April1994 Electronic Data Systems (EDS) Chairman, President &CEO: LesterM.Alberthal,Jr. 7171 ForestLane Dallas,TX75230 Phone: (214)604-6000 Fax: (214)605-6545 Status: Wholly-ownedSubsidiary Federal GovernmentSegment: Parent: GeneralMotorsCorporation GeorgeNewstrom,VicePresident Employees: 70,000 (12/93) Revenue: $8,561,800,000 Non-GM Revenue $5,222,700,000 InternationalandGlobalIndustries InformationServicesRevenue: $8,507,300,000 Segment: FYE: 12/31/93 MaiGudis,VicePresident 2. DescriptionofPrincipalBusiness 1. KeySIContacts: ElectronicDataSystems(EDS)was CorporateBusinessDevelopment: originallyfoundedin1962byRossPerotto GaryJ.Femandes,SeniorVicePresident providesystemsoperationsservicesto insurance companies, government- Manufacturing, Warehousing and fundedhealthinsuranceprogramsand DistributionSegment: financialinstitutions. Todayitprovides HartmutBurger,VicePresident systems management, systems integration(SI),consulting,systems developmentandprocessingservicesto ©INPUT1994.RoproduOionprohbited. BIAR isaregisteredtrademarkofEDS. Page1of 20 — nearlyallverticalindustries. In EDS'sSIrevenuesin1993,estimatedat addition,EDSmayactasafiscalagent closeto$1.2billion,havemadeEDSthe foraclientandtakefiillresponsibilityfor fourthlargestproviderofSIservices dataprocessingaswellasother amongU.S.vendors. administrativeduties,suchaspaying and processinginsurance claims. EDShasastrongsetofinformation servicescapabilitiesandresources EDSisamongtheleadersthatprovides includingconsulting, development,SI SItothefederalgovernment. The andsystemsoperations. Itsoperational companyenteredthecommercialSI dataprocessingexperience,thatdevelops marketintheearly1980s,andcontinues andoperateslargeandsmalldata togainexperienceandasubstantiallead centers,makesitareal"pro"inefficient inthisarea. andcost-effectiveuseoftechnology. EDS systemsoperationsexperiencewith EDSwasacquiredbyGeneralMotors insurance,financial, transportationand (GM)in1984andoperatesasawholly- energycompanies, amongothers,also ownedsubsidiary. EDSprovidesvirtually providesthecompanywithastrong allinformationprocessingservicesto applicationsknowledgeofsuch GM. industries. Thedeliveryofinformation systems(IS)responsibility forGM EDS,however,hasaccesstothepublic providesrealbusinessexperiencein coafpiEtDalSmcaarpikteatlsstwoictkh(aGpMprSoexriimeastEe)lybe4i4n%g mneatnwuofrakcitnugr.ingI,nraedtdaiitli,ond,isittrsibalultiiaonnceand psroilcdetooftphueblpuibclliyc-.trAadtedthGeMcuErrsehnatremsa,rEkeDtS waiertohsGpaMceHiungdhuesstrpyrokvniodwelseditgew.ith isvaluedatcloseto$15billion,including theportionofEDSownedbyGM. ThemajorcompetitorsofEDSinthe areasofSIare: AndersenConsulting, 3. EDSCompetitivePosition CSC,IBM,ISSCandCAPGEMINI. EDSisthelargestsystemsoperationsand processingproviderintheworldwith 4. Organization worldwide1993revenuesof$8.5billion Inthefourthquarterof1992,EDS andanetincomeof$724.0million. restructureditsorganizationtofocus Approximately39%ofEDS'scurrent moreonthecustomeratthecenterofthe revenuesarefromcaptiveGMbusiness. company's structure. Thechange Thispercentagehasspiraleddownward reinforceditsfocusonindividual overthepast10yearsfromthe59% level. industriesandbusinessneedsrather TheremainderofEDS'revenuesisfrom thanproductlinesortechnologies. systemsoperationsandother professionalservicesforoutsideclients. Theorganizationfeaturesfour components, summarizedinExhibit1. ElectronicDataSystems Page2of20 ©input1994.Reproductionprohibited. ApNI1994 Exhibit1 ElectronicDataSystemsCorporationOrganizationalComponents Component Group Unit(s) Industry GeneralMotors PlanningandIntegration;GMEurope; AdvancedTechnology; PnwprtralnandDplroFipptrnnir*;' NorthAmericanVehicleSales andMarketing;DealerSystems; WorldwideComponents;Operations dAiGlUTOlacntldloElOeUcptprUol-Lm,otMilvlelo:UINI.A1.1dlPlaois1slelonoglUeIr1, CarATnirkPlatfnrm«;'Rpnional SupportCenters Manufacturing ManufacturingandDistribution; H1iiinuihiTIpcorlhlinoi^>l^1onvy rIIidilOidi 