Customer Name

Meeting Purpose

Meeting LocationDate

About Motion Industries …

Genuine Parts Company

$1.8 Billion

$5.3 Billion

$436 Million

$3.4 Billion

4%

31%

16%

49%

Excellence in DistributionNYSE: GPC$10.8 Billion

‘03

‘04

‘05

‘06

‘07

$2.2

$2.5

$2.8

$3.1

$3.4

OUR INDUSTRYMotion Industries supplies MRO parts, support

services and related supplies to many of North

America’s most successful manufacturing

companies. Our industry continues to change

and is being reshaped by a number of forces,

for example:

• Consolidation of suppliers and customers

• Technological advances

• Economic cycles

• Pressure on costs and pricing

Motion Industries will continue to adapt and diversify to take advantage of these changes.

OUR MISSIONAs an organization we restate our absolute commitment:

“To meet or exceed our customers’ needs in a timely manner by providing quality products and continuously improving our internal operations and the services we provide.”

OUR OBJECTIVESWith our people, Motion will achieve:

• Sales Growth

• Profit Attainment

• Operational Excellence

OUR GOAL: $4 Billion in Sales by 2010

Puerto Rico

Broad Industry Coverage

Other Industries

Served

Equipment & Machinery

$513,705,115

Primary Metals

$197,326,212

Coal, Aggregate& Cement

$127,938,708

Food

$276,843,891

TransportationEquipment

$148,714,770

Pulp & Paper

$202,518,621

FabricatedMetals

$141,707,442

Lumber &Wood

$87,881,627

Chemicals &Allied Products

$113,587,766

Rubber &Plastics

$86,423,064

OtherIndustries

$1,460,015,925

Alaska

Strategically Located to Serve Every Industry

Alaska

Puerto Rico

10 Distribution Centers

35 Service Centers

515 LocationsDC ACTIVITIES

• 25% Auto Replenishment

• 75% Rush Orders Demand

• 320,000 lbs. Shipped Per Day• 6,000 Small Express Packages Per Day

$10,128,151 in DAILY PURCHASES

$3,463,886 Central Purchasing Daily

$6,664,265 Branch Purchasing Daily

$650 Million Inventory$300M Branches - $350M DCs

Puerto Rico

Alaska

Branch Operations

Over 500 Locations Serving

Over 150,000 Customers

Delivery

Warehouse

SalesRepresentative

Accounting

ProductSpecialist

Management

Purchasing

CustomerService

Alaska

Sales & Service OrganizationExecution & Implementation

SOUTHWEST – SW00

JOHN WALTERS, GVPSW01 - Hudson Goyen SW02 - Richard BurmesterSW03 - Doug FreezeSW04 - Tom Bragg

EAST – ET00

JEFF ROUSE, GVPET04 - Phil DonnellyET05 - Randy TillET07 - Randy Shepherd

CANADA – CN00

MARK SHEEHAN, GVPPresident, Motion Canada CD21 - Marek NesvadbaCD22 - Yves SimardCD25 - Ward Westgate

