Test Materials Conduct Functional Tests Execute Cutover Deliver Project Book Content Information Technology Conduct Performance and Stress Tests Build Technical Cutover Plans Develop Operational and Monitoring Processes Deliver Production Environment Securityand Controls Deliver Process Controls Deliver Production Application Security Deliver Interface and Data Migration Controls Deliver Information Technology Controls Implement Support Organization Validate Application Management Services Monitor Application Management Services Risks Test Support and System Infrastructure Support Transition Applications to Support Organization ProjectManagement Plan Project Execute Project Control Project

35. Scope Change Management Change Request Status

36. Issues Management

37. Risk Management – as of 6/6/09 • Risk Management Status • Continued work on mitigation plans

38. Risk Management – as of 6/6/09