Real ﬁnancial intelligence changes the game...services. For GE Aviation, this means selling their fully integrated suite of products and services. Though GE Aviation has been known

Know Your Customer’s BusinessManufacturing

Real financial intelligencechanges the game

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©2007-2015 Aarthun Performance Group, Ltd.

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APG and Manufacturing Industry Leaders Know Your Customer’s Business


� GE Aviation � Siemens � Textron � Georgia – Pacific � Bell Helicopter � Hobart � ITW Welding Products � SCA Tissue � Modine � Brunswick � Cooper Tire Company � Deluxe Corp. � Bridgestone Bandag � Ball Corp. � Cessna � Stanley Black & Decker � Corning Optical

� Life Fitness � PPG Industries � Diversey Inc. � Sterling Trucks � The Timken Company � Wilco Winfield � Finch Paper � Tyco Fire Protection Products � GE Consumer & Industrial � BASF The Chemical Company � Ames True Temper � Finishing Brands � Component Hardware � TimkenSteel Corporation � The Austin Powder Company � Johnson Controls

About Aarthun Performance Group, Ltd.

Aarthun Performance Group, Ltd. (APG) develops and customizes high impact, financially oriented, sales and professional/managerial training programs that deliver bottom line results. We are currently working with nearly 200 of the Fortune 500 companies across 30 industries. Our mission is to help our customers create better business people. Through our work we have been able to build an unpar-alleled expertise in the development and installation of a financial and value selling methodology that helps our clients drive one or more of the key measurements including selling multiple products and services, at higher margins, to higher level economic decision makers.

Below are a few of the advantages of working with APG:

� We understand value creation and how to execute profit improvement strategies that produce results in profitability.

� We customize our financial and business simulation to your customer’s key financial drivers, which directly align to their corporate strategies.

� We generate greater “connectivity” and understanding of how value is created uniquely for your organization and for your customers (based on economic factors, key metrics like ROA, ROE, and Shareholder Value).

� By customizing your financial simulation and linking value selling to the unique financial drivers of your customers, your salespeople are able to identify, quantify, and present value-based solutions built around the customer’s financial needs.

� We focus on outcomes and ensure the learning is translated into financial results.

Aarthun Performance Group, Ltd.20329 SH 249, Suite 210

Houston, TX 77070Phone: (281) 580-5705

www.aarthun.com

Manufacturing Markets Served � Healthcare Equipment � Specialty Chemicals � Technology � Furniture � Building Products � Oilfield Services

Manufacturing Clients



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We Know Manufacturing

The manufacturing industry is under unprecedented pressure to cut costs, optimize capital, and provide increased levels of quality products and improved customer service. As the full implications of governmental regulatory changes are realized, businesses and the suppliers that pro-vide them solutions must find new ways to compete.

We believe there are five key trends that will drive manufacturing:

� Globalization requires a new approach � Innovation and speed will be crucial � Portfolios and production lines will focus on profitable products � Managing margins in the face of stiffer competition will be critical � Earnings pressures will not ease up

For the past 25+ years, Aarthun Performance Group, Ltd. has helped blue chip manufacturing com-panies install innovative and profit-centered solutions to compete on a whole new level. We know the industry will change. No other company has more experience or is better equipped to assist you in selling effectively through this turbulent and rapidly changing market environment.

We have delivered our customized manufacturing and business simulation for a number of manufac-turing markets including:

� Healthcare � Specialty Chemicals � Technology � Building � Oilfield Services

We Get Results

This brochure outlines the types of results we have achieved for some of our blue chip clients. We have documented and validated millions of dollars of profit impact by installing our system. Whether it is growing profitable revenue, improving margins, or calling on higher level decision makers to drive sales productivity, we install systems that get results.

GE Aviation

Airlines and aircraft manufacturers are under tremendous pressure to find cost efficient, safe, and environmentally friendly ways to deliver their services. For GE Aviation, this means selling their fully integrated suite of products and services. Though GE Aviation has been known for jet engines, the addition of Smith Aerospace has positioned GE with the broadest array of integrated solutions to address flight management systems, airborne platform computing systems, monitoring systems, power generation, land navigation and jet engines, maintenance and repair.

