April 19, 2013 Jeffrey Evans The Will-Burt Company CEO, President and Chairman

 Will-Burt: 1894, 1918, 1986 ESOP  6 th CEO over 120 years  Several other ESOP boards of directors Jeffrey Evans, THE Will-Burt Company

 Employee-owned companies do better than their peers ◦ Sales and profits ◦ Employee morale ◦ Adherence to values and mission ◦ Long-term wealth creation for everyone How do ESOPs stack up with others?

 Will-Burt from 2000 through today  ESOP company on the verge of bankruptcy  TRW / Argotech  Firestone Tire Stores ESOP Success Examples

 It starts at the top - leadership must be committed to the ownership culture  Employees that think and behave like owners perform like owners So HOW does this happen?

1. Communications – start with listening 2. Shared challenges, shared resources, and shared benefits 3. Be true to your values HOW is the Culture Built and Nurtured?

 Start with listening  MBWA  Quarterly Newsletter  Quarterly All Hands Meeting  Weekly “News from the ‘Burt”  Open door policy 1. Communications

 Monthly lunch with the president  Monthly EAC meeting (employee activity committee)  Z-Dep quality policy 1. Communications

 Open book management ◦ “The good, the bad, and the ugly” ◦ Everyone needs to understand the goals ◦ Include key objectives and metrics ◦ Everyone gets annual strategic plan summary  Accountability and alignment ◦ “It is not / IT IS my job!” 2. Shared Challenges, Resources, Rewards

 Good communications, alignment and accountability lead to a “Snowball Effect” 1.Develop and follow the plan 2.See improvement 3.Achieve shared profits and stock valuation 4.Go back to step #1 2. Shared Challenges, Resources, Rewards

 Will-Burt Mission and Values  Long-term Goal: Make Will-Burt a place where people want to work  Quality, safety and profit (in that order)  Balance between current income and bonus, benefits, and long-term stock growth 3. Be True to Your Values

 Fair wages  2 retirement plans (ESOP, matching 401-k)  Excellent medical and other benefits  Bonus to all employees in “good years”  Excellent stock value growth 3. Be True to Your Values

 ESOPs are better for customers, employee-owners  Tax law and structure make ESOPs possible  Culture makes performance happen  Top leaders must develop, feed and care for ownership culture 3. Be True to Your Values