HNA Capabilities

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Hagemeyer North America

Capabilities Presentation

Title slide photo options

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• Founded in 1969

• Headquarters in Paris, France

• €13.4 billion revenue

• 32,000 associates

• 2,015 branches

• 153 operating companies in 35 countries

• Four main markets:

• Residential

• Industrial

• Commercial

• Utilities

Sonepar – Global Strength and Support

#1 in 11 countries

Sonepar USA Locations

Sonepar USA Locations

Industrial and SafetyPhiladelphia, PA

Industrial, Safety, and Electrical

Louisville, KY

Industrial and SafetyHouston, TX

Electrical

Atlanta, GAIndustrial & Safety Macon, GA

Industrial & SafetyChicago, IL

ElectricalCharlotte, NC

Industrial & Electrical

Raleigh, NCIndustrial & SafetyFresno, CA

Industrial and Safety

Dallas, TX

Industrial & SafetyMinneapolis, MN

Industrial and Safety

Jacksonville, FL

Current DC Network

Focus Industries

Pulp & PaperServing customers in raw material lumber mills, pulp and paper mills, and converters and packaging manufacturing.

Heavy Equipment Mfg.Serving customers in construction and agriculture, mining machinery, and heavy equipment.

AutomotiveServing customers in primary mfg., power train, interior components, chassis mfg., exhaust systems, axles, and more.

Wind Energy

Serving customers in renewable energy generation, primary manufacturing, blades, turbines, generators, and towers.

Utilities

Serving customers in electric generation and delivery; city/county public utilities and consumers; water/sewage; and natural gas.

PetrochemicalServing customers in exploration and production; refining, marketing, and distribution; and transportation and storage.

MarineServing customers in original equipment manufacturing (OEMs), professional repair, and the consumer market.

Chemical Processing

Serving customers in Chemical Processing; distribution; and transportation and storage.

Government

Serving customers in Federal, State, and Municipal government as well as community emergency response teams, hospitals, and higher education facilities.

Aerospace

Servicing Customers in the Aviation Manufacturing and Service Repair Markets.

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We Put Customers First

Our People Make The Difference

We Act With Integrity

We Are A Performance-Driven Company

Hagemeyer Values

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• Geographical reach

• 145+ years experience

• Broad product and service offering

• Superior service

• Technical expertise

• Highly trained, customer-oriented staff and management team

• Proven ability to achieve cost savings

Hagemeyer North America has the solutions you need. Now.

Why Hagemeyer North America?

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Construction & Installation15%

Integrated Supply25%

Broad Customer Base

MRO/Industrial60% • Pulp & Paper

• Utilities

• Automotive

• Transportation Services

• Petrochemical

• Government

• Industrial Machinery

• Construction

• Electronic Industries

Hagemeyer North America Business Segments

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• General Line Distribution

• Integrated Supply/Supply Chain Management

• Storeroom Management: inventory management and/or inventory ownership

• MRO Sourcing: stock, non-stock, franchised and non-franchised

• Corporate Brand Programs: general MRO, cutting tools, abrasives and safety products

Core Business Offering

We have helped thousands save millions and we’ll help you manage, improve and realize the full profit potential from your business.

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Storeroom Management Hagemeyer North America In-Plant Services

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Storeroom Management Hagemeyer North America Storeroom Services

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• Segmentation Criteria

• Brand strength

• Field support

• End user cost savings opportunities

• Corporate representation

• Working with strategic vendors allows us to offer broad product range at the right price

Supply Base

Focus

Preferred

Approved

Non-strategic

Corporate Brands

Str

ateg

ic

Stratifying suppliers enhances product range and service levels

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Category management creates the tools and processes to:

• Consolidate SKUs

• Partner with suppliers

• Identify suppliers with best value

• Standardize within multi-plant customers

• Identify Corporate Brand opportunities

Over $200M in savings achievedto date!

Over $200M in savings achievedto date!