To help GE Aviation account managers deal with executive level decision makers, we customized our Airline Business Simulation to help them address key financial and business issues like fuel costs, aircraft safety, fuel efficiency, emissions, and noise.

Impact: � More than $278.4 million in Profit Proposals

were generated by GE account teams leading to $106 million new revenue.

Simulation includes: airline financial cycle, P&L, working capital and cash flow analysis, key financial drivers RASM

– Revenue per Available Seat Mile, CASM – Costs per Available Seat Mile.



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Ecolab and Aarthun Performance GroupPartnering for Profitable Growth

6 3



The Top Five Best Sales Practices

Our manufacturing industry sales financial literacy and value selling system The Profit Specialist® has been used by industry leaders to enable their salespeople to sell higher and compete on the total economic value they deliver to their customers.

Based on our work with these manufacturing market leaders, we have found that the top five best practices by the best salespeople include:

1. Selling multiple products and services. Your best salespeople sell everything to meet the customer’s needs. We have found that just a 5% boost in additional services drives significant revenue acceleration, and at a lower cost.

2. Selling higher. By selling to high level economic decision makers, the sales cycle is shorter by as much as 50% and projects are much larger.

3. Improving competitive win/loss ratio. When salespeople call higher, competition is reduced by 75% (fortunately competitors are stuck at lower levels).

4. Protecting margins. When salespeople are calling higher and dealing with people who are focused on value - not just price, they do a better job of protecting pricing and improving margins. We have found that every 1% in pricing protection can mean up to 10% in increased operating profit.

5. Retaining your best customers. All of the prior best practices become the glue to retain your most profitable customers. Our research shows that financial knowledge is the catalyst for achieving these five best practices. Understanding the economics behind your customer’s business is the only way to align your value with their financial goals.

Stanley Black & Decker

Stanley Black & Decker, Inc. (formerly Black & Decker, Inc.) manufactures power and hand tools, mechanical access solutions, and electronic security and monitor-ing systems for various industrial applications primar-ily in the United States, Canada, Europe, and Asia. APG has worked with Black & Decker since 1996. The success of our financial literacy program led to many different applications for the company over the years, including National Accounts business, Industrial Channel Distributors, Builders, Internal Professional, and Manufacturing. We have helped develop a ‘value creation’ culture and mindset throughout Stanley Black & Decker and have seen the transformation over the past 17 years of their salespeople from product and price sellers to value and solution sellers.

Impact: � Achieved several ‘supplier of the year’ awards

from Lowe’s � Deployed ‘improved profitability’ mentality to

retain share of business at Home Depot when they brought on a private label power tool line � Grew market share and operating income in the independent channel � Over 700 Profit Improvement Ideas were generated from 4 manufacturing plants and prioritized

for implementation � Profit Improvement Ideas from senior managers have totaled over $20M in the areas of Inefficient

Processing, Product Quality Improvements, and DSO (Days Sales Outstanding) Reduction � Attributes overall sales growth, market share improvement, and operating expense reduction

throughout all businesses to APG and our solution � Profit Improvement Ideas developed by SBD employees and implemented by management have

generated millions of dollars of cost effective solutions for SBD

Manufacturing Simulation includes: financial cycle includ-ing gross sales, discounts and rebates, COGS, distribution and transportation expenses, and depreciation. Also cov-ered are expenses like selling, general, and admin and the impact on working capital, inventory management, A/R, and achieving a stronger Return on Net Assets (RONA).



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Stryker

Stryker is one of the largest players in the $35.6 billion orthopedic market. Through their products, simplified surgical techniques and improved hospital efficien-cies, they provide cost-effective solutions for physi-cians and hospitals.

Our Hospital Business Simulation customized to multiple businesses including Endoscopy, Instru-ments, and Trauma, provided Stryker salespeople with a deeper understanding of hospital financials and how their solutions impact revenue and cost man-agement. They quantified and sold the value in areas like increased operating room efficiency, productiv-ity gains by cross-training staff in multiple specialties using Stryker’s user friendly surgical equipment, and reduced inventories through their one size fits all cut-ting accessories.

Our Stryker Professional Business Simulation cus-tomized to Stryker’s manufacturing internal opera-tions, provided employees and managers in R&D, Supply Chain, Engineering, and Manufacturing Opera-tions, an in-depth understanding of how their daily actions and decisions have an impact on the “bottom-line” for Stryker.

