The UK Business

Ian Ritchie, Brammer UK,

Managing Director

Mike England, Brammer

UK, Sales Director

Intellectual Property Notice

The trademarks, logos and other registered marks of BRAMMER including,

but not limited to, the “BRAMMER” “INSITE” and “GENIE” trademarks and

logos, are the exclusive property of BRAMMER, and may not be used or

reproduced without BRAMMER’S prior written consent.

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• 872 FTE people

• 93 Branch locations

• 76 Full-time Customer Insites™

• 75 Part-Time Insites™

• 101,000 SKU’s

• 2011 Sales £166.9M : Average order value £245 (£218 in 2010)

: 2.44 lines per order

: 42% of Sales from Site based services

: 60% of Sales from Key Accounts

UK

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History

Quarterly SPWD Growth Sales 2003 to 2011

-0.8%

5.5%

8.4%

11.2% 11.6%11.3%

14.5%

12.7%

7.6%

12.1%

7.1%

6.2%

3.4%

-1.8%

-3.6%

0.9%

5.4%6.1%

11.7%

9.0%

15.6%

17.4%17.7%

16.6%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007 2008 2009 2010 2011

% S

ale

s P

er

Wo

rkin

g D

ay

Gro

wth

60.0

80.0

100.0

120.0

140.0

160.0

180.0

1900 1900 1900 1900 1900 1900 1900 1900 19002003 2004 2005 2006 2007 2008 2009 2010 2011

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Brammer Strategy - implementation

Country Organic Growth People Development Supplier rationalisation Business Processes

Key Accounts Business Skills Development European buying System integration

Insites Distributed Learning IT cost reductions Brand development

Product Range ExtensionInternal Communications &

InvolvementCapital Employed Management

Supplier relationship

management

Geographic Development

GROWTH CAPABILITY COSTS SYNERGY

5

Growth

6

Growth: Organic Growth • Industry sector focus

• Understand core manufacturing processes and MRO needs

• Provide access to technical innovation from world-class manufacturers

• Proactive focus on providing operational cost savings

7

Growth: Organic Growth Brammer Focus on Nuclear Power Generation

8

Growth: Organic Growth

9

Growth: Market segmentation

• Focus on sustainable industry segments, minimise exposure to cyclicals

• Hunting for good quality customers: serious about compliance

• Constant focus on Sales Pipeline management

• Constant focus on Customer Retention

• Constant focus on Cross-Selling the product range

• Negotiate multi-year contracts

10

Growth: Key Accounts

• Top-down ‘corporate sales team’ aligned to key industry segments

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Growth: Differentiating our offering

How we Add Value to Customers

To reduce total acquisition costs, it is necessary to consider

not just the basic product cost, but the entire process costs.

We have developed a number of solutions to make us a

cost - efficient business partner.

Solutions to reduce total acquisition costs 1

Brammer is in the business of keeping production lines

moving. We offer a number of proven services, which

proactively help avoid breakdowns – and keep costly

downtime to a minimum.

Services to improve production efficiency 2

3

The constant monitoring, and continuous reduction, of working

capital is a key performance indicator for the success of many

businesses. We have developed facilities, competencies,

services and systems to help achieve this.

Expertise and support to reduce working capital

Back

The Customer Challenge = Opportunity

13

Growth: Differentiating our offering

•INSERT TABLE SHOWING COST SAVINGS EVOLUTION LAST 5 Yrs

Saving - £11,500 Ref: 17635

Metal Industry - Increased Production Time

Couplings on a particularly punishing application within a metal manufacturer were failing on average twice a week. Each time a failure

occurred, 2 hours of production time was lost. Sean Devaney (Regional Key Account Executive) made a joint visit with Esco to review the

application. Esco offered their T-series coupling incorporating a design advantage which would cut the time needed to change down to 5

minutes. The customer is pleased to report that after 8 weeks, there have been no failures with the new coupling.

Saving - £240,000 Ref: 17523

Power Industry - Material SubstitutionAn Automated Guided Vehicle used in a plant manufacturing nuclear fuel was failing every 3 weeks or so. The problem

was eventually traced to a containment seal used when the vehicle docks.

Christopher Clarke (Technical Specialist) arranged several joint visits with sealing supply partner Garlock. After

redesigning the seal, it has now been in service for 6 months without failing.

So sucessful has this modification been that the customer has nominated it for their own global cost saving award in

addition to a similar one for plant safety.

Power Industry - Material SubstitutionAn Automated Guided Vehicle used in a plant manufacturing nuclear fuel was failing every 3 weeks or so. The problem

was eventually traced to a containment seal used when the vehicle docks.

Christopher Clarke (Technical Specialist) arranged several joint visits with sealing supply partner Garlock. After

redesigning the seal, it has now been in service for 6 months without failing.

