Cooper Industries
2011 Outlook Meeting
New York City
March 1, 2011
Material
M
t i l iin thi
this presentation
t ti contains
t i "forward-looking
"f
d l ki statements"
t t
t " within
ithi the
th meaning
i off the
th safe
f
harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not
historical facts but instead represent only our beliefs regarding future events, many of which, by their
nature, are inherently uncertain and outside of our control. It is possible that our actual results and
financial condition may differ,
differ possibly materially,
materially from the anticipated results and the financial
condition indicated in these forward-looking statements. For us, particular uncertainties that could
cause our actual results to be materially different than those expressed in our forward-looking
statements include: market and economic conditions, competitive pressures, volatility of raw material,
transportation and energy costs, our ability to develop and introduce new products, our ability to
implement revenue growth plans and cost-reduction programs, mergers and acquisitions and their
integration, implementation of manufacturing rationalization programs, changes in mix of products
sold, changes in financial markets including currency exchange rate fluctuations, changes in
g
and regulations
g
(including
(
g changes
g in tax laws),
), and the resolution of potential
p
liabilities
legislation
and insurance recoveries resulting from Pneumo-Abex related asbestos claims. A discussion of these
factors may be found in the Company’s Annual Report on Form 10-K and other recent SEC filings.
A reconciliation of any non-GAAP financial measure included in this presentation to the most directly
comparable GAAP measure can be accessed in the “Investors” section of the Cooper Industries
website, www.cooperindustries.com.
This is a copyrighted presentation of Cooper Industries plc and is intended for the exclusive use of the
participating audience. No other use of this presentation may be made without the express written
consent of Cooper Industries.
2
Cooper Industries
2011 Outlook Meeting
Kirk Hachigian
Chairman & Chief Executive Officer
Today’s Agenda
Opening Remarks
Kirk Hachigian, Chairman & CEO
p Lighting
g
g
Cooper
Neil Schrimsher, Executive VP
Cooper Crouse-Hinds
Grant Gawronski, President
Cooper Bussmann
Ivo Jurek, President
Cooper Power Systems
Mike Stoessl, President
Innovation & M&A
Tom O’Grady,
y, SVP of Corp.
p Dev.
2011 Outlook
Dave Barta, SVP and CFO
Summary
Kirk Hachigian, Chairman & CEO
4
Total Shareholder Return
39.9%
36.8%
Peer Group
p
Avg.
15.1%
12.7%
12.4%
S&P 500
9 9%
9.9%
9 6%
9.6%
1.4%
10 Years
2.3%
5 Years
1 Year
All The Pieces In Place For Consistent
Consistent, Sustainable
Long-Term Shareholder Returns
Peer Group: Acuity; Danaher; Dover; Eaton; Emerson; Hubbell; Illinois Tool Works; Snap-On; Ingersoll-Rand; Newell Rubbermaid; Parker-Hannifin; Pentair; Stanley Black&Decker; SPX; Thomas & Betts
5
2010 Highlights
¾ Sales
S l up 5%,
5% EPS up 30% ffor ffull
ll year
– Record core growth of 14% in Q4
– Full year core operating leverage of 57%
¾ Free cash flow of $606M, or 13% of sales (10th year FCF
> recurring income):
–
–
–
–
–
Working capital turns improved from 5
5.6
6 to 6
6.1
1
Issued $500M of debt at record rate of 3.125%
Completed 5 acquisitions around strategic growth platforms
Increased
c eased d
dividend
de d by 8% in February
eb ua y 2010
0 0
Repurchased 6.2M shares (avg. price ~$44)
¾ New Product Vitality (24%), Cost Productivity (5%) and
I t
International
ti
lS
Sales
l (39%) att all-time
ll ti
hi
highs
h
¾ Successfully Completed Tools JV
End Markets Recovering…Growth Initiatives In
Full Swing…Exceptional Balance Sheet
6
Cooper/Danaher Tools JV Overview
JV Name: Apex Tool Group, LLC
E d Markets
End
M k t
Annual Revenue: ~$1.4 Billion
Served Market Size: ~$12 Billion
Industrial
43%
Retail
36%
Ownership: 50/50, Equal BOD Representation
Automotive
16%
Geographic
Geog
ap c Sales
Sa es
50/50
Ownership
Contribute 100%
of Cooper Tools
Tools
JV
Gov’t / OEM
5%
Latin America
11%
•Delta
•Jacobs Chuck
•Danaher Tool
Group
Asia
7%
U.S. &
Canada
70%
Joint Venture Off To A Very Strong Start
Europe
12%
7
Cooper Portfolio
Power CrouseSystems Hinds
Industrial
Commercial
Safety
Int’l.
Commercial
Wiring
Devices
Utility
U.S.Int’l.Intl.
Industrial
U.S.
U.S.
Li hti
Lighting
100%
Electrical
Utility
59%
Industrial/Utility
39%
International
59% Industrial/Utility…39%
Industrial/Utility 39% International
International…100%
100% Electrical
Based on FY2010, excluding Tools
8
Revenue History
$Billions
$6.5
$5 9
$5.9
PORTFOLIO ALIGNMENT
BUILD PROCESS
CAPABILITY
$4.5
$4.5
$4.2
$3 7
$3.7
$3.9
$5.2
$5.1 $5.1
$4 7
$4.7
Tools
Electrical
$4.8B
$4.0 $4.1
*
Well Positioned For Next Growth
G
Cycle
C
* 2010 includes $311M in Tools revenue
9
Revenue Shortfall
$6.5B
$1 0
$1.0
$0.8
2008
Recession
Tools
$0.4
$5.1B
2011 Growth
2011 Est.*
Still Well
W ll Below
B l
Peak
P k Levels
L
l
* 2011E Assumes 7.5% Electrical revenue growth and no acquisitions
10
Value Drivers
Organic
Dividends
RETURN OF
CASH TO
SHAREHOLDERS
Strength of
Management
Team
REVENUE
GROWTH
PRODUCTIVITY
- FIXED
- VARIABLE
Acquired
Share Buyback
Margin
Enhancement
MARKET
VALUATION
RETURN ON
INVESTED
CAPITAL
EARNINGS
GROWTH
CASH FLOW
GENERATION
STRENGTH OF
BALANCE
SHEET
Disciplined
Capital Spending
Competitiveness/Value…All Derived From Core
And Acquired Growth
11
Next 5 Years Priorities
¾ Achieve Core Growth Of 6% To 9% Over The
Cycle
¾ Pursue Mid-Size To Larger Acquisitions That
Complement The Core
¾ Leverage
e e age Incremental
c e e ta Co
Core
eG
Growth
o t Att A
Minimum Of 25%
¾ Target
T
100% C
Cash
hC
Conversion
i
Dedicated To Growth
12
Dedicated To Growth
Diverse,, Global
End-Markets
Cooper Growth
Initiatives
Revenue
Growth
Key Global
M
Macro
T d
Trends
Acquisition
Platforms
Significant Opportunities Exist To Generate
Long-Term Sustainable Growth
13
Electrical Businesses Market Size
Energy & Safety Solutions
9
Power Systems
$1,150+/$
,
million
Market Size: $40B
9
Crouse-Hinds
$850+/- million
Market Size: $28B
Safety
$
$500+// million
Market Size: $8B
Electrical Products Group
9
9
Lighting
$1,050+/- million
Market Size: $10B
Bussmann
$550+/ million
$550+/Market Size: $24B
B Line
B-Line
$350+/- million
Market Size: $19B
Wiring Devices
$300+/- million
Market Size: $17B
Based on FY2010
World-Class Collection Of Electrical Businesses With
$140B+ In Available Market Opportunity
14
End-Market Conditions
Other
6%
Remain
Strong
Resi
7%
28%
Commercial
(41% Int’l)
34%
Industrial
(45% Int’l)
Construction
Markets Turn
Positive In
Late 2011
25%
Utility
(32% Int’l)
Int l)
Turning Very Positive
Outstanding Core Growth Despite 35% Of
Portfolio Still At Recession Levels
Percentages based on FY2010 results excluding Tools
15
Portfolio Summary
T
Technology
y/Specifica
ation/Globa
al
High
Tools
Low
Slow
C
Core
G
Growth
th
~60% Of Portfolio Now Positioned In Faster
Growth/Higher Technology/Global Markets
Fast
16
Electrical ’03-’08 Revenue Growth
15.4%
12.7%
10.8%
10.7%
7.4%
FX/Acq.
