EXHIBIT 99.520
PEROT SYSTEMS
SHORT TERM STRATEGY
LONG TERM STRATEGY
ROSS PEROT
FUNDAMENTALS FOR BUILDING PEROT SYSTEMS
- - The only reason for a company to do business with Perot Systems is that
we provide the finest services of any company in our industry.
- - Perot Systems can only provide the finest services if we have the
finest people
-- These people must be fully trained in the latest technologies.
-- In addition to their training, our people must have the
highest morals ethics and integrity so they can earn and keep
our customers' trust.
-- They must be focused, disciplined, and results oriented.
- - In order to find people with these qualities, we must have a world
class recruiting team to bring in sufficient numbers of people with
these qualities.
- - We must have an exciting, challenging working environment that
recognizes and rewards outstanding performance in order to keep the
best people in our company.
- - Perot Systems must have a world class training program, so that our
team is at the cuffing edge of the latest technologies.
- - Throughout our company, we must recognize and reward excellence in an
appropriate, timely manner so that every team member knows their work
is appreciated.
1
PEROT SYSTEMS CHARACTERISTICS
- - Perot Systems is not capital intensive.
- - The brains, wits, and creativity of our people will always beat massive
capital spending.
- - Our company has long term contracts extending out to 15 years. These
contracts give the company excellent financial stability.
-- Every contract is like one layer of plywood. As new contracts
are signed, the company gets stronger and stronger as new
layers of plywood come together.
-- These long-term contracts ensure job security, financial
stability, and reliable, predictable growth in revenues and
profits.
- - Perot Systems is in a really unique position in terms of the size of
the market our business can serve.
- - ANY COMPANY IN THE WORLD THAT USES COMPUTERS IS A PROSPECTIVE CUSTOMER.
- - The market is so large that we must have a strategy about where to
focus our resources.
- - Perot Systems specializes by industry.
-- We identify the largest industries in terms of computer use
and go into these industries first. Banking, investment
banking, health care, manufacturing, insurance, and leisure
and travel industries are good examples.
2
-- We have acquired small, high talent, results-oriented
consulting firms who have already established excellent
reputations in Banking, Health Care, and other major
industries, to help us as we enter these industries.
-- We must build outstanding marketing teams with in-depth
knowledge about each industry.
-- The next step is to sell a prominent company in that industry.
-- Then, we assemble a first class team of systems engineers to
work with that customer, including people who have already
established an excellent reputation in that industry.
-- The next critical step is to do an outstanding job for that
customer and create a strong reference point.
-- We then conduct an intensive marketing program with other
prominent companies in that industry to broaden our business
base, using our first customer as a reference.
-- After we have sold five customers and successfully installed
their systems, almost any requirement of another customer in
that industry has already been met.
- - At that point, we have a large number of experienced people who have
done outstanding work, a good reputation in the we can quickly expand
across the industry without having to write massive amounts of new
programs for each customer. This gives us a competitive advantage and
increases our profit margins.
-- We will follow this strategy, moving on to the other
industries.
3
-- Our limiting factor in expanding to additional industries is
having enough skilled people to successfully accomplish the
mission.
-- International expansion -
Major markets such as China, Japan, Russia, and Southeast Asia
are unique. Our strategy to enter these markets will probably
require us to seek a partner in each of these countries.
4
VISION FOR UPS AND PEROT SYSTEMS WORKING TOGETHER
TO CREATE MAJOR NEW OPPORTUNITIES FOR UPS
1. Keep UPS and its customers at the cuffing edge of information services
technology and do it in a cost-effective manner.
2. Make sure that the whole world knows that UPS leads all of its
competitors in the effective use of advanced technologies and the
benefits of these technologies to UPS customers.
3. Work with UPS and Perot Systems' major financial customers, such as
Swiss Bank, to create worldwide ventures that would benefit all
parties.
