OEMax Products for Allen-Bradley in China

1. OEMax Products for Allen-Bradley in China Sept 20, 2006 OEMax Brand Business For Internal Use Only

2. Goal of OEMax by Allen-Bradley in China • Common Goal for RA-Korea and RA-China • Increase/Double sales by 2010 • Balancing Act of OEMax by AB • Must serve the needs of RA-China Allen-Bradley to be successful • Must not negatively impact current Korea and Global Sales • True for both AB and OEMax globally Double Sales in 2010! 2006 Brand confusion Poor Execution Pricing Issues Global Conflict

3. Many Decisions Remain • First Decision has been to go with Option 2 which is: “OEMax NX7 PLC by Allen-Bradley” But Many Decisions still Remain • Product • Appearance, Availability • Value Proposition and Commercial Brand Message • Degree of association between RA/AB and OEMax • Pricing • Always difficult subject in China • Publications and Catalogs • What changes are required?

4. Product Appearance

5. Current ML1100 MicroLogix is a Product Brand of Allen-Bradley. No relationship with RA Shown

6. Current OEMax NX7 OEMax Labeling is similar to AB (but no Product Brand). Label will change from OEMax to RAK

7. Option #2A OEMax endorsed by AB • Label Change only, Certifications? • Impact • Schedule TBD • Cost TBD

8. Option #2B OEMax as Product Brand of AB • Plastics+Label Change, Certifications? • Impact • Schedule TBD • Cost TBD

9. Option #2C OEMax as Product Brand of AB and RA • Plastics+Label Change, Certifications? • Impact • Schedule TBD • Cost TBD

10. Product Appearance Proposal • Tradeoff between Time-to-Market, Cost, and Brand-Effect • Requires more Investigation • Option 2C may be the best compromise between reducing cost/schedule issues and showing AB logo

11. Available Products

12. Product Availability • OEMax has these products currently in China • NX7, NX70 PLC • CSDJ, CSDP Servo (and Motors) • NXIO Distributed I/O • E7 AC Drive • Proposal is to start with only current products • Technical Publications and Commercial Material available in Chinese • Focus Distributors on PLC and Servo • Add additional products after investigation

13. Brand Message and Value Proposition

14. Brand Message Current Status • Evolving OEMax Brand Message in China • 2005 Deny any relationship between OEMax and RA or AB • 2006 Verbally admit relationship between OEMax and RA • No Change to Product and Publications • Small mention of RA-Korea in Commercial Catalogs • Seemed to solve most customer concerns about Brand Reliability • 2007 OEMax endorsed by AB • Change to Product • Change to Commercial Message • OEMax+AB improves Brand Reliability but more work is required • According to OEMax surveys, Rockwell Automation trails Siemens, Mitsubishi, Schneider, Omron in terms of overall Brand Excellence • According to OEMax surveys, <40% of Customers recognize OEMax name

15. Overall Brand Excellence Survey Results • Beijing FAPA Exhibition and Shanghai Seminar Results – RA #4 • Actually Survey need some improvements • Need larger sample size • Maybe need to explicitly say Rockwell Automation (including AB, RSI, etc.)

16. Value Proposition Proposal • Continue to use OEMax Brand Message • “for OEMs”, “great value”, etc. • OEMAX Value Proposition Summary • Cost – best Price/Performance Ratio • Interoperability – works as a component with any Brand, even competitors • Simplicity  Speed • Keeps OEMax Globally Consistent • Tell Customers 1+1=3 • OEM Products from OEMax + • Service and Support of Rockwell Automation Allen-Bradley • Increased Channel Support and Coverage • Better Technical Support

17. Value Proposition Proposal • Avoid mixing OEMax with other AB Products • Product • AB  Highest Price, High Performance and High Features, Complex for Simple Tasks • OEMax  Low Price, Average Performance and Limited Features, Easy to use • Customer • AB  Large End Users and OEMs • OEMax  Small to Medium OEMs • Compatibility • AB Only supports RA products but completely integrated (i.e. Integrated Achitecture) , PLC-only Strategy • OEMax  Openly supports Competitors, PLC and PC-Based Strategy • What about AB Component Products such as CHMI? • Some overlap may occur in the future but anything with an AB logo is typically higher priced and always will be (and should be) • AB market pricing is typically 10% above the highest competitor even for Component Products • OEMax “street pricing” will typically match the price of major brand competitors

18. Commercial Message Proposal • Use the message that OEMax is endorsed by AB but the Products are Different • Associates OEMax Name with AB and RA • Improves OEMax Brand Reliability and Name Recognition • Explains why OEMax products are not part of Integrated Architecture • Generally keep OEMax physically separate, but side-by-side at exhibitions, seminars, advertisements • Separate Exhibition Booths but keep Side-by-Side to share traffic • Have OEMax products at CAOTM, HOT, RA University but use separate schedules and sessions

19. Commercial Message INSERT EXAMPLE PICTURE HERE

20. Publications and Catalogs

21. Publications and Catalogs Proposal • What Changes are required? • TBD

22. Pricing

23. Pricing Proposal • Needs a lot more investigation • Distributor issues • Logistics issues

24. Customer FAQ

25. Customer FAQ • Q: Why is OEMax now a Product Brand of Allen-Bradley? • A: Decision was made to give the Customer the OEM-focused products of OEMax together with the Outstanding Service and Support of Allen-Bradley. Customer is the ultimate winner. • Q: What changes will occur to the OEMax Products and Pricing? • A: No major changes will occur. OEMax will be a Product Brand of AB, separate from other AB products, but with AB Service and Support. • Q: Will OEMax be a part of RA Integrated Architecture? • A: No. OEMax’s targets the component market only.

26. Customer FAQ • Q: Will this change also occur in Korea and Globally? • A: No. China is a special situation where the Customers of OEMax could be better served by using the AB service and support, AB Distribution channels, etc. • Q: Are the OEMax products in China different from Korea and Globally? • A: No. Only the product labeling is different.