CREATING VALUE THROUGH NEGOTIATION

CREATING VALUE THROUGH NEGOTIATION

1. All operatin units

   • Concentrate on
     • Return On Net Assest (RONA)
       • Lead to
         • Increase earnings
           • While
             • Reducing asessts and habilities
               • The Purchasing Group
                 • Contracting approach
                   • Long-term contracts
                     • Inventory consingment
                     • Focused work with each railroad
                       • 1) Potential items
                         • 2) Potential suppliers
                           • 3) Benchmark prices
                             • 4) Demand requirements
                               • 5) Railroad's interests
                 • Negotiation approach
                   • Based on
                     • Each railroad's specific needs
                       • Among with
                         • Internal customers
                           • Leading to
                             • Final negotiation
                               • Period results
                                 • Inventory decrease in 50%
                                 • Net assets return of 35%