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Ingersoll Rand Security Technologies

. Security Technologies Accelerating Our Global Strategy. Accelerating Global GrowthAchieving Operational ExcellenceDelivering Market-Focused InnovationRealizing Acquisition and Joint Venture SynergiesSummary. Agenda. . Convergence of Mechanical Systems, Electronics, Software

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Ingersoll Rand Security Technologies

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    1. Ingersoll Rand Security Technologies Mike Lamach Welcome remarks TBD.Welcome remarks TBD.

    2. Security Technologies Accelerating Our Global Strategy Accelerating Global Growth Achieving Operational Excellence Delivering Market-Focused Innovation Realizing Acquisition and Joint Venture Synergies Summary

    3. Vision

    4. Accelerating Global Growth Welcome remarks TBD.Welcome remarks TBD.

    5. Security Technologies

    6. Security Technologies

    7. Security Technologies

    8. Security Technologies

    9. Achieving Operational Excellence Welcome remarks TBD.Welcome remarks TBD.

    10. Raw Material Inflation Estimated Zinc Usage: 18.6 million lbs direct 32 million lbs indirect Estimated Brass Usage: 15.5 million lbs direct 14 million lbs indirect As a point of reference here are the exact numbers in millions of pounds for material we buy direct. Much higher numbers if one considered all lower tier suppliers that also utilize these metals (e.g., a brass screw machine part, brass forging, etc.). Estimated Zinc Usage: 18.6 million lbs direct 32 million lbs indirect Estimated Brass Usage: 15.5 million lbs direct 14 million lbs indirect As a point of reference here are the exact numbers in millions of pounds for material we buy direct. Much higher numbers if one considered all lower tier suppliers that also utilize these metals (e.g., a brass screw machine part, brass forging, etc.).

    11. Security Technologies Americas Established 2 centers of excellence Rationalized 2 N. America operations Established 2 regional manufacturing facilities Established electronic product manufacturing competency Europe Consolidated plants & product to low cost country 2 Closures and consolidation into existing facilities 2 Outsourced product lines Divested 2 non-strategic partnerships Asia Pacific Executed localization of products Developed supply chain to support local market Established key joint ventures to support local and export requirements Centers of Excellence: Americas: Von Duprin (Indy) and Security Colorado ESA: IR Turkey, Faenza Asia Pacific: IRFH JV, Shanghai Fabrication in Low Cost Country: Americas: Tecate, Ensenada, Sauzal Mexico ESA: Turkey Asia Pacific: Shanghai, China & Malaysia Rationalization of Operations (Closures): Americas: DOM, Chicago- Broadway Plumbing, Olathe ESA: Walsall, UK Tavernelle, Italy (2 more in process Mustad & Cisa, Chatham-UK Divestures: Elbor, Russia- Durres, Albania Regional Manufacturing Facilities Steelcraft: Chino California and Suwanee Georgia Electronic Product Manufacturing: RSI in Campbell California Locknetics in Forestville CT, Von Duprin, Mexico Outsourced products: Safes & 3 point lock Key Joint Ventures: IR Fu Hsing in ChinaCenters of Excellence: Americas: Von Duprin (Indy) and Security Colorado ESA: IR Turkey, Faenza Asia Pacific: IRFH JV, Shanghai Fabrication in Low Cost Country: Americas: Tecate, Ensenada, Sauzal Mexico ESA: Turkey Asia Pacific: Shanghai, China & Malaysia Rationalization of Operations (Closures): Americas: DOM, Chicago- Broadway Plumbing, Olathe ESA: Walsall, UK Tavernelle, Italy (2 more in process Mustad & Cisa, Chatham-UK Divestures: Elbor, Russia- Durres, Albania Regional Manufacturing Facilities Steelcraft: Chino California and Suwanee Georgia Electronic Product Manufacturing: RSI in Campbell California Locknetics in Forestville CT, Von Duprin, Mexico Outsourced products: Safes & 3 point lock Key Joint Ventures: IR Fu Hsing in China

    12. Security Technologies Lean policy deployment Improvements in lead time Improvements in quality Improvements in productivity LPD: Lean as part of our DNA Deploying across operations and business process improvement to drive efficiencies Training strengthens competencies trained 911 associates Lead Time: Shortening cycle time and eliminating waste to increase our factory velocity resulted in improving average lead time by 12% Quality: Continuous quality improvement initiatives resulting in improving our cost of quality by 10% Improvements in Productivity: Continued productivity 6.5% direct material and labor productivity Lean Six Sigma Initiatives - 80 Kaizens Value engineering 2005 productivity impacted by OEM products and commodity inflation LPD: Lean as part of our DNA Deploying across operations and business process improvement to drive efficiencies Training strengthens competencies trained 911 associates Lead Time: Shortening cycle time and eliminating waste to increase our factory velocity resulted in improving average lead time by 12% Quality: Continuous quality improvement initiatives resulting in improving our cost of quality by 10% Improvements in Productivity: Continued productivity 6.5% direct material and labor productivity Lean Six Sigma Initiatives - 80 Kaizens Value engineering 2005 productivity impacted by OEM products and commodity inflation