4. Work with UPS to create its own version of GE Capital.
5. Work with UPS to create a network that allows people to order products
through call centers or e-mail that UPS would purchase directly from
the manufacturers and ship to the customer. The profits normally
realized by distributors and retailers could be realized by UPS, in
addition to the revenues and profits from delivering the packages.
6. Work with UPS in such areas as recruiting talent, using the Perot
Systems recruiting team and training UPS systems engineers in the
newest technologies and leadership.
7. Bring our experience in successfully building industrial airports that
include truck terminals, rail yards, air transport, and large numbers
of warehouses and factories on the airport property. These
opportunities exist throughout the world around at abandoned military
bases. UPS could make a great deal of
5
money by carefully selecting locations to build facilities of this
type. There are great financial opportunities on real estate and
warehouses built on the perimeter of the airport.
8. Use our contacts and relationships to work with UPS in countries where
there are huge future opportunities, such as Russia and China.
9. Work with UPS on a plan to provide a new technology to cost effectively
ship heavy goods that are now being shipped by container ship, across
the ocean in less time, by air. A video presentation of one idea is
attached. Ross, Jr. has worked with Lockheed on this project.
10. Perot Systems will actively work to assist UPS in selling major new
accounts, or in any other constructive manner, including working with
the pilots and truck drivers' unions, if we can be a positive factor,
and we have been effective in helping in these areas.
6
SUMMARY
This plan will keep us fully productive for at least 25 years.
We will not produce lengthy, detailed plans to enter new business areas. Over
the last 40 years, we have competed successfully against huge companies who had
multi-volume plans, typically written by creative, intelligent advisors who had
little or no knowledge of the harsh reality of getting things done.
Technology changes so rapidly in our industry that long-term strategic plans
that dictate step-by-step actions to people in the field, always fail because
they stifle the creativity of the people closest to getting the job done.
Our plans are in outline form - and are written just before a team goes to work,
with the team having a great deal of input.
We keep these plans dynamic, changing them as we gain more insight.
Again and again, we have competed and won against huge competitors who had
detailed, rigid plans created at the corporate level that turned the people on
the project into loyal, obedient robots -- who lost to the competition.
7
OUR POINTS OF VIEW
================================================================================
OUR BUSINESS PARTNERS:
o Will be increasingly challenged by competition as markets become more open.
o The ubiquity of technology and the requirements of electronic channels will
demand that they operate in fundamentally new ways.
THE INDUSTRIES IN WHICH WE OPERATE:
o Will go through major transformation, requiring new infrastructure in
information technology, telecommunications, finance, and logistics.
OUR PARTNERS' CUSTOMERS:
o Will become increasingly more demanding and sophisticated. Our partners must
have a better understanding of their customers and know how to create
different customer experiences.
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1998(C)Perot Systems.
OUR POINTS OF VIEW (CONT'D)
================================================================================
THE COMPUTER AND PROFESSIONAL SERVICES INDUSTRY:
o Will increasingly commoditize. That means lower prices. There will be fewer
large scale outsourcing opportunities. Differentiation will become
increasingly difficult.
WE DESCRIBE THE ENVIRONMENT IN WHICH WE ARE OPERATING AS:
o The emergent economy.
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1998(C)Perot Systems.
Balancing Strategic Selling and Opportunism
- --------------------------------------------------------------------------------
> We will remain opportunistic / market focused
- it has driven the business so far
- interesting opportunities will always present themselves
> To drive an 'active sales engine' we also must be strategic
- create capabilities to match market opportunity
- target sell
- sustainable growth for `98 and beyond
Travel Industry Group Strategy
May, 1993
[PEROT SYSTEMS LOGO]
Our strategy in the car rental industry
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The Republic business strategy... "cradle to grave" auto's
[GRAPHIC OMITTED]
Travel Industry Group Strategy
May, 1998 [PEROT SYSTEMS LOGO]
Our current focus in the car rental industry....
- -------------------------------------------------------------------------------
.....is on Republic Industries' Auto Rental Group (ARG)
[GRAPHIC OMITTED]
Travel Industry Group Strategy
May, 1998 [PEROT SYSTEMS LOGO]
New business opportunity in car rental ....
