Diversification "out of the box" - Roland Berger

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2.1PROJECT APPROACHThe definition of the future portfolio logic should be elaboratedin close collaboration with the ClientCo top-managementInteractive development of future portfolio logicInput from "as is" analysis> Understanding of current businessesperformance and their "target tperformance" (strategic, operative,financial)> Analysis of relatedness (synergies,similarity of success factor) betweenbusinesses and "core definition"> Description of ClientCo strength andassets– Operations/USP– HoldingCooperation with ClientCo Top-ManagementExpert interviews to challenge results and test/derivehypothesesWorkshop with Top-Management to agree on futureportfolio logicSource: Roland Berger22
2.2ILLUSTRATIVEThe arithmetic for valuation of portfolio elements has to beagreed with ClientCo management at the beginning of the projectBusiness unit profitability+ EBIT"Pearls"Increased valueROCE > WACC > 0Profitability ofcapitalROCEDeviation vs.risk adjustedmarketprofitabilitySpreadROCE - WACCCapitalEmployedCE"Underperformers"–Decreased valueROCE < WACC < 0Risk adjustmentTotal cost of capitalWACCSource: Roland Berger23
Page 1 and 2: Diversification "out of the box"Mun
Page 3 and 4: A. OUR APPROACH -A structured conce
Page 5 and 6: Our modular approach consists of fo
Page 9 and 10: 1.1A proper bottom-up portfolio seg
Page 11 and 12: 1.1BACKUPWrong business definition
Page 13 and 14: 1.3 EXAMPLEThe definition of core b
Page 15 and 16: 1.4ILLUSTRATIVEPortfolio options sh
Page 17 and 18: 1.4ILLUSTRATIVETop-down targets for
Page 21: 2.1BACKUPThe portfolio logic need t
Page 25 and 26: 2.2EXAMPLE"Underperformer" business
Page 27 and 28: 2.3RELATED DIVERSIFICATIONIdentifyi
Page 29 and 30: 2.3RELATED DIVERSIFICATIONOdds of s
Page 31 and 32: 2.3RELATED DIVERSIFICATIONIdentifie
Page 33 and 34: 2.3RELATED DIVERSIFICATIONIndicator
Page 35 and 36: 2.3UNRELATED DIVERSIFICATIONConglom
Page 37 and 38: The ability of the holding to contr
Page 39 and 40: Successful organizations design a c
Page 41 and 42: … that vary by the adopted modelO
Page 43 and 44: BACKUPResources needed at the cente
Page 45 and 46: ILLUSTRATIVEThe role of the corpora
Page 47 and 48: EXAMPLEAustralian conglomerate Wesf
Page 49 and 50: E. ROLAND BERGER - Our experienceRo
Page 51 and 52: Excellence in strategy consultancy
Page 53 and 54: Our expertsHauke MojePartnerFlorian

Diversification "out of the box" - Roland Berger

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