Impact: � Stryker salespeople delivered over $29M in profit

improvement recommendations for things like facility expansion, lower recruiting and training costs, inventory reduction, and lower labor cost. These successes produced $4 million in net new revenue in the first 90 days for Stryker.

Simulation includes: financial cycle including gross sales, fixed and variable costs, COGS, operating expenses, inven-tory adjustment, PP&E, and depreciation. Also covered are expenses like sales, general, and admin and the impact on working capital, inventory management, A/R. and achiev-

ing a stronger Return on Capital Employed (ROCE).

Simulation includes: hospital financial cycle, P&L, working capital and cash flow analysis, key financial drivers, net

patient revenue, discounts and charity, reimbursements, bad debt, medical errors, OR throughput shareholder value,

and Return-on-Assets (ROA).

The Timken Company

With $5.0 billion sales in 2012 and approximately 20,000 people operating in 30 countries, Timken engineers, manufactures, and markets mechanical components and high-performance steel, sells their solution to a wide diversity of markets around the world.

Timken’s goal in working with Aarthun Performance Group, Ltd., ongoing since 2009, was to support its Value Price Strategy which requires Timken to focus their cross functional teams on selling total system solutions. The Selling Timken Value customized business simulation teaches sales teams and sales support teams how to move away from product and price selling, and how to link the value of Timken’s products and services to the unique financial drivers of their customers.

Impact: � Improved EBIT % from 10.8% to 14.1% � Improved cash flow to a record level � Sales and commercial teams now equipped to sell a total solution and defend our price through

greater demonstrated value � More effective sales calls, and more calls on senior decision makers � Improved forecasting accuracy and reduction of accounts receivable days sales outstanding

Manufacturing Simulation includes: financial cycle includ-ing gross sales, discounts and rebates, COGS, distribution and transportation expenses, and depreciation. Also cov-ered are expenses like engineering, supply chain, selling, general, and admininstrative, and the impact on work-

ing capital, inventory management, A/R, and achieving a stronger Return on Assets (ROA) and Economic Profit.



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Stryker

Stryker is one of the largest players in the $35.6 billion orthopedic market. Through their products, simplified surgical techniques and improved hospital efficien-cies, they provide cost-effective solutions for physi-cians and hospitals.

Our Hospital Business Simulation customized to multiple businesses including Endoscopy, Instru-ments, and Trauma, provided Stryker salespeople with a deeper understanding of hospital financials and how their solutions impact revenue and cost man-agement. They quantified and sold the value in areas like increased operating room efficiency, productiv-ity gains by cross-training staff in multiple specialties using Stryker’s user friendly surgical equipment, and reduced inventories through their one size fits all cut-ting accessories.

Our Stryker Professional Business Simulation cus-tomized to Stryker’s manufacturing internal opera-tions, provided employees and managers in R&D, Supply Chain, Engineering, and Manufacturing Opera-tions, an in-depth understanding of how their daily actions and decisions have an impact on the “bottom-line” for Stryker.

Impact: � Stryker salespeople delivered over $29M in profit

improvement recommendations for things like facility expansion, lower recruiting and training costs, inventory reduction, and lower labor cost. These successes produced $4 million in net new revenue in the first 90 days for Stryker.

Simulation includes: financial cycle including gross sales, fixed and variable costs, COGS, operating expenses, inven-tory adjustment, PP&E, and depreciation. Also covered are expenses like sales, general, and admin and the impact on working capital, inventory management, A/R. and achiev-

ing a stronger Return on Capital Employed (ROCE).

Simulation includes: hospital financial cycle, P&L, working capital and cash flow analysis, key financial drivers, net

patient revenue, discounts and charity, reimbursements, bad debt, medical errors, OR throughput shareholder value,

and Return-on-Assets (ROA).

The Timken Company

With $5.0 billion sales in 2012 and approximately 20,000 people operating in 30 countries, Timken engineers, manufactures, and markets mechanical components and high-performance steel, sells their solution to a wide diversity of markets around the world.