9.4%
8.4%
2004
8.4%
6.3%
2005
4.6%
2006
2007
Core
2008
7.4% Average Core Growth…Today More
q
, More Engineers,
g
,
International,, More Acquisitions,
Record Vitality Index, Better Trained Sales And PLM’s
17
2010 Electrical Core Growth Trend
14.1%
8.3%
3.3%
-6.4%
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Investments In Portfolio Driving Core Growth Rate
18
End Market Outlook
End Market
% of Sales
Industrial
34%
Commercial
28%
Utility
25%
Resi/Other
13%
International
39%
2010
2011
2012
2013
2014
Markets Recovering…Driving Growth Over The Cycle
Percentages based on FY2010 results excluding Tools
19
Dedicated To Growth
Diverse,, Global
End Markets
Cooper Growth
Initiatives
Revenue
Growth
Key Global
M
Macro
T d
Trends
Acquisition
Platforms
Significant Opportunities Exist To Generate
Long-Term Sustainable Growth
2
20
Cooper Business Model
Customer Loyalty
Innovation
Globalization
Revenue Growth
EPS Growth
Cash Flow
Cas
o
Talent Development
Op. Excellence
M&A
Focused And Proven Business Model
21
Operational Excellence
Strategic
Imperative
Area Of
Focus
Ongoing
Productivity from
MVP/Lean/VA VE
Programs
Safety
Fully Leverage
Global Strategic
Sourcing &
Supply Chain
Optimize Global
Footprint
Service & Quality
Inventory &
Payables
Lead Times
Direct/Indirect
Di
t/I di t
Material & Labor
Costs
Local Manufacturing
for Local Markets
Benefit
¾ Accelerate Growth
¾ Improve Employee
Safety
¾ Increase Customer
Service & Loyalty
¾ Ongoing Cost Out &
Elimination of Waste
¾ Reduce Working
Capital
Strong Foundation For Continuous Improvement & Growth
22
Operational Measures of Success
SAFETY
2006
2007
QUALITY
2008
Incident Rate
2009
2010
2008
2009
Lost Time Rate
2010
Scrap % COGS
SERVICE
INVENTORY
700
8
600
7
500
400
6
300
200
5
100
2006
2007
2008
2009
On Time To Commit
2010
0
4
2005
2006
2007
$M
2008
2009
2010
Turns
Significant Improvements Across All Metrics
23
Cost Productivity
Annual Cost Productivity
¾ Record Cost Productivity In
2010
(% of COGS)
¾ Full Suite Of Tools Driving
Results
5.0%
4.0%
3.0%
2 0%
2.0%
1.0%
0.0%
2007
2008
2009
•
MVP
•
Strategic Sourcing
•
Lean Enterprise System
•
Value Engineering
•
Lean Supply Chain
•
Footprint Rationalization
2010
New Tools Reinvigorating Momentum Around
Cost Productivity
24
Global Footprint Strategy
Recently Added Site
Future Site
Investing In Local Capability For Local Markets
25
Talent Development
Talent
Acquisition
• University Recruiting
• Recruiter Strategy
• Networking
Talent Assessment &
Development
• Assessment
& Potential
• Robust MD&P
• Global Leaders
• Development
Programs
• Learning Curriculum
• Cooper University
• Performance Mgmt.
& Compensation
Talent
Deployment
• Succession
Planning
• Career Paths
Pay
y For Performance
Continue To Develop Talent To
C
Support Future Growth
26
Customer Loyalty
Cooper
Connection
Global Sales
Excellence
Strategic
Pricing
Loyalty
Initiatives
Marketing
Communication
Vertical
Markets
Product Mgmt.
Leadership
Technology
Center/Training
B ildi Upon
Building
U
A Legacy
L
Of Innovation,
I
ti
Service & Expertise
27
Oil & Gas Opportunity
Crouse
e-Hinds
¾
¾
¾
¾
¾
Lighting
Enclosures
Fitti
Fittings
Plugs & Receptacles
Cable Glands
Safety
¾
¾
¾
¾
Fire Protection
Notification
Signals & Alarms
Emergency
Lighting
B-Line
e
P d t
Products
¾
¾
¾
¾
¾
Cable Tray
B lt d Framing
Bolted
F
i
Strut
Grating
Pipe Hangers
A
Acquisitions
i iti
¾
¾
¾
¾
MTL
Pauluhn
Hyundai
Iluram
¾ MEDC
¾ Hernis
¾ Mount Eng.
Eng
¾ GS Metals
Gl b l Opportunity
Global
O
t it
¾ Sales Alignment
¾ P
Project
j t
Coordination
¾ Regional
R i
l Strategies
St t i
¾ Key Account
Targets
Capitalize On ONE COOPER Strategy
28
Solar Vertical Market
¾ Broad Product Portfolio For
Solar Applications
Annual Revenue
~$60M
$60M
¾ Pan
Pan-Cooper
Cooper Engagement With
Solar Developers
¾ Relationships With EPCs and
Distributors Drive Growth
2009
2010
2011E
Leveraging Cooper Package To Penetrate Verticals
29
Innovation - Product Vitality
New Product % of Sales
30%
¾ LED Innovation Center in Peachtree
City, GA
– Reduced New Product Time To Market
– Leverage Across Cooper Businesses
24%
¾ Cooper Ranked #8 Industrial Innovator*;
Top 10 Last Two Years
19%
* From The Patent Board’s Dec 10 Industrial Component Supplier
Patent Scorecard
15%
7%
2003
2008
2009
2010
New
Target
New Product Leadership Drives Organic Growth
And Margin Expansion
30
Globalization – Building Global Presence
% of Sales Outside of U.S.
37%
39%
35%
32%
30%
24%
2000
-
2006
2007
2008
2009
2010
Significant Change In Global Exposure….39%
Exposure 39%
Of Sales in 2010 Outside The U.S.
Note - Revenue % Figures Exclude Tools
31
Globalization Investments
+9%
+17%
-20%
+22%
Iluram
+16%
+5%
Mount Eng.
Cybectec
Apex
NX Mid East
Xian Fuse
N. Africa
Saudi Mfg
Hernis
MEDC
CC Europe
CBE Europe
Polaron
Romania Mfg
Australia NX
China NX
Capacitor JV
NX SE Asia
Hyundai
Cyme
WD China
Turkey NX
Korea NX
Save Fuse
NX Russia
NX India
MTL
Digital China
Spain NX
MX Mfg Plan
China HQ
NX Japan
Nature
Clarity
Xian Mfg
Brazil BD
2005
2006
2004
2007
2008
2009
2010
Years Of Steady Investment In Global Expansion
32
International Focus
3X
3X
3X
Asia, Middle East And South America Are
Major Targets For Expansion
33
Dedicated To Growth
Diverse,, Global
End Markets
Cooper Growth
Initiatives
Revenue
Growth
Key Global
M
Macro
T d
Trends
Acquisition
Platforms
Significant Opportunities Exist To Generate
Long-Term Sustainable Growth
34
Long-Term Global Trends
Electricity Demand /
Utility Grid Upgrade
Conservation / “Green” /
Energy Efficiency
Safety / Protection /
M
Mass
Notification
N tifi ti
Cooper Uniquely Positioned To Penetrate Key Global Trends
Global Infrastructure
35
Electricity Demand/Utility Grid
¾ Cooper
C
Power S
Systems
9 ~$1.2 Billion Utility Business
Drivers To Upgrade Electrical Grid
Electricity Demand
Aging Apparatus
9 Industry Leading Portfolio
9 EAS/Smart Grid Platform
9 Strong Presence in Asia,
L ti America,
Latin
A
i
Australia
A t li
9 Growing Commercial &
Industrial Business
Aging Grid
Regulation, Policy
Reliability Needs
Power Systems Solutions
Smart Grid/EAS
Reliability Products
(Capacitors, Regulators, Switchgear)
LIPE (HV Fuses,
Surge Arrestors)
Transformers
Well Positioned To Capitalize On Necessary Grid Upgrades
36
Energy Efficiency / Green
Utility Grid
Optimization
Lighting
Efficiency
Alternative Energy /
Green Products
¾ Distribution Grid Losses
6% tto 10%
¾ ~80% Of Lighting Systems ¾ Solar & Wind (Transformers,
Cable
C
bl Tray,
T
Solar
S l Racks,
R k High
Hi h
O
Over
20 Y
Years Old
¾ Consumer Demand For
Increased Reliability
¾ Lighting Represents ~40%
of Electricity Bills
¾ Regulatory/Stimulus
Tailwinds
¾ Regulatory/Stimulus
Tailwinds
~$600M Revenue
~$250M Revenue
Speed Fuses, Combiners)
¾ FR3 Transformer Fluid
(Soy Based)
~$100M Revenue
Significant Portion Of Portfolio Exposed To
Energy Efficiency Trends
37
Global Infrastructure
Asia Pacific
Latin America
¾~6,000 China Employees
¾ Solid Power Systems And
Crouse-Hinds Presence
¾ New Saudi Arabia
Manufacturing Facility
¾ Recent Crouse-Hinds
Acquisition (Colombia)
¾ Large Oil & Gas Presence
¾ Strong Crouse-Hinds,
Bussmann And Power
Systems Presence
¾ 5 Acquisitions Over
Last 5 Years
~$400M
$400M Revenue
¾ Excellent Presence With
Distribution
~$300M
$300M Revenue
Middle East
¾ UAE Commercial
Opportunities
~$150M
$150M Revenue
~20% Of Cooper Revenues Generated In Emerging Markets
38
Safety & Protection
Protecting Hazardous
Facilities
¾ Crouse-Hinds Ex-Proof
And Instrumentation
Products
Protecting
Equipment
¾ Bussmann Electrical
¾ Bussman Electronics &
Transportation
¾ Utility Grid Line
Installation & Protection
Equipment
¾ Highly
Hi hl S
Specified
ifi d Mil/A
Mil/Aero
Connectors
~$900M
$900M Revenue
~$600M
$600M Revenue
Protecting
People
¾ Global Emergency Lighting
L d
Leader
¾ Mass Notification Solutions
¾ Fire
Fi & S
Security
it
~$400M
$400M Revenue
~40% Of Cooper Portfolio Is Related To Safety & Protection
39
Dedicated To Growth
Diverse,, Global
End Markets
Cooper Growth
Initiatives
Revenue
Growth
Key Global
M
Macro
T d
Trends
Acquisition
Platforms
Significant Opportunities Exist To Generate
Long-Term Sustainable Growth
40
Portfolio Evolution
Core
Growth
Strong Brands
Strong Cash Flow
High
g Growth/Global/
High Margin
Less Working Capital
Lighting
Cable Tray
Fuses
Transformers
Expl Proof
Expl-Proof
LED
Interconnect
Smart Grid
Capacitors
Electronics
Safety
Strong Core Portfolio…Emerging Platforms Provide
Access To High Growth, More Profitable Global Markets
41
Funding Growth
$563
Fund Strategic
Growth
$1,068
Capital Expenditures
Acquisitions
2006-2010
$1.6B Invested In Strategic Growth In Last 5 Years
42
Acquisition Core Strategy
Acquisition Focus Areas
Platforms Technology
gy
¾ Strengthen The “Core”
¾ Specification/Technology
Driven Businesses
¾ Enhance Global Footprint
Globalization
¾ Strong Balance Sheet
¾ Talented Management
Executing A Consistent And Disciplined Strategy
43
Acquisition Priorities
Bussmann
B
Transportation
Bussmann
B
Electrical
Bussmann
B
Electronics
Cooper
C
Connectivity
Crouse-Hinds
Instrumentation
Crouse-Hinds
Industrial EX
Power Systems
Global Products
Power Systems
Utility Automation
Lighting
Controls
Lighting
LED
Cooper Safety
Fire/Mass Notif.
