Low Voltage IHP Motors World & Chinese Market Updates

1. Low Voltage IHP MotorsWorld & Chinese Market Updates Alex Chausovsky – Research Director Wilmer Zhou – Senior Analyst March 2012

2. Presentation Overview • Research Methodology Description • World Market for Low Voltage IHP Motors Presented by Alex Chausovsky • Chinese Market for Low Voltage IHP Motors Presented by Wilmer Zhou • Questions

3. Research Methodology Description Base Year Data: Primary Research • Collect sales revenues and unit shipments from leading suppliers to each product market via Excel-based questionnaires: high participation rates • Supplement data collection with extensive interviews with strategic marketing and product management personnel • Consult with leading industry trade, distributor and end-user associations • Consider data from various quarterly market trackers Forecasting: Primary & Secondary Research • Economic forecasts (GDP) sourced from IMF • Machinery Production (MP) forecasts are sourced from IMS Research’s annual Worldwide Machinery Production Yearbook study • Interviews provide insight into which market segments will outperform or underperform in the future

4. The World Market for Low Voltage IHP Motors Products Covered: • IE1 (Standard Efficiency) Eff2 and below; Below EPAct • IE2 (High Efficiency) Eff1; EPAct • IE3 (Premium Efficiency) Above Eff1; NEMA Premium • IE4 (Super Premium Efficiency) Much higher than Eff1; Above NEMA Premium • Other Non-classified 8 / 10 / 12 pole motors >375kW Submersible motors Fire pump motors All motors that fall outside NEMA and/or IEC • DC Motors*

5. The World Market for Low Voltage IHP Motors ≈ 44 million low voltage motors shipped in 2010

6. Low Voltage IHP Motors – Legislative Timeline

7. Low Voltage IHP Motors – World Data

8. Low Voltage IHP Motors – World Data

9. Low Voltage IHP Motors – World Data

10. Low Voltage IHP Motors – World Data

11. Low Voltage IHP Motors – World Data Top Industry Sectors • Commercial HVAC (30%) • Food, Beverage & Tobacco (13%) • Mining (6%) • Utilities (5%) • Paper & Paperboard • Elevators & Escalators • Conveyors • Automotive • Chemicals & Petroleum • Packaging & Labeling • Rubber & Plastics Top Suppliers • Siemens (8.5%) • Baldor (7.0%) • ABB (6.0%) • WEG • Regal Beloit • Teco (Teco-Westinghouse) • Leroy Somer (Emerson) • Toshiba • Huali

12. The Chinese Market for Low Voltage IHP Motors ≈ 12.5 million low voltage motors shipped in 2010

13. Low Voltage IHP Motors – China Data

14. Low Voltage IHP Motors – China Data

15. GB 18613 – 2006 revised to GB 18613 – 201x • The old grade 3 in GB 18613 – 2006 will become void • Grade 2 from GB 18613 – 2006 will become grade 3 in GB 18613 – 201x (correspond to the IE2 ) • The new grade 2 will directly correspond to the IE3 • The new grade 1 will refer to IE4 (IEC 60034-31) • The new grade 3 and grade 2 will be enforced in 4 years and 6 years later respectively after the GB 18613 – 201x released. • GB 18613 – 201x has been delivered to the Standardization Administration of China for approval and will be issued in 2012.

16. Low Voltage IHP Motors – China Data Top Industry Sectors • Commercial HVAC (17.5%) • Mining (13.5%) • Cranes & Hoists (10%) • Food, Beverage & Tobacco (7.5%) • Conveyors (6%) • Elevators & Escalators • Chemicals & Petroleum • Machine Tools • Metals • Paper & Paperboard Top Suppliers • Huali (6.5%) • Siemens (6%) • Luan JiangHuai (5%) • ABB (5%) • Anhui Wannan • Tech Full Simo • Hengshui (OX) • Jiamusi • Nanyang Explosion

17. Questions? Speaker contact information Alex Chausovsky Research Director - Motors & Mechanical Power Transmission IMS Research Austin, Texas, USA Phone: +1 512 582 2012 E-mail: Alex.Chausovsky@imsresearch.com Wilmer Zhou Senior Analyst – China Automation IMS Research Shanghai, China Phone: +86 21 62701823 E-mail: Wilmer.Zhou@imsresearch.com www.imsresearch.com