So sucessful has this modification been that the customer has nominated it for their own global cost saving award in

addition to a similar one for plant safety.

Saving - £11,500 Ref: 17635

How we DELIVER Value – Documented Cost Savings

: 2011 > £20M of value

: to more than 500 customers

: from > 3,600 signed off added value savings

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Growth: Insites™ • Insite Services provide customers

with dedicated site based resource - 76 full - time locations in UK - captive market for Brammer - accelerated product penetration

• Part - time Insite™ solution - 75 locations in UK

• Each Insite™ is different - inventory requirements - product profile - operating environment - stores management needs - etc …

a high value adding service

Power Station

& Bio Mass

Pot Lines (350)

Cast House

Anode Plant

15

Growth: Insites™ - Examples

Externalise internal core competences to differentiate and add value

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Growth: Insites™ - Before lopment

17

Growth: Insites™ - After

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Growth: Geographic expansion In UK, being local and close to the Customer is critical

New branches: added 13 since 2005/6 (excl. Buck & Hickman)

2010 Inverness : July

Pembroke : October

Reykjavík : December

2011 Fort William : April

ENTRY STRATEGY

Support committed Key Account Customers and grow from there

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Capability

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Capability: Differentiating our offering • Access to world-class brand portfolio

- brand ‘sponsorship’ is mission critical

• Committed supplier relationships

• World-class MRO distribution centre

• Agile, low-cost, minimal human

intervention

• Continuous improvement culture

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Capability: Differentiating our offering • Striving for World-Class business

systems

• External accreditation / certification

CENTRE OF EXCELLENCE

• Innovative environment to showcase

product & technical expertise - takes ‘price’ off the table

- great for building supplier rapport

22

Capability: Differentiating our offering • Investing in our people

: > 2,000 training days in 2012

: new Training & Development Centre

- opened August 2011

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Costs

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Costs: Capital employed management

• Stock / Sales ratio below 10%

• Focused Debtors Management and Commercial Policy

: customers pay us before we pay suppliers

• Cash generation better than Profit

0.08

0.10

0.12

0.14

0.16

0.18

0.20

Sto

ck :

Sale

s r

ati

o

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Costs: Year on Year Productivity Improvement • SDA is managed in line with required capacity

• Revenue / Head productivity gains is a given

23.0%

24.0%

25.0%

26.0%

27.0%

28.0%

29.0%

30.0%

SDA : Sales %

MAT

Synergy

Synergy: Supplier relationship management • One European approach + process

• Virtual Purchasing Team maximise opportunities

• ‘Bottom-up’ aligned management of supplier management

• Driving continuous improvement

: scorecard approach vital

: tangible evidence to customers we are serious and competitive

Synergy: Business processes • Employee Survey

• Customer Survey

• Reporting and KPI’s

• Customer loyalty programmes

• Etc.

Synergy: Brand development • Brammer identity implemented in UK in 2007 : Brammer acquired “BSL” in 1968

• Successful strategy to enable us to reposition our MRO offering

• Thought leadership & Case study PR strategy

• Brammer identity is gaining traction as a

recognised and trusted brand with customers and suppliers

Synergy: System integration • MDM

: centralised Master Data Management MRO Database

: no-one else in European MRO market has this level of granularity

• Data warehouse - transactions consolidated in central system

: providing visibility and drill down for reports / analysis

: key enabler for inventory planning, purchasing tactics, customer

analysis, customer / supplier reporting, etc…..

• Inline – stock visibility throughout Europe

• The market is not a constraint : Growth drivers in place

• Focus on the right customers : right segments

: customers with a compliance culture

• Differentiation is key : People and ideas make the difference

: adding value to the customer is the order winner

• Make selective investments : good development roadmap in place

: bolt-on acquisitions work

UK: Summary

32

Growth

Acquisitions

• 182 year old British company

• 28 branches

• £105M t/o (2011 annualised)

: No. 3 by size in £2Bn UK Tools, General Maintenance & Health & Safety market

• Strong key account portfolio, inc: : Rolls Royce, Siemens, GE, Tata Steel, Westland

• 140 year old “Roebuck” exclusive private label brand : good quality, good margin Hand Tool range

• 540 employees

• 100,000 sq ft NDC in Coventry

Buck & Hickman: Summary

• £7.5M annualised over 3 years

: Purchasing leverage

: Roebuck brand

: Branch co-locations (18)

: Logistics

: Cross-selling

: Marketing

Buck & Hickman: Synergy opportunities

• Business is performing well, in-line with expectations

• Integration workstream programme to deliver synergies

is on-track

• Future Sales growth pipeline developing

• Leveraging management and supplier relationships to

create European business opportunity

Buck & Hickman: Progress