Cooper Architectural &
Safety Lighting
More Global/Technology/Faster Growing Markets…
With Less Working Capital
44
Acquiring Around Global Trends
Electricity Demand/
Utility Grid Upgrade
¾ EAS / Utility
Automation
¾ LED
¾ Lighting Controls
¾ CPS Global
¾ Buss Electronics
Green /
Energy Efficiency
• 2006 - Cannon
• 2007 - Cybectec
• 2008 - Cyme
• 2010 - Eka Systems
• 2004 - RSA
• 2007 - io Lighting
• 2007 - Clarity
• 2009 - IMS
• 2011 - Ilumitron
• 2005 - Novitas
• 2007 - Polaron
• 2007 - PCI
• 2009 - Transpower
• 2010 - Apex Controls
• 2007 - Nature
• 2005 - Save Fuse
Global
Infrastructure
¾ Safety/Notification
Safety / Protection /
Notification
• 2004 - MEDC
• 2006 - Wheelock
• 2007 - MadahCom
• 2007 - Roam Secure
• 2010 - Hernis
• 2010
0 0 - Mount
ou t Engineering
g ee g
¾ Crouse-Hinds EX/
Instrumentation/
• 2007 - Hyundai
• 2008 - MTL
• 2009 - Pauluhn
• 2010 - Iluram
¾ Airport Lighting
• 2008 - Transtech
¾ Buss Transportation
• 2007 - Sure Power
• 2007 - Omnex
• 2006 - G&H
• 2007 - WPI
¾ Interconnect
¾ Buss Electrical
¾ B-Line
Penetrating Key Global Trends
• 2006 - Xian
• 2007 - GS Metals
45
CBE Investments In Growth
Innovation
Customer Loyalty
–Cooper Connection
–Tech Center
–Web Redesign/C3/CRM
–Vitality Index At Record High
–Expanded Engineering
–LED/RF
LED/RF Pl
Platforms
tf
Globalization
–Global NX Structure
–Local Products/Markets
–17 Acq. Outside U.S.
Revenue Growth
EPS Growth
Cash Flow
M&A
Talent Development
–Global/Diverse
Global/Diverse Teams
–Expanded Commercial
Resources/Engineering/BD
Operational
p
Excellence
–Lean/MVP/VAVE
–SAP
–LCC Mfg/Global Sourcing
–12 Growth Platforms
–34 Deals In 7 years
–$1B Cash On Hand
Extremely Well Positioned Heading Into 2011
46
Cooper Industries
2011 Outlook Meeting
Cooper Lighting
Neil Schrimsher, EVP
Lighting Portfolio
Ambient
Recessed
O td
Outdoor
Lighting
Controls
¾ C&I and Architectural
¾ Focus on Energy Efficiency
¾ Broad Resi and C&I Portfolio
¾ Full Line of LED Products
¾ Outdoor & Roadway
y Markets
¾ Successful 2010 LED Launch
¾ Broad,
B
d Gl
Global
b l Package
P k
¾ Energy Management Controls
and Metering
Broad Portfolio of Industry Leading
Products & Brands… Accelerating LED
48
Lighting Overview
Relevant Market Size: $10 Billion
Leading Brands:
Ambient
Sales: ~$1.1 Billion
Geographic Mix: ~20% Outside U.S.
Recessed
Revenue by Region
O td
Outdoor
Int’l.
US
U.S.
Lighting
Controls
Strong Foundation & Positive Developments
49
Lighting End Markets
Commercial / Industrial
R id ti l
Residential
¾ Market Improving, Key
Growth Segments:
¾ Positive Housing Starts
Off a Low Base
Industrial
• Education
• Healthcare
• Warehouses /
Parking
• Renovation
Commercial
¾ Renovation & Energy
Efficiency Traction
Residential
Roadway
Roadway
¾ Broadest LED Offering
¾ Global Opportunities
¾ Utility Rebates / ARRA
Award-Winning Products With Broad
Exposure To Long-Term Attractive Markets
50
Lighting Economic Indicators
ST Trend
LT Trend
¾ Residential
¾ Commercial Construction
¾ Industrial
y
¾ Roadway
Architectural Billings Index
Nonresidential Construction
End Markets Improving/Energy
Efficiency Driving Growth
51
Sources: AIA, BEA, Global Insight (GI), NEMA
Business Priorities
¾ Operational Excellence
¾ Energy Efficiency
¾ Innovation / Technology
Executing on Fundamentals & Generating Results
52
Operational Excellence
Continuous Improvement…
Improvement
Realized Benefits
¾ Standard Work
9 Productivity: $35M in Savings
¾ Value Streams
g g Footprint
p
Optimization
p
9 Cost Structure: Ongoing
¾ Visual Management
¾ Engagement &
Accountability
9 Service: Historical Best Performance
9 Quality: Historical Best Performance
g Capital:
p
Record Level
9 Working
Lead Time Reduction
…Service as a Growth Enabler
Division Mfg.
g LT Reduction
Make-to-Order
• Stratify Demand Frequency & Mfg.
Lead Times
• Align Supply Chain Solutions
Work
Days
D
Mfg. D
Days
• Market Driven Requirements
15%
Reduction
• Dynamic Review & Adjustments
Driving Competitiveness & Continuous
Improvement Across the Business
53
Business Priorities
¾ Operational Excellence
¾ Energy Efficiency
¾ Innovation / Technology
Executing On Fundamentals & Generating Results
54
Energy Efficiency
States Have Substantial Incentives for
Lighting Upgrades / Retrofits…..
…Cooper
Cooper Delivering Solutions & Results
~$250M
40% CAGR
¾ Retrofit /
Renovation
¾ Controls
Best Incentive Program
¾ LED
Good Incentive Program
Incentive Program Available
No Incentive Program
2007
2008
2009
2010
Occupancy Sensors
Solutions
for Key
Markets
Control Systems
Commercial
Focused Channel
Efforts
Industrial
End Users
& Utilities
Retail / Healthcare
Contractors
& ESCOs
Lighting Control
Svc/Programs
Distribution
Energy Generates Results In All Economic Cycles
55
Business Priorities
¾ Operational Excellence
¾ Energy Efficiency
¾ Innovation / Technology
Leveraging Technology To Enhance
Leadership Position
56
LED Technology and Market
LED Market
M k t Penetration
P
t ti
LED C
Costt and
dP
Performance
f
Cost ($/Kilo
C
olumen)
Effficiency (Lum
men/Watt)
LED 14%
Tipping Points
All
Other
86%
LED
25%
All
LEDOther
75%
All
Other
Recessed – 2009
Outdoor – 2010
Ambient – Starting 2011
Cooper Well Positioned With Major Launches
Timed To Meet Tipping Points
57
R&D / New Product Introduction
Organic
50%
NPI Process
LED Innovation Center
External
50%
Project Ideas / Evaluations
Tollgate Development Process
Define – High Level Scope, Initial Project Plan
Measure – Understand Product Requirements
¾
Opened in 2009, Focus on LED
¾
Product Design – Optics, Thermals,
Electronics, Mechanical, Ind. Design
¾
Performance
f
& Reliability Testing
¾
Prototype and Pilot Manufacturing
¾
Build Robust IP Pipeline
Explore – Define Product Design, Engage Mfg
Develop – Validate Design, Complete
C
Testing
Implement – Production Readiness & Launch
Speed
p
& Differentiated Products!
