True Value 12 9 09 Meeting Final

December 9, 2009

http://www.truevalue.com/content/home/default.aspx

Agenda

• Introductions • Review current sales vs. 2008 • Discuss Spiffs moving forward

– What can True Value, Disston, and Creeden do to drive sales?

• Review product knowledge in regard to drills – Discuss what we do in testing product – Drilling is just an example, we do the same for each of our major

categories

• Review new products: Impact Ready, Large PC Count Sets, Lock Kit, Mortise Tool, Spade Bits, Drill Bits, and Step Drills

• Any updates in regard to True Value Line Reviews

2

True Value Sales Update

• April 08 - November 08: $1,552,998.72 • April 09 – November 09: $1,171,089.18

• We are down approximately $150K in each of the major categories (drills, recips / jigs, and hole saws)

• Positive promotions: drill sets, & 115 pc set

Confidential: Disston and True Value only

4

Comprised of:

•Flutes: carry cutting fluid to the point and be a path for chip removal.

•Helix Angle: Formed by the axis of the drill and the edge of the flute for lifting the chips out of the hole: generally 20°, 30° and 40°: Slow helix generally for shallow holes / hard material: Fast helix for deeper holes in soft material.

•Land: Part of the drill body between the flutes giving the bit its strength. Designed to be a balance between strength and adequate chip strength.

•Margin: Narrow raised portion of the land providing support and guidance of the drill into the hole. The remainder of the land is reduced down (cleared) to prevent excessive rubbing and friction of the drill in the workpiece.

Land

Flute

Margin

Axis

Helix Angle

Drill Bits


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DeWalt titanium twist drill bit # 5 prior to drilling in 1044 carbon steel substrate

DeWalt titanium twist drill bit # 5 after drilling 22 holes in 1044 carbon steel substrate

Drill Bits


• ¼” Twist Drill Test Parameters– Drill Press: Ridgid ½ HP Model # DP15501– RPM: 1600– Twist Drill Bit Pressure: 75 lbs.– Substrate: ½” x 8” x 12” 1044 Carbon Steel

– Merchant Grade (purchased from same supplier as Sears Lab)

– Sample Size: 10 bits per supplier – SAME TEST DONE IN SEARS LAB

Drill Bit Testing


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1/4" TIN Twist Drill: Average Holes Drilled

489

379338

292

219 215 214

9770

52

293

242

0

100

200

300

400

500

600

Av

era

ge

Ho

les

Dri

lle

d

Suncraft

Bosch

Irwin

DeWalt

Suncraft

Milwaukee

Kennametal

Suncraft

DeWalt

Suncraft

Suncraft

Average

TITANIUM RESULTS

Origin Supplier HSS Type DescriptionSample

Size

Average # of Holes Drilled Life Rating

Average Time

China Suncraft M2 143 deg SP 10 489.20 74.12 9.02USA? Bosch Unknown Speed Helix 10 379.40 57.48 10.86China Irwin Unknown 135 deg Split Point 10 338.10 51.23 11.81China DeWalt Unknown SP 135 deg. 6 292.33 44.29 approx 9.5China Suncraft M2

143 deg Split Point Cryo 10 218.70 33.14 9.75

China Milwaukee Unknown 135 deg Split Point 10 214.70 32.53 9.43USA Kennametal M50 Chip Breaker Point 10 213.50 32.35 9.42China Suncraft M2

Chip Breaker Grooved Split Point 10 96.80 14.67 9.17

Germany DeWalt Unknown Pilot Point DW1382 10 69.50 10.53 9.73China Suncraft CM4 143 deg Split Point 10 51.90 7.86 9.05China Suncraft M2 135 deg Split Point 1 293.00 44.39 approx 9.75

Drill Bit Testing

Example of current testing


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New Product: Impact Ready Bits

• Complete line of product available• S2 steel type: increased durability• S2 steel type: allows for a clean break• Black Oxide Coated • Rated for increased torque

Quote will be submitted after the meetingConfidential: Disston and True Value only

9

35 PC SET1 pivot holder

1/4" pivot nut driver

5/16" pivot nut driver

#1, 1" phillips

#2 ,1" phillips

#2, 2" phillips

#3, 1" phillips

#4, 1" phillips

1", square

#2, 1" square

#2, 2" square

#3, 1" square

#2 double tip phillips

Plastic Case ( large armor case )

New Product: Impact Ready Bits

Description Packaging Disston Invoice Member Cost Suggested Retail

True Value

Member GM%

35PC. IMPACT READY SCREWDRIVER BIT SET Clam Shell 8.24 10.98 29.95 60.71


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Available in 11 sizes.

¼” Quick change shank. Ideal for use with impact drills and drivers.

Safety collar stop. Helps prevent damage to wires when drilling into electrical boxes.

Bi-Metal construction. M42 cutting edge with 8% cobalt.

Ejector spring eases plug removal.

.020 wall thickness allows for faster cutting and more battery life. More holes per battery charge.

5/32” pilot drill for quicker penetration.

Newly developed tooth geometry. Special 8TPI tooth design for smoother cuts in sheet metal – constant pitch.

Cuts thin materials: sheet metal, mild steel, brass, stainless steel, plastics, etc. Ideal for the electrical and plumbing tradesman as well as construction, aircraft, maintenance and automotive industries.

