Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Regal Beloit — KeyBanc Industrial, Automotive and Transportation Conference (May 2011)
26 slides from Regal Rexnord's conference presentation, May 31, 2011
Slide 1: KeyBanc Industrial, Automotive and Transportation Conference
eS Key Banc Industrial, Automotive and Transportation Conference ‘ane 12
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation cntans “ersadsookng satenens” as defined in the Pvate Secures Litgaton Reform Act of 1935. " Fovatscongsserenis reer ou" mangenants jupnent egatong ave iets many cases you cn erty ‘cumctouny sarenars 9 Renny Sih 8 ay owl? "pan" ape" uC" ema Deer O Car cetagmie
Slide 3: Necessary and Innovative Products
) Necessary and Inn Products ative A Leaderin Diverseand Growing Product Areas Global Footprint and Technica Resources RBC Operating System Drives, Results Successful Acquirer and Integrator Increasing Global Presence and Alignment with High Growth Economies Energy Efficiency Technology Leadership I
Slide 4: Necessary and Innovative Products
Slide 5: Key Product Offerings and 2010 Sales by End Market
Key ProductOfferings 2010 Sales by End Market * North America = Electric Motors = Electric Gansratore = Wiermand Bevel Gears ~ lyeraue Pump rise and Vale Aetators * Asia = Electric Motors = Electric Ganaratore ante * Europe = Marne Motors ~ Commercial Refigsration Motore = Vale Atuators =. ne
Slide 6: Enhance Sales in High Growth Economies
* Enhance Sales inHigh GrowthEconomies = Utilize 24Hour Technical Resources * ExpandtolMeet Global Customer Needs * Optimize Cost Structure
Slide 7: Operating Rigor
it ee = Operating Rigor * Driving the Roll Up. * Integrating the Acquisi + Responsible for Operating Improvements
Slide 8: Consistent Acquirer
Consistent acquirer = 2in 2011 = Gin 2010 = {in ast’396 months Rigorous evaluation and integration process drives return on investment. Acquisition Strategy ~ Technology and Energy Efficiency ~ Expand GeographicF ootprint ~ Synergy Opportunities| Acquisition pipeline continues to be active Pending C
Slide 9: Electrical Products Company (EPC) of A.O. Smith Corporation
comrary 1 Electrical Products Company (*EPC") of A.O. Smith Corporation $878 million $700 million ofeash 2,834,028 shares of RBC stock 1 Targeted synergies of $30 million to $40 million achieved over 3 to years 1 Tax benefits expected tobe atleast $45 milion to $55 million Projected ‘Synergies and T
Slide 10: Complementary Product Offerings
Complementary productofferings Creates shareholder value Integration Process 1 Expands productofteings| 1 Augments presencein ow cost manufacturing locations 1 $30-$40 million of synergies ommercialand Residential Hermetic m Aftermarket and generalindusry distribution ™ Combined energy efficient tec
Slide 11: Investment Thesis
Investment Thesis Accelerating Growth Drive Increasing Global Presence and Alignment with High Growth Economies Energy Efficiency Technology Leadership Industry Innovator Energy Efficiency ‘Supported by Legislation Transformed Operations Positioned for Growth se Technological Leade
Slide 12: Expanding in Higher Growth Regions
Expanding in Highor Gowth Regions RoW ro Europe a, - Europe cs SN pts a united * : sites Unived aais/l om states 19% 6%
Slide 13: Evolving End User Needs
Leader. EvolvingEndUserNeeds High Efficiency Lower Operating Costs More Effective Use of ower Reduced Letina Coat to Operato New ProductResponses
Slide 14: Sales of Energy Efficient Products
PEEP Ea Sales of Energy Efficient Products aug aM ans 26 aN? ane aN 2m + 40%-50% ofall electricity genered is consumed byan electric motor + 87% af the lifetime total costo an electri motors the electricity used ox New roductIntoductions + Accelerating innovation + Focusing new products onenergy fic
Slide 15: Global Industry Sales Estimated
Global Industry Sales Estimated>$" * U.S. Market Impacted by Legislaton * Eatiyin the Energy Effciency Ramp * Store Quners Driven by Operating Cost * RBCisa Technology Leader * Mortland Elo are Leaders inthis Space
Slide 16: Penetrating New Applications With Existing Technology
Highlights * Globallndustry Sales Estmated>$18 * Worldwide Ap * Potential Featues -SmallerProfie Lighter Weight -Vatable Speed Penetrating New Applications With Existing Technology
Slide 17: Global Industry Sales Estimated $1B
= Globalindustry Sales Estimated=$1B * Potential Featues “Eticeney Be “Varabe Speed “Loaese | “SralerPefl | [] “Ligher Wet Existing Technology @=- Penetrating New Applicatos
Slide 18: Energy Efficiency Supported by Legislation
Energy Efficiency Supported by, Legislation North America ‘AustraiNew Zealand + December 19, 010 EISALagisltion + Vitor Efficiency Legation (MEPS to 1E2 + Regiond SEER and AFU Standards Under ficiency curently required for hater three phase induction motos refrigerated display cases + Efficiency Sta
Slide 19: Transforming Operations
‘Transforming Operations * Lean Six Sigma Yields Productivity Annuity * Capturing Acquisition Combination Benefits * Driving Variable Cost Productivity
Slide 20: Investment Thesis
Investment Thesis. SolidFinancial Performance + Growth and Profitability + Cash Flow + Balance Sheet Strength + Sales Growth Continues with EPC Acquisition ble Technologic
Slide 21: Solid Financial Performance
Solid Financial Performance. Track Record of Long Term Growth Balance Sheet Strength
Slide 22: san F200 ‘500
san F200 ‘500 $400 ju50 100 $50 jy 00 ano fa00 fun #0 fu fom ow ‘00
Slide 23: Balance Sheet Strength
Balance Sheet Strength an , , ote | i | __ Fasco. an ALSTOM-®roraiootos AWD
Slide 24: Balance Sheet Strength
Balance Sheet Strength + Modest Leverage First Quarter 2011 + Total DebtioCapof 238% + NetDebtio Capo 10.1% + Total DebttoL TH EBITDA of 14x + NetDebtto LTMEBMDAOT 6 * Strong Liquidity First Quarter 2011 + Revolve Aailabityof $450 ition + Cash and Cash Equivalents of $259 ition + First Quarter2011 O
Slide 25: Financial Impact of Combination
ancial Impact of Combination Proforma Combined 2010 Results (2s ints xcs severe) RBC EPC Sales $2238 702 Adjusted EBITDA. att 100 % Sales 140% 142% Capital Expenditures 45 4 % Sales 20% 20% Free Cash Flow" 130 a Total Debt 437 ST Shareholder's Equity 1,362 1152 Total Debt/ Capital 143% nia Total Deb
Slide 26: Thank You!
Py Thank You!
Regal Beloit — KeyBanc Industrial, Automotive and Transportation Conference (May 2011) on 6ix