Investments & Processes Generate Top Tier Results
58
New Product Pipeline
Growth Area
2008
2009
2010
2011
32
47
55
60+
LED
Energy
gy /
Retrofit
Controls
Products
Launched
Focused On Applications & Customer Solutions
Driving 33%+ Vitality
59
Track & Recessed LED
O
Opportunity
t it
A ti
Action
¾ Installed Base of 910
Million Units
21% CFL
¾ Cooper Launches:
• LED Recessed 85% More
Efficient vs. INC
• LED Eliminates 40 INC
Replacements
¾ 19 Product Awards
• HALO Resi - 2009
• Stasis & iO Track - 2010
• Portfolio Commercial 2010
• All-Pro Resi - 2010
79% INC
¾ LED Value Proposition:
R
Result
lt
¾ Industry Leading
Brands, Breadth &
Performance
¾ Industry’s First
Energy Star
Rated Downlight
LED Recessed
Sales 2.5X
¾ LED Tipping Points:
• 2009 for Residential (INC)
• 2010 for Commercial (CFL)
‘09
'09
LED Adoption Accelerating
‘10
'10
60
Outdoor LED
Opportunity
Action
¾ Installed Base of 144
Million Units
¾ Launched 18 Fixture
Platforms in 2010
Result
¾ 15 Product Awards
7% FLU
10% INC
11% MV
39% HPS
33% MH
¾ Nationwide Roadshow,
Reaching 2,500+
Customers
¾ Industry Leading
Brands, Breadth &
¾ LED Value Proposition:
• LED Outdoor 60% More
Performance
Efficient vs. MH
• LED Eliminates 7 Lamp
Replacements
¾ Rapid Adoption - 40%
off Outdoor
O td
Architectural
A hit t l
Sales Now LED
LED Outdoor
Sales 50X
¾ LED Tipping Point:
• 2010 for Outdoor
‘09
'09
Most Successful Cooper Lighting Launch Ever!
‘10
'10
61
Ambient Energy Efficiency
Opportunity
Action
¾ Installed Base of 538
Million Units
10% T5
30% T12
¾ 10 Product Awards
¾ Retrofit
• Developed
p T5,, T8 Fixture
Retrofit Kits
• Dedicated Energy Sales
Team Leveraging Rebates
60% T8
¾ Value Proposition:
• Energy Savings:
– Retrofits: 30%
– LED: 15% Today
– Controls: Occupancy
Sensing 75%, Timers
23% Daylighting 30%
23%,
• LED Eliminates 4 Lamp
Replacements
¾ LED Tipping Point:
• Early Adopters in 2011
Result
¾ Controls
• Global Energy
Management
g
Platform
• Launching Venergy
Advanced Metering System
¾ Energy-Related Sales
as % of Total Sales are
12x 2007 Levels
Energy
gy Sales
+25%
¾ LED
• Launching Product
Platform Across 6 Brands
• Nationwide Roadshow to
Drive Awareness, Adoption
‘09
‘10
Retrofits, Controls, LEDs Deliver Energy Savings & Growth
62
Lighting Summary
¾ Improving Market
Conditions… Significant
Growth Opportunities
¾ Driving Productivity &
Continuous Improvement
¾ Energy & Sustainability –
Delivering
g Solutions &
Results
40%+ More Efficient & 2.5x Longer Life
¾ Innovation – Leadership
Platforms w/ Technology &
Specification Capability
Well Positioned To Outperform The Market In 2011 & Beyond
63
Cooper
p Industries
2011 Outlook Meeting
Cooper Crouse-Hinds
Grant Gawronski
Gawronski, President
Cooper Crouse-Hinds
Oil + Gas
Industrial
Chemical/Pharma
Marine
World’s
W
ld’ Leading
L di Provider
P
id Of Products
P d t And
A d Service
S
i For
F
Electrical Systems in Hazardous Environments
65
Crouse-Hinds Business Overview
Market Size:
~$28 Billion
Sales:
~$850 Million
Customer Profile
Geographic Mix: ~55% Outside U.S.
Revenue by Region
Leading Brands
Lat
Lat.
Am
Am
US &
U.S.
Canada
Asia
Europe/
MENA
& Canada
World-Class Brands With Long-Term
Customer Relationships
66
Crouse-Hinds End Markets
¾ Oil & Gas/Petrochemical
• Offshore and Onshore E&P
• Processing, Transmission &
Di t ib ti (Refineries,
Distribution
(R fi i
Pipelines)
Pi li
)
• Plastics
• Alternative Energy
a e
• Marine
Industrial
(Petrochemical/
Industrial
Oil & Gas)
(General)
Commercial
¾
Industrial
•
•
•
•
•
Pharmaceutical / Chemical
F d&B
Food
Beverage
Pulp / Paper
Water / Wastewater
Mining
¾ Commercial
• Non-resi, Office, Institutional
Significant Exposure To Long-Term Global Energy Needs
67
Crouse-Hinds Economic Indicators
ST Trend
LT Trend
¾ O&G Capex (Upstream & Downstream)
¾ Industrial Production
¾ Global Commodity Demand
¾ Safety Standards
Global Midstream & Downstream Capex
Global Offshore Drilling Spend
$ Billions
$ Billions
Source: Global Data
NA
Lat Am
Europe
ME/Afr
Asia
Source: Global Data
Global Investment Cycle Driving Improving Demand
68
Explosion-Proof NEC Products
Controls
C
t l &A
Apparatus/
t /
Switchgear
Plugs, Receptacles
Pl
R
t l
& Fittings
Li hti
Lighting
Comprehensive
C
h
i Offering
Off i Of Controls,
C t l Lighting,
Switchgear, Plugs, Receptacles And Fittings
69
Harsh & Hazardous IEC Products
Li hti
Lighting
S it h
Switchgear
C
Connectivity
ti it
Full Line Of “European Spec” Explosion-Proof Products
70
Marine Products
Li hti
Lighting
Vi
Visual
l Signaling
Si
li
Brass El
B
Electrical
ti l
Products
Leading Provider Of Products To Shipbuilding
And Offshore Platforms
71
Portable Power Solutions
Customized Solutions For Power Delivery Into
Industrial Applications
72
Instrumentation - MTL
Intrinsically Safe Interface And Network Products
73
Additional Product Offerings
Explosion
Proof Signaling
Explosion-Proof
Harsh And Hazardous
CCTV Solutions
Cable Glands and Connectors
Unmatched Offering To Harsh And Hazardous Environments
74
Global Standards
IEC and IECEx
All Continents –
International Certification
Crouse-Hinds Is The Standard
CSA
ATEX
Canadian
Certification
Certification for
the European Union
UL
Gost
Certification for
United States
Russian
Certification
NEC
North
American
Certification
KS
Korean
Certification
CEPEL
GB
Brazilian
Certification
Certification
for China
Global Strength And Local Coverage
75
Investing In Sustainable Growth
¾ Crouse-Hinds Leading Market Position Provides Entry
For Pan-Cooper
p Solutions To A Global Customer Base
¾ Innovation Strengthens The Broadest Harsh &
Hazardous Package In The Industry
¾ Strategic Organic Investments And Acquisitions Add
To Significant Global Presence
Add Capabilities To Solidify Crouse-Hinds
Crouse Hinds As Preferred
Global Harsh And Hazardous Solution Provider
76
Cooper Petrochemical Portfolio
EX Lighting
Instrumentation
CCTV
Signals, Alarms
& Surveillance
Connectivity
Motor
M
t C
Controls
t l
& Distribution
Fittings & Glands
Comprehensive Product Solutions For
Global Oil & Gas Applications
Wireless
Enclosures &
Structures
77
Cooper Upstream Portfolio
EX Lighting
Instrumentation
CCTV
Signals, Alarms
& Surveillance
Connectivity
Motor
M
t C
Controls
t l
& Distribution
Fittings & Glands
Comprehensive Product Solutions For
Global Oil & Gas Applications
Wireless
Enclosures &
Structures
78
Crouse-Hinds Innovation
Increasing R&D Spend…
Spend
+19%
¾ Record 80 New Product Launches In
2010…Up From 22 In 2006
¾ N
New P
Products
d t G
Generated
t d Over
O
$100
Million In Revenue In 2010
2009
2010
2011E
¾ Created
C eated “Advanced
d a ced Engineering
g ee g
Group” Focused On Next Generation
Products
Delivering Differentiated Technology…
2010
- Harsh & Hazardous LED
- Energy Efficient
- Env.
Env Friendly
- Wireless Technology
- Smart Switches
- Remote Monitoring
- Ultra Cold Weather
- Plugs & Receptacles
- IEC & NEC
- Energy Management
- Solar Power Mgmt
- Multi-Platform VFD
Significant Increase In Innovation Investment…New
Product Pipeline At Record High
79
Unrivaled Global Presence
Lat
Am
US &
Canada
Local Manufacturing
Local Sales Presence
Continuing To Invest In Global Sales And
Manufacturing Capability
80
Crouse-Hinds Summary
¾ 113 Years Of Experience…Most Trusted Name In
Harsh & Hazardous Environment Products
¾ Global Commodity And Energy Demand Driving
Improving End Markets
¾ Increased R&D Investment Fueling
g New Product
Introductions And Additional Revenue
¾ Continue To Add To Global Reach
Forecasting Strong Growth Over The Cycle
Cycle…Global
Global
Energy Demand Provides Tailwind For Years To Come
81
Cooper
p Industries
2011 Outlook Meeting
Cooper Bussmann
Ivo Jurek,
Jurek President
Cooper Bussmann Portfolio
Platforms
Electrical
¾
¾
¾
¾
Automation
Renewable Energy
Transportation
& Hi-Rel
Hybrid / Electric
Vehicles
Telecom / Datacom
Fuses/Connectors
ESD Supressors
Magnetics
Supercapacitors
Transportation
¾
¾
¾
¾
Infrastructure
UL, IEC Fuses
High Speed Fuses
Industrial Wireless
Surge Protection
Electronics
¾
¾
¾
¾
M k t
Markets
Power Conversion
Battery Mgmt
Circuit Protection
Wireless Control
Strategic Platforms For Growth…Attractive End Markets
83
Bussmann Electrical
OEM
Retail
Industrial
Construction
Driving Applications; Penetrating New Markets
Key Customers
¾ Operational Execution Driving Market Share Gains
¾ Innovation
I
ti Driving
D i i Portfolio
P tf li Expansion
E
i
¾ Strong Presence In LCC
Retail
Transit / Control Panel
Hardware
Alternative Energy
Industrial
Critical Systems
Transit
DIY
Automotive
Growing Core Electrical Business And Expanding On
Emerging Market Opportunities
84
Bussmann Electronics
Overcurrent
Overvoltage
Magnetics
Supercapacitors
Enhancing Capabilities; Enabling Customers
Key Customers
¾ Business Expansion To High Growth Applications
¾ Innovation Drives Penetration Of Global OEMs
¾ Disruptive Technologies Targeting Emerging Trends
Consumer
Computing
Communications
Energy Efficiency, Battery Life & Feature Content Driving
Growth In Computers, Communications & Consumer Markets
85
Bussmann Transportation
Circuit
Protection
Power
Distribution
Battery
Management
Power
Conversion
Wired & Wireless
Control
Accelerating Development; Driving Solutions
Key Customers
¾ Well Positioned To Grow With Global OEMs
¾ High-Growth Applications Driving Business Recovery
¾ Investing In Control Electronics Portfolio With Smarter, Higher Value Devices
Targeting High-Growth Applications With Smarter,
Higher Value Solutions
86
Bussmann Business Overview
Market Size: ~$24 Billion
Customer Profile
Sales: ~$550 Million
Geographic Mix: ~39% outside U.S.
