Educational Support Program Updated June 24, 2013 COMPANY CONFIDENTIAL —Internal Use Only Rev5058-CO900C Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 1 Agenda Program Objective Target Educational Institutions Approach Pricing Roles and responsibilities COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. US Community/Technical Colleges/By State 4 2 8 33 8 5 17 29 17 62 17 4 4 32 7 1 29 15 7 4 49 5 15 111 NJ 19 12 24 14 22 34 5 18 58 13 19 15 15 66 DE 1 17 24 16 Hawaii 7 Alaska 5 MD 18 12 29 34 11 28 1171 Total (Excludes Universities) 843 Offer PLC focused course curriculum COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 3 Program Objective The Business Units want to expand the number of trained technicians and engineers on Rockwell Automation technology and products. Domestically: Protect market share Internationally: Increase market share Globally: Increase long term revenue 1000 Target Institutions Estimate 15 Students per Class Estimate 2 Classes levels 60,000 trained Annually on RA Technology & Products Estimate 2 Semesters Per Year Training the next generation engineers “Farming For the future” COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 4 Benefits For the Educational Institution Access to industry leading products and technology Increased speed to market and course development Training on the latest products and technologies Increase emphasis on Education inside Rockwell Automation For Rockwell Automation Start customers early using Rockwell Automation technology Become their preferred supplier Introduction to new products Excellent public relations and corporate responsibilities Training the next generation engineers & maintenance professionals Sales and project amplification For the Channel Increased Rockwell Automation market penetration Increased value in the community and educational institutions Locally available trained personnel on Rockwell Automation products Drives long term revenue of hardware and software COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 5 Educational Program Focus Project Driven Career Development Dist. RA Level 1 Product Training X X Advanced Product & Custom Training X X Technology Training (Control, Motion, Information, etc.) X X Tech. College University X Continued Education (Nights, weekends, Web) X X Degree Programs X X Focus of the ESP: It is not designed to compete with Rockwell Automation Training COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 6 What is the Educational Support Program? A Global Rockwell Automation Commercial Marketing program designed to help Accredited Educational Institutions use Rockwell Automation products and technology in their curriculum. Single Rockwell Automation comprehensive program that combines Software/Hardware access Simplified processes and administration Across all RACS Business Units – globally focused Focused on formal training and education institutions Pre-approved pricing levels Standardized reporting Consistent deliverables Field based execution COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. Target Educational Institutions 80% of the technical colleges offer PLC focused courses (843 in US) Accredited technical schools Colleges and universities Public vocational education schools Non-profit charter schools Government institutes Others as approved EXCLUDES: Customer’s training departments and OEM’s that build/develop training stations COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. Why have an Educational Strategy? Education Program participants 1000 Courses Offered 2 Semesters 2 Students per class 15 Total 60,000 What if … 10% had purchase authority What if … They purchased $7500 per year COMPANY CONFIDENTIAL - Internal Use Only $45 Million Copyright © 2012Rockwell Automation, Inc. All rights reserved. How the Program Works Use global Program web site for program enrollment and renewal RA provides special educational discounts for Hardware, annually renewable software bundles, and technical support for instructors. Classroom products and support “TechConnect” Bundle Must purchase a minimum of one install Classroom Toolkit to be eligible Limited software bundle for students (offers software for homework) Hardware purchase is handled through a standard price agreement quote for program participants only. One Program Guide – Easy for both institutions and Sales Force GOAL: Make it as easy as possible ! COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. Requirements Step 1 - RA local champion/owner Sponsors Educational Institution Step 2 - Formal sign-up (Standard Toolkit Program online enrollment process) Identify institute champion/owner (Librarian/Instructor) Solution Architect - Electronic Business Unit approval CSM Customer Training group electronic