Investing in the Middle East and Qatar, growing globally Sandy Cutler, Chairman and Chief Executive Officer Frank Campbell, President EMEA - Electrical Sector November 12, 2013
Powering businesses worldwide for more than 100 years Founded in 1911 by J.O. Eaton Chairman & CEO Alexander M. Cutler Headquarters: Dublin, Ireland Key locations in Cleveland, Ohio; Shanghai, China; Morges, Switzerland; Sao Paulo, Brazil Innovation Centers in regions around the world Customers in more than 175 countries Sales of $21.8 billion* 50% of sales outside the U.S. Approximately 102,000 employees * 2012 Sales Pro-forma, including Cooper 2
Eaton s businesses Electrical Sector $13.2 B Sales* Industrial Sector $8.6 B Sales Electrical Products Hydraulics Aerospace Electrical Systems & Services Vehicle * 2012 Sales by Sector Pro-forma, including Cooper 3
Eaton is a power management company Electrical Fluid Mechanical Cities & Buildings Information Technology Energy & Utilities Industrial & Machinery Infrastructure Transportation Uniquely positioned to provide safe, reliable, efficient and sustainable power management solutions for our global customers 4
Long term megatrends that can supercharge our growth 60 Percentage increase in global demand for energy in buildings projected by 2050 600 Percentage increase in the global LED lighting market projected by 2020, a CAGR of ~25% 70 Percentage increase in liquid petroleum demand in non-oecd nations expected by 2040 150 Percentage increase in annual distances travelled by commercial aviation expected by 2030 70 Percentage increase in food production by 2050 necessary to feed a global population of 9.1 billion people 5
Recent acquisitions have made us a stronger company Transform Eaton Franchise Enhance Global Capability Low-Voltage Electrical Business + Largest acquisition in Eaton s 100+ year history + Grows the global scale of our electrical business with virtually no overlap + Increases leverage to global megatrends: energy efficiency, utility grid upgrade, industrial safety + Enhance global customer relationships to drive future growth + Increase best-cost country (BCC) manufacturing + Drive localization of key product platforms for local markets 6
Operating in the Middle East for four decades Mid 1970s Westinghouse Electric opens an office in Dubai Westinghouse forms a partnership (WESCOSA) with a prominent local partner Late 1970s Westinghouse forms a local partnership to assemble and distribute circuit breakers in the ME Mid-late 2000s Several key acquisitions bring direct presence and more partners (MEM, BILL, HOLEC, CH, MOELLER, MGE) 2009 Opens first manufacturing facility in Dammam Eaton purchases 49% interest in SEG Middle East Power Solutions & Switchboard (JV) to manufacture in Abu Dhabi 2010 to the present Accelerate the organic growth trajectory through investments in additional commercial resources Late 1996 Cooper begins its activity with Crouse-Hinds LLC set up for trading/local assembly to support CEAG business Early 2007 Cooper Industries FZE set up to route the customer service and order management locally Mid 2008 Business doubles in revenues and Cooper expands its presence, creating a new head office in Dubai Mid 2009 Set up of Dammam plant (Saudi Arabia) for manufacturing cable trays and switch racks Mid 2010 Global Sourcing Center Initiative; a major step in streamlining process and bringing significant operational benefits Late 2012 Cooper merged into Eaton worldwide Some of our legacy brands 7
Growth opportunities fuelled by investment in infrastructure and energy industries Saudi Arabia IEC NEMA/ANSI - IEC We provide world-class power management solutions for energy intensive industries 8
Eaton in Qatar Eaton presence in Qatar since 1990s through legacy brands: MEM, BILL, HOLEC Strong distribution channels stocking complete range of electrical distribution products Supplier of power distribution, LED lighting, explosion proof and power quality electrical solutions to many of the country s most high profile infrastructure projects Eaton services the project segment through its KEMA KEUR certified franchised panel builders 9
Power management portfolio helping Qatar to build world-class infrastructure data centers industrial utility commercial/infrastructure oil & gas 10
Construction projects On time project execution Projects of any size require customized support and solutions to design, deliver and maintain safe, reliable and efficient infrastructure Our solutions help customers achieve: Improved project execution with expert design support and proven project management Reliable and safe power throughout the facility Improved ROI with lifecycle support and services 11
Oil and gas, downstream & upstream De-risk by design Increasing demand drives operations in more harsh and hazardous environments Our solutions help customers achieve: Optimized performance for lower cost of ownership and reduced complexity Increased operational predictability Enhanced safety to protect people and profit Higher operating costs Operational complexity Increased risk More stringent regulations 12
Power utilities Reliable performance for a better grid Utilities face increasing challenges: Achieving automation goals Complying with changing regulations Meeting technical labor needs Our solutions help customers: Deliver power more reliably and efficiently Modernize and extend the life of aging infrastructure Protect people, data and processes with innovative safety solutions 13
Strong relationships with customers and partners Customers Projects Key channels Burj Al Arab and partners Sadara Chemical Company Yas Hotel Qatar National Convention Center Ruwais Refinery Ferrari World 14
served by local teams in Qatar and across the region Eaton in the Middle East today 19 offices, 300 employees Manufacturing in Dammam and UAE Local distribution center in Jebel Ali Over 90 channel partners 18 Eaton Authorized Service Providers Egypt Syria Lebanon Iraq Jordan Saudi Arabia Al Khobar Jeddah Iran Kuwait Bahrain Qatar Jebel Ali UAE Abu Dhabi Riyadh Oman Yemen 15
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