Mining Overview

Al Hewitt Ralitza Arafin

Mining Agenda 1. Market Overview

Mining Overview Industry Snapshot Market Size

2. Voice of the Customer

Mining Concerns

3. Path to Market
Bussmann Product Opportunities Value Proposition Win How we win

4. Summary
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Mining Fast Facts

6,500 mines in US producing 70+ minerals US is the world's second largest producer of copper and gold 3 million employees in industry ~80% mines employ fewer than 20 workers Projected industry CAGR is 8.5% (2012-2016); led by coal and precious metals Record Levels of Investment Occurring in Mining $400B globally (~$10B-$15B US)

Mining Overview
Surface (85%)
Harsh Environments

Sub-Surface (15%)
Hazardous Environments

Ore Type
Coal (50%) Stone, Sand & Gravel (10%)

Open Pit

Drift Mining

Strip Mine Slope Mining Mountaintop Removal

Copper Gold (5%) Iron Ore Cement

Dredging

Shaft Mining

Zinc (1%) Lead Etc.

Highwall Mining
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Note: % are based on # of mines

Typical Mine Layout

Power Center Transport

Storage

Control Room Open Pit Mine Head Conveyor Ball Mill/Coal Pre Treatment Metals Electrolysis

Underground Crusher Screens Concentrator/ Solvent Extractor Refinement

Tailing Ponds

Waste Water

Map of Active Mines & Mineral plants

Every state has some mining activity!

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http://mrdata.usgs.gov/mineral-resources/active-mines.html

Mining Revenues by State

Coal Other Minerals

Wyoming West Virginia Arizona Kentucky California Texas Nevada Utah Pennsylvania Florida Colorado Illinois Minnesota Montana Ohio Indiana New Mexico Missouri Virginia North Dakota New York Alaska Alabama Michigan Georgia Other States
$0 $4 $8 $12

Billions $16

50% of States Drive 80% of Mining Revenues in US Wyoming is 16% of Total

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Voice of the Customer

EPC
Product Specs/ Training/Education Pricing and Quality Necessary Certifications Product Customization/ Integration Compatibility

Distributors
Product Breadth Pricing and Quality Necessary Certifications Inventory Management Supplying/Creating the Demand from Key Customers

Mines (MRO)
Product Specs/ Training/Education Pricing and Quality

Necessary Certifications
Product Customization Just in Time Delivery/ Spares Availability MSHA regulatory concerns

Just in Time Delivery

Price sensitive market focused on product specs and certifications

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Mining Environmental Concerns

Industrial
Areas prone to dust, dirt, grime, vibration, hard use and abuse. Protection from windblown dust and rain, splashing and hose-directed water and external formation of ice. Where equipment with high-speed moving parts may require maintenance/repairs.

Wet Location: NEMA Type 4, IP56

Harsh High Vibration Corrosive Areas Space Constraints Hazardous Class II Locations Class I Locations

From chemicals and atmospheres.

Areas with low ceilings, tight spaces and limited footprint potential Areas where dust-ignition-proof or dust-tight equipment might be needed depending on the conditions.

Explosion protection for areas with flammable gases or vapors in the atmosphere.

Industry is heavily influenced by Harsh & Hazardous concerns

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MSHA
MSHA Mine Safety and Health Act MSHA has jurisdiction over operations whose purpose is to extract or to produce a mineral OSHA has jurisdiction over everything else including where a mineral is extracted incidental to the primary purpose of the activity Title 30: PART 28 Fuses for use with direct current in providing short-circuit protection for trailing cables in coal mines [ 30 cfr 28 ]
MSHA Mandatory Inspections Walkaround Pay for Emps Rep Authority to Close Plant Mandatory Penalties No General Duty Clause Individual Civil Penalties OSHA No Mandatory Inspections No Walkaround Pay No Closure Authority No Mandatory Penalties General Duty to Correct Hazards No Individual Civil Penalties

270 deaths due to electrical accidents since 1970; 60% Underground; $160M in fines in 2010
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Typical Mine Layout

Power Center Transport

Storage

Control Room Open Pit Mine Head Conveyor Ball Mill/Coal Pre Treatment Metals Electrolysis

Underground Crusher Screens Concentrator/ Solvent Extractor Refinement

Tailing Ponds

Waste Water

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Bussmann Mining Product Portfolio

Application FCF RK5 MV Fuses SPD QSCP HSF LP Upgrade Wireless

Open Pit Underground Mini head Conveyor Crusher Screens Ball Mill/Coal Pre Treatment Concentrator/ Solvent Extractor Metals Electrolysis Refinement Trailing Ponds Waste Water Storage