Timken’s goal in working with Aarthun Performance Group, Ltd., ongoing since 2009, was to support its Value Price Strategy which requires Timken to focus their cross functional teams on selling total system solutions. The Selling Timken Value customized business simulation teaches sales teams and sales support teams how to move away from product and price selling, and how to link the value of Timken’s products and services to the unique financial drivers of their customers.

Impact: � Improved EBIT % from 10.8% to 14.1% � Improved cash flow to a record level � Sales and commercial teams now equipped to sell a total solution and defend our price through

greater demonstrated value � More effective sales calls, and more calls on senior decision makers � Improved forecasting accuracy and reduction of accounts receivable days sales outstanding

Manufacturing Simulation includes: financial cycle includ-ing gross sales, discounts and rebates, COGS, distribution and transportation expenses, and depreciation. Also cov-ered are expenses like engineering, supply chain, selling, general, and admininstrative, and the impact on work-

ing capital, inventory management, A/R, and achieving a stronger Return on Assets (ROA) and Economic Profit.



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www.theprofitspecialist.com

Ecolab and Aarthun Performance GroupPartnering for Profitable Growth

6 3



The Top Five Best Sales Practices

Our manufacturing industry sales financial literacy and value selling system The Profit Specialist® has been used by industry leaders to enable their salespeople to sell higher and compete on the total economic value they deliver to their customers.

Based on our work with these manufacturing market leaders, we have found that the top five best practices by the best salespeople include:

1. Selling multiple products and services. Your best salespeople sell everything to meet the customer’s needs. We have found that just a 5% boost in additional services drives significant revenue acceleration, and at a lower cost.

2. Selling higher. By selling to high level economic decision makers, the sales cycle is shorter by as much as 50% and projects are much larger.

3. Improving competitive win/loss ratio. When salespeople call higher, competition is reduced by 75% (fortunately competitors are stuck at lower levels).

4. Protecting margins. When salespeople are calling higher and dealing with people who are focused on value - not just price, they do a better job of protecting pricing and improving margins. We have found that every 1% in pricing protection can mean up to 10% in increased operating profit.

5. Retaining your best customers. All of the prior best practices become the glue to retain your most profitable customers. Our research shows that financial knowledge is the catalyst for achieving these five best practices. Understanding the economics behind your customer’s business is the only way to align your value with their financial goals.

Stanley Black & Decker

Stanley Black & Decker, Inc. (formerly Black & Decker, Inc.) manufactures power and hand tools, mechanical access solutions, and electronic security and monitor-ing systems for various industrial applications primar-ily in the United States, Canada, Europe, and Asia. APG has worked with Black & Decker since 1996. The success of our financial literacy program led to many different applications for the company over the years, including National Accounts business, Industrial Channel Distributors, Builders, Internal Professional, and Manufacturing. We have helped develop a ‘value creation’ culture and mindset throughout Stanley Black & Decker and have seen the transformation over the past 17 years of their salespeople from product and price sellers to value and solution sellers.

Impact: � Achieved several ‘supplier of the year’ awards

from Lowe’s � Deployed ‘improved profitability’ mentality to

retain share of business at Home Depot when they brought on a private label power tool line � Grew market share and operating income in the independent channel � Over 700 Profit Improvement Ideas were generated from 4 manufacturing plants and prioritized

for implementation � Profit Improvement Ideas from senior managers have totaled over $20M in the areas of Inefficient

Processing, Product Quality Improvements, and DSO (Days Sales Outstanding) Reduction � Attributes overall sales growth, market share improvement, and operating expense reduction

throughout all businesses to APG and our solution � Profit Improvement Ideas developed by SBD employees and implemented by management have

generated millions of dollars of cost effective solutions for SBD

Manufacturing Simulation includes: financial cycle includ-ing gross sales, discounts and rebates, COGS, distribution and transportation expenses, and depreciation. Also cov-ered are expenses like selling, general, and admin and the impact on working capital, inventory management, A/R, and achieving a stronger Return on Net Assets (RONA).



Powered by



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We Know Manufacturing

The manufacturing industry is under unprecedented pressure to cut costs, optimize capital, and provide increased levels of quality products and improved customer service. As the full implications of governmental regulatory changes are realized, businesses and the suppliers that pro-vide them solutions must find new ways to compete.

