Megapower Industrial Plan24-07-2014

1

1. Updated sales forecasts 2014 to 2017

- Overall sales- Breakdown by families- Export Sales

2. Update on local assembly of Wiring devices

3. Conclusion - next steps

2

Agenda

Ambitions(source : new forecast 2014-2017)

RM in '000 A2013 B2014 F2014 F14/A13 F14/B14 F2015 F15/F14 F2016 F16/F15 F2017 F17/F16 F17/F14

Domestic sales - Extrusion 67,304 71,039 75,650 12.4% 6.5% 78,660 4.0% 81,904 4.1% 85,874 4.8% 13.5%

Domestic sales - Injection 17,501 17,995 20,229 15.6% 12.4% 20,970 3.7% 21,816 4.0% 22,773 4.4% 12.6%

Domestic sales - Trading 12,373 12,743 13,161 6.4% 3.3% 12,148 -7.7% 12,198 0.4% 12,248 0.4% -6.9%

Domestic sales - Legrand 10,877 13,757 15,036 38.2% 9.3% 18,780 24.9% 25,904 37.9% 33,661 29.9% 123.9%

Total domestic 108,055 115,535 124,075 14.8% 7.4% 130,558 5.2% 141,822 8.6% 154,556 9.0% 24.6%

0.0% 0.0%

Domestic sales - Extrusion 13,431 15,157 14,093 4.9% -7.0% 15,535 10.2% 17,151 10.4% 18,915 10.3% 34.2%

Domestic sales - Injection 3,646 4,439 4,143 13.6% -6.7% 4,455 7.5% 4,900 10.0% 5,399 10.2% 30.3%

Domestic sales - Trading 2,367 2,688 832 -64.9% -69.1% 981 17.9% 1,009 2.9% 1,040 3.1% 25.0%

Domestic sales - Legrand 0 0 0 0.0% 0.0% 0 0.0% 0 0.0% 0 0.0% -100.0%

Total export 19,444 22,284 19,068 -1.9% -14.4% 20,971 10.0% 23,059 10.0% 25,354 10.0% 33.0%

0.0% 0.0%

Total third parties 127,499 137,819 143,143 12.3% 3.9% 151,529 5.9% 164,881 8.8% 179,910 9.1% 25.7%

0.0% 0.0%

Domestic sales - Extrusion 3,921 3,594 3,339 -14.8% -7.1% 3,502 4.9% 3,852 10.0% 4,237 10.0% 26.9%

Domestic sales - Injection 659 1,206 692 5.0% -42.6% 950 37.2% 1,045 10.0% 1,150 10.0% 66.0%

Domestic sales - Trading 44 0 15 -65.1% 0.0% 0 -100.0% 0 0.0% 0 0.0% -100.0%

Domestic sales - Legrand 0 0 0 0.0% 0.0% 0 0.0% 0 0.0% 0 0.0% 0.0%

Total interco 4,624 4,800 4,047 -12.5% -15.7% 4,452 10.0% 4,897 10.0% 5,386 10.0% 33.1%

0.0% 0.0%

TOTAL SALES 132,123 142,619 147,190 11.4% 3.2% 155,981 6.0% 169,778 8.8% 185,297 9.1% 25.9%

Sales evolution by PL

Robust growth on Megapower core business PL7 and especially heavy duty conduits which will benefit from increased projects specification.

PL9 sales is including Conduits families

Strong growth in the PL2 core business, which will have full effect starting 2015 due to projects specification processing time

Linear development in PL8 Limited growth on PL5 products

• Evolution in value for Heavy duty conduits & accessories ( dom+ export+interco)

• Less growth in 2015 due to a strong 2014 year and increased competion on heavy & medium duty segment (Megahock)

Sales evolution for conduits

25,309,157 25,610,871 1.2% 30,149,784 19.1% 17.7% 31,182,000 3.4% 32,924,000 5.6% 34,700,900 5.4%

