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Electrical Distribution CAPABILITIES OVERVIEW

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Electrical Distribution

CAPABILITIES OVERVIEW

Electrical Distribution

• 1920 - Cohn formed Circle Flexible Conduit Company in Brooklyn.

• 1938 - Manufacturing is moved to Maspeth, NY and the company was renamed Circle Wire. At the time, it was the largest manufacturing building in NY and later became LaGuardia International Airport.

• 1955 - Cerro de Pasco, a South America mining company, acquires Circle Wire and Cerro Wire is born.

Early History

Electrical Distribution

• 1974—Chicago-based Marmon Group buys Cerro Wire.

• 1976—Manufacturing is moved to Hartselle, Alabama.

• 2008—Berkshire Hathaway acquires majority share of Marmon Group.

Recent History

Electrical Distribution

• Headquartered in Chicago with 80 employees.• 140 Member Companies.• 15,000+ Member Company Employees.• 250 Facilities primarily in North America, the United

Kingdom, Europe, and China.• 11 Business Unit Sectors.• Majority interest acquired by Berkshire Hathaway in 2008

The Marmon Group

Construction Services

Highway Technologies

Transportation Services & Engineered Products

Engineered Wire & Cable

Retail Store Fixtures

Food Service

Equipment

Flow Products

Industrial Products

Building Wire

Water Treatment

Distribution Services

Electrical Distribution

• 13 Companies.• Wire and cables with

applications including: – Building, Utility,

Telecommunications, Electronics, Thermocouple, Fire Alarm, Control, Instrument, Aerospace, and Defense.

Marmon Wire & Cable

Electrical Distribution

• Chairman and CEO – Warren E. Buffet.• 2010 Revenues exceeding $136 Billion.• 260,000 Member company employees.• 20.3% average annual growth in book value to its shareholders

over the last 44 years.• Notable Holdings (Full and Partial):

Geico MidAmerican Energy Fruit of the Loom

Clayton Homes NetJets The Pampered Chef

Dairy Queen Orange Julius Burlington Northern

Wesco Financial Moody’s Corporation USG

Washington Post Co. American Express Wells Fargo

Gillette Coca-Cola

Berkshire Hathaway

Electrical Distribution

Product Offering

SLiPWire THHN-2

SLiPWire XHHW-2

Circuit-Sized THHN-2

Striped THHN-2

TFFN USE-2

Large-Gauge NM-B

SE Cable

NM-B

UF-B

Electrical Distribution

• Max Print® (Easy Identification)

• Slippery (No Lubrication Required)

• Co-Extruded (No Horse Collaring)

• Lead-Free (RoHS Compliant)

• True Sequential Footage™ (Restarting at 0 on each reel)

• Guaranteed Accurate Footage (within ± 0.05%)

SLiPWire® Product Benefits

Electrical Distribution

• SLP™ (Self-Lubricating Polymer) Technology.– Equivalent to Southwire’s SIMpull® No Lube product.– Equivalency independently tested and verified.– Available on THHN-2/THWN & XHHW-2 products 8

AWG & larger.

SLP® Technology

Electrical Distribution

• June 23rd, 2010 at Ogden Plant.• Two sets of conduit installed that were 243 feet long with

four 90 degree turns.• Conduit installed and pull conducted by Lynn Woodward

Electric (LWE).• Verified by Intertek Testing Services.• Results (in pounds of force):

Cerro Wire Manufacturer 1 Manufacturer 21st Pull 1148 1226 13572nd Pull 997 1174 1141

Average 1073 1200 1249

SLiPWire® Test Pull

Electrical Distribution

• Advantages with Inventory Control:– Guaranteed to get the full accurate length.– Footage remaining can be identified quickly.– Re-order point can be easily recognized.– Fewer randoms.– No worrying about math, calculator entry errors, or missing cut records.

• Advantages with Cutting:– Know instantly if there is enough left for the next cut.– Know what you will leave in scrap after a cut.– Save time and money by cutting on our mark for accuracy.

• No counter slippage error.– No adding extra “to be sure,” say good-bye to lost profit and unnecessary

costs.

True Sequential Footage

Electrical Distribution

• Guaranteed accurate within ±0.5%:– Cerrowire is the only building wire the

guarantees the length of their product.– Latest accuracy test of 1000+ reels resulted in

an accuracy of +0.015%.• Measured by Doppler Lasers:

– Non-Contact = Zero Slipping & Zero Wear– No Moving Parts = Permanently Calibrated.– Far more accurate than a mechanical counter.

