Construction Hammers Phase 1 - “Land & Expand” Launch Presentation January 2016

$400M CONSTRUCTION HAMMER MARKETPLACE CATEGORY GLOBALLY Construction Growth is Primary Driver 3.5-4.0% Category Growth Rate Residential: CAGR 10 – 18: 10% Non Residential / Non Building – CAGR 10 – 18: 5% $400M CATEGORY GLOBALLY

$120M NORTH AMERICA HAMMER MARKETPLACE Market Share By Channel Home Centers represent almost half of total US Market 30% $120M CATEGORY IN NA CONFIDENTIAL IRWIN INFORMATION - DO NOT REPRODUCE, DUPLICATE OR, DISTRIBUTE 3

Professional Tradesman END USER OVERVIEW Profile and demographics Target User Framers, Trim Carpenters, General Contractors, Machinist and Fabricators. Applications Drive or pound nails into wood, remove nails from wood, separate joined materials, and beat, form and shape metal surfaces Where users buy Channel Percentage % Home Centers 45% Hardware 20% I/C Distribution 30% Other 5% Professional Tradesman

CONSUMER INSIGHTS Preference for handle types and materials Qualitative Market Perceptor Preference for handle types and materials It varies from tradesman to tradesman. Some prefer the “traditional materials” of wood and steel and some feel more reassured by the durability and modernity of fiberglass and other materials. However, all have a downside Steel Hammers Wood Hammers Fiberglass Hammers Titanium Hammers (Estwing hammers were frequently mentioned) are beautifully designed and are all one piece, which reassures that they will not break. On the negative side, steel is seen to be unforgiving on the hands These are seen as a more forgiving material, reducing hand pain and fatigue; however, wood hammers break easier and more frequently. These are viewed as sturdy and fairly easy on the hands, but can be highly dangerous as they shatter when they break. Ratio of weight vs. strike power ensures a good strike and prevents hand fatigue, but prices are extremely high

Balance and Feel | Shock Absorption CONSUMER INSIGHTS Qualitative Market Perceptor Opportunity to enter the hammer and demolition tools market IRWIN is regarded as credible and quality player Open space to play Opportunities for improvement: Balance Weight vs Strike Power Tips, Edges and Faces Curves and Bends Grip and Comfort Commercialization opportunities Create a strong communication and advertising plan around new product offering Merchandising alignment to drive consumer trial Critical to Quality Balance and Feel | Shock Absorption | Durability | Grip Tradesmen are satisfied Room for new brands, not crowded History with the brand: chalk reels, knives, screwdrivers…CSB

HAMMERS USABILITY HYBRID HANDLE DESIGN Phase I – Framing Scope and Ergonomics Integrate waffle texture face on framing hammers to prevent hammer from slipping off head of nail HYBRID HANDLE DESIGN Handle should be rounded as opposed to oval to aid comfort and fit Integrate a significant curve at bottom of handle to increase confidence that handle will not slip out of hand during use Features a straight shaft and round handle with an integrated curve at the bottom to increase grip

67% 24% 9% HAMMER SALES BY APPLICATION General Purpose Framing All Hammer $ Sales; All Stores FY 2013 67% General Purpose 24% Framing 9% Specialty

Product Overview 16 oz. Fiberglass General Purpose 20 oz. Steel General Purpose 21 oz. California Framing

PRODUCT OVERVIEW 16 oz. Fiberglass General Purpose Hammer Phase I – Framing Scope and Ergonomics 16 oz. Fiberglass General Purpose Hammer Hybrid Handle Design Rounded for optimal comfort and fit Curved bottom to prevent slippage Hardened end cap for added durability ProTouch Grip For maximum control Forged Steel Head Superior strength and durability Smooth Face Prevents surface marks Rip Claw Ideal for nail removal and prying applications