- -------------------------------------------------------------------------------
......a car rental industry utility.
[GRAPHIC OMITTED]
Travel Industry Group Strategy
May, 1998 [PEROT SYSTEMS LOGO]
Key issues in the hospitality industry
- --------------------------------------------------------------------------------
> Industry is consolidating (new people, new money)
- Starwood/Westin/Sheraton Hilton/Hilton Int
- HFS (Days, Hojo, Ramada) Marriott/Renaissance
- Promus/Doubletree Pegasus/HCC/Thisco
> Hotel system integration - an industry problem
- CRS/PMS providers are small unstable and fragmented
> Hotels need the CRS systems to evolve...
- into customer focused systems to build customer loyalty
- into integrated sales and marketing systems
Travel Industry Group Strategy
May, 1998
[PEROT SYSTEMS LOGO]
Our Strategy in the hospitality industry
- --------------------------------------------------------------------------------
> Assist "new breed of hotel owners"
- leverage Perot Systems' technical expertise
- leverage Perot Systems' hotel industry expertise
- manage consolidation/integration challenges
> Address hotel integration needs
- leverage Perot Systems' system integration capabilities
> Build a 'breakthrough' hotel system
- Work with a partner
- Develop integrated Property Management System (PMS)/Central Reservation
System (CR3)
Travel Industry Group Strategy
May, 1998
[PEROT SYSTEMS LOGO]
Our current focus in the hospitality industry
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[CHART]
Travel Industry Group Strategy
May, 1998 [PEROT SYSTEMS LOGO]
New business opportunity in hospitality ....
- -------------------------------------------------------------------------------
.....help the industry move from.... to....
Discrete expensive systems and Distributed systems
interfaces decreasing functionality transparently connected
[GRAPHIC OMITTED]
Travel Industry Group Strategy
May, 1998 [PEROT SYSTEMS LOGO]
TRAVEL INDUSTRY GROUP PERFORMANCE ('96-'98)...
A COMPARISON OF ACTUAL VS. PLAN
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[GRAPHIC]
TRAVEL INDUSTRY GROUP STRATEGY
MAY, 1998 [PEROT SYSTEMS LOGO]
TRAVEL INDUSTRY GROUP SERVICE DESIGN
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SALES FUNNEL
MAY 1998
[GRAPHIC]
TRAVEL INDUSTRY GROUP STRATEGY
MAY, 1998 [PEROT SYSTEMS LOGO]
ENERGY GROUP
================================================================================
o The energy industry is going through significant change - but the most
change will occur in the utility segment (vs. chemicals, oil, and mining).
o Utilities will be forced to spend significant incremental IT dollars to meet
statutory market restructuring.
o We will exploit our knowledge of the deregulatory markets in U.K. and
California to design & roll-out (4) integrated service offerings focused on
developing significant replicable transaction-based services & annuity
enterprises.
o We will design and develop multi-industry strategic service offerings e.g.
integrated supply chain management, settlements & clearing, etc., building
upon PSO's strategic competencies.
o We will find and close a long-term anchor contract creating backlog to
balance our service portfolio and providing a commercial platform from which
we can build and develop our teams.
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1998(C)Perot Systems.
ENERGY GROUP (CONT'D)
================================================================================
o We will build information systems & infrastructures enabling our clients to
adapt rapidly to market changes increasing their competitiveness and
securing high return on IT investments.
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1998(C)Perot Systems.
GLOBAL FINANCIAL SERVICES
================================================================================
o The primary focus of financial institutions is to: retain customers and gain
new ones; generate additional revenue; and leverage IT; while continuing to
reduce costs.
o We will focus on the capabilities our clients need to attract and retain
customers.
o We will do this by implementing technologies that: manage customer and
marketing information; get products and services to market rapidly; and
contain costs.
o We will focus operationally on building critical staff resources.
- --------------------------------------------------------------------------------
1998(C)Perot Systems.