approval Step 3 – Order fulfillment thru distribution (North Am) Classroom Toolkit Activations Shipped Direct to Librarian/Instructor Student Toolkits (for off-site student homework use) shipped to school librarian Setup TechConnect Support for Instructors Hardware Delivery in North America and Globally follow standard business practices Simple, Simple, Simple COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 11 Program Pricing Annually Renewable Toolkit Pricing Classroom Toolkits – US$194 per Install (includes instructor support) Student Toolkits (for homework use): US$100 per Install (no support) Technical Support Support Included for Instructor only (with Classroom Toolkit) Student support is provided by Instructor Hardware & Software (SW in addition to the required Classroom Toolkit) Purchases through SAP Agreement 3000000510 (3*510) Preferred pricing on specific product groups only School must be in program to qualify for HW/SW pricing Note: Prices are expressed in US dollars unless otherwise indicated. Program prices and discount offers refer to the Rockwell Automation Suggested List Price and may not be inclusive of any local taxes or fees. All Program prices and discounts are subject to change without notice. COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 12 EDU Program Toolkit Pricing Model Classroom Toolkit ~US$194 / Install 1-Install = 1-Computer 140+ Products M-F 8-5 Product Support for Registered Instructor 1, 3, 5, and 10-install options Student Toolkit ~$100 / Student, 6-mo. license 5/500/5000 Pro Editors Emulate RSNetWorx for Cnet, Dnet & RS Linx Enterprise RSLinx Pro SoftLogix 5860 RSView Studio RSView ME 75 display runtime RSView SE Station Runtime 100 Display RSSQL (150 Tag A-B Drive tools • No Support included, Not for classroom use Cost model: Cover Shipping, Handling, Media COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 13 EDU HW/SW Discounts by SAP Agreement 3000000510 (SPA 3*510) Exceptional pricing to Participating Institutions Distributors participate in all transactions COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. Educational OEM Policy (Internal Use Only) COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. Educational OEM’s working with Schools and Customer Training Departments There are a select number of OEM’s that target the educational industry focusing on educational institutions and customer training departments. Training work stations that include Rockwell Automation Hardware and Software Custom Course and Lab Curriculum Value Add Services End user customers can only purchase the HW/SW via the OEM on a pre-packaged workstation. The OEM is extended a fixed resale price for HW and SW. (see next slide) Educational institution customers will typically purchase the workstations from the OEM but will have a choice to purchase SW bundled with the workstation or lease the software via the Rockwell Automation Educational Support Program. Lease via Education Support Program requires a separate enrollment via local distributor or Rockwell Automation sales office. SW purchases are usually done when the school has been issued a financial grant. COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 16 Educational OEM Pricing Policy Educational OEM Definition: Companies that provide training solutions for educational Institutions or end user training departments. Requirement: Educational OEM must participate in our OEM/Machine Builder Program to obtain development tools, technical support, discounts and relationship management. Educational OEM Pricing Policy: 1Purchase Option: Accredited Educational Institution Customer ** 1Purchase Option: End User Training Department Customer: Hardware Purchase Option to any Training Customers: .25 OEM / .20 DM .50 OEM / .40 DM 20% off OEM/Book DM ** The Accredited Educational Institution does not need to be a member of the Educational Toolkit Program since an OEM is not authorized to approve and accept orders for these application requests. It is however recommended that the Educational Institution sign up through their local distributor/Rockwell Automation office as this is how they would obtain a TechConnect Contract for software and firmware downloads. 1End Customer Registration is required at the time of order entry Note: Any negotiations below the policy pricing will require approval COMPANY CONFIDENTIAL - Internal Use Only Copyright © 2012Rockwell Automation, Inc. All rights reserved. 17 Questions? COMPANY CONFIDENTIAL —Internal Use Only Contact the Channel Development Team at 414-382-8360, or e-mail rschannel@ra.rockwell.com Follow ROKAutomation on Facebook& Twitter. Connect with us on LinkedIn. www.rockwellautomation.com Rev5058-CO90C Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 18