BSA’s Annual Distributor Report Bill Stevens President & CEO Motion Industries, Inc.

BSA 2012 Member Survey Methodology Prepared for the BSA by Profit Planning Group Completed surveys from membership were sent directly to PPG. All information held in confidence. Data accumulated and results produced by PPG.

BSA 2012 Distributor Report Report data includes years 2007-2011. Number of participating firms = 24 In 2011, there were 25 participating firms that replied to the member survey. The firms responding to the survey represent approximately 90% of the value of bearings sold through BSA members.

2011 Aggregate Sales Volume $2,580,000,000 A 14.7% improvement over 2010 sales volume of $2,250,000,000

2011 Bearing Sales Up Again! 2011 Sales of Bearings, Up 14.7% Member Estimate for 2012, Up 14.1% $2.63 $2.37 $1.92 Billions US $’s

Aggregate Number of Employees 2011 Aggregate Number of Employees: 17,600 – Up 3.5% 2010 Aggregate Number of Employees: 17,000 – Up 1.8% 2009 Aggregate Number of Employees: 16,700 – Up .006% 2008 Aggregate Number of Employees: 16,600 – Down 5.7% 2007 Aggregate Number of Employees: 17,600

Median Number of Suppliers 30 No change from 2010 Median Number of Suppliers

5 Year Industry Sales Breakdown by Industry

5 Year Trends for Key Industry Sectors 2008 2009 2010 2011 2012 Mfg. 27.9% 35.5% 24.9% 37.6% 41.6% Forest Prod. 11.7% 10.5% 10.3% 6.7% 8.2% Food/Bev. 7.5% 7.2% 8.9% 9.6% 9.4% Metals 9.5% 11.9% 8.7% Mining 6.5% 5.9% 4.3% 3.3% 3.4% Automotive 3.0% 3.9% 2.9% Other 15.3% 8.3% 18.3% 16.4% 8.8%

Importing and Exporting Activity by Members

5 Year Sales By Product

Growth Forecast for 2012 Anticipated Sales Growth Up 14.1% Anticipated Employee Growth Up 1.2% Trends for past two years - Sales and Employee Growth:

Conclusions Mergers and acquisitions will continue to have an impact on the membership of the BSA. Based on the Sales forecast of the members, we will approach $3 billion in 2012. Members will continue to increase revenues while hiring fewer numbers of new employees. No change in the number of significant suppliers that the members do business with, albeit mergers and acquisitions continue to change the make up of our supplier partners.

Conclusions The industries served and the products sold by the members remained fairly constant over the past two years. All members expressed confidence in the market and customers they currently service. Import and Export activities continue to increase with our members, with the rate of import activity growing faster. 2012 should proved to be a solid year for members, with revenues exceeding the BSA record high of 2008.

Thank You Best of luck in 2012!