W H M A C O N F E R E N C E 2 0 1 8

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CONFIDENTIAL Property of Southwire

CONFIDENTIAL Property of Southwire

VALUE- FOCUSED ON APPLICATION

• Segmentation• Application• Capability• Differentiated Products and Services

CONFIDENTIAL Property of Southwire

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CONFIDENTIAL

1. U.S. military researchers develop pizza that can last up to 3 years

2. Denmark is making shifts to go to a cash less society

3. The 1st 3D printed car will be in production

4. Japan plans to build a robotic moon base

5. China plans to connect Beijing to London via high-speed rail

6. Cars will drive themselves

7. All new screens will be ultra-thin OLEDs – controllable mirrors, windows, walls, surfaces……and we'll finally see some decent AR glasses

8. Commercial space will take us to the moon and asteroids

9. Universal language translation in the cloud will be commonplace in mobile devices

10. A $1,000 computer will have the processing power of a human brain

TOP 10 REASONS 2022 WILL BE A GREAT YEAR

CONFIDENTIAL Property of Southwire

WHERE IS OUR INDUSTRY HEADED?The world is changing quickly… Challenge or Opportunity…

Focus Technology Sectors:

Major Market Segments:

Infrastructure

Connectivity

Energy

Power Gen. Power Trans. Commercial Data Centers Manufacturing RefiningResidential Lt. Commercial TransportationPower Distr.

Major Market Trends:

• Smart Grids

• Renewables

• Distributed Generation

• Smart Buildings/Cities

• Big Data

• Sustainability

• Safe Construction

Technology Disruptors:

• LED Technology

• Power Over Ethernet

• DC Power Distribution

• Electric Vehicles

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CONFIDENTIAL Property of Southwire

LED TECHNOLOGY… is Changing the Building Automation Landscape…

50.6 Million Units

2016

1,277.2 Million Units

2022

ATTRACTIVE MARKET OPPORTUNITIES

• Global smart lighting market is expected to grow 25X.

• Smart infrastructure will help address labor shortages in skilled trades.

• Unique cabling solutions will be required to support reliable and secure infrastructure connectivity needs.

• Wireless technologies will drive growth.

• Adoption of smart lighting for smart cities drives growth.

• Energy savings is providing a huge opportunity for the intelligent building market.

CAGR 71.3%

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CONFIDENTIAL Property of Southwire

PoE TECHNOLOGYPower Over Ethernet is Driving New Cable Architectures …

2014 2015 2016 2018 2020 2022CAGR

(2016 – 2022)

Communication Technology Protocol

DALI

Powerline Communication (PLC)

Power Over Ethernet (PoE)

Hybrid Cable (Power and Ethernet)

Others

Total

11.1%769.3 931.4 1,102.1 1,449.7 1,786.4 2,077.7

16.6%268.1 336.2 412.7 588.3 795.9 1039.3

42.4%78.9 149.9 251.2 574.8 2,077.71,134.9

33.7%284.0 422.5 606.6 1,151.3 3,462.82,035.5

17.0%356.2 440.6 535.1 753.6 1,375.11,024.4

17.0%1,756.5 2,280.6 2,907.7 4,517.7 10,032.66,777.1

SMART LIGHTING MARKET BY WIRED COMMUNICATION TECHNOLOGY & PROTOCOL ($M)

DRIVERS:• Continued demand for building efficiency.

• Code changes in U.S. that reflect European best practices in building system interoperability, eg. California Title 24.

• Global demographic shift towards more sustainability.

Source: Markets & Markets

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CONFIDENTIAL Property of Southwire

D.C. POWER DISTRIBUTION… the Digital Landscape is Driven by D.C. Power…

• Solar PV, LED lighting and many household/commercial appliances are DC powered.

• AC-DC conversion is a wasteful process with many power supplies operating between 70-75% efficiency.

• The efficiency of power conversion at the device level cannot be ignored.

• Significant and growing pressure to consume and distribute DC power to avoid the 25% plus losses of conversion to AC.

• This requires new thinking in cabling, power outlet design and electrical protection and safety systems.

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CONFIDENTIAL Property of Southwire

ELECTRIC VEHICLE TECHNOLOGYElectric Vehicle Technology is Driving New Cable Architectures …

SALES OF BATTERY ELECTRIC, PLUG-IN HYBRID ELECTRIC & FUEL CELL VEHICLES INCREASING

TRENDS:• Lower battery costs and state policy driving increased demand

• In 2025 projected sales of light duty vehicles will reach 1.5 million or approximately 9% of light duty vehicles

Source: US Energy Information Administration

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CONFIDENTIAL Property of Southwire

WHAT IS THE IMPACT OF THESE TECHNOLOGIES?Demand for Cable Will Increase, but Products Change…

• Open communication protocols coupled with low cost control/communication products

Increases demand for new building solutions

• Connectivity associated with these technologies

Accelerates the demand for system interoperability

• Need for new, hybrid cable solutions will emerge

Addresses safety, system performance and security needs

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STRATEGIES START WITH

MEGATRENDS

Labor Constraints

Internet of Things

Consolidation & Rise of Scale

CONFIDENTIAL Property of Southwire

CONSIDER THE FACTS

OVER THE NEXT DECADE:

2.7 million 3.4 million 1.4 millionbaby boomers likely to retire

jobs are likely to be needed

jobs are likely to be filled

THAT’S 2 MILLION JOBS EXPECTED TO GO UNFILLED…

US statistics

CONFIDENTIAL Property of Southwire

HOW ARE WE BRIDGING THE GAP?

CONFIDENTIAL Property of Southwire

IOT – NETWORK OF PHYSICAL OBJECTS

DEVICES

VEHICLES

CITIES

BUILDINGS

CONFIDENTIAL Property of SouthwireGlobal Statistics

CONSOLIDATION & RISE OF SCALE CONTINUES

CONFIDENTIAL Property of Southwire

HIDE… GO TOO FAR... OR BALANCE and EMBRACE?

CONFIDENTIAL Property of Southwire

W H M A C O N F E R E N C E 2 0 1 8

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