Cooper Industries
Baird’s 2011 Industrials Conference
Dave Barta, CFO
Kyle McClure
McClure, Director IR
Material in this presentation contains "forward-looking
"for ard looking statements" within
ithin the meaning of the safe harbor pro
provisions
isions 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, possibly materially, from the
anticipated results and the financial condition indicated in these forward-looking statements. For us, particular
uncertainties
t i ti that
th t could
ld cause our actual
t l results
lt to
t be
b materially
t i ll different
diff
t than
th those
th
expressed
d in
i our forward-looking
f
d l ki
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, political developments, and changes in legislation and regulations (including changes in tax laws).
For a discussion of some of the risks and important factors that could affect our future results and financial condition,
see "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010
and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our
Annual Report on Form 10-K for the fiscal year ended December 31, 2010.
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 Portfolio
E&SS
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
Utility
EPG
100%
Electrical
59% Industrial/Utility
35% Commercial/Res
39%
International
59% Industrial/Utility…39%
y
International…100% Electrical
Based On FY2010, Excluding Tools
3
Electrical Businesses Market Size
Energy & Safety Solutions
Power Systems
$1,150+/$
,
million
Market Size: $40B
Crouse-Hinds
$850+/- million
Market Size: $28B
Safety
$
$500+// million
Market Size: $8B
Based on FY2010
Electrical Products Group
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
$140B+ Served Market Opportunity
4
Long-Term Global Trends
Electricity Demand /
Utility Grid Upgrade
Global Infrastructure
Conservation / “Green” /
Energy Efficiency
Safety / Protection /
M
Mass
Notification
N tifi ti
Uniquely Positioned To Penetrate Key Global Trends
5
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
6
International Growth
I
Investments
t
t
 New factories in 2011:
− China, Brazil, Philippines
G
Growth
th
 Record international sales…40% of
revenue…YTD core international
sales up 14%
 New Technology Centers 2011/2012:
− China, Korea, Philippines, Australia
40%
36%
27%
2008
2003
2011
YTD
Excludes Tools
 Developing markets core revenue
up ~ 20% YTD
Korea Tech Center…
Leveraging Houston Globally
~ 20%
14%
2010
Excludes Tools
2011
YTD
Investing in International Growth For The Future
7
Globalization Investments
+14%
14%
YTD
C
Core
IIntl
tl Rev
R G
Growth
th
+17%
+9%
-20%
+22%
Martek
Iluram
+16%
Mount Eng.
Cybectec
Saudi Mfg
Apex
NX Mid East
Xian Fuse
N. Africa
Romania Mfg
Hernis
CC Europe
CBE Europe
Polaron
P l h
Pauluhn
Australia NX
Capacitor JV
NX SE Asia
Hyundai
Cyme
WD China
Turkey NX
Save Fuse
NX Russia
NX India
MTL
Digital China
Spain NX
China HQ
NX Japan
Nature
Clarity
Xian Mfg
Brazil BD
2005
2006
2007
2008
2009
2010
Gitiesse
Central
America NX
India NX
Brazil NX
China Mfg
Brazil Mfg
Philippines
Mfg
2011
Years Of Steady Investment In Global Expansion
Acquisition
Organic
NX
8
Asia Revenue History
9 1%
9.1%
4.2%
% of Global
Revenue
~$500
Revenue
($M)
'04
'05
'06
'07
'08
'09
'10
'11
Asia ROS Accretive To Overall Margins
9
Strategic Growth Investments 2011
Verticals
Investments in Customer Loyalty
Order Status and Tracking
Oil & Gas
Real-Time Product Avail
Customer Net Price
E-Training
Solar/Wind
Web
Redesign
g
Marine/
Offshore
Investing in Organic Growth For The Future…Great ROIC
10
Innovation - Product Vitality
New Product % of Sales
30%
 LED Innovation
I
ti
Center
C t iin Peachtree
P
ht
City, GA
– Reduced New Product Time To Market
– Leverage Across Cooper Businesses
 Engineering VPs at all divisions
24%
 Wireless Industrial Investments
19%
 LED and Smart Grid Investments
15%
 Record Vitality Index
7%
2003
2008
2009
2010
New
Target
New Product Leadership Drives Organic Growth
And Margin Expansion
11
Patent Board Rankings
Ranked #1 In Most Recent Patent Board Rankings
For Industrial Components and Fixtures
12
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
Martek
Gitiesse
Highest Impact, Largest Market Opportunities;
Focus Primarily On Industrial / Utility
13
Acquiring Around Global Trends
Electricity Demand/
Utility Grid Upgrade
 EAS / Utility
Automation
 LED
 Lighting Controls
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
 CPS Global
• 2007 - Nature
 Buss Electronics
• 2005 - Save Fuse
Global
Infrastructure
 Safety/Notification
• 2004 - MEDC
• 2006 - Wheelock
Safety / Protection /
Notification
• 2007 - MadahCom
• 2007 - Roam Secure
• 2010 - Hernis
• 2010 - Mount Engineering
• 2011 - Gitiesse
 Crouse-Hinds
Crouse Hinds EX/
Instrumentation/
• 2007 - Hyundai
y
• 2008 - MTL
• 2009 - Pauluhn
• 2010 - Iluram
 Airport Lighting
• 2008 - Transtech
 Buss
B
T
Transportation
t ti
• 2007 - Sure Power
• 2007 - Omnex
• 2011 - Martek
• 2006 - G&H
• 2007 - WPI
 Interconnect
 Buss Electrical
 B-Line • 2007 - GS Metals
Penetrating Key Global Trends
• 2006 - Xian
• 2011 - TOLCO
14
Oil & Gas Opportunity
Crouse
e-Hinds