Category Management

Category management helps customer conversions/cost savings

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Hagemeyer North America Product Depth and Breadth

Lamps & Lighting

Lamps & Lighting

CommunicationsCommunications

Automation& Control

Automation& Control

HVACHVAC PowerQualityPowerQuality

ProtectionProtection

SwitchingSwitching

Electrical & Electronic

SignageSignage

EyewearEyewear

Safety GlovesGloves

TrainingTraining

EarEar

FootwearFootwear

RespiratorsRespirators

EnvironmentEnvironment

ClothingClothing

AED’sAED’s

CuttingTools &

Abrasives

CuttingTools &

Abrasives

Hand ToolsHand Tools

PaintPaint

JanitorialJanitorial

Industrial MRO

Cleaners &LubricantsCleaners &Lubricants

MaterialHandlingMaterialHandling

Power ToolsPower Tools

PackagingPackaging

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Product Offerings

MRO Electrical Safety

• Hand Tools• Power Tools• Cutting Tools• Abrasives• Machinery & Metrology• Coatings, Adhesives,

Lubricants, & Chemicals

• Facility Care• Brushes• Lifting & Rigging• Material Handling &

Storage• Power Transmission• Mill Supplies

• Lighting• Power Distribution• Wire Management• Boxes, Channel, &

Fittings• Conduit, Wire, & Cable• Wiring Devices• Tools, Test, & Measure• Automation & Control• Electronics & Cleanroom• Sustainable Solutions

• Eye Protection• Face & Head Protection• Hearing Protection• Hand Protection• Protective Clothing• Foot Protection• Respiratory Protection• Fall Protection• First Aid & Supplies• Instrumentation/Gas

Detection• Signage & Identification• Plant & General Safety• Firefighting & Emergency

Response• Technical Services,

Training & Consulting

• Product offerings from over 19,000 supplier partners…

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HagemeyerNA.com – Shop Online

Product Assortment•Over 100k items available•Quickly select from our Featured Products, Hot Deals, and Special Buys•Custom customer catalogs•Quick Order Pad for fast purchasing

Navigation•Easy to navigate•Catalogs available online•Products and services information

Search•Fast and accurate•Browse by category or manufacturer•Search by attributes•Search within results

Purchasing•Use your existing account•Apply for a commercial account•Use your credit card

Approval Workflow•Spending limits by user•Configurable by department•Multi-level approvals

Ordering Options•Copy/Paste from a spreadsheet•Quick Order Pad

Order Templates•Create customized product templates•“Private” and “Public” templates

Punchout Enabled•Ariba•SAP•Hubwoo•Oracle•cXML•Others

SHOP OUR SITE!

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Cost savings is one of the most important values that Hagemeyer North America (HNA) can bring to our customers. HNA's documented and accepted customer cost savings over the past six years have exceeded $290 million. This illustrates that our formal structure, tools, experience, and training create customer value each and every day. chines, etc.)

Cost Savings – Value Plus Program®

Hagemeyer’s confidential internal database is a key component of our Value Plus Program® (VPP). This tool, along with standardized proposal worksheets, is used to propose, calculate, implement, and track all of the cost savings initiatives we identify and drive for our customers, including:•productivity gains•vendor consolidation/inventory reduction•inventory management and replenishment•piece price reductions and price containment•applied technology (EDI, bar coding, etc.)•integrated services (technical, consulting, etc.)•on-site facilities (on-site stores, vending machines, etc.)

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Value Plus Program®

Total CostsBEFORE

Total CostsAFTER

Delivering Cost Savings

Price of Goods

Cost of Inventory

Process Costs

Price of Goods

Cost of Inventory

Process Costs

HNA Fee

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• Our experts analyze your business needs and challenges

• New processes are developed

• Reduce need for new equipment

• Improved output and cycle time

• Eliminate production bottlenecks

Process Cost Improvement

Process CostsProcess Costs


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• Catalog your inventoried items

• Link to Hagemeyer and original manufacturer part numbers

• Eliminate redundant items across multiple plant locations

• Drive standardization to a single customer part

• Enables movement of inventory between facilities and Hagemeyer

Cross-Reference/Standardization

Cost of InventoryCost of Inventory


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• Strategic Sourcing Team leverages commodities for best cost based on total volume

• Tri-lateral negotiations with manufacturers to develop “Off Book Pricing”

• Lower piece price for customer

• Additional market share for manufacturer

• Joint effort between Hagemeyer and customer

COGS Leverage Process

Price of GoodsPrice of Goods


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Thank you for your time!