Thomas Gross, Vice Chairman and Chief Operating Officer

Transcription

Thomas Gross, Vice Chairman and Chief Operating Officer
Annual Investor Conference
Tom Gross, Vice Chairman and COO, Electrical Sector
February 27, 2015
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Public and private sectors
We provide reliable, efficient, safe and
sustainable power management for…
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Homes and Buildings
Industrial Facilities and
Machinery
Information Technology
Energy and Utilities
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Our seven core competencies deliver solutions
for the entire power system
Data Centers
Industrial
Utility
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Commercial / Resi
Machinery
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Our technology platforms sell across a number
of key markets
Key End-Markets
Technology
Platforms
Oil & Gas / Other
Industrial
Machine Builders
Resi / Comm’l
Construction
Data Center / IT
Utility
Circuit Protection &
Power Distribution
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Power Quality &
Backup Power
Protection
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Control &
Automation
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Structural
Solutions & Wiring
Devices
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Services & Project
Management
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Lighting & Security
Harsh & Hazardous
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We are balanced both geographically and across
key segments
Electrical Geographic Mix
2014 Sales $13.7B
Electrical End Market Mix
2014 Sales $13.7B
Resi
9%
U.S.
55%
Industrial
23%
Utility
12%
NonU.S.
45%
Data
Center /
IT
15%
Machine
Builders
11%
Commercial &
Institutional / Gov’t
30%
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Products is a $7.3B segment with the scale and
technological innovation to compete globally
Electrical Products
Growth Drivers
• Circuit Protection & Power
Distribution Components
• Leading the conversion to
LED lighting
• Industrial Controls
• Growth in the global
distribution channel
• Lighting
• Power Quality 1-Phase
• Safety
• Structural Solutions
• Wiring Devices
Operating Margin
17.7% - 18.3%
17.2%
• Global power quality product
offering for IT markets
• Leveraging our portfolio of
industry leading electrical
components
2014
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2015E
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Systems & Services is a $6.5B segment
providing solutions to all levels of the value chain
Electrical Systems &
Services
• Engineering Services
• Power Distribution
Assemblies
• Power Quality 3-Phase
• Power Systems
• Solutions for Harsh &
Hazardous Environments
Growth Drivers
Operating Margin
• Arc flash and explosion-proof
technologies
• Capitalizing on leadership
position for energy-efficient
UPS
14.5% - 15.1%
13.8%
• IEC assemblies for global
markets
• Exploiting our extensive
project management
capabilities and value-added
services
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2014
2015E
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We remain on track to deliver our Cooper
synergy projections
Annual Pre-tax Synergies ($ millions)
2013
2014
2015
2016
15
35
80
150
Cost-out synergies
100
175
280
325
Total operational synergies
115
210
360
475
Acquisition integration costs, pre-tax
112
140
40
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Profit from sales synergies
• $150M in incremental synergy profits in
2015 compared to 2014
• $115M in incremental synergy profits in
2016 compared to 2015
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We are meeting our revised sales synergy
targets…
Boost
Channel Sales
Larger Package to
Common Customers
Service
Business
Completed the rollout of a
new distributor program
to channel partners
(EDAP)
Implemented integrated
selling organizations on a
global basis
Coupled service offers to
all Industrial, Commercial
and Utility quotations and
projects
Launched new channel
web portal tools
(MyEaton)
Added resources to focus
on global accounts and
key EPC firms
Rolled out a service
channel module to key
distributors
75% of total 2016 sales synergies
Geographic
Expansion
Integrated selling,
service, and channel
activities in key regions
Enhanced and expanded
Eaton Tech Days in Asia,
Africa, and the Middle
East
25% of total 2016 sales synergies
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…as well as our revised cost synergy targets
EBS
Plant &
Distribution
Rationalization
projects on-schedule
Application of
EBS Tools
Implementation of
tools proceeding per
plan
Successful disposition
of excess properties
Supply Chain
Leveraging Eaton’s
Economies of Scale
Infrastructure
Leveraging common
spend
Consolidating indirect
spend
Operating SG&A
actions ahead of plan
Office consolidation
projects complete
Corporate Cost
Reduction
All actions completed
IT and data center
migrations ahead of
schedule
Leveraging distribution
footprint to reduce
freight costs
60% complete
70% complete
70% complete
90% complete
100% complete
Note: percentages indicate cost synergies completed.
Balance of work is underway and will be finished by year end.
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There are several keys to our current and future
success
• A portfolio of great brands
• Strength in the channel
• An array of customer and application experts
• Leading positions in important markets such as lighting, data
centers, and key industrials
• The broadest basket of customer solutions
• Innovative products and services
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