New Product: Thin Wall Hole Saws


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Thin Wall Hole saw Bi-Metal Hole Saw Step Drill

Smaller Pilot Drill (5/32") = Less Effort Larger Pilot Drill (1/4") = Greater Effort

Consider Pressure Required Throughout Process

Lower Pressure = Less Distortion of Surrounding Material

Greater Pressure = Greater Distortion of Surrounding Material

Greater Pressure = Greater Distortion of Surrounding Material

Plug Ejection Spring Yes No Not NeededHole Dressing Required No Burring Moderate Burring Considerable Burring

Shallow Depth = Less Likely to Damage Wires Inside Panel

Deep Cut = More Likely to Damage Wires Inside Panel

Deep Cut = More Likely to Damage Wires Inside Panel

Built-In Stop No Stop Built-In Stops At Each Step

Smooth Operation with Little Strain on Operator or Drill

Smooth Operation with Moderate Strain on Operator or Drill

Rough Operation with Considerable Strain on Operator and Drill at Each Drill Step

Saw Starts Cutting Fast Due to Smaller Pilot Drill

Saw Starts Cutting Slower Due to Larger Pilot Drill

Hard to Start Without Pilot Hole or Center Punch. Drill Tends to Walk Until Hole Begins to Form

1/4" Quick Change Mandrel and Pilot Drill Required Requires a Large Chuck Drill

Cuts Plug = Faster Operation Cuts Plug = Faster OperationDrills Hole = More Material to Remove and Slower Operation

Pressure Required To Start Cutting Process

Depth of Cut

Special Considerations

Ease of Cut



12Confidential: Disston and True Value only


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Description PackagingDisston Invoice Member Cost Suggested Retail

True Value

Member GM%

7/8" Thin Wall Hole Saw Colored Box 3.56 4.75 17.68 73.14

1-1/8" Thin Wall Hole Saw Colored Box 4.33 5.78 17.92 67.75

1-3/8" Thin Wall Hole Saw Colored Box 5.04 6.72 19.59 65.68



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Description PackagingDisston Invoice Member Cost Suggested Retail

True Value

Member GM%

Thin Wall Hole Saw Set (7/8",1-1/8",1-3/8") BMC + Color Sleeve 13.95 18.6 49.97 62.79



Recent Promotions

15Confidential: Disston and True Value only

New Product: Large PC Count Sets

16

Quote will be submitted after the meeting


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Outer Shell: Large Armor CaseLarger version of some our current Master Mechanic Drill Bit Sets

Other possible inner layout


18



• Invoice: $6.16 Retail: $14.97• Invoice: $4.07 Retail: $11.97

These are approximate values: final quote based on projected qtys, and final FOB

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• Invoice: $8.07 Retail: $19.97These are approximate values: final quote based on projected qtys, and final FOB

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• Invoice: $11.52 Retail: $19.97• Invoice: $14.96 Retail: $21.97

These are approximate values: final quote based on projected qtys, and final FOB

21

New Product: Liner Edge Set

• Could be done as Master Mechanic as well

• Quote not currently available, as this is in design stage only

•Could done with or without display


22

New to True Value: Door Lock Kit

Designed for fast, accurate door lock installation with professional results every time.

Door thickness adjust to 1 3/8” and 1 ¾”.

Backsets adjust to 2 3/8” and 2 ¾”.

1. Position

2. Bore

3. Assemble

Kit includes: 2 1/8” and 1” bi-metal hole saws, mandrel with pilot drill, adaptor, heavy duty drill guide and instructions. For use on wood and metal doors


23

New to True Value: Mortise Tool

Outline blade for a clean, accurate professional installation.

Preset depth for precise flush mounting.

Clear visibility for accurate placement

Body matches both common door widths for additional alignment.

Mortise blade for clean trimming of strike plate area.

Guide post matched 1” door edge bore for simple placement.

Eliminates guesswork and uneven material removal. Protects delicate door edges.


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New Product: Spade Bits

Cuts wood. Ideal for rough in electrical and plumbing applications.

Additional cutting edges provide a cleaner, smoother hole finish.

15% thicker body than standard bit - strong, durable performance without breakage.

1/4” hex shank for non-slip drilling plus power groove for quick-change system.

High alloy steel for higher hardness provides durability for longer life.

Available in fractional sizes 1/4” to 1-1/2” and 2 sets plus quick change extensions. (4”, 6”and 16” lengths)

Precision ground point starts fast.


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1" Spade Bit:3 Bit Average - 10 Holes Each in Doubled Pine 2x4

2.454.06 4.72 4.82

5.61

11.30

19.08

9.36

22.82

0

5

10

15

20

25

Blu-MolXtreme

Bosch SelfFeed

Irwin BlueGroove

DeWaltHvy Duty

Milwaukee KOBALT -Jore

MibroWhizz

DeWaltStandard

Average

Brand

Avg

Tim

e (S

eco

nd

s)

Property of DISSTON Company

Test performed by DISSTON Greensboro test facility. Test later confirmed by third party.


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Blu-Mol Xtreme spade bit hole quality (shown on left).A cleaner, smoother hole finish without blowout as compared to standard spade bit hole quality (shown on right).


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Black Fusion: provides a rich finish and provides increased hardness and corrosion resistance non-slip

shank

laser-etched: brand and sizeprecision ground

143° split point

standard black oxide finish

New Product: Drill Bits

Innovation:


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New Product: Drill Bits


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New Product: Step Drills

Patent pending


Business

True Value 12 9 09 Meeting Final