Northwest Ohio Manufacturing Forum Supply Chain Development Jeff Thompson VP – Supply Chain Management November 9, 2011 © 2011 Eaton Corporation. All rights reserved. 1 1 Eaton: Powering businesses worldwide for 100 years • Founded in 1911 by J.O. Eaton • World Headquarters in Cleveland, Ohio USA • Regional Headquarters in Shanghai, China; Morges, Switzerland; Sao Paulo, Brazil • Innovation Centers in the USA, China and India • Customers in more than 150 countries • 2010 sales of $13.7 billion, 55% of sales outside the U.S. • 2010 spend with Ohio Suppliers $300 Million • Approx. 73,000 employees • Chairman & CEO –Alexander M. Cutler © 2011 Eaton Corporation. All rights reserved. 2 2 Eaton is a leader across the power management spectrum We provide reliable, efficient and safe power management for… Cities & Buildings Industrial & Machinery Information Technology Transportation © 2011 Eaton Corporation. All rights reserved. Infrastructure 3 Energy & Utilities 3 Our vision To be the most admired company in our markets. Measured by • Customers say: “We want to do more business with Eaton.” • Shareholders say: “Eaton is one of my best investments.” • Employees say: “I am proud to be part of the Eaton team.” • Suppliers say: “Eaton is one of my most valued customers.” © 2011 Eaton Corporation. All rights reserved. 4 4 Our organization structure is aligned to better serve our markets Electrical Sector Industrial Sector $6.4B 2010 Sales $7.3B 2010 Sales Aerospace Electrical Americas Hydraulics Electrical Rest of World Vehicle © 2011 Eaton Corporation. All rights reserved. 5 5 Serving many industries sharing one focus • Understanding and helping our customers succeed. • Knowing what’s important to our customers. © 2011 Eaton Corporation. All rights reserved. 6 6 Supply Chain Priorities • Reduce our number of suppliers • Grow the best & build the relationship • Eliminate those who add limited value • Drive technical collaboration • Localize supply where appropriate • Drive Productivity Improvements • Reduce Inventory • Improve DPO © 2011 Eaton Corporation. All rights reserved. 7 7 Eaton Supplier Requirements • Eaton’s Supplier Code of Conduct helps us to select business partners who follow workplace standards and business practices that are consistent with our company’s values. These requirements are applicable to suppliers globally and requires a signed affirmation • Verify that the origin of Conflict Minerals in the products you supply are not from Democratic Republic of the Congo. © 2011 Eaton Corporation. All rights reserved. 8 8 Eaton Supplier Requirements • Perform (Quality, Delivery, Innovation) • Embrace Eaton as a strategic customer • Manage your supply base • Operate with a long term focus • Sustain an open and confidential dialogue regarding business opportunities • Continually improve • Environmentally Responsible © 2011 Eaton Corporation. All rights reserved. 9 9 Contact Information Jeff Thompson – VP Supply Chain Eaton Corporation Email: JeffLThompson@Eaton.com Telephone: +1.216.523.4597 © 2011 Eaton Corporation. All rights reserved. 10 10