Transport
Control Room
12 Power Center

Bussmann Value Proposition

Total Protection Package

Technical Expertise

Best-in-Class Delivery Times & Service

Complete protection product portfolio meeting electrical requirements

Technical Support from specification to delivery

Delivery meeting critical installation & project coordination schedules

Protection Package supported with deep technical expertise allows Bussmann to Win
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Path to Market

(EPCS) MINING CONTRACTORS

ELECTRICAL WHOLESALERS

OEM

MINES

REFURBISHING
Local electrical shops

Influencers Purchasing

Opportunities to influence mining engineers Distributors have deepest involvement and relationships
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Target List
Initial list of Mining locations with >$50M in sales in US and Canada. India team to look through the websites to qualify the leads. Forward qualified lists in the next two weeks.

Find out whos who in Mining in your territory and get plugged into the projects
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Win
Galena mine, Wallace, ID
Silver-copper Mine Underground 2 shafts ~5,000 ft deep First developed in 1887

Converted mine from Ren$10k

Electric underground train 80V DC motors using REN350A with many failures from overcurrent and moist elements. REN fuses have no DC or UL ratings and generally are not a motor fuse. Price was important so I suggested the FRN-R300 with a DC and UL rating as well as better resistance to elements

Converted distributor to Bussmann $40k

As a result of the success at Galina Mines we converted this L/F distributor to Bussmann.

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How we Win MRO Play develop relationships with local distributors who have storerooms on mine sites
Portfolio versatility SPAs when needed

Technical expertise offer tech expertise to local mining engineers who are often jack of all trades Delivery Quikship services maximize mine production Local Technical support - 14 FAEs and 28 DSEs
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Call to Action
1. Identify local Mine Distributor
Find out what mines they are calling on

2. Mine visit

3. Develop relationships

Identify problem areas

w/local OEMs

What OEMs they are selling to

Specific electrical problems i.e. motors, transformers, power centers

Refurbishers

Who do they go to for equipment refurbishment Power centers; motors, etc.

Offer technical expertise to help in-house electrician solve the problem

Schedule a joint sales call

Distributors hold the key to Mines Seek partnerships and offer technical expertise
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Likely Objections/Responses
Objection Objection
1. Why Use A FUSE?

Response Response
3 Cs; Component Protection Current Limitation Selective Coordination Says Who? Not the CB manufactures! Stress OSHA requirements on resetting. Sell spare fuses Sell Low-Peak up-grades & fuse consolidations to lower cost MSHA certification is required for the system not the components

2. CBs are Re-settable

3. Fuses are Expensive

4. Fuses arent MSHA certified

Ammunition to Anticipate and Respond to Push Back

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Mining Summary Large market with fast growth

$66M Bussmann opportunities
8.5%+ projected growth

Every state has some Mining activity

Focus on MRO opportunities Mines are looking for performance, technical expertise, delivery, and price

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Appendix

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Stages of Mining
1. PROSPECTING
search for mineral deposits

2. EXPLORATION
assessing the size, shape, location, and economic value of the deposit

3. DEVELOPMENT
preparing access to the deposit so that the minerals can be extracted from it Bussmann Focus

4. EXPLOITATION
extracting the minerals

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Mines by Mineral
Revenues by Mineral Type - $95B

38% of mine revenues from coal; 70+ total minerals

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2009 Revenues

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Cooper Mining Sales

Product Group
Connectivity Electrical Power & Distribution Industrial EX Lighting Support Structures

2011E
$5M $10M $20M $2M $2M Record Levels of Investment Occurring in Mining Projected Industry CAGR of 8.5% (2012-2016)

Large Addressable Market (Electrical Products = $9B+)

Broad Geographic Activity Competitive Landscape is Highly Fragmented Bolt-On M&A Opportunities Available Excellent Product Portfolio Alignment for Cooper

Fire & Safety

Instrumentation, Wireless & Automation Total

$1M
$5M $45M

Huge Potential to Grow Beyond Current State in Mining

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Cooper Corporate Mining Support

Tech Center
Use corporate Tech Centers to educate the consumer and train the sales force in mining-specific applications Australia currently developing mining-focused Tech Center

Mining Brochure
Corporate-wide mining brochure highlighting Cooper product capabilities in the mining space Focus on component parts vs integrated solutions

Website
Vertical market-specific site with links to educational material, white papers, training opportunities, parts catalog, etc.

Mining-Specific Parts Catalog Trade Shows

Use mining trade shows to educate the consumer B-Line registered for indoor booth at 2012 MINExpo in Las Vegas Comprehensive catalog of all mining products, including relevant technical specs, drawings and certifications Electrical engineers at mines determine preferred vendors Support the sales team with hardcopy & e-copy versions

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