GLOBAL FINANCIAL SERVICES
Strategy Overview
May 07, 1998
[PEROT SYSTEMS LOGO]
Strategic Context
================================================================================
...Dick Boyle "In the past I relied on technology to reduce
Retired Vice-Chairman cost and increase productivity. Now I rely on
Chase Manhattan Batik technology to hold customers and to get new
customers."
...Marcel Ospel "Technological development whether we like it or
CEO not, has to be a core competence of our
Swiss Bank Corporation organization. This business will become more and
more computerized. There are all sorts of
scenarios you can develop for the electronic
disintermediation of businesses whether in
investment banking, private banking or whatever.
We have to stay on top of such skills."
.....Wall Street Journal "Technology in banking today refers to everything
Thursday from internal operating systems to providing
November 27, 1997 customers with Internet banking and phone banking
and building sophisticated databases of customer
information that can be used to sell products more
efficiently. What banks seek is the ability to
provide personalized service at every point of
contact."
[PEROT SYSTEMS LOGO]
Strategic Context Translated...
================================================================================
> The primary emphasis among financial institutions is no longer on cost
reduction
> The primary emphasis is now on:
- retaining customers and gaining new ones
- leveraging IT expenses
- generating revenue
[PEROT SYSTEMS LOGO]
Context (continued) - Limitations of Current Industry Practices/Products
================================================================================
ENVIRONMENT
> Customer access to all their information and transactions - anyway;
anywhere; anytime
> Individual customer defined products and services
> No brand loyalty
> Pace of technology advancement
> Technology created markets and channels
> Shortening of product/service Life Cycles
> Customers choice of global service providers
> Consolidation within Financial Services and across other industry groups
> Entry of new, nimble, non-traditional players
CONDITION
> Stranded Assets
- Sunk cost of architecture and hardware
- Information stovepipes and old applications
- Dated people skills
- Physical plant
> Lack of meaningful measures of success
> Which customers should the client seek and retain
> Which products and services should the client be selling to its customers
> The struggle to determine the way forward ->
- How much to invest and where?
- Where to get the management bandwidth and skilled people?
- What are the costs and risks of changing versus not changing?
- How to get projects completed successfully?
[PEROT SYSTEMS LOGO]
Services Strategy
================================================================================
> Mission: To be the world leader in technologies that enable our clients to
attract and retain customers by...
- managing customer and marketing information;
- getting products and services to market rapidly; and
- containing costs.
> Objectives
- Sign and retain long-term profitable relationships
- Select our clients based upon a mutual fit of cultures and long-term
goals
- Build a market reputation for delivering solutions oriented to our
clients' customers
- Build and retain an integrated team of outstanding people with both
technology and business skills
- Continue to evolve our business approach and offerings as the market
changes
> Key Strategic Elements
- Our industry view of what capabilities our [GRAPHIC]
clients need to attract and retain customers
- Our view of ourselves and the capabilities we
need to help our clients attract and retain customers
[PEROT SYSTEMS LOGO]
Services Strategy (continued)
================================================================================
[UBS LOGO]
> GFS Strengths
- Client relationship management [CHART]
o Industry knowledge
o Market orientation
- Creative business construction
- Big enough to play, yet very agile
- Rapid time to market, on schedule, on budget delivery
- Technical Expertise
o Legacy systems development and operations
o Client/server, distributed, network systems development and
operations
o Legacy-network integration
o Internet / intranet / e-commerce
o Imaging and workflow
o Data mining / data warehousing
[PEROT SYSTEMS LOGO]
Services Strategy (continued)
================================================================================
> Business Approach
- Customer issues focus
- Integrated solutions
- Compete on concept, not price or product
- Leverages existing success
- Processes in place and core teams exist
> Technology Approach
- Build solutions that integrate technology and business strategy
- Base solutions on reusable work products
- Build utilities that take advantage of new opportunities for scale
- Focus on client customer acquisition and retention
- Make increased client revenue integral to our business model
- Use advanced technologies to reduce time to market
- Provide proven rapid cost containment from consolidation
[PEROT SYSTEMS LOGO]
Services Strategy (continued)
================================================================================
> Mission: To be the world leader in technologies that enable our clients to
attract and retain customers by...
