The objective of our Special Situations portfolio is to make returns on our capital by investing in companies that can be improved with some level of Board membership, operating support or activist involvement. With each company, we develop an action plan to create value. Our action plan always falls into operationally executable initiatives in the following framework:

Focus on fundamentals of core business Identify lines of business where market opportunity can be improved with focus Return to the basics: understand the customers and how to deliver value to them Assess and cultivate the leadership team in a “common goal” environment Re-emphasize the Sales and Account Management teams Renewed focus on customers sets the stage for enhancing organic cash generation opportunities in the core business

Optimize cost structure to impact customer value delivery Focus operating and capital expenditures on improving competitive position in the core business Fund a renewed focus on Sales and Account Management with operational simplification Think backwards: understand how management choices in the pursuit of growth can be modified to improve cost and quality Eliminate management distractions in every part of the business

Create a business that an investor can evaluate Deliver shareholder value through improved results Create strategic options with enhanced free cash flow