Premium SDS-plus NEW Product Summary

Masonry Drilling Market Summary Channel Share Brand Share Nearly $450M market in NA before construction decline / Home Centers a little over $50M

Product Segmentation 3

Commercial Construction Residential Construction MASONRY Drilling User Summary Commercial Construction Residential Construction PRIMARY Application: Repetitive Drilling in Concrete & Brick Needs: LIFE; SPEED; REBAR DURABILITY SECONDARY DIY / Remodeler Plumber Electrician Fitter / Installer Application: Occasional Drilling in Multiple Materials Needs: VERSATILITY; VALUE

IRWIN: Full Line Supplier General Purpose Specialty Professional

Research and Design Centers Manufacturing & Assembly Manufacturing and R&D Research and Design Centers Manufacturing & Assembly Munich, Germany Design & Testing Denmark Tips China Assembly & Kitting Charlotte, USA Research & Testing World Class R&D BEST COST Production

Designed for Fast drilling in aggregate materials For use in SDS+ style machines including Hilti TE-C

EXTRA SHORT DRILL BIT HEAD Patented 2 Cutter TIP DESIGN Standard SDS+ Patented FLUTE DESIGN - Extra Deep, asymmetrical single flute removes dust faster & easier; increasing drilling speed up to 20%. - Less vibrations = more comfort - Performs in cured and uncured concrete EXTRA SHORT DRILL BIT HEAD Pulls dust and debris into flute faster & reduces risk of clogging/binding; increasing Speed & Life C40 CARBON STEEL BODY is combined with a controlled oil hardening for strength and durability Patented 2 Cutter TIP DESIGN 25% more tungsten carbide improves STRENGTH & LIFE. Aggressive concave cutting angles increase SPEED. Self-centering tip for CONTROL & QUICK STARTS SURFACE TREATMENT Body fully hardened to 47–53 HRC, combined with a state-of-the-art shot peening process to result in maximum strength BRONZE BRAZING PASTE is used to ensure perfect bond between body and tip SDS+® is a registered trademark of Robert Bosch, GmbH.

WEAR RESISTANCE & DRILLING SPEED Patented 2-Cutter Tip Design “2 Cutter” “4 Cutter” “3 Cutter” Larger area for dust removal Limited dust removal area Limited dust removal area VS. VS. More Surface Area for Brazing/Welding Extended Surface Area Limited Surface Area White = dust removal area / Grey = steel / Blue = carbide cutting edges WEAR RESISTANCE & DRILLING SPEED 9

Competitive Summary Standard SDS+ Bosch S4L DeWalt Rock Carbide Product Bosch S4L DeWalt Rock Carbide Tip Type 2 or 4 Cutter Insert Flute Type 2 Flute 4 Flute Features Patented Tip Design Patented Flute Design Short Head Optimized Brazing and Hardening Process Optimized Flute Design Centric Tip Elongated Helix Flute Rock Carbide Tip Benefits / Claims Speed & Durability Faster Dust Removal; performance in uncured concrete; less vibration Reduces clogging, increases Speed Life and increased Resistance Better Dust Removal Hole Geometry Debris Removal Drilling Speed Durability Synopsis Fastest, Most Durable, Best Cost per Hole Fast starts, but prone to tip loss, Average total speed and durability Difficult starts, flute prone to binding, average total Speed & above average Durability

Performance Summary: Inches Drilled before Failure Standard SDS+

Performance Summary: Inches Drilled per minute Standard SDS+

Hitting rebar with standard hammer drill bit: Current User Solution: User Insights: Rebar Hits Hitting rebar with standard hammer drill bit: Current User Solution: Attempt to change hole positions (rarely possible) Drill at an angle around rebar Use Shallow plug (spec issues) Use Multiple Bits or Change to Metal Drilling Bit or Rebar Cutter Drill bit starts vibrating Bit can lock and snap off Tip gets hot & can melt or fall out Bit can get stuck in the work 13