- managing customer and marketing information;
- getting products and services to market rapidly; and
- containing costs.
> Offerings: Domain Specific...
<Table>
1 - Large-Scale Applications Development X X
2 - Infrastructure Management and Operations
o Mainframe X X
o Distributed
3 - Project Management X X X
4 - Process Enhancement X X X
5 - Security Improvement X X
6 - Architecture X X X
</Table>
[PEROT SYSTEMS LOGO]
Market-Facing Structure
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[CHART]
[PEROT SYSTEMS LOGO]
Background Information
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RESOURCE GAPS IN
PROSPECTIVE CLIENT ORGANIZATIONS
THE OPPORTUNITY
[PEROT SYSTEMS LOGO]
RESOURCE REQUIREMENTS
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1998. . .
[CHART]
[PEROT SYSTEMS LOGO]
RESOURCE REQUIREMENTS (continued)
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1998. . .
[CHART]
DEMAND
1 Not an Issue
2 Limited Impact
--DEMAND 3 Important
4 Acute Interest
5 Highest Priority
[PEROT SYSTEMS LOGO]
RESOURCE REQUIREMENTS (continued)
- --------------------------------------------------------------------------------
1998. . .
[CHART]
SCALE DEMAND
1 Limited 1 Not an Issue
2 Conceptual 2 Limited Impact
3 Operational --Demand 3 Important, Non-Critical
4 DAdvanced --Competence 4 Acute Interest
5 Industry Leader 5 Highest Priority
[PEROT SYSTEMS LOGO]
Resource Requirements (continued)
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1998 ...
[CHART]
[PEROT SYSTEMS LOGO]
Resource Requirements (continued)
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1998 ...
[CHART]
[PEROT SYSTEMS LOGO]
Healthcare
================================================================================
o Issues of cost, quality, and access continue to drive change in the
healthcare industry.
o Our partner's business objectives include the generation of new revenue
through membership market share and achieving lower costs while improving
both quality and customer service.
o We will be active in those segments of the healthcare industry that have the
highest business potential: multi-hospital systems, regional IHN's, managed
care/insurance, pharmaceuticals, physician practice management, post acute
care.
o We will provide "bundled solutions" in those segments and a continuum of
services that includes strategy, operations consulting, the design and
implementation of systems, and the operation of client facilities.
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1998(C)Perot Systems.
Healthcare (cont'd)
================================================================================
o We will distinguish ourselves in three ways:
- by providing advanced business, clinical, and technical skills
- by emphasizing time compression and speed of results
- by pricing models aligned with our partner's objectives
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1998(C)Perot Systems.
[GRAPHIC OMITTED]
[PEROT SYSTEMS LOGO]
May 07, 1998
OUR STRATEGY
- --------------------------------------------------------------------------------
Our strategy is to segment and conquer . . .
CLIENTS
Employers, Government and Consumers
DISTRIBUTION
Insurance/Managed Care
PRODUCT
Multi State Hospital Systems
Regional Integrated Health Networks
Physician Practice Management Companies
Specialty Care Companies
COMPONENT
Pharmaceutical/Medical Supply
[PEROT SYSTEMS LOGO]
What Are We Trying to Do?
- -------------------------------------------------------------------------------
Focus on high potential segments in the United States
[CHART]
Source: IDC, August, 1996: Note: Annual spending of $3 Billion is on
professional services only, and does not include spending on IT hardware and
software.
[PEROT SYSTEMS LOGO]
What Are We Trying to Do? (continued)
- -------------------------------------------------------------------------------
Provide bundled solutions focused on our clients' critical success factors ...
[CHART]
[PEROT SYSTEMS LOGO]
WHAT IS NEW IN OUR APPROACH?