Revenue by Region
Leading Brands
Latin America
Asia
Europe/
MENAI
U.S. &
Canada
Large Business Opportunity, Attractive
Customers, Strong Brand
87
Bussmann End Markets
¾ Industrial
•
•
•
Industrial
Resi
¾ Commercial
•
Electronics/
Other
Alternative Energy
Industrial Automation
Steel & Aluminum Smelting
•
•
Places Of Assemblyy – Stadiums,,
Schools, Courthouses
Critical Power – Data Centers
Healthcare
¾ Electronics/Other
Commercial
• Computing - Notebook, Tablets and
Servers
• Smart Phones
• Consumer - HDTV / LCD
Attractive And Growing End Markets
88
Bussmann Economic Indicators
ST Trend
T d
LT Trend
T d
¾ Industrial Production / Cap. Utilization
¾ Consumer Spending
¾ Non-Resi Construction
¾ Corporate IT Spending
Mfg. capacity utilization, %
Real consumer spending,
spending annual % change
Source: FRB, NEMA/BIS simulation of Global insight macro model
Sources: BEA, NEMA/BIS simulation of Global Insight macro model
84
8
80
6
76
4
2
72
0
68
-2
2010 Q4: +4.4%
64
-4
60
2002
-6
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2004
2006
2008
2010
2012
Recovering Markets, Attractive Verticals And Global
Reach Offer Solid Long-Term Growth Prospects
89
Business Strategies / Priorities
¾ Growth Market Focus
–
–
–
Alternative Energy
Consumer Electronics & IT
High-Reliability Transportation
¾ Innovation & Technology
gy
–
–
–
Increased Power Density
Advanced Performance
Game Changing Technologies
¾ Operational Excellence
–
–
–
Factory Automation
Localization
Low Cost Countries
Advanced Technologies, Attractive Verticals And
Global Reach Fuel Rapid Growth
90
Alternative Energy
Hybrid & Electric Vehicles
Solar Energy
Wind Energy
Current Spec
Position
Well Positioned In High-Growth Markets
91
Innovation
¾
Innovation Focused On IP
Differentiated Products
–
–
–
¾
Game Changing Technology
Game-Changing
Opening New Markets
–
–
–
¾
Industrial Wireless Solutions
Over-Voltage
g Protection Solutions
Over-Current Protection Devices
Advance Power Inductors
Supper Capacitors
AC-DC
AC
DC and DC
DC-DC
DC Converters
Solutions Suite Expands Business
Universe
–
–
Solar Combiner And Re-Combiner Boxes
Quick Spec Coordination Panels
Advanced, IP Protected Technology Protects
Margins And Fuels Growth
92
Operational Excellence
¾
Manufacturing Rationalization
–
–
–
Optimized Operational Footprint
Relative To Primary Market
Lead Time Improvement
p
Best Cost Supply
Hungary
¾
Lean Enterprise System
–
–
–
China
Global Lean Deployment
Standard Work
Visual Management
India
Brazil
¾
Material Productivity
–
–
–
Welding
Assembly
Sand
Filling
Value Analysis / Value Engineering
Design For Manufacturability
Material Usage Optimization
Autoclave
Global Manufacturing Capabilities, Standardized
Processes, Optimized Designs
93
Bussmann Summary
¾ Recovering And Attractive End Markets
¾ Balancing Bussmann Investment In NPI And GameGame
Changing Technology
¾ IInvesting
ti In
I Talent
T l t To
T Advance
Ad
Strategic
St t i Growth
G
th
Initiatives
¾ Focus On VA/VE And Lean Enterprise Provide A Sound
Foundation for Profitable Growth
¾ International Presence Accelerating Revenue
Generation
Well Positioned To Outperform The
Markets Long-Term
94
Cooper
p Industries
2011 Outlook Meeting
Cooper Power Systems
Mike Stoessl, Group President
Cooper Power Systems Business Overview
Market Size:
~$40 Billion
Sales:
~$1.2 Billion
Customer Profile
Geographic Mix: ~32% Outside U.S.
Revenue by Region
Leading Brands
Lat
Am
Asia
Europe/
MENA
U.S. &
Canada
Poised For Renewed Double-Digit Growth
96
Power Systems Portfolio
Automation &
Communication
Solutions
#1 DR Technology Provider
#2 AMI PLC Provider
#1 Planning Software
#1 Smart Sensors
Reliability &
Power Quality
#1 Overhead Switchgear
#1 Capacitors
#1 Voltage Regulators
Co ect o
Connection
& Components
#1 High Voltage Fuses
#2 S
Surge A
Arresters
t
#2 Molded Rubber Accessories
Transformers
#1 Natural Ester Dielectric Fluid
#2 Distribution Transformers
Industry Leading Products And Extensive Portfolio
97
Power Systems Market Evolution
2010
2005
U.S. Rel &
Automation
U.S.
24%
Connection &
Restoration
45%
International
22%
C&I
9%
¾ U.S. Reliability & Automation
• Power Quality, Efficiency &
Productivity Solutions
¾ International
• Sales In Over 100 Countries
• Strong
St
P
Positions
iti
IIn Asia,
A i L
Latin
ti A
America
i
& Middle East
U.S. Reliability &
Automation
31%
International
32%
U.S.
Connection &
Restoration
25%
C&I
12%
¾ U.S. Connection & Restoration
• Power Delivery Solutions For Utilities
¾ Commercial & Industrial (C&I)
• Wind/Solar, Waste/Wastewater, Oil &
G
Gas,
Military,
Milit
Hospitals
H
it l & Universities
U i
iti
Well Positioned In The Most Attractive Segments
98
Power Systems Economic Indicators
ST Trend
LT Trend
¾ Electricity Consumption
¾ Industrial Production
¾ Housing Starts
¾ Infrastructure Investment
IOU CAPEX Distribution Spend
25 000
25,000
Average United States
Daily
y KWH Usage
g
20,000
15,000
10,000
5,000
Baird Utilities Monthly Feb 2011
CITI T&D Survey Dec. 2010
$MUSD
2005
2006
2007
2008
2009 2010E 2011E 2012E
Energy Usage And Distribution CapEx Rebounding
99
Growth Drivers
Electricity Demand
Infrastructure Maintenance
Energy Efficiency
Power Reliability
Automation
Gl b li ti
Globalization
R
Renewable
bl
Growth Driven In Many Areas
100
Energy Efficiency
¾ Growing Need For Energy
Efficient Solutions For
Utilities
¾ Energy Efficient Incentives
In 21 States
Source: Institute for Electric Efficiency’s
y report,
p , State Electric Efficiencyy Regulatory
g
y Frameworks July
y 2010
Smart-Grid Solution: “Integrated Volt / Var Mgmt”
¾ Equipment: Capacitors, Regulators
¾ Optimized Placement: Cyme
¾ Communications: EAS (Cybectec, Cannon)
¾ Automated Adjustment: Yukon
5-10% Of Power Generated Is Lost Before It Reaches The Meter
101
Capacitors (vars), Regulators (volts)
Managing voltage over distance…
Ideal
Voltag
ge
No Capacitors
Capacitor at
Location #1
Capacitor at
Location #2
Capacitor at
Location #3
Cl
Closer
Farther
F th
1
3
2
… and time
HIGH
Supply
DemandX
LOW
Time
No Waste;
Power Generated = Power Sold
102
Cyme Planning Software
Study Operational Power Quality
Optimize Operational Efficiency