Lighting
Enclosures
Fitti
Fittings
Plugs & Receptacles
Cable Glands




MTL
Pauluhn
Hyundai
Iluram
Safety
A
Acquisitions
i iti




Fire Protection
Notification
Signals & Alarms
Emergency
Lighting





MEDC
Hernis
Raxton
Redapt
Gitiesse
B-Line
e
P d t
Products





Cable Tray
B lt d Framing
Bolted
F
i
Strut
Grating
Pipe Hangers
 GS Metals
Gl b l Opportunity
Global
O
t it
 Sales Alignment
 P
Project
j t
Coordination
 Regional Strategies
 Key Account
Targets
10
Capitalize On ONE COOPER Strategy
15
Capital Deployment – Last 5 Years*
Core Growth
M&A
(~$1.0B Last 5 Years)
Share
Sh
Repurchase
Dividend
(~$190M per year)
(~$383M YTD)
 Very attractive
ROIC
 30 Companies
 Repurchased
37 Million
Shares at $43
Avg. Price
 July attempted
to purchase
 Core Innovation
Laird > $1B
 Share count
 Global Expansion
down 15% from
 Strategic Focus
− Strengthen the
2005
−
−
 Up 38% over the
last 5 y
years
 Steady and
Reliable
Core
Technology
Globalization
Returning
g Cash to Shareholders While Funding
g
Strategic Growth…Balanced Approach
In Addition:
• $250M for Asbestos Trust Settlement in April, 2011
• Cooper US Pension ~ 90% funded
*2007-2011E
16
Diluted Shares Outstanding
190M
~ 160M
2005
2011E
Year-to-Date 7.8M Shares Repurchased Below $50 Per
Share
17
Debt Profile
Amount
$325
$300
$250
$300
$250
$1,428
($431)
$997
Eff. Rate
3 55%
3.55%
5.56%
2.38%
5.75%
3.88%
Due Date
Nov ‘12
12
Apr ‘15
Jan ‘16
16
Jul ‘17
Dec ‘20
Placed
Dec 2010
Total Debt
Cash and Investments
Net Debt - 9/30/2011
Significant Capacity and Flexibility Remaining
18
Year-to-Date Capital Allocation
Fund
u d St
Strategic
ateg c G
Growth
o t
$1,110M
$1
110M
$85M
Capital Expenditures
~ $250M
Acquisitions (4)
$250M
Asbestos Settlement
$141M
Dividend (Up 7% in Feb)
$383M
 Share Repurchases
(7.8M Shares < $50)
Reward Shareholders
YTD
Funding Growth While Returning Capital To Shareholders
19
Leverage 2012
22%
~23%+
Strategic Growth
2%
3%
Acq/Restructuring
3%
~20%+
Leverage,
As Reported
17%
2011 YTD
2012E
Targeting ~20%+ Leverage Going Forward
20
Preliminary Outlook For 2012
End-Markets
Industrial
Earnings Levers
+/+/+
++
Volume
Price / Mat’l Economics
Utility
Productivity - Base/Variable
R id i l
Residential
Commercial
Share Count
Pension
Not Material
Developing Intl
Mid Single-Digit
Si l Di it C
Core G
Growth
th With Double-Digit
D bl Di it
Earnings Per Share Growth
21
Why Cooper?
GROWTH
100% Electrical/
Balanced End Markets
+
EFFICIENCY
 Rapidly Rescalable
=
LOW RISK
Steady Growth =
Double Digit EPS Growth
 Low CAP Exp
Requirements
Secure Dividend
Embedded Technology
Endless Productivity/
VAVE
Disciplined Capital
Deployment
Critical Global Macro
Trends
Price to Offset Material
Inflation
Global Customer Base
Strong Sustainable Cash
Flow
Access to Emerging
Markets
$140B Served Market!
Low Risk … Well Managed … Predictable, Steady Returns
22
Industries
Questions & Answers