    13. Security Technologies LCN Achieved 40 inventory turns and 4 hour cycle time in first quarter Now achieving 46.5 turns in June06 Steelcraft New Atlanta, Georgia door plant opened June From customer order to shipping doors and frames in less than 3 hours vs. 20 day industry average Model created for regional manufacturing capabilities LCN: Total Plant Transformation at Princeton, Illinois door closer plant: 40 inventory turns and 4 hour cycle time; achieving 46.5 turns in June06. Objective: Reduce Cycle Time, Eliminate Non Value Added Activities,Increase Flexibility Throughout Process, Implement 1 Piece Flow Key Changes: Established 3rd Party SOMI warehouse, Implement New Production Scheduling System, Relocate Processes & Equipment, Install New Powder Coat Technology, Implement Facility Changes, Redesign Cells For Balanced Three Shift Production, Install Power & Free Conveyor System Steelcraft: Objective: Provide industry leading service levels reduce cycle time, Capacity increase of 30% with improved margins, Flexible manufacturing to respond to customer demands, Robust repeatable manufacturing documentation, Replicable operation footprint. Key Changes: Manufacturing cycle reduced to 4 hours, Product manufactured and shipped same day, Automated facility resulting in reduced COGS, Facility commissioned 06/06, full production Q4 06, Dual Citizenship application shared manufacturing with Hussmann LCN: Total Plant Transformation at Princeton, Illinois door closer plant: 40 inventory turns and 4 hour cycle time; achieving 46.5 turns in June06. Objective: Reduce Cycle Time, Eliminate Non Value Added Activities,Increase Flexibility Throughout Process, Implement 1 Piece Flow Key Changes: Established 3rd Party SOMI warehouse, Implement New Production Scheduling System, Relocate Processes & Equipment, Install New Powder Coat Technology, Implement Facility Changes, Redesign Cells For Balanced Three Shift Production, Install Power & Free Conveyor System Steelcraft: Objective: Provide industry leading service levels reduce cycle time, Capacity increase of 30% with improved margins, Flexible manufacturing to respond to customer demands, Robust repeatable manufacturing documentation, Replicable operation footprint. Key Changes: Manufacturing cycle reduced to 4 hours, Product manufactured and shipped same day, Automated facility resulting in reduced COGS, Facility commissioned 06/06, full production Q4 06, Dual Citizenship application shared manufacturing with Hussmann

    14. Transformation Transforming 3 additional plants now 2 North America and 1 Europe Three-year transformation plan: East coast footprint rationalization West coast footprint consolidation New plating facility in Mexico New regional manufacturing facility in West Transition of fabrication to Mexico Continue to drive to world-class operations Significantly more LCC sources Achieving best in class materials management competencies to drive low volume, high variety and build-to-order strategy Transforming 3 plants: Spain, Von Duprin, Suwanee Transformation (DO NOT USE FACILITY NAMES!): East coast footprint rationalization. West coast footprint consolidation. New plating facility in Mex, New RMF in West Transition of Fab to Mexico Continue Operational Excellence journey to transform our facilities using IR continuous improvement methodology to drive to world class operations. Significantly more LCC sources incl. the supply chain for our low cost assy centers like Mex. Achieving best in class materials management competencies to drive low volume, high variety ATO and BTO strategies. Transforming 3 plants: Spain, Von Duprin, Suwanee Transformation (DO NOT USE FACILITY NAMES!): East coast footprint rationalization. West coast footprint consolidation. New plating facility in Mex, New RMF in West Transition of Fab to Mexico Continue Operational Excellence journey to transform our facilities using IR continuous improvement methodology to drive to world class operations. Significantly more LCC sources incl. the supply chain for our low cost assy centers like Mex. Achieving best in class materials management competencies to drive low volume, high variety ATO and BTO strategies.

    15. Delivering Market-Focused Innovation

    16. Market Segments & Innovation

    17. Market Segments & Innovation

    18. Market Segments & Innovation

    19. Spectator Sports Venue Capability Access Control Security Management Video Surveillance Crowd Control Ticketing Admission Control Visitor Management Payment Car Park Management Payroll and Scheduling

    20. Realizing Acquisition and Joint Venture Synergies

    21. Recent Acquisitions and Joint Ventures Support Strategy

    22. CISA 62 New products launched in 2006 Wave mode wireless modular offering completes hospitality solution Leverage existing channels with CISA platform Unique market positions in Italy and France Enhancing distribution model Generate market gains in Russia and Middle East Centralizing European door closer production; increase capacity utilization Strong product and operational synergies in Europe, China and US

    23. Ingersoll Rand Fu Hsing Foundation to support entry plans in China, Australia, and other Asia Pacific markets Product localization capability and in-region manufacturing Provides competitive product entry into opening and high price point markets Launched 3 new platforms to date New lock line focused on China market Productivity to support big box channel in Americas, Europe Launched residential initiative in Australia; awarded program at Bunnings Enhances low cost country footprint to support global productivity strategies

    24. BOCOM Systems #1 Position in systems integration in China Company well positioned to benefit from infrastructure investments in China: Airports/rail Traffic/city surveillance Shanghai cooperation summit city traffic monitoring project win with digital video technology Power facilities Spectator sports 2008 Beijing Olympics project win with optical fiber technology Improves the productivity of overall traffic management and intelligent data analysis Packaging of Bocoms surveillance capability with Schlage access control systems and hardware Sourcing synergies

    25. Executing Our Vision

    26. Summary Business Strategy is working - organic growth, market share gains Global Commodity Market Forces continue to pose an economic challenge but we are well positioned to overcome Vertical Market and Repeatable Selling Processes showing improved capability and a point of differentiation Continued focus on Market-focused Product Innovation and emphasis on recurring revenue Lean Six Sigma part of the organizations DNA, beyond the manufacturing floor Acquisitions will continue to play an important part in our white space' planning

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