IIA Chicago Chapter 53rd Annual SeminarApril 15, 2013, Donald E. Stephens Convention Center
@IIAChicago
#IIACHI
Recruitment, Retention and Development of Staff
Trak Patel, VP Internal AuditNickie Warren, Internal Audit Manager
Small MotorsLarge
Motors
Generators
MechanicalDrives Other
Blowers
Company Overview
Revenues (PF)$3B +
ManagementExperienced, Credible,
Stable
Total Shareholder Returns 7-Year TSR
138%
Founded 1955Beloit, WI
DividendsRaised 7 out of
last 8 years
Revenue Growth7-Year CAGR
11.9%
p 2
Sales by Product/Platform Percentage of Sales
Sales by Geography Cyclicality
Asia
EuropeRoW
Canada
USA
Early 37%
Mid 47%
Late 16%
39%
27%
34%
ResidentialIndustrial
Commercial
Necessary and Innovative Products
Electric Motors
p 3
Power TransmissionElectric Controls
Power Generation
Diverse Applications
p 4
Global Foot Print
Able to Meet Customer Demands Anywhere In the World
Aligning with Faster Growing Economies
p 5
Financial Performance Profile
2007 – 2011 Sales CAGR
Performance Consistent With Best In Class Industrials
p 6
11.6% 11.2% 10.5% 10.4% 9.7%
3.2%
0.0%
5.0%
10.0%
15.0%
RBC DHR ROP AME IEX EMR
140.5% 137.6% 123.0%108.3% 103.1% 98.6%
0.0%
50.0%
100.0%
150.0%
RBC ROP AME IEX DHR EMR
_____________________Source: Capital IQ and BloombergNotes: CAGR represents cumulative annual growth rate for the 2007 – 2011 calendar periods.Free cash flow as a percentage of net income is defined as cash flow from operations less capital expenditures divided by net income.
2007 – 2011 Free Cash Flow / NI
Successful Acquirer and Integrator
Acquisition Strategy– Technology and Energy Efficiency
– Expand Geographic Footprint
– Margin Improvement
Rigorous Evaluation and Integration Process Drives Return On Investment
Acquisition Pipeline Continues to Be Active
2010
2011
HARGIL
DYNAMICS
PTY.
LTD.
Consistent and Successful Acquirerp 7
2012
Recruitment
• Identify level of experience– Manager, Senior, Staff
• Staff – Recruitment from College– Regal Finance Leadership Program
– Developed a program to build talent within the organization
– 2 year rotation program
• Manager & Senior Auditor– LinkedIn
– Personal Network
p 8
Recruitment Cont…
• Key areas to consider:
– Personality and fit for department
– Skill set
– IT experience, operational, Financial
p 9
Retention
• Different ways of retention– Compensation
• Pay for CPA exam• Snacks, Drinks, etc…• Team Challenge
– Encouragement– Constant Feedback– Career Pathing– Rewards– Glamorous/high profile projects– Travel Opportunity
p 10
Development
• Training– Regal focuses on training extensively– Online training courses– Six sigma training– Learning group focused on training– IA Lunch and Learns
• One on One Coaching• Opportunity for Staff and Seniors to directly interact with V.P.• Challenging Work
– M&A activity– Assisting in integration (SOx design new sites)
• Rotation– Regal has a proven record of promoting from within
p 11
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