CoExt/Int

Family code

Prod grp 2

S1A2013

net salesB2014

net salesB14/A13

F2014net sales

F14/A13 F14/B14F2015

net salesF15/F14

F2016net sales

F16/F15F2017

net salesF17/F16

MED Ext 7123 E 14,720,543 15,156,188 3.0% 17,956,594 22.0% 18.5% 18,500,000 3.0% 19,300,000 4.3% 20,000,000 3.6%MED Ext 7123 I 4,661,271 4,773,032 2.4% 5,502,734 18.1% 15.3% 5,750,000 4.5% 6,000,000 4.3% 6,250,000 4.2%MED Ext 7123 T 109,741 111,475 1.6% 139,344 27.0% 25.0% 140,000 0.5% 145,000 3.6% 150,000 3.4%MFG Ext 7123 E 4,402,202 4,011,602 -8.9% 5,203,444 18.2% 29.7% 5,400,000 3.8% 5,950,000 10.2% 6,600,000 10.9%MFG Ext 7123 I 648,928 793,574 22.3% 904,783 39.4% 14.0% 920,000 1.7% 1,010,000 9.8% 1,130,000 11.9%MFG Ext 7123 T 190 -100.0% 0 -100.0% 0.0% 0.0% 0 0.0% 0.0%MFG Int 7123 E 126,624 135,000 6.6% 39,493 -68.8% -70.7% 42,000 6.3% 46,000 9.5% 50,600 10.0%MFG Int 7123 I 595,515 630,000 5.8% 388,413 -34.8% -38.3% 430,000 10.7% 473,000 10.0% 520,300 10.0%MFG Int 7123 T 44,142 0 -100.0% 14,980 -66.1% 0.0% 0 -100.0% 0 0.0% 0 0.0%

• Sales evolution in MYR for Medium duty conduits&fittings (home+exp+int)

• Interco sales: scenario + to be considered for Indonesia, depending on the BP in progress.

Sales evolution for conduits

34,209,473 38,026,471 11.2% 37,769,591 10.4% -0.7% 40,190,000 6.4% 42,674,000 6.2% 45,824,000 7.4%

CoExt/Int

Family code

Prod grp 2

S1A2013

net salesB2014

net salesB14/A13

F2014net sales

F14/A13 F14/B14F2015

net salesF15/F14

F2016net sales

F16/F15F2017

net salesF17/F16

MED Ext 7124 E 19,238,839 20,289,687 5.5% 22,420,940 16.5% 10.5% 23,500,000 4.8% 24,500,000 4.3% 26,000,000 6.1%MED Ext 7124 I 3,913,350 4,081,250 4.3% 4,403,741 12.5% 7.9% 4,600,000 4.5% 4,800,000 4.3% 5,100,000 6.3%MED Ext 7124 T 0.0% 85 0.0% 0.0% -100.0% 0.0% 0.0%MFG Ext 7124 E 6,667,450 8,687,560 30.3% 6,649,849 -0.3% -23.5% 7,350,000 10.5% 8,150,000 10.9% 8,980,000 10.2%MFG Ext 7124 I 619,387 1,026,974 65.8% 1,006,538 62.5% -2.0% 1,100,000 9.3% 1,220,000 10.9% 1,340,000 9.8%MFG Ext 7124 T 2,250 -100.0% 0 -100.0% 0.0% 0 0.0% 0 0.0% 0 0.0%MFG Int 7124 E 3,768,196 3,431,000 -8.9% 3,288,439 -12.7% -4.2% 3,440,000 4.6% 3,784,000 10.0% 4,162,000 10.0%MFG Int 7124 I 510,000 0.0% 0 0.0% -100.0% 200,000 0.0% 220,000 10.0% 242,000 10.0%

• Sales evolution in MYR for Light duty conduits&fittings (home+exp+int)

• Due to production capacity problems in 2014, priority has been given to Heavy and medium conduits

Sales evolution for conduits

21,255,306 22,389,215 5.3% 21,459,630 1.0% -4.2% 22,658,742 5.6% 23,611,117 4.2% 24,772,228 4.9%

CoExt/Int

Family code

Prod grp 2

S1A2013

net salesB2014

net salesB14/A13

F2014net sales

F14/A13 F14/B14F2015

net salesF15/F14

F2016net sales

F16/F15F2017

net salesF17/F16

MED Ext 7125 E 18,002,264 18,865,000 4.8% 18,186,438 1.0% -3.6% 19,000,000 4.5% 19,800,000 4.2% 20,800,000 5.1%MED Ext 7125 I 2,563,830 2,601,083 1.5% 3,068,082 19.7% 18.0% 3,100,000 1.0% 3,200,000 3.2% 3,300,000 3.1%MFG Ext 7125 E 191,249 342,707 79.2% 0 -100.0% -100.0% 349,478 0.0% 384,425 10.0% 422,868 10.0%MFG Ext 7125 I 485,790 558,366 14.9% 182,493 -62.4% -67.3% 185,000 1.4% 200,000 8.1% 220,000 10.0%MFG Ext 7125 T 12,174 22,059 81.2% 22,617 85.8% 2.5% 24,265 7.3% 26,691 10.0% 29,360 10.0%