11—adlrnpFIIiIn^Iidnlf^ILi^iICilllI11nl^OtliltliUiltIiUnn1<liO*, SmallFinancialInstitutions; GMAC Transportation Transportation Communications Communications Energy Energy Insurance Health;Property&Casualty;Life — Geography/Culture U.S. Government—Federal; Americas Government Military; (novprnmpnt Statpand1oral' CommercialServices NonU.S. Canada;Mexico;SouthandCentralAmerica GEeuorgorpaephy/Culture EEEuuurrrooopppeee———CNSeoonrutttrhhal GUF.reKar.n;mceaB;neynSeplauixnaannddSItcaalyndinavia Geography/Culture Japan Japan Asia/Pacific Asia/Pacific Korea;AustraliaandNewZealand; Taiwan;HongKong;China;Singapore ElectronicDataSystems April1994 INPUT1994.Reproductionprohibited. Page3of20 — Exhibit1(Cont.) ElectronicDataSystemsCorporationOrganizationComponents Component Group Unit(S) Infrastructure Adrninistration ChiefInformationOffice;Employee Administration;Purchasing;RealEstate BusinessDevelopment Americas;Asia/PacificandJapan; Europe CentersofService CoreCapabilities;ElectronicCommerce; SharedServices;TechnicalProducts; Unigraphics Consulting CustomerBusiness AccountServices;FieldServices Services Employee Development Compensation;IndustryTraining; LeadershipDevelopment;Quality; Staffing;TechnicalDevelopment Infrastructure AppliedEngineering;Core Engineering Engineering MarketDevelopment Marketing;MarketingSupport; SalesLeadership;StrategicPlanning — OperatingServices OperatingServices Cli—ent/Server; Operations;Operations Europe Research&Development Technology InfrastructurePlanning;Systems& Architecture Methods;TechnologyArchitecture Client/Server Corporate Audit;Communications& PublicAffairs;Controller; GovernmentAffairs; Legal;Tax;Treasurer ElectronicDataSystems Page4of20 INPUT1994.Reproduaionprohibited. April1994 Exhibit1includedthefollowing Corporate components. Group components: Executivesareresponsiblefor developingglobalstrategywithintheir • Industry: StrategicBusinessUnits areas. GroupExecutivesinthe (SBUs)organizedbyindustry Geography/Cultural componentare • Geography/Culture: SBUsorganized rtheesipronrseigbiloen.forthestrategywithin alonggeographiclines • GlobalOperationsCouncil: Themost • Infrastructure: StrategicSupport seniorexecutivesinglobalindustries Units(SSUs),suchasIMCOperations, havetheresponsibilityformarket FieldServicesandApplied planninganddirection. TheCouncil Engineering,withadditionalsupport willlinkbusinessstrategiesamong unitsinemployeedevelopment, industrySBUsandgeography/culture purchasing, marketing, planningand SBUs. consulting TheLeadershipCouncilremainsthe • Corporate: Administrativesupportfor company'spolicy-settingbody. SSUs CentersofService: Therearethreelevelsofcorporate governancewithineachofthefourabove TheCentersofService(COS)program, componentsasfollows: introducedin1992,isanewdimensionto EDSbusinesspursuits. WhiletheSBUs • Unit: TheSBUandSSUlevelsarethe continuetoconcentrateontheirspecific mostsignificantbecausetheyare industries,theCOSprovidesspecialized closesttothecustomer. SBUs productsandserviceshorizontallyto functionsincludemarketingand multipleSBUs. Sometimes,anSBUwill businessdevelopment,salesandsales sellacompanyservice. Inothercases, support, systems engineering, thecompanyservicewillgodirectlytothe productsandservices,business customerwiththeSBUsalesforce.There operationsandfinancial arecurrentlysixCOS,asfollows: responsibilities. SBUsareresponsible forworkingwithotherSBUsandSSUs • CustomerServicesTechnologies: tofindresources,productsand EnhancesEDS'productionbycreating servicesthatbestmeetcustomers' andoperatingcustomerassistance needs. centersforGMandothers,and provideseverythingfromcomputer • Group: GroupExecutivesdevelopfive- systemsandequipment,tofacilities yearbusinessplans,coordinate andassistancecenterstaff. marketingandsellingfunctionsand monitorandenforceteamwork,aswell • BusinessProcessSystemsand asqualityandcustomersatisfaction. Services: Focusesonintegrating IntheIndustry, Infrastructureand businessprocesses,peopleand ElectronicDataSystems April1994 ©INPUT1994.Reproductionprohblted. Page5of20