Latam Current Status Oct 09

Latam Current SituationDec 2009 : 

Latam Current SituationDec 2009

Economic Outlook : 

Economic Outlook Five years of stellar growth in Latam came to a crashing halt late last year as the global economic recession took hold. A year later, governments around the world have instituted economic stimulus packages that seem to have stemmed the worst effects of the crisis and have set the stage for a recovery in 2010 – at least for some. The heavy lifting begins now This time around, however, the crisis did not erupt in emerging economies. And, this time, Latin America was not the epicenter as the crisis was sparked in developed countries. Nevertheless, the region is profoundly affected, and is grappling with contracting global demand (Commodities) , declining exports, and restricted access to capital flows. The crisis has brought to a screeching halt more than 5 years of sustained economic growth —averaging 5% per year--fueled in part by the adoption in Latin America of responsible macro and fiscal policies, and in part by the boom in commodity prices. Latin American economy has entered a phase of recovery as a whole. Brazil, Chile, Colombia, Mexico and Peru have all begun their economic recovery. Except for Mexico, the prosperity index of four other nations in the region will further improve in the next six months. Oct. 1 (Bloomberg) -- Latin America and the Caribbean’s recovery from the region’s first recession since 1983 should “gather moderate speed” in the coming months, led by Brazil, the International Monetary Fund said in a report. Aided by a return of capital and rebounding commodity prices, the region may expand 2.9 percent next year, faster than the 2.3 percent estimated in July, the IMF said in its World Economic Outlook report today. Gross domestic product will probably shrink 2.5 percent this year, the IMF said. The region “is showing signs of stabilization and recovery,” according to the report, distributed at the IMF’s annual meeting in Istanbul. “These economies are helped by improving conditions in global financial and commodity markets and stronger policy frameworks that promoted resilience and allowed timely policy responses to support economic activity.” Source: Latin Trade, Bloomberg, The Economist

Current Market Situation : 

Current Market Situation Reduction of capital expenditure on private sectors in the region. Examples: Cencosud , Chile; 2.4 millions project is on hold until next year. Ciudadela de la Salud, Colombia; 1.8 million on hold, they run our of capital and not finance available. According to economic experts LaTam is expected to lift up from economic crisis during 1st quarter 2010. Distributors Inventory Reduction due to low demand and currency fluctuation in the region. Example: Anixter reduced inventory in the region by more then 45%.

Where we stand: : 

Where we stand: Theater Snapshot (YTD Sep) 2009 FORECAST EG -36.5% (-1.5% vs indust) - 35% Network -16.1% (+9% vs indust) -5% Cable -37.6% -20 % Total: -25.6% - 5% Theater Growth VS Industry Growth EG Industry : Estimated -35% NCG Industry: Estimated -25% Reported Sales VS Main Competitors Under Research. We should have information in a few weeks. Source: Cisco, IBM, Anixter and Sonepar.

What we are doing : 

What we are doing GSAP Voucher Program $1,390,000. Closed Won Opportunities Distribution Stimulus $2,500,000. Revenue Generated. Program Potential: $18,000,000 Distribution Acquisition Electronica Navar Venezuela: $1,500,000 sales plan 2010 Rexel Chile: 1,000,000. sales plan 2010 Systems Integrators Acquisition Orange: Regional Agreement Signed. 2010 plan , $3,000,000. Telefonica, HO, Desca and ITS : Regional Agreements. 2010 plan $7,000,000. Brazil Development Plan 5 Year plan $33,000,000 potential EG Program Andean Pact Countries Colombia: $1,000,000 . Peru: $800,000 . Chile: $1,200,000

LaTam Pipeline : 

LaTam Pipeline

Relative Market Share Change(%)2008-2007 : 

Relative Market Share Change(%)2008-2007 Panduit has outperformed its competitors (NCG) Global Cable and Connectivity Source: BSIRA

Slide 9: 