PRODUCT OVERVIEW 20 oz. Steel General Purpose Hammer Phase I – Framing Scope and Ergonomics 20 oz. Steel General Purpose Hammer Hybrid Handle Design Rounded for optimal comfort and fit Curved bottom to prevent slippage Hardened end cap for added durability ProTouch Grip For maximum control Forged Steel Head Superior strength and durability Smooth Face Prevents surface marks Magnetic Nail Holder Hands free versatility when setting a nail Rip Claw Ideal for nail removal and prying applications

PRODUCT OVERVIEW 21 oz. Wood California Framing Hammer Phase I – Framing Scope and Ergonomics 21 oz. Wood California Framing Hammer Axe Style Hickory Handle Curved for control and comfort Rip Claw Extended Reach and Impact 15.5” handle offers extended reach and optimal swing speed Forged Steel Head Superior strength and durability Milled Face Prevents slippage when striking nail head Magnetic Nail Holder Hands free versatility when setting a nail Ideal for nail removal and prying applications

US HAMMER MARKETPLACE $$ $$$ $$$$ $$$$$ Manufacturers by Category Pricing Framing General Specialty Mallets Demolition $$ Sept . 17 $$$ $$$$   $$$$$

COMPETITIVE LINE-UP Fiberglass General Purpose Model Weight 16 oz. Surestrike MRF16S Irwin 1954889 Husky N-G16CHD-HN Plumb 11419 Stanley STHT51511L Kobalt 62742 Weight 16 oz. Length 13” Face Smooth Claw Rip Curve Grip Over-Mold Pro-Touch™ Comfort Grip / Thumb Indent Rubberized Ergonomic Comfort Slip Resistant Rubberized Magnetic Nail Holder No Yes Target Retail $17.50 $9.98 $9.97 $9.47 $8.98

COMPETITIVE LINE-UP Steel General Purpose Model 1 pc Forged Yes Weight Vaughan R20 DeWalt DWHT51054 Estwing E3-20S Irwin 1954888 Stanley FatMax 51-943 Kobalt 62739 1 pc Forged Yes Weight 20 oz. Length 13 3/4” 14” Face Smooth Claw Curve Rip Grip Over-Mold PVC Non-SLip Grip Rubberized Over-Mold Comfort Grip Pro-Touch™ Comfort Grip Ergonomic Grip Comfort Vibration Reduction Yes (Shock-Block Plug) No Yes (Tuning fork design) Magnetic Nail Holder / Side Puller No / No Yes / Yes Yes / No Target Retail $29.98 $29.97 $26.00 $22.98 $20.75 $18.98

COMPETITIVE LINE-UP Wood Framing California Hammer Model Weight 23 oz. Vaughan CF1-HC CF1 DeWalt DWHT51411L Estwing MRW25LM Irwin 1954890 Kobalt 62994 Weight 23 oz. 17 oz. 25 oz. 21 oz. Length 17” 16” 17.5” Face Milled Smooth Claw Rip Handle Curve Straight Curved Overstrike Protection No Yes Strike Shield™ Magnetic Nail Holder Retail $30.20 $25.98 $21.00 $20.75 $19.98 $18.23

PACKAGING STRATEGY Establish Communication Hierarchy F&B APPLICATION {Milled vs. Smooth / Handle Type} APPLICATION Framing General Purpose [Narrows Focus} WEIGHT Oz. [Intended use & Preference]

NEW IRWIN CONSTRUCTION HAMMERS AVAILABLE Q2 2016 Irwin 20 oz. Steel General Purpose Hammer Irwin 16 oz. Fiberglass General Purpose Hammer Irwin 21 oz. California Wood Framing Hammer Sku # 1954888 1954889 1954890 List $33.44 $16.17 $28.06 Packaging Plastic Tag Case Pack 3 6 Master 24 Lead Time 115 days NEW IRWIN CONSTRUCTION HAMMERS AVAILABLE Q2 2016 *In-store at Lowe’s Feb 9th

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LAUNCH MATERIALS www.tbsdigitalplaybook.com www.Irwin.com/elaunch Sales Presentation Sell Sheet Master Data Content Price List Images – In-use & Static