Balancing Wholesale Distribution and the Bid Spec Market

1. Balancing Wholesale Distributionand the Bid Spec Market Established in 1980 Proudly Representing Lochinvar since 1995 Territory; All of Canada except Quebec

2. To Get You in the Boiler Mood

3. Canada has 3.85 Million Sq. Miles = 9 people per Square Mile USA has 3.75 Million Sq. Miles = 84 people per Square Mile

4. Corporate Facility in Burlington, Ontario 70,000 Square Foot Warehouse / Office Branch Office in Port Coquitlam, British Columbia 5,000 Square Foot Warehouse / Office

5. Hydronic Training Centre

6. Aqua-Tech’s Canadian Market Commercial and Residential Bid / Spec and Design / Build Markets • Intelli-Fin, Power-Fin, Copper-Fin II and Copper-Fin • Knight & Sync Boilers, RGA & GVG Series Tanks End User / OEM and Key Account Markets • Commercial Boilers, Water Heaters and Storage Tanks • Residential Boilers and Indirect Water Heaters Wholesale Distribution Markets • Knight Heating Boilers, Indirect Water Heaters & Tanks • Copper-Fin, Efficiency + and Solution Boilers

7. Bid Spec & Design / Build

8. Aqua-Tech’s Canadian Market Bid / Spec and Design / Build Markets Consulting Engineers, Mechanical Contractors, End User Pre-Purchase Tenders • Following principles laid out in Aqua-Tech “101” The rules of engagement and conduct for employees and outline for success in tendered projects. Design / Build Contractors and Engineers • Aqua-Tech “101” protocol with hands on Boiler Room expertise (retrofit, replacement & new construction).

9. Edmonton Public Schools End User & Key Accounts Renfrew County District School Board Niagara Catholic District School Board

10. Aqua-Tech’s Canadian Market End User and Key Account Markets Working with the End User’s Engineering / Construction Departments, Consultants & Contractors • Designing system structure, standardizing product specifications, selection, sizing and pricing for individual projects and multiple typical installations. • Sold using traditional and non traditional tendering. Manufacturing / OEM Accounts • Selection, pricing structure, design and engineering support covering both the replacement and new construction markets.

11. Distribution Support Program

12. Aqua-Tech’s Canadian Market Wholesale Distribution Markets Stocking and Non-Stocking Wholesale Distribution • Tier I (Non Stocking) and Tier II (Stocking) Distribution Support Program Partners working from the Distributor Net Price Sheet with price protection for stocking. • Territories are set up with “controlled distribution”. VIP Contractor Accounts • Supporting distribution sales with the VIP contractor program and distributor based promotions

13. Santa Clause Tier I DSP Tier II DSP AquaTech Sales & Marketing Inc. 2011 Distribution Support Program Bartle & Gibson Wolseley West Thornes Nuroc Noble MPH Supply Bird - Stairs Emco Corp. BA Robinson Marks Supply Wolseley East Bardon Supply BC Plumbing Cronkhite LK Metals

14. VIP Contractor Program

15. Managing Distribution vs Bid Specl • The Two Markets Segments • Bid Spec, Design Build & Key Accounts • Deal Direct and / or through Distribution • Wholesale Distribution Markets • Distribution Support Programs and VIP Contractors • Who is in Control? • When we are in Control the Market • When the Distributor is in Control

16. How do we get Control? Smoke and Mirrors? Lies and Deceit? Compromising Pictures? Big Screen TV’s and Trips to the south of France?

17. How Did We Get Control? • The Hard Way! • Very Hard and Consistent Work! • Did Not Take “NO” for an Answer • Using Resources; Engineer / Contractor / Owner / Manufacturer / Industry • Business Professionalism and Integrity • Being Straight Forward and Honest • Taking Care of After Sales “Issues” (Opportunities for Resolution) • Like any good marriage; Realize that you will never be in control

18. Market Management;Bid / Spec, Design / Build & Distribution • Know the Markets / Know the Competition • Touch all market aspects; Bid Spec / Design Build / Key Account and Distribution • Know the Rules of Engagement & Conduct • Know the “101” rules of conducting your business and how to manage each market segment • Become the Expert • Use of technical expertise in all markets to drive business – build value in quality of the product (Lochinvar manufacturing pride) • Corporate Desire • Aqua-Tech has a core business directive to participate and take advantage of all markets, including the distribution market and have a set of rules that govern participation.

19. Market Management • Maintaining Growth with Distribution • A corporate committed to Wholesale Distribution • Distribution Support Program (Tier I & II) • Participation in Distribution Promotions and Training • Avoid Golf, Company Christmas Gifts, Fund Raisers • Promote the VIP Contractor Program • Use Distribution to Market the Program • Build Inventories at Main and Sub-Branches • Expand the Distribution Network (Stocking & Non-Stocking) • Increase Product Recognition / Familiarity • Continue to Build VIP Partnership and Contractor Programs • Maintain Products Presence • Continue to focus on the Contractor / Pull the Distributor along

20. Market Management • Take Advantage of All Markets • Bid Spec, Design Build, Key Account and Distribution • Get Involved in each Market • ASHRAE and ASPE Chapter Meetings, Contractor & Wholesaler Association Meetings, Key Account Associations • Promote Quality in Product Design & Manufacturing • Promote your own and Lochinvar’s corporate identity in the market – how do you want to be perceived by your market peers • Use the Tools Available at your Disposal • Power Points / Engineer and Contractor Seminars / Tours / Training • Webinars / Service CD’s / Marketing Promotions / Management

21. Thank You!