Planning Software To Optimize Equipment Placement
103
EAS: Real Time Cap, Regulator Control (Volt/Var)
Voltage
Load Tap
Changer (LTC)
1st
3:30pm:
shift Shut down - OFF
Cooper
p
Voltage
Regulators
Cooper
p
Capacitor
Banks
9:35am:
Lights,
refrigeration ON
p
Cooper
Voltage
Regulators
Cooper
Transformer
4:45 PM
Arc Furnace - ON
Variable Well Pump load
6hr ON/Off Cycle
8:15pm:
Lights,
refrigeration
- ON
Variable
Loads - ON
8:48am:
Commercial Load ON
7:35pm:
Lights, Machinery ON
2:35pm:
Unplanned
Outage - OFF
5:30pm:
AC Resi load ON
7:05am:
Industrial Processes
ON
9:36am:
Commercial AC Load
ON
7:42pm:
2nd shift furnace load - ON
6:15pm:
Li ht refrigeration
Lights,
fi
ti - ON
Home
2:37pm:
DR Load event
OFF
12:00pm:
Production change
shut down - OFF
Electric Car
g
Charge
Station
1000’s Of Adjustments Required 24/7
Source: IEE/PES Conference: Conrad Technical Services LLC, July 2010
104
Power Reliability
Trend
¾
Reliability
y Penalties
¾
Consumer Expectations
¾ 27 States
St t With Reliability
R li bilit Targets
T
t / Penalties
P
lti / IIncentives
ti
Smart-Grid Solution: “Self-Healing Grid” or “Feeder Reconfiguration”
¾ Equipment:
E i
t S
Switchgear,
it h
F
Fault
lt D
Detectors
t t
¾ Optimized Placement: Cyme
¾ Communications: EAS (Cybectec, Cannon)
¾ Automated Adjustment: Yukon
Locate And Isolate Fault, Reconfigure, Restore Power
105
Switchgear
Temporary System
Problem
Permanentt System
P
S t
Problem
Each Unit Can Work Independently…
¾
¾
¾
Senses Problem
Opens Temporarily (2x)
Stays Open If Problem Remains
…But By Coordinating, Automating:
¾
Redirects “Traffic” Around Problem,
Bring Power Back To Many Homes
Coordinate & Automate To Restore Power Quickly
106
EAS: Fault Isolation (Feeder Reconfiguration)
CYME Power Engineering Optimizes
Switch Placement
Cybectec Collects And Concentrates
The System Data, And
Yukon Feeder Automation Software
Commands / Reconfigures The System
To Keep Outages To Lowest Impact
Operated By CPS Apparatus On The
Power Grid
Real-Time Fault Isolation And Feeder Reconfiguration
107
Power Systems Division Summary
¾ Positive Recovery In Core Businesses
– Lean Culture Driving Delivery, Quality, Inventory To Best-in-class
– Value Engineering Positions CPS Competitively
– New Product Development Increasing
¾ Uniquely Positioned As Integrated Solution Provider
– A
Automation,
t
ti
Apparatus,
A
t
Communications,
C
i ti
With 75+
75 Year
Y
History
Hi t
Of
Integration
– Regulatory And Utility Cash Management Needs Fuel Demand For
y
Reliability
¾ Continuing To Diversify Into Non-traditional Segments
– Global Infrastructure
– Renewable Energy Trends
– International Innovation Centers Contribute Local Expertise
Well Positioned For Sustainable Growth
108
Cooper
p Industries
2011 Outlook Meeting
Innovation & M&A
Tom O’Grady, Sr. VP Business Development
Cooper Business Model
Customer Loyalty
Innovation
Globalization
Revenue Growth
EPS Growth
Cash Flow
Talent Development
Op. Excellence
M&A
Focused And Proven Business Model
110
Platforms
B-Line
Support
Products
Wire
Management
Lighting
Crouse-Hinds
Bussmann
Commercial
C
&
Industrial
Explosion-Proof
Electronic
Electrical
Transportation
Enclosures
Airport
Lighting
Consumer
Instrumentation
Architectural
Commercial
Products
Power Systems
Safety
Reliability
Products
Energy
Automation
Transformers
Line
Installation &
Protection
Wiring Devices
Fire & Mass
Notification
Emergency
Lighting
Electrical
Distribution
Consumer
Security
Interconnect
Commercial
Lighting
Glands/
Boxes
Platforms For Organic And Acquired Growth
Based on 2010 Results
111
Portfolio Summary
Te
echnology/Specific
cation/Glo
obal
High
Tools
Low
Slow
C
Core
G
Growth
th
60% Of Portfolio Now Positioned In Faster
Growth/Higher Technology/Global Markets
Fast
112
Innovation And M&A Drive Growth
Innovation Drives
Profitable Core Growth
9 Strengthen The “Core”
9 Specification/Technology Driven
Businesses
9 Enhance Global Footprint And Product
Localization
9 Faster Growth / Higher Margin Products
9 Cross-functional Collaboration
M&A F
Facilitates
ilit t Growth
G
th
And New Technologies
Tie-in Between Core Growth Initiatives And Acquisitions
Positions Cooper For Sustainable Long-Term Growth
113
Innovation Core Strategy
Innovation Focus Areas
Voice of
Customer
Leverage
Technology
& Resources
¾ Strengthen The “Core”
¾ Specification/Technology
Driven Platforms
¾ Product Localization
Execution
¾ Faster Growth / Higher
Margin Products
¾ Cross-functional
Collaboration
Process Driven – Maximizing Technology And Growth
114
Platform Priorities
Bussmann
B
Transportation
Bussmann
B
Electrical
Bussmann
B
Electronics
Cooper
C
Connectivity
Crouse-Hinds
Instrumentation
Crouse-Hinds
Industrial EX
Power Systems
Global Products
Power Systems
Utility Automation
Lighting
Controls
Lighting
LED
Cooper Safety
Fire/Mass Notif.
Cooper Architectural &
Safety Lighting
Highest Impact, Largest Market Opportunities;
Focus Primarily On Industrial / Utility
115
Product Roadmaps Provide Vision
Market
Opportunity
Product
Roadmaps
Technology
T
h l
Roadmaps
Focused Strategy Combined With A Blend Of
Acquisitions And Organic Investments Delivers Growth
116
Innovation - Product Vitality
New Product % of Sales
30%
¾ LED Innovation Center in Peachtree
City, GA
– Reduced New Product Time To Market
– Leverage Across Cooper Businesses
24%
¾ Cooper Ranked #8 Industrial Innovator*;
Top 10 Last Two Years
19%
* From The Patent Board’s Dec 10 Industrial Component Supplier
Patent Scorecard
15%
7%
2003
2008
2009
2010
New
Target
New Product Leadership Drives Organic Growth
And Margin Expansion
117
Acquisition Core Strategy
Acquisition Focus Areas
Platforms Technology
gy
¾ Strengthen The “Core”
¾ Specification/Technology
Driven Businesses
¾ Enhance Global Footprint
Globalization
¾ Strong Balance Sheet
¾ Talented Management
Executing A Consistent And Disciplined Strategy
118
Platform Priorities
Bussmann
B
Transportation
Bussmann
B
Electrical
Bussmann
B
Electronics
Cooper
C
Connectivity
Crouse-Hinds
Instrumentation
Crouse-Hinds
Industrial EX
Power Systems
Global Products
Power Systems
Utility Automation
Lighting
Controls
Lighting
LED
Cooper Safety
Fire/Mass Notif.
