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Snap-on Business Review GE Transportation & Ferguson Integrated Supply Jeff Mitchell

Snap-on Business Review GE Transportation & Ferguson Integrated Supply Jeff Mitchell. May 9, 2012. Agenda. Business Increases in 2011 Cost Savings Project Review Historical Results Currently Completed Tasks Open with FW Notation Brand Sliding Impact Study Results

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Snap-on Business Review GE Transportation & Ferguson Integrated Supply Jeff Mitchell

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  1. Snap-on Business ReviewGE Transportation & Ferguson Integrated SupplyJeff Mitchell May 9, 2012

  2. Agenda • Business Increases in 2011 • Cost Savings Project Review • Historical Results • Currently Completed Tasks • Open with FW Notation • Brand Sliding • Impact Study Results • Snap-on June Price Adjustment • Forward Looking

  3. Business Improvements in 2011 • Snap-on Industrial Appreciates the improved opportunities to grow our business through the steady increase in production at GE Transportation, Erie and Grove City, PA • Snap-on’s ability to perform cost savings projects improve in relationship to the improved business climate at GE Erie and Grove City, PA • We expect that this will continue in 2012

  4. Cost Savings Historical Results • Cost Savings efforts since 2008 have been focused on Hard Cost Savings • Snap-on Industrial Brands provided a 10% cost reduction on the Bahco, CDI, and Williams brands • Brand Sliding began during this time providing additional cost savings • Soft Cost Savings were not part of the dialog during this period for GE, Erie and were not documented • During that time we provided GE soft cost savings in the reduced use of band saw blades due to our superior quality product providing product savings and labor savings • Other Soft Cost Savings through the use of special products were not signed off on due to labor downturn. • During this time demand of hand tool products were drastically reduced due to economic downturn. GE’s locomotive production was reduced to 200 in 2009

  5. Current Cost Savings Project Review • Over the past year 14 Projects Have been Documented • Five have been Completed • $9,500 Generated Cost Savings • Nine Remaining Projects with completion dates ranging from FW22 to FW50 • Detailed Project Notes on Handout • Documentation and Project Research Ongoing for additional cost savings • Such as Tool Control using Snap-on’s proprietary Programs

  6. Cost Savings Through Brand Sliding • 37 Items have been switched from Snap-on to Williams, Sioux Tool, or CDI • Impact of Brand Sliding for 2012 is $19,561 • Details Provided to Gary Firch for processing • Snap-on Industrial Brands New Catalog due in September • New Product Additions • More Opportunity to Brand Slide • Will Review after release to continue program

  7. Price Adjustments and Impact Study • Based on Brand Sliding Improvements and holding costs on the Snap-on Industrial Brands the overall impact of the 2.1% Snap-on Brand Increase will be negated and an over all cost improvement will be achieved • Impact Study of products tracked in GE System show that a 2% Savings or $7,300 • 1032 items were reviewed • All brands were included

  8. Forward Looking • Snap-on Industrial along with FIS, Erie are committed to working together to continue to reduce cost while providing quality products to improve GE productivity • The Snap-on on-site sales team and the FIS Support Team are working in concert to provide GE the support that is expected for these two organizations.

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