• Sales evolution in MYR for corrugated conduits&fittings (home+exp+int)

• Low performance in 2014 due to one customer failure (bad debt) and production capacity shortage

Sales evolution for conduits

2,907,712 3,245,810 11.6% 3,246,525 11.7% 0.0% 3,407,764 5.0% 3,579,340 5.0% 3,754,474 4.9%

CoExt/Int

Family code

Prod grp 2

S1A2013

net salesB2014

net salesB14/A13

F2014net sales

F14/A13 F14/B14F2015

net salesF15/F14

F2016net sales

F16/F15F2017

net salesF17/F16

MED Ext 7126 E 2,156,977 2,419,159 12.2% 2,444,952 13.4% 1.1% 2,550,000 4.3% 2,650,000 3.9% 2,750,000 3.8%MED Ext 7126 I 195,599 214,520 9.7% 241,956 23.7% 12.8% 242,000 0.0% 248,000 2.5% 255,000 2.8%MFG Ext 7126 E 519,945 580,241 11.6% 494,444 -4.9% -14.8% 555,764 12.4% 611,340 10.0% 672,474 10.0%MFG Ext 7126 I 34,132 31,890 -6.6% 56,661 66.0% 77.7% 60,000 5.9% 70,000 16.7% 77,000 10.0%MFG Int 7126 E 16 -100.0% 8,511 52423.2% 0.0% -100.0% 0.0% 0.0%MFG Int 7126 I 1,044 0 -100.0% 0 -100.0% 0.0% 0 0.0% 0 0.0% 0 0.0%

• Minitrunking is suffering from low renovation market.• Modular trunking is decreasing due to a change in the market

specification for commercial towards metallic trunking.

Sales evolution for Trunking

14,210,636 15,238,662 7.2% 15,598,399 9.8% 2.4% 16,218,000 4.0% 16,939,875 4.5% 17,797,801 5.1%

CoExt/Int

Family code

Family descProd grp 2

S1A2013

net salesB2014

net salesB14/A13

F2014net sales

F14/A13 F14/B14F2015

net salesF15/F14

F2016net sales

F16/F15F2017

net salesF17/F16

MED Ext 7120 MEGAPOWER MINITRUNKING  E 3,911,746 4,083,333 4.4% 3,890,033 -0.6% -4.7% 4,100,000 5.4% 4,300,000 4.9% 4,500,000 4.7%MED Ext 7121 MEGAPOWER TRUNKING & MODULAR TRUNKING E 5,981,608 6,752,812 12.9% 7,174,681 19.9% 6.2% 7,350,000 2.4% 7,593,875 3.3% 7,973,569 5.0%MED Ext 7121 MEGAPOWER TRUNKING & MODULAR TRUNKING T 45,250 13,506 -70.2% 17,669 -61.0% 30.8% 18,000 1.9% 19,000 5.6% 20,000 5.3%MED Ext 7122 MEGAPOWER UNDERFLOOR TRUNKING E 2,596,449 2,826,094 8.8% 2,768,453 6.6% -2.0% 2,850,000 2.9% 2,950,000 3.5% 3,040,032 3.1%MFG Ext 7120 MEGAPOWER MINITRUNKING  E 1,108,186 1,006,748 -9.2% 1,286,053 16.1% 27.7% 1,400,000 8.9% 1,540,000 10.0% 1,680,000 9.1%MFG Ext 7121 MEGAPOWER TRUNKING & MODULAR TRUNKING E 145,826 115,836 -20.6% 84,244 -42.2% -27.3% 90,000 6.8% 95,000 5.6% 100,000 5.3%MFG Ext 7122 MEGAPOWER UNDERFLOOR TRUNKING E 395,773 412,333 4.2% 374,438 -5.4% -9.2% 390,000 4.2% 420,000 7.7% 460,000 9.5%MFG Int 7120 MEGAPOWER MINITRUNKING  E 19,798 22,000 11.1% 1,283 -93.5% -94.2% 10,000 679.2% 11,000 10.0% 12,100 10.0%MFG Int 7121 MEGAPOWER TRUNKING & MODULAR TRUNKING E 5,501 6,000 9.1% 1,544 -71.9% -74.3% 10,000 547.7% 11,000 10.0% 12,100 10.0%MFG Int 7122 MEGAPOWER UNDERFLOOR TRUNKING E 500 0 -100.0% 0 -100.0% 0.0% 0 0.0% 0 0.0% 0 0.0%