Cooper Architectural &
Safety Lighting
Highest Impact, Largest Market Opportunities;
Focus Primarily On Industrial / Utility
119
LED
¾ LED Lighting
LED Market Penetration
9 ~$100 Million Platform Growing
Double-Digits
9 LED Effi
Efficiency
i
S
Surpassed
d all
ll
Traditional Sources in 2010
9 Five Acquisitions
9 Retrofit
f and New C
Construction
9 Technology Shared Across
Cooper Portfolio
(2010 LED Market - $2B)
LED Solutions
Exit/Emergency
Ambient
Harsh & Hazardous Recessed
Downlight
Site /Street
Track
Significant Growth Potential… Never Been A Better
Time To Be In Lighting Fixture Business
120
Industrial EX
$27 5B
$27.5B
¾ Crouse Hinds Industrial EX
$4 8B
$4.8B
9 Global Strength & Local Coverage
q
9 Three Acquisitions
9 World-Class Brands With Long-Term
Customer Relationships
Advanced Engineering Group
Group”
9 “Advanced
Focused on Next Generation
Products
Industrial EX Products
Lighting
g
g
Switchgear
S
tc gea
Connectivity
y
Comprehensive Product Solutions For Global
Industrial EX Environments
121
Bussmann Electronics
$127B
¾ Bussmann Electronics
$4 7B
$4.7B
9 Business Expansion Into High
Growth Adjacent Applications
9 One Acquisition
9 Innovation Drives Penetration of
Global OEMs
9 Disruptive Technologies Targeting
Emerging Trends
Bussmann Electronics Products
Overcurrent Protection
Supercapacitors
g
Magnetics
Overvoltage Protection
Focus On Value Creation Through New
Products And Markets
122
EAS/Smart Grid
¾ Energy Automation Solutions (EAS)
$42B
$2 1B
$2.1B
9 ~$200 Million Growth Platform
q
9 Four Acquisitions
9 Significant Organic Investments
Driving 2x Vitality
9 Technology Shared Across
Cooper Portfolio
Smart Grid Solutions
AMI/Demand Response
(PLC & RF Wireless)
Substation & Distribution Planning & Modeling Sensors, Controls &
Automation
Software
Relays
Industry Leading Platform Built Through
Acquisitions And Internal Development
123
Growth Platform Summary
Te
echnology
y/Specific
cation Glo
obal
High
Low
Slow
Bubble Size = Platform
Revenue
Core Growth 2011-13 CAGR
Fast
$1.1B+ Spent…34 Acquisitions…Portfolio Transformation
124
Access To New Growing Markets
Platform
Market Size
Acquisitions
Platform
Market Size
Utility
Automation
$2.1B
ƒCannon
ƒCybectec
ƒCyme
ƒEka Systems
y
Lighting
Controls
$2.7B
Safety/
Notification
$2.2B
ƒMEDC
ƒWheelock
ƒMadahcom
ƒRoam
R
S
Secure
ƒHernis
ƒMount Engineering
ƒWPI
ƒG&H
G&H
LED
$2.0B
Crouse-Hinds
Industrial EX
Instrumentation
$4.8B
$5.4B
ƒSure Power
ƒOmnex
Airport Lighting
$0.4B
$4.7B
ƒSave Fuse
CPS Global
Standards
B-Line Support
Systems
Interconnect
Bussmann
Transportation
Bussmann
Electronics
Bussmann
Electrical
$14.6B
$14.2B
ƒXian
$26.6B
$1.7B
Acquisitions
ƒNovitas
ƒPolaron
ƒPCI
ƒTranspower
p
ƒApex Controls
ƒRSA
ƒIo Lighting
ƒClarity
ƒIMS
IMS
ƒIllumitron
ƒHyundai
ƒMTL
MTL
ƒPauluhn
ƒIluram
ƒTranstech
ƒNature
ƒGS Metals
Platforms Provide Access To $50B $80B+ Of Higher Growth,
More Profitable, Less Cyclical, More Global Markets
125
Strategy Execution
Platforms
Wheelock
Technology
Xi’an
Save Fuse
Novitas
Clarity
PCI Lighting
GS Metals
Hyundai
Nature
G&H
Transtech
Transpower
Globalization
Xi’an
Xi’
Save Fuse
Transtech
Clarity
Transpower
Nature
Hyundai
$1.1B+ Invested In 34 Companies Consistent With
Acquisition Strategy
126
2004 - 2011 M&A Activity
S
Summary*
*
> 1,300 targets
identified in over
50 countries
100+ Deals
Presented
> $15B in
Revenue
¾ Closed 34 Deals Across All 7
Divisions
Screening
¾ 17 International Deals in 7
Countries
Diligence
¾ Executed on 11 Strategic
Growth Platforms
¾ Strengthened the Core
34
Closed
Deals
Execution
*Includes 1 transaction (Filtronic) for Tools
¾ Specification / Technology
Driven Businesses
¾ Enhanced Our Global
Footprint
Proven Process And Discipline Capability In M&A…
Stepping Up Size And Scale
127
M&A Market Overview
¾ Cooper BD Organization Complete
– 5 VP’s of Business Development Cover 7 Divisions
¾ Acquisition Strategy Driven By Corporate
Objectives And Division Strategic Plans
¾ Pipeline Full
– Size and Scale – Bolt-ons
– Expand Technology / Product Platforms
– Global Opportunities
¾ O
Opportunity
t it For
F Mid-Size
Mid Si To
T Larger
L
Transactions
T
ti
Over Next 12-18 Months
Process Driven – Value Based Approach
And Discipline
128
Innovation And M&A Summary
¾ Growth Is A Blend Of Internal Development And M&A
–
Access To $80B+ Higher Growth, More Profitable And Less
Cyclical
y
Global Markets
¾ 24% Product Vitality Index
¾ Past 5 Years - Cooper Invested:
– ~$500M in NPD
Driving $2B+ Revenue in 2010
– ~$1.1B in M&A
¾ Ranked Top 10 Last 2 Years For Patent Portfolio &
Technology Strength Compared To Our Global Industrial
Peers
¾ Leveraging Developed & Acquired Technology Across
Divisions
New Products – New Customers – New Growth Opportunities
129
Cooper
p Industries
2011 Outlook Meeting
Dave Barta, SVP and CFO
2010 Financial Highlights
Macro-Economic Environment in 2010
¾ Early Cycle/MRO Markets Strong All Year
¾ Utility And Mid/Later Cycle Accelerated Sequentially
¾ Housing/Commercial Markets Bouncing On The Bottom
¾ Difficult
Diffi lt Pricing
P i i Environment
E i
t
¾ Recovery Driving Commodity Inflation
Recovering Markets Driving Top Line
131
2010 Revenue Performance*
Energy & Safety Solutions
Cooper Industries
$2.4B
$2.5B
+ 4%
$4.5B
FX
$4.8B
-0.5%
Acq.
1.2%
Core 3.4%
+ 5%
2009
FX
0.0%
Acq.
0.6%
Core 4.8%
2010
Electrical Products Group
$2.1B
$2.2B
+ 7%
2009
2010
2009
FX
0.5%
Core
6.3%
2010
Solid Year - Momentum Built Throughout The Year
* Excludes Tools Revenue
132
2010 Operating Income
C
Cooper
IIndustries
d ti
Energy & Safety Solutions
$714M *
14.1%
$544M
$375M
$424M
16.9%
15.5%
10.7%
2009
2010
Electrical Products Group
$331M
$263M
2009
2010
14.8%
12.6%
Operating
O
ti Income
I
Return on Revenues
Significant Margin Improvement Driven By Strategic
Investments, Productivity And Restructuring
* 2010 Excludes Loss On Tools JV Formation
133
Revenue Growth History*
Year-over-year Growth
Core
25%
15%
16.7%
14.1% 15.3% 15.5%
18 7% 17.2%
18.7%
14.2%
12.5%
8.2%
5%
8 6%
8.6%
9 2%
9.2%
10.0%
0 0% 9.5%
7 4%
7.4%
2.5%
8 1%
8.1%
3.6%
2.6%
14.1%
8 3%
8.3%
3.3%
-0.3%
-6.4%
-5%
-15.4%
-22.0% -23.1% -20.6% -4.3%
-15%
15%
-17.0%
-18.8%
-25.1%-24.8%
-25%
-35%
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410
Revenue
($ billions)
$1.21 $1.27 $1.30 $1.32 $1.36 $1.51 $1.53 $1.36 $1.13 $1.13 $1.15 $1.10 $1.08 $1.17 $1.24 $1.26
Core Growth Recovering Rapidly…Q4’10 Record
* Excludes Tools Revenue
134
Segment Operating Margin History*
20%
18%
Prior Peak
16%
14%
12%
10%
8%
6%
12.5%
12.0%
13.0%
13 7%
13.7%
14 6%
14.6%
15.9%
16.6%
16.2%
14 1%
14.1%
15.7%
15.9%
16.5%
15.4%
4%
2%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 2Q10 3Q10 4Q10
Quickly Recovered To Near Peak Levels
* Excludes Tools and Restructuring
135
Capital Utilization Improvement
Inventory Turns
Receivable DSO
8.0
70
7.0
65
6.0
5.0
60
4.0
3.0
55
2004
2005
2006
2007
2008
2009
2010
OWC Turns
2004
$150
7.0
2005
2006
2007
2008
2009
2010
Capital Expenditures
($millions)
6.0
$100
50
5.0
4.0
$50
3.0
20
2.0
$0
2004
2005
2006
2007
2008
2009
2010
2004
2005
2006
Depreciation
2007
2008
2009
Capital Spending
2010
136
Free Cash Flow To Income*
FCF as a % of Sales
2.0
10.8%
12.5%
9 5%
9.5%
1.5
7.5%
10.4%
8.6%
11.7%
10.3% 11.6%
13.0%
7.7%
10
1.0
6.4%
5.4%
0.5
0.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
$ millions
$196 $247 $344 $314 $428 $384 $383 $490 $535 $682 $761 $633 $606
Strong Cash Flow In Up And Down Cycles
* Recurring Income from Continuing Operations
137
Debt Profile
Amo nt
Amount
Rate
D e Date
Due Date
$ 325 3.55%
Nov ‘12
300
300 5 56%
5.56%
Apr ‘15
Apr 15
250 2.38%
Jan ‘16
300
300 5 75%
5.75%
Jul ‘17
Jul 17
250 3.88%
Dec ‘20
$ 1,425
$ 1,425 4
‐
(1,035)
$ 394
Long Term Debt
Long Term Debt
Other Misc Debt
Commercial Paper
Commercial Paper
Cash and Investments
Net Debt
Balance Sheet Remains A Strategic Asset
138
Net Debt To Total Capitalization*
50%
43.9%
45%
35%
30%
25%
20%
10.9%
15%
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
10%
1998
Perce
ent
40%
Net Debt $394 Million…Substantial M&A Firepower
* Net Debt: Total Debt less Cash and Investments
139
Five Year Capital Allocation History
$3 9B
$3.9B
Fund Strategic
Growth
$563
Capital Expenditures
$1,068
Acquisitions
$275
Debt Retirement
$806
Dividends
$1,440
Share Repurchases
Reward
Shareholders
2006-2010
$2.2B Cash Returned To Shareholders In Last 5
Years… While Funding Strategic Growth
140
CBE Share Repurchase History
Average
Price
$49.96
$44 23
$44.23
$42
$42.77
$35.87
$33.61
$24.73
Shares
(Millions)
2005
2006
2007
2008
2009
2010
6.3
6.2
6.9
14.4
1.6
6.2
Successful, Opportunistic Share Buyback
Program In Place For Years
141
Return on Invested Capital
14.3%
14.7%
*
14%+
13.5%
13.0%*
10 7%
10.7%
10.8%
9.7%
8.2%
2003
2004
2005
2006
2007
2008
2009
2010 2011E
Solid ROIC Improvement In 2010
2010…Returning
Returning To
Pre-Recession Levels In 2011
* Note – 2010 and 2011 ROIC Excludes $500M Debt Issuance
142
2010 Summary
¾ Market Growth Returning
¾ Prior Strategic Investments And Cost Reductions
Providing Positive Contributions
¾ Tenth Consecutive Year Free Cash Flow Exceeds
Recurring Income
¾ Strong Balance Sheet Provided Strategic
Flexibility
¾ Cooper Well Positioned For The Future
Well Positioned To Leverage Growth Opportunities
143
Cooper
p Industries
2011 Outlook Meeting
Dave Barta, SVP and CFO
2011 Outlook
2011 Forecast: Industrial Market
2010 Revenue $1.6 Billion
Canada
6% Latin
Amer.