2010 Initiative Program: Mid Market Accounts Scope: Partner development in mature markets Targeted at discretionary business from contractor and distribution (T200 accounts) Leveraging Panduit end user opportunities Opportunity: Primary - Contractor Secondary - Distribution Offerings: EG Core – Distribution focus products (Tools, Cable Ties/NyTy, Duct, CBSC, etc) EG Growth – End user focused products (SS, Raceway, OEM Spec’d) NCG Products – End user focused products (NetKey, Ind Ethernet Connectors, etc) Objectives: $250K * 100 contractors = $25M Product revenue (based on offerings)  Breakdown………………. Metrics: Geography: LaTam Theater New Product Projections EG Core = $1.0M EG Growth = $2.6M NCG Products = $2.7M Mature Markets

Slide 10: 

2010 Initiative Program: Emerging Markets Scope: Partner acquisition in new markets Targeted at discretionary business from integrator, contractors and distributors (T100 accounts) Leveraging Panduit end user opportunities Opportunity: Primary – Distribution Secondary – Integrator / Contractor Offerings: EG Core – Distribution focus products (Tools, Cable Ties, Duct, CBCS) EG Growth – End user focused products (SS, Raceway, OEM Specs) NCG Products – End user focused products (NetKey, IE Connectors, etc) Objectives: $50K * 100 integrators /contractors = $5M $300K * 50 distributors = $15M Metrics: Geography: Emerging Markets

Slide 11: 

2010 Program: Large Corporate Accounts Scope: Complex solution selling at targeted accounts Customer acquisition focusing on T200 named accounts globally (out of 8000) < 10% share of wallet Opportunity: Primary - Data Center Solution  Services, Software, HSDT, Cabinets, Accessories Secondary – Enterprise / CBS Solution Objective: $25Million (50 accounts * $500K) Partners: (named accounts) Global (all theaters) Consultants Acquire Partners – Global Si. Contractors Global Distributors Metrics: Revenue; Number of new customers acquired Geography: Verticals Finance Technology Government Oil & Gas Industrial Energy All Regions

Slide 12: 

2010 Initiative Program: Data Center Scope: Develop existing accounts to expand our current product presence to a solution environment Data Center named accounts focus: Expansion of 300 existing accounts Acquisition of 150 new accounts Opportunity: Data Center Solution  Services, Software, HSDT, Cabinets, Accessories, Pre-configured solutions Objective: $10 Million ($7M existing / $3M new accounts) Partners: (named accounts) System Integrators (specifically, Presidio, InSight, Di Data, need global input) ACE (global & regional) Alliance Partners Global DC Solution Distributors Metrics: Based on “Reference Architecture Sale” consisting of three or more product categories or Services $ amount Geography: All Regions

Slide 13: 

2010 Program: Sales and Channel Enablement Scope: Provide training enablers as part of LCS, Partner and mid-market T5 initiatives for sales and partners Objective: Sales and partners to demonstrate appropriate deployment and articulation of Panduit solutions based on customer needs to provide differentiation from competitors and higher margins and revenue Build channel advocates and Panduit missionaries for the mid-market Enable partners to sell, deploy and configure Panduit solutions Partners: SI ACE (global & regional) Alliance Partners Distributors Metrics: Revenue, pipeline and activity related to training for partners and sales. Partner sales revenue and tracked projects. Documented success stories that can be utilized globally to socialize the selling skills utilized from training knowledge Geography: All Regions

Summary of Key initiatives for Incremental Growth : 

2009E Sales $ 9,891 2010E Sales $ 48,265 Incremental Sales $ 9 M(13%) Mid-Market $ 6.0 LCA $ 3.0 DRAFT Summary of Key initiatives for Incremental Growth Panduit Revenue, Global, USD $ Millions Preliminary Market Growth $ 1.0 Inventory $ 2.0 Market Growth $ 500k New Products $ 500k New Products $ 1.0 Partner Acquisition $ 2.0 Customer Acquisition $ 2.00

Slide 15: 

Level 5 Leadership First Who…Then What Confront theBrutal Facts HedgehogConcept Culture ofDiscipline TechnologyAccelerators Disciplined People Disciplined Thought Disciplined Action Good to Great