1. Low Voltage IHP Motors World & Chinese Market Updates Alex Chausovsky – Research Director Wilmer Zhou – Senior Analyst March 2012

2.  Research Methodology Description  World Market for Low Voltage IHP Motors  Presented by Alex Chausovsky  Chinese Market for Low Voltage IHP Motors  Presented by Wilmer Zhou  Questions Presentation Overview

3. Research Methodology Description Base Year Data: Primary Research  Collect sales revenues and unit shipments from leading suppliers to each product market via Excel-based questionnaires: high participation rates  Supplement data collection with extensive interviews with strategic marketing and product management personnel  Consult with leading industry trade, distributor and end-user associations  Consider data from various quarterly market trackers Forecasting: Primary & Secondary Research  Economic forecasts (GDP) sourced from IMF  Machinery Production (MP) forecasts are sourced from IMS Research’s annual Worldwide Machinery Production Yearbook study  Interviews provide insight into which market segments will outperform or underperform in the future

4. Products Covered:  IE1 (Standard Efficiency) Eff2 and below; Below EPAct  IE2 (High Efficiency) Eff1; EPAct  IE3 (Premium Efficiency) Above Eff1; NEMA Premium  IE4 (Super Premium Efficiency) Much higher than Eff1; Above NEMA Premium  Other Non-classified 8 / 10 / 12 pole motors >375kW Submersible motors Fire pump motors All motors that fall outside NEMA and/or IEC  DC Motors* The World Market for Low Voltage IHP Motors

5. ≈ 44 million low voltage motors shipped in 2010 The World Market for Low Voltage IHP Motors

6. Low Voltage IHP Motors – Legislative Timeline

7. Low Voltage IHP Motors – World Data

11. Top Industry Sectors  Commercial HVAC (30%)  Food, Beverage & Tobacco (13%)  Mining (6%)  Utilities (5%)  Paper & Paperboard  Elevators & Escalators  Conveyors  Automotive  Chemicals & Petroleum  Packaging & Labeling  Rubber & Plastics Top Suppliers  Siemens (8.5%)  Baldor (7.0%)  ABB (6.0%)  WEG  Regal Beloit  Teco (Teco-Westinghouse)  Leroy Somer (Emerson)  Toshiba  Huali

12. ≈ 12.5 million low voltage motors shipped in 2010 The Chinese Market for Low Voltage IHP Motors

13. Low Voltage IHP Motors – China Data

15. GB 18613 – 2006 revised to GB 18613 – 201x  The old grade 3 in GB 18613 – 2006 will become void  Grade 2 from GB 18613 – 2006 will become grade 3 in GB 18613 – 201x (correspond to the IE2 )  The new grade 2 will directly correspond to the IE3  The new grade 1 will refer to IE4 (IEC 60034-31)  The new grade 3 and grade 2 will be enforced in 4 years and 6 years later respectively after the GB 18613 – 201x released.  GB 18613 – 201x has been delivered to the Standardization Administration of China for approval and will be issued in 2012.

16. Low Voltage IHP Motors – China Data Top Industry Sectors  Commercial HVAC (17.5%)  Mining (13.5%)  Cranes & Hoists (10%)  Food, Beverage & Tobacco (7.5%)  Conveyors (6%)  Elevators & Escalators  Chemicals & Petroleum  Machine Tools  Metals  Paper & Paperboard Top Suppliers  Huali (6.5%)  Siemens (6%)  Luan JiangHuai (5%)  ABB (5%)  Anhui Wannan  Tech Full Simo  Hengshui (OX)  Jiamusi  Nanyang Explosion

17. Speaker contact information Alex Chausovsky Research Director - Motors & Mechanical Power Transmission IMS Research Austin, Texas, USA Phone: +1 512 582 2012 E-mail: Alex.Chausovsky@imsresearch.comAlex.Chausovsky@imsresearch.com Wilmer Zhou Senior Analyst – China Automation IMS Research Shanghai, China Phone: +86 21 62701823 E-mail: Wilmer.Zhou@imsresearch.comWilmer.Zhou@imsresearch.com www.imsresearch.com Questions?