SOUTHEAST – SE00

DAVID JAMES, GVPSE01 - Guy HendrixSE02 - Kendall LambertSE03 - Joe Limbaugh

WEST – WE00

KEVIN STORER, GVPWE02 - Jim ClarkWE03 - Rulon RamseyWE04 - James Howe

CENTRAL – CE00

MARK SHEEHAN, GVP CE06 - Tony Cefalu CE07 - Ken Wallace CE08 - Joe Steinkamp

MIDWEST – MW00

TIM BREEN, GVPMW02 - Jim RandazzoMW03 - Mike Gillaspie

Plus 36 Sales Managerslocated throughoutNorth America

CD21

CD25

SE01

SE02

ET05ET07MW03

ET04

CD22

SW03

CE07

CE08

SW01

SE03

CE06

SW04

SW02

MW02

WE04

WE02

WE03

Alaska

Puerto Rico

Bearings

Linear Motion Hydraulic Hose

Industrial Products

Seals & Accessories

Process Pumps & Equipment

Material Handling Pneumatics

Mechanical

Electrical & Automation

Hydraulics

Industrial Hose

Broad Coverage . . . One SourceComprehensive Product Offering

12 Major Product Categories

Broad Coverage . . . One SourceProduct Segment Business

$3.4 Billion

$744,167,917 $733,036,968 $269,886,736 $248,675,369

Pneumatics

$137,342,529

IndustrialHose

$75,160,422

$269,392,586

Mechanical BearingsIndustrialProducts

MaterialHandling

Electrical &AutomationHydraulics

$398,251,397

Seals &Accessories$129,992,323

Other Products

$150,529,572

HydraulicHose

$100,010,981

Linear

$100,216,343

Product Support

ProductManagers

• Product Selection & Sourcing

• Product Application & Troubleshooting

• Product Substitution & Interchange

• Design & Quotation

• Product Identification & Part Number Clarification

• Provide Field Technical Support in Product Application

• Training Support

• Product Specifications & Quotes

Technical ProductSupport Group

FieldProduct Specialists

• Product Specialists

• Power Unit Systems Quotation Specialists

• Electrical/Automation Applications Engineer

• Product Need & Sourcing Resource

• Identify Product Opportunities

• Support Sales Organization

• Supplier Contact

• Bearings

• Mechanical Power Transmission & Seals/Accessories

• Electrical & Automation

• Pneumatics & Instrumentation

• Hydraulics & Hose

• Material Handling

• Process Pumps & Equipment 

• Industrial Products

• Electrical

• Automation

• Fluid Power

• Linear

• Hose

• Process Pumps & Equipment

• Industrial Products

Leading Technical & Application Expertise

Authorized Distributor

• $650 Million Inventory Assets

• Global Supplier Base

• System to System Connectivity

for the Very Best Brands You Know & Trust

• Over 3.3 Million Parts Database

• Local Branch Sourcing Flexibility - 34,000 Sources - 2007

Industrial Distribution Magazine, June 2007

Industrial Marketplace DistributionLeading MRO Suppliers

1. Wolseley

2. HD Supply

3. Würth Industry

4. W.W. Grainger

5. Airgas Inc.

6. Motion Industries

7. WinWholesale

8. Wilson Industries

1. Wolseley

2. HD Supply

3. Würth Industry

4. W.W. Grainger

5. Airgas Inc.

6. Motion Industries

7. WinWholesale

8. Wilson Industries

Pipe & Valve Fittings

Industrial & Commercial Building Components

Fastener and Assembly Components

Industrial Supply Products

Industrial, Medical, Safety & Specialty Gases/Equipment

Bearings, Power Transmission, Fluid Power

Pipe & Valve Fittings, HVAC

Safety Products

Pipe & Valve Fittings

Industrial & Commercial Building Components

Fastener and Assembly Components

Industrial Supply Products

Industrial, Medical, Safety & Specialty Gases/Equipment

Bearings, Power Transmission, Fluid Power

Pipe & Valve Fittings, HVAC

Safety Products

Competitive Review

*Typical Distributor - 2007 PT Distributor Performance Report: PTDA

$2.0

$0.7

$0.03

515445

200

10

5,8184,635

1,625

71

$3.4BMotion Industries

*

Kaman

AIT

Motion Industries

*

Kaman

AIT

$650M$200

$196

$4

Motion Industries

*

Kaman

AIT

Motion Industries

*

Kaman

AIT

Sales

Locations

People

Inventory

Industrial MRO Procurement Processes

Acquisition ManagementProcesses

Inventory/Logistics Management Processes

Application/Utilization Management Processes

Transaction management - Technology - Process flow - Catalog content - Invoice management - Accounts payable - Implementation

Sourcing management - Spend management - Sourcing management - Category management

