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Donaldson Engine Group VOC

September 18, 2008


Execution to Achieve Goals

APD Global Commitment to Products, Materials & Services Global Alignment Customers

Global Customer Expectations

Global critical mass Global Quality Global scale Global pricing Global service

Local touch

Global Customer Expectations

Change Notification: Materials Process POM Form, Fit, Function, Appearance, Safety, Performance Tier 1, Tier 2, Tier 3 Suppliers

OE Engine Group Mission Provide cost competitive products and services to all customers consistent with global expectations for quality and delivery in support of strategic business growth.

Essential Resources
Build Global Infrastructure
Customer Support Manufacturing/Distribution/Sourcing close proximity to customers Operations logistics

Local materials Competitive Cost Structure

Customers Supplier Metrics

Quality PPM- 50 PPM or less Delivery PPM- less than 5,000 PPM 98%+ on time delivery Improve wavelength Latest technology

Customers Supplier Metrics

Demand the technology of the FUTURE



MORE Customers Expectations

Commitment to annual price reduction of 58% Offer soft savings to take cost out of doing business Supplier Managed Inventory On-site engineering/supplier paid testing Transparency of cost to assist supplier

Why Are We Doing It?

Its All About Top Line Growth All Product Lines & Geographies Market Changing--Center of DCI World Shifted Not about just U.S. anymore--Global everything We Need Your Ownership Drive the vision Expect results It Is Hard Work Thanks in Advance!

Critical Success Factors

Superior Technology
Develop technology that is truly valued

Global Presence
Provide relentless Customer focus around the world

Excellence in Execution
Provide highest valued products & services

Competitive cost structure

Accelerate speed to market

Effective & Efficient Supply Chain

Next Steps
Vision for Growth with Our Customers Requires focus/engagement Market Leadership Strong proprietary product Technology development Best value proposition Customer focused Work together to meet shared goals

Vision for Growth with Our Customers Market Leadership Strong proprietary product Technology development Global Customer Support Priority Global Sourcing & Availability Build Emerging Markets Presence Position for Strategic Alliance

Global supplier is a Strategic Business Resource You either get better or get worse, you dont stay the same If price is all you have to give, then price is all you have to give You either add value or get KNOCKED OUT