- --------------------------------------------------------------------------------
Why do we think it will succeed...we help our clients achieve renewable
competitive:
o Industry focus
o Fully integrated continuum of
services: Analyze, design, build,
implement, and operate
o Advanced business, clinical, and
technical skills
o Emphasis on time compression and speed
of results
[GRAPHIC]
o Pure services bundled with "best of
breed" collaborators to create
solutions focused on our clients'
critical success factors
o Enterprise or timeshare services
o Pricing models aligned with our
clients objectives
o Transaction
o Unit
o Risk
[Perot Systems Logo]
WHAT IS NEW IN OUR APPROACH? (continued)
- --------------------------------------------------------------------------------
Why do we think it will succeed . . . our work for these clients is typical of
our continuum of services approach.
<Table>
<Caption>
CLIENT ENGAGEMENT RESULT
- ------------------------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corporation o Technology Partnership o Operate the largest frame relay
o Bundled Solutions network in the industry
- Managed care o Over 100 disparate hospitals
- Physician management integrated within one year
- E Commerce o Reduced IS costs by $20 million
per year
o Achieved economies of scale
o Reduced variable IS costs
o Allowed Tenet to rapidly acquire
and integrate new hospitals
Charter Behavioral Health Systems o IT Strategy and o Web Access of Clinical Records and
Implementation Administrative Information
o Development of o Increased annual savings in excess of
National Frame Relay $3.5 million
o Introduction of call o Increased call handling to 400,000 call
center technology and annually
applications
</Table>
[PEROT SYSTEMS LOGO]
What Is New in Our Approach? (continued)
- -------------------------------------------------------------------------------
Why do we think it will succeed...our work for these clients is typical of our
continuum of services approach.
<Table>
<Caption>
Client Engagement Result
- ------------------ --------------------------------------- -------------------------------------------------------
Atlantic Health o Accelerating the design and execution o Within 18 months:
System of Atlantic's IHN strategy - Merger of one large hospital to the network;
- Expand horizontal and vertical pending mergers or sponsorships with eight
networks additional hospital partners
- Develop an MSO - Completion of strategic relationships with
- Design and implement a physician vertical network partners
network - Full implementation of an MSO, including completion
of 1,000 member physician network
Aurora Health Plan o Implementation of AMISYS(R) o Allowed Aurora entry to managed care market
Managed Care System (outsourcing o Implemented managed care functionality without large
arrangement) implementation capital outlay
</Table>
[PEROT SYSTEMS LOGO]
What Is New in Our Approach? (continued)
- -------------------------------------------------------------------------------
Why do we think it will succeed...our work for these clients is typical of our
continuum of services approach.
<Table>
<Caption>
Client Engagement Result
- ------------------ --------------------------------------- -------------------------------------------------------
Health First o Design and implementation of o Electronic transactions for eligibility records,
Health Plans E-Commerce solution referral information, and clinical results through
the internet
o Lowered administrative costs
North Shore Health o Formulated and executed a strategic o Executed seven major hospital acquisitions (3000 beds)
System plan to position the hospital as a o Grew revenue to $1.8 Billion
regional integrated health network o Developed eight PHOs, a Super PHO and a system-wide MSO
o Established managed care relationships covering 300,000
lives
</Table>
[PEROT SYSTEMS LOGO]
Assuming Success...
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What Difference Does It Make to Our Clients? How do they get paid?
[CHART]
[PEROT SYSTEMS LOGO]
How Long Will It Take, How Much Will It Cost?
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[CHART]
<Table>
<Caption>
1996 1997 1998 1999 2000
---- ---- ---- ---- ----
Growth Rate 54% 31% 37% 25% 25%
Operating Margin 15% 18% 20% 25% 30%
Backlog $200M $270M $300M $400M $500M
Anchors: US 1 1 2 3 4
Anchors: Int 0 0 1 1 2
WW share: OS 6% 8% 9% 10% 11%
WW Share: Solutions .5% 1% 1.5% 2% 2.5%
</Table>
[PEROT SYSTEMS LOGO]