Inventory management

Logistics

In-plant logistics

Floor space planning

Usage reporting

MSDS & Hazmat management

Product application management

Standardization/ optimization

Scrap reduction

Downtime reduction

Benchmarking

Environmental safety

Customer MRO Demand

Motion Annual Demand Fulfillment55 Million Transactions

MI Consolidates Demand Planned & Unplanned

90%

65%

100%

50%UnplannedItems

Critical Spares& “Spot” Buys<1 Turn Annually

<5 Turns Annually

> 5 High Turn Items

Line Item Demand

PEOPLE

IndustryKnowledge

PRODUCTS

BestBrands

PROCESS

SystemsCapability

Critical Spares& “Spot” Buys<1 TurnAnnually

<5 Turns Annually

>5 High Turn Items

150,000 Customers

Access 3.3 Million Parts

$650 Million Inventories

515 Locations

Value Proposition

Parts Fulfillment

Operational Reliability

Lean Transaction

Process

Logistics Efficiency

LowerInventory

MRO ITEM DEMAND ADVANTAGECAPABILITIES SOLUTION

Creating Competitive Advantage . . . Through Supply Chain Efficiency

Alaska

Puerto Rico

Logistical Strength

AverageBranch Serves

~400 Customers

Average Distribution Center Serves~50 Branches

Instant Access & Visibility$2 Billion

Customer Needs Part

Item In Stock

10 Distribution Centers Strategically Locatedfor Next Day Delivery

Branch

After-Hours Call Centers

Alaska

Puerto Rico

Processed viaWeb EDIXML PhoneFax Email

Electronic CapabilitiesRFQ to Payment

Systems Capability LeaderProcess Efficiency - Business Effective

DC

Branch

Manufacturer

Customer

System

Completely Automated Supply Chain

Real Time Visibility toMajor Suppliers Inventory

Capability to Connect Directly to Customer Systems

Support for all Electronic Platforms - EDI, XML, punch-out

Dedicated E-Business Resources

Web Access to View Product Information, Drawings, Order Status, Shipment and Account Status

• We provide extensive support for a comprehensive electronic process:RFQ PO Acknowledgement Status Ship Notice Invoice Remittance

• Over 20 ERP Systems are used by our Top 200 Customers

• We have completed over 200 integrations with our customers’ ERP systems & 3 rd Party Providers

• We transact business with over 2,500 EDI Customer Trading Partners

Customer Integration Experience

Company Operating

System

Customer ERP & CMMS

3rd Party Marketplaces

Transmission Methods

AribaInfor Datastream

Quadremcc-hubwoo

Perfect CommerceKeteraePlusOsirisXign

SAP

JD Edwards

Oracle

PeopleSoft

Indus Passport

TabWare

Maximo

MP2 / 7i

Proprietary

Other

EDI

AS2

XML

xCBL

cXML

SOAP

PunchOut /RoundTrip

OCI

• Customer & Associate Training• Web & Classroom Formats

Cost Savings Services

• Nine Product Managers

• 1400 Account Representatives

• 200 Product & Industry Specialists

• Industry Support Specialists - Food & Beverage - Steel - Forest Products - Automotive - Mining & Aggregate - Oilfield & Gas

• 326 Service Technicians

• 35 Company Owned Service Centers

- Hydraulic & Pneumatic Repair

- Power Unit Fabrication

- Gear Box Repair

- Process Pump Fabrication & Repair

- Hose & Belt Fabrication

- Electrical Drive Systems & Repair

- Product Modification Services

ServiceCenters

TechnicalSupport

• Asset Repair Management • Warranty Tracking

• Stores Replenishment Automation• Bar Code Efficiencies• Storeroom & Crib Surveys for Part Identification• Parts Management / Planning

• Cost Savings Tracking

• Procurement Services

• Strategic Sourcing

• On-Site Inventory Management

• Storeroom Design & Restructure

• Data Profiling & Structure

• Custom Storeroom Services

• Procurement Outsourcing

• Customer Specific Local “Committed Inventory”

• Storeroom & Crib Surveys for Part Identification

• Parts Management / Planning

– Surplus & Duplication Reduction

– Standardization of Brands

– OEM Part Conversions

– Shared Spares

– Repair & Warranty Tracking

Cost Savings Services

Operational Excellence

The Reasons…

Continuously Challenge Our Business Processes

Find Opportunities to Make Our Company Better

Operational Excellence was established in

2003 as part of our strategic plan to grow

our business and Deliver the Difference to

our customers and suppliers.

The Program…

Deliver the Difference to Our Customers and Suppliers

The Approach…

Cross Functional

Over 500 team members to date

Supply Chain BenefitOver 80 external companiesactively participate

Phased Approach

Over 800 opportunities and75 New Business Models

Measured Results for all projects

Lifecycle Approach to realize full benefits

Operational Excellence

The Results…

Supply Chain Comprehensive Supply Chain Integration from customer to supplier

MiSupplierConnect capabilities provide immediate access to over $2 billion finished goods inventory

Cycle time improved by 50% through our One Touch Fulfillment program

EfficiencyOver 30% Productivity improvement through refined processes

Electronic transactions increased 40% since inception of program

Unnecessary Paperwork reduced by 66%

EffectivenessStrategic Relationship Management results in targeted customer improvements

Relationship Report Card supports continuous customer service improvement

Supplier Partnership Program results in Supply Chain Improvements

Operational Excellence

Cycle Time Improvement MiSupplierConnect Transactions

MiSupplier Connect Averages 50% cycle time reduction

Summary

Financial Stability

Strategically Managed Growth

Broad Industry & Product Coverage

Supply Chain Efficiency

Systems Capability Leader

Cost Savings Solutions

Extensive Service Offerings

Operational Excellence

THANK YOU

Productions