6%
Asia
Pac 11%
Pac.
U.S.
55%
Europe,
M.E., Africa
(EMEA)
22%
¾ Industrial Production
• U.S. Markets Positive
• International Markets Growing
(especially developing markets)
¾ Factory Utilization
• Capacity Utilization Continues
Modest Improvements
¾ Capital Spending
• MRO O
Orders
d
C
Continued
ti
d Strength
St
th
• Energy Efficiency Spend Continues
¾ Energy
• W
Worldwide
ld id Infrastructure
I f
Projects
P j
Activity Increasing
Cooper Revenue Grows 8% To 11% On International
Growth And Continued US Improvement
145
2011 Forecast: Commercial Market
2010 Revenue $1.4 Billion
Canada
Latin
7% Amer.
Asia
3% Pac.
¾ Energy Efficiency
• LED Adoption Growing
• Lighting Paybacks Compelling
4%
¾ Economic Stimulus/Incentives
U.S.
59%
EMEA
27%
¾ Markets Mixed
•
US & Europe Flat to Slightly Up
•
Developing Markets Growing
¾ U.S. Commercial Construction
•
Recovery Late 2011/Early 2012
Cooper Revenue Grows 1% To 4% On International
Growth And Energy Efficiency Demand
146
2011 Forecast: Utility Market
2010 Revenue $1.2 Billion
Canada
6%
U.S.
68%
Latin
Amer.
10%
¾ Smart Grid/Utility Automation
Continues To Grow
¾ International Growth/Expansion
Asia
Pac. 13%
EMEA
3%
¾ U.S. Utility Spending Up, Backlog
Growing
¾ A
Aging
i
Grid
G id Continues
C ti
To
T Need
N d
Upgrading With Long-Term Outlook
Positive
¾ T&D Investments Returning
Cooper Revenue Grows 10% To 14% As U.S.
U S Utility
Spending Improves And Smart Grid / Automation Expands
147
2011 Forecast: Residential / Retail Market
2010 Revenue $0.4 Billion
¾ Volatility In Residential Markets
¾ Housing
H
i
Starts
St t A P
Positive
iti
Canada
19%
Asia
1%
EMEA
6%
¾ Consumer Confidence Shows
Gradual Improvement
p
¾ Mortgage Rates Remain Low
¾ Slow Climb Off The Bottom
U.S.
74%
C
Cooper
R
Revenue IIncreases 3% T
To 6% O
On M
Market
k t Sh
Share
And New Products
148
End Markets: Today vs. Past
2010*
2003
Other
2%
Other
6%
Resi
7%
Resi
18%
Industrial
29%
Utility
18%
Industrial
34%
Commercial
33%
Utility + Industrial = 47%
Commercial + Resi = 51%
Commercial
28%
Utility
25%
Utility + Industrial = 59%
Commercial + Resi = 35%
Expanding Industrial And Utility Exposure
* Excludes Tools Revenue
149
Capital Utilization Improvement
Receivable DSO
Inventory Turns
8.0
70
7.0
65
6.0
5.0
60
4.0
3.0
55
2004
2005
2006
2007
2008
2009
2010 2011E
OWC Turns
2004
$150
2005
2006
2007
2008
2009
2010 2011E
Capital Expenditures($millions)
7.0
6.0
$100
50
5.0
4.0
$50
3.0
20
2.0
$0
2004 2005 2006 2007 2008 2009 2010 2011E
2004
2005
2006
Depreciation
2007
2008
2009
2010
2011E
Capital Spending
150
Free Cash Flow To Recurring Income
2.0
1.2
1.5
1.4
1.1
1.3
1.1
1.2
1.2
1.1 ~1.0
1.0
0
Target Free Cash Flow In Excess Of
Recurring Income For 11th Year In A Row
151
Price vs Material Inflation
¾Action Plan:
Gap History
00
01
02
03
04
05
06
07
08
09
10
11E
/
¾ Major Commodities
–
–
–
–
Steel
Copper
Aluminum
Precious Metals
– Price Actions
– Hedging
– VA/VE
¾Expectations:
– Headwind Q1
– Neutral Q2
– Neutral Full Year
Historically Able To Offset Material Inflation Through
Pricing Actions
152
Operating Margin Opportunity*
Prior Peak
Margin
Drivers
Volume
NPI
Productivity
Price/Infl
Opportunity To Surpass Prior Peak Margins
* Excludes Tools and Restructuring
153
2011 Outlook
FORECAST
Q1’11
Q1
11
2011
Total Revenues*
- Energy & Safety Solutions
- Electrical Products Group
+10% to +14%
+6% to +9%
+13% to +17%
+7% to +11%
+8% to +11%
+4% to +7%
~ $.80 - $.84
~ $3.60 - $3.80
Earnings Per Share
Continuing Operations
Free Cash Flow
~ 1x
Recurring Income
Guiding
g 2011 EPS Up
p 16% On Strong
g Revenue Growth**
* Year-over-year revenue growth excludes Tools
** Excludes the non-cash charge related to the formation of the Tools joint venture
154
Major Items Impacting 2011 Forecast
R
Revenue
¾ Overall Markets
++
¾ Sales Mix
E PS
E.P.S.
++
+
¾ Acquisitions (+1% revenue tailwind)
+
+/–
¾ Currency Translation (-1% revenue headwind)
–
–
+/–
+/–
¾ Price / Material Economics
¾ Productivity
++
¾ Interest Cost ((-$.07
$
E.P.S.))
––
¾ Income Tax Rate (19% to 20% for 2011)
–
¾ Pension And OPEB Cost
Flat
¾ Fully
F ll Diluted
Dil t d Shares
Sh
Fl t
Flat
Positioned For Strong Earnings Leverage
On High Single-Digit Revenue Growth
155
Financial Summary
¾ Focused On Accelerating Global Growth
¾ Margin Movers: Price, Productivity, Volume
¾ Translating Into Double-Digit Earnings Growth
¾ Target Free Cash Flow >1x Continuing Income
¾ Continued Disciplined Capital Allocation
Focus On Growth, Solid Earnings Leverage And
C ti
Continued
d Strong
St
Cash
C h Generation
G
ti
156
Cooper Industries
2011 Outlook Meeting
Summary
Kirk Hachigian, Chairman & CEO
End Market Outlook
End Market
% of Sales
Industrial
34%
Commercial
28%
Utility
25%
Resi/Other
13%
International
39%
2010
2011
2012
2013
2014
Markets Recovering…Driving Growth Over The Cycle
Percentages based on FY2010 results excluding Tools
158
CBE Investments In Growth
Innovation
Customer Loyalty
–Cooper Connection
–Tech Center
–Web Redesign/C3/CRM
–Vitality Index At Record High
–Expanded Engineering
–LED/RF
LED/RF Pl
Platforms
tf
Globalization
–Global NX Structure
–Local Products/Markets
–17 Acq. Outside U.S.
Revenue Growth
EPS Growth
Cash Flow
M&A
Talent Development
–Global/Diverse Teams
–Expanded Commercial
Resources/Engineering/BD
Operational
p
Excellence
–Lean/MVP/VAVE
–SAP
–LCC Mfg/Global Sourcing
–12 Growth Platforms
–34 Deals In 7 years
–$1B Cash On Hand
Extremely Well Positioned Heading Into 2011
159
Stretch Revenue Goal
$Billions
$6.5
$5 9
$5.9
$5.2
$4.5
$4.5
$4.2
$3 7
$3.7
$3.9
$5.1B+
$5.1 $5.1
$4 7
$4.7
$4.0 $4.1
*
Positioned For Upside In 2011
* 2010 includes $311M in Tools revenue
160
Earnings Per Share History*
$3 60 $3 80
$3.60-$3.80
$3.59
$3.20
$3.14
$2.58
$1.76
$2.52
$2 06
$2.06
$1.90
$1.79
$1.34 $1.30 $1.42
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E
Two Versus Four Years To Recover On EPS!
* Diluted, From Continuing Operations and Adjusted for Split, Excluding Unusual Items
161
Five Year Capital Allocation History
$
$3.9B
Cap Ex
Acquisitions
14%+ ROIC*
Debt Retirement
Dividend
Share
Buybacks
Up 57% Over 5 Years
Repurchased 35 Million
Shares At $41 Avg. Price
2006 -- 2010
Disciplined With Shareholder Money
* Excluding 2010 $500M Debt Issuance
162
Shareholder Value Creation
Great Portfolio
¾100% Electrical
¾Diverse End Markets
¾Access To Key Global Trends
¾Global Capabilities
¾Technology Driven
Capital Allocation
¾Fund The Core
¾Disciplined M&A
¾$1B C
Cash
hO
On H
Hand
d
¾Share Counts Down/Dividend Up
¾Pension Funded
B i
Business
M d l/E
Model/Execution
ti
¾Rapidly Scalable
¾St
¾Strong
Cash
C h Flow
Fl
¾Endless Growth
Opportunities
¾Focused On The Right
Business Initiatives
¾Performance Based Culture
All The Pieces In Place For Consistent, Sustainable
Long-Term Shareholder Returns
163
Cooper Industries
2011 Outlook
Questions & Answers