Electrical Products Group

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Electrical Products Group

• Jim Ryan
• May 23, 2007

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Purchasing Trends

• Companies have squeezed significant costs out
  of their direct materials spend. Now they are
  turning to MRO for the savings that lead to
  competitive advantage.
• Purchasing
  magazine
• 
  March 1, 2007

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Ohio University
Click on black box to view video clip.
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Purchasing Tendencies
Unique Products
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MRO Trends

• Inventory reduction leads to productivity and
  profitability.
• Air Conditioning, Heating, and Refrigeration
  News
• October 9, 2006
• Companies are looking to manage every dollar
  spent with suppliers, from raw materials to
  shipping to indirect. They are consolidating
  spend with fewer suppliers and working to become
  a better partner to the ones who are left.
• Purchasing magazine
• January 12, 2006

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Our Supply Chain Network
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Supply Chain Coverage
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Our Supply Chain Network
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Market Expansion Update
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Our Supply Chain Network
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Delivering into our Customers Facilities

• Rolling out across country
• 400 customers using
• service
• 500 customers in pipeline

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Our Supply Chain Network
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What it Takes to Win

• 2006
• Largest product line expansion in Graingers
  history
• Expanded offering by 35,000
• Contributed 2 to sales growth
• 2007
• Expanded offering by 25,000
• Expected to contribute 2 to sales growth over
  the next several years

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Mexico
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Canada

• Focus on operational excellence
• Improve product availability
• Reduce product cost
• Examine/reduce operating costs

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Shanghai Master Branch
Exterior
Showroom
Catalog
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Lab Safety
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Lab Safety Sales Growth from Acquisitions
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Forecast for 2007
Sales growth 7 10 Operating margin 10.0
10.5 Earnings per share 4.70 4.85 Pretax
ROIC gt20
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Forward-looking statement
This presentation contains statements that are
forward-looking i.e., not historical facts. The
forward-looking statements are based on the
companys current expectations, and some of them
are subject to risks and uncertainties the
outcome of which could result in actual future
performance being materially different from the
performance indicated. They should be considered
in conjunction with the companys most recent
annual report, as well as the companys Form 10-K
and other reports filed with the Securities and
Exchange Commission containing a discussion of
the companys business and of various factors
that may affect it.
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