IRWIN Solution Designed for Fast drilling in very hard aggregate materials including rebar reinforced concrete For use in SDS+ style machines including Hilti TE-C +

FAST 2-CUTTING CARBIDE TIP IMPROVED CORE STRENGTH Premium SDS+ MAXIMIZED FLUTE Maximized flute geometry for faster, more efficient dust and debris removal 2X MORE CARBIDE 2X life when hitting rebar vs. Speed Hammer PLUS or other standard masonry bits PREMIUM STEEL (50CRONIMO V4) Increased durability and expanded bit life SPECIAL GROOVE DESIGN FAST 2-CUTTING CARBIDE TIP optimized for cutting through rebar at high speed BLUE RING Clear product differentiation and better identification in the toolbox Decreases friction and increases speed and bit life IMPROVED CORE STRENGTH Increased durability 15

TIP LIFE & REBAR DURABILITY Increased Carbide Tip Size 95% Increase in Carbide Volume Same Patented Tip geometry TIP LIFE & REBAR DURABILITY

Key Features Summary FEATURES ADVANTAGES BENEFITS 2X more Carbide in the tip 2X Life when drilling in rebar reinforced concrete Longer bit life when encountering rebar than traditional Plus style drill bits Maximized Flute Faster dust removal Expanded lifetime of bit because dust is removed quicker so tip does not over heat Flute Groove Design (Patent Pending) Reduces friction Improved drilling conditions for end user Fast 2-cutting carbide tip (Patent Pending) High Speed Drilling through concrete and rebar Less time on the job Improved core strength Increased Durability Cost savings for end user

Competitive Summary Premium SDS+ Bosch X5L DeWalt Solid Rock Carbide Product Bosch X5L DeWalt Solid Rock Carbide Tip Type 2 Cutter Insert 4 Cutter Full Head Flute Type 2 Flute 4 Flute Features 2X Carbide Tip Maximized Flute w/ Grooves Optimized Tip Design Full Head Carbide Diffusion Bond Technology Centric Conical Tip 4 Fluted Design Innovative Bonding Benefits / Claims 2X LIFE Speed, Reduced Friction & Extended Life Speed in Rebar 4X LIFE Stronger Bond for Extended Life Rounder Holes Faster Dust Removal Stronger in Rebar Synopsis Durability improvement with some sacrifice of Speed vs. PLUS Durability improvement with no sacrifice of Speed vs. S4L Some Durability improvement with some sacrifice of Speed vs. Rock Carbide

Performance Summary: Inches drilled before Failure Premium SDS+ Test:: Inches before Failure drilling successive 3” holes in to 6000 PSI Concrete, Machine: TE16 Failure = Broken Tip or Flute or failed anchor installation for ¼” diameter hole

Performance Summary: Direct Rebar Hits before Failure Premium SDS+ Test: Average # of 3” Holes drilled in 6000 PSI concrete with direct 5/16” rebar hit before failure, Machine: TE16 Failure = Broken Tip or Flute or failed anchor installation for ¼” diameter hole

Performance Summary: Inches drilled per minute Premium SDS+

Avg# 3“ Holes 100% Rebar Hits Average User Cost (Retail) Cost Per Hole Analysis SDS Plus Bits ¼“ 4x6 Bit Avg# 3“ Holes Clean Holes Avg# 3“ Holes 100% Rebar Hits Average User Cost (Retail) User Cost Per Hole Bosch X5L 293 5.8 $15.00 $0.05 270 8.4 $6.00 $0.02 Dewalt Solid Rock Carbide 199 3.0 $7.50 $0.04 Hilti TEC 3X 196 3.6 $24.50 $0.13 Milwaukee MX4 195 3.3 $7.25 Makita Thruster 184 $5.50 $0.03 146 1.7 $4.00 Bosch S4L 130 2.0 IRWIN Best Cost means USER Best Cost 22