Footage Guarantee

Electrical Distribution

MT

WY

ID

OR

NV

UT

CA

AZ

ND

SD

NE

CO

NM

TX

OK

KS

LA

MO

IA

MN

WI

IL IN

KY

MS AL GA

FL

SC

NC

VAWV

OH

MI

NY

PA

MD

DE

NJ

CTRI

MA

ME

VT

NH

RepsStocking Reps

IN

WI

MI

OH

Distribution Center

Pacific Western

Casey Bergquist, Inc.

Rouzer Group

Electrical Sales Midwest

Callas/Kingsley

Yanow

Lex

Synergy Electrical Sales

Electrical Sales Associates

Farmer Electrical Sales

United Electrical Sales

E-Tel

Summit

Electra Sales

Lyle W. Williams Co., Inc.

Agents West

Current Solutions

Parr-Park & Assoc.

Concept Sales

TN

AR

Jenkins & Assoc.

EPI Syn-Tech

Haines

Western Electrical Sales

NATIONAL SALES MANAGER - US

Jay Whittington

REGIONAL SALES MANAGERS

Scott Gibson

Doug Chandler

Barry Schonebaum

WA

11/4/11

Sales Territories

Electrical Distribution

99% - TWO DAY DELIVERY

Plant

Distribution Center

DC w/ Cutting & Paralleling

Next Day Delivery

Two Day Delivery 84% - NEXT DAY DELIVERY

Note: Percentages based on population

Distribution

Electrical Distribution

• Alabama: – Serves as ED Headquarters, Manufacturing Plant, and

Distribution Center.– 350,000 Square Feet.– Produces—All sizes: THHN-2, NM-B, UF-B, TFFN, Striped

Neutrals, Bare Copper, SE Cable.– Stocks—All Cerrowire products: 6 mil. Cu pounds– Cutting/Paralleling: 50 cuts per day capacity.

• Utah:– Manufacturing Plant and Distribution Center.– 235,000 Square Feet.– Produces—All Sizes: THHN-2, NM-B, Bare Copper, XHHW-2, &

USE-2.– Stocks—All Cerrowire products: 3 mil. Cu pounds– Cutting/Paralleling: 50 cuts per day capacity.

Plant Capabilities

Electrical Distribution

Stocking LocationsAgent Location Stock Cutting/Para. Colored

Feeder

Agents West Southern California 600k Cu lbs. 25 cuts/day Yes

Callas/Kingsley Chicago, IL 200k Cu lbs.

Electra Sales Irving, TX 150k Cu lbs.

EPI Atlanta, GA 200k Cu lbs. 20 cuts/day

Farmer Electrical Sales Greensboro, NC 175k Cu lbs.

Jenkins & Associates Nashville, TN 50k Cu lbs.

Lex & Associates Edison, NJ 800k Cu lbs. 28 cuts/day Yes

Pacific Western Agencies Seattle, WA 300k Cu lbs.

Summit Sales Louisville, KY 125k Cu lbs.

Western Electrical Agency Northern California 275k Cu lbs.

Electrical Distribution

• Two Components: Time and Completeness.• Example:

– 100 Line Order– 99 lines shipped within two day = 99% Fill Rate– If the order shipped after two days = 0% Fill Rate

• Some of our competitors do not consider time, only completeness.

Fill Rate Excellence

• At Cerro Wire we believe our customers shouldn’t have to wait on us…we wait on them.

Electrical Distribution

• Cerrowire has Cutting and Paralleling capacity to meet your needs:

– Available in 3 or 4 legs.– 2 AWG to 750 MCM.– Available in Colors.– Ships out of:

» Hartselle, Alabama» Edison, New Jersey» Ogden, Utah» La Mirada, California» Atlanta, Georgia

Cutting & Paralleling

Electrical Distribution

• Cerrowire has partnered with RectorSeal® to offer Single-Use Pulling heads:

» Single-use (disposable with the wire)» 1 AWG to 750 MCM» Shortest body length pulling head available—

Better Cornering» Eliminates set-up—Just attach the pulling rope» Made of Steel—Will not fail like aluminum or

copper pulling heads

Pulling Heads

Electrical Distribution

• A True American Success Story.• A Heritage as Long the Electrical Age.• Unrivaled Financial Stability. • A Culture of Continuous Improvement.• A Commitment to Drive Costs Down for Our

Customers.• A Desire to Build Long Term Partnerships.

Electrical Distribution

—Warren Buffett

“Price is what you pay….

Value is what you get.”