We believe there are five key trends that will drive manufacturing:

� Globalization requires a new approach � Innovation and speed will be crucial � Portfolios and production lines will focus on profitable products � Managing margins in the face of stiffer competition will be critical � Earnings pressures will not ease up

For the past 25+ years, Aarthun Performance Group, Ltd. has helped blue chip manufacturing com-panies install innovative and profit-centered solutions to compete on a whole new level. We know the industry will change. No other company has more experience or is better equipped to assist you in selling effectively through this turbulent and rapidly changing market environment.

We have delivered our customized manufacturing and business simulation for a number of manufac-turing markets including:

� Healthcare � Specialty Chemicals � Technology � Building � Oilfield Services

We Get Results

This brochure outlines the types of results we have achieved for some of our blue chip clients. We have documented and validated millions of dollars of profit impact by installing our system. Whether it is growing profitable revenue, improving margins, or calling on higher level decision makers to drive sales productivity, we install systems that get results.

GE Aviation

Airlines and aircraft manufacturers are under tremendous pressure to find cost efficient, safe, and environmentally friendly ways to deliver their services. For GE Aviation, this means selling their fully integrated suite of products and services. Though GE Aviation has been known for jet engines, the addition of Smith Aerospace has positioned GE with the broadest array of integrated solutions to address flight management systems, airborne platform computing systems, monitoring systems, power generation, land navigation and jet engines, maintenance and repair.

To help GE Aviation account managers deal with executive level decision makers, we customized our Airline Business Simulation to help them address key financial and business issues like fuel costs, aircraft safety, fuel efficiency, emissions, and noise.

Impact: � More than $278.4 million in Profit Proposals

were generated by GE account teams leading to $106 million new revenue.

Simulation includes: airline financial cycle, P&L, working capital and cash flow analysis, key financial drivers RASM

– Revenue per Available Seat Mile, CASM – Costs per Available Seat Mile.



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� GE Aviation � Siemens � Textron � Georgia – Pacific � Bell Helicopter � Hobart � ITW Welding Products � SCA Tissue � Modine � Brunswick � Cooper Tire Company � Deluxe Corp. � Bridgestone Bandag � Ball Corp. � Cessna � Stanley Black & Decker � Corning Optical

� Life Fitness � PPG Industries � Diversey Inc. � Sterling Trucks � The Timken Company � Wilco Winfield � Finch Paper � Tyco Fire Protection Products � GE Consumer & Industrial � BASF The Chemical Company � Ames True Temper � Finishing Brands � Component Hardware � TimkenSteel Corporation � The Austin Powder Company � Johnson Controls

About Aarthun Performance Group, Ltd.

Aarthun Performance Group, Ltd. (APG) develops and customizes high impact, financially oriented, sales and professional/managerial training programs that deliver bottom line results. We are currently working with nearly 200 of the Fortune 500 companies across 30 industries. Our mission is to help our customers create better business people. Through our work we have been able to build an unpar-alleled expertise in the development and installation of a financial and value selling methodology that helps our clients drive one or more of the key measurements including selling multiple products and services, at higher margins, to higher level economic decision makers.

Below are a few of the advantages of working with APG:

� We understand value creation and how to execute profit improvement strategies that produce results in profitability.

� We customize our financial and business simulation to your customer’s key financial drivers, which directly align to their corporate strategies.

� We generate greater “connectivity” and understanding of how value is created uniquely for your organization and for your customers (based on economic factors, key metrics like ROA, ROE, and Shareholder Value).

� By customizing your financial simulation and linking value selling to the unique financial drivers of your customers, your salespeople are able to identify, quantify, and present value-based solutions built around the customer’s financial needs.

� We focus on outcomes and ensure the learning is translated into financial results.

Aarthun Performance Group, Ltd.20329 SH 249, Suite 210

Houston, TX 77070Phone: (281) 580-5705

www.aarthun.com

Manufacturing Markets Served � Healthcare Equipment � Specialty Chemicals � Technology � Furniture � Building Products � Oilfield Services

Manufacturing Clients

Know Your Customer’s BusinessManufacturing

Real financial intelligencechanges the game

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Real ﬁnancial intelligence changes the game...services. For GE Aviation, this means selling their fully integrated suite of products and services. Though GE Aviation has been known