• Strong growth in 2014 in domestic market. • Difficulties in export market• Nearly no sales in interco ( no IEC compliance yet for Legrand item)

Sales evolution for MCB boxes

1,549,231 1,724,894 11.3% 1,715,974 10.8% -0.5% 1,805,000 5.2% 1,910,000 5.8% 2,004,000 4.9%

CoExt/Int

Family code

Prod grp 2

A2013net sales

B2014net sales

B14/A13F2014

net salesF14/A13 F14/B14

F2015net sales

F15/F14F2016

net salesF16/F15

F2017net sales

F17/F16

MED Ext 7127 I 1,303,899 1,500,000 15.0% 1,602,539 22.9% 6.8% 1,680,000 4.8% 1,770,000 5.4% 1,850,000 4.5%MED Ext 7127 T 29,645 55,000 85.5% 30,649 3.4% -44.3% 35,000 14.2% 40,000 14.3% 44,000 10.0%MFG Ext 7127 I 215,010 169,894 -21.0% 82,536 -61.6% -51.4% 90,000 9.0% 100,000 11.1% 110,000 10.0%MFG Ext 7127 T 0.0% 149 0.0% 0.0% -100.0% 0.0% 0.0%MFG Int 7127 I 676 0 -100.0% 101 -85.1% 0.0% 0 -100.0% 0 0.0% 0 0.0%

• Good performance overall of WP boxes, both domestic and export• Interco sales increasing due to Indonesia action plan. Could also be revised

in the scenario +

Sales evolution for Weatherproof boxes

6,232,314 6,428,424 3.1% 7,270,359 16.7% 13.1% 7,660,000 5.4% 8,094,000 5.7% 8,573,200 5.9%

CoExt/Int

Family code

Family descProd grp 2

A2013net sales

B2014net sales

B14/A13F2014

net salesF14/A13 F14/B14

F2015net sales

F15/F14F2016

net salesF16/F15

F2017net sales

F17/F16

MED Ext 7128 MEGAPOWER FLUSH MOUNTING BOXES I 2,630,630 2,646,000 0.6% 2,928,987 11.3% 10.7% 3,050,000 4.1% 3,180,000 4.3% 3,280,000 3.1%MED Ext 7129 MEGAPOWER WEATHERPROOF BOXES I 1,950,803 1,892,625 -3.0% 2,162,850 10.9% 14.3% 2,230,000 3.1% 2,300,000 3.1% 2,420,000 5.2%MED Ext 7129 MEGAPOWER WEATHERPROOF BOXES T 32,610 42,058 29.0% 17,094 -47.6% -59.4% 20,000 17.0% 22,000 10.0% 24,000 9.1%MFG Ext 7128 MEGAPOWER FLUSH MOUNTING BOXES I 350,127 384,307 9.8% 356,271 1.8% -7.3% 390,000 9.5% 420,000 7.7% 462,000 10.0%MFG Ext 7129 MEGAPOWER WEATHERPROOF BOXES I 1,206,073 1,397,434 15.9% 1,499,194 24.3% 7.3% 1,650,000 10.1% 1,820,000 10.3% 2,000,000 9.9%MFG Ext 7129 MEGAPOWER WEATHERPROOF BOXES T 0.0% 2,192 0.0% 0.0% 0 -100.0% 0 0.0% 0 0.0%MFG Int 7128 MEGAPOWER FLUSH MOUNTING BOXES I 47,621 52,000 9.2% 19,929 -58.1% -61.7% 20,000 0.4% 22,000 10.0% 24,200 10.0%MFG Int 7129 MEGAPOWER WEATHERPROOF BOXES I 14,450 14,000 -3.1% 283,841 1864.3% 1927.4% 300,000 5.7% 330,000 10.0% 363,000 10.0%

Sales evolution for Wiring devices

6,259,575 7,261,251 16.0% 7,868,886 25.7% 8.4% 9,619,375 22.2% 13,004,063 35.2% 17,051,719 31.1%

CoExt/Int

Family code

Family descA2013

net salesB2014

net salesB14/A13

F2014net sales

F14/A13 F14/B14F2015

net salesF15/F14

F2016net sales

F16/F15F2017

net salesF17/F16

MED Ext 611 PLEXO 55 S  11,674 5,000 -57.2% 9,842 -15.7% 96.8% 10,000 1.6% 15,000 50.0% 18,750 25.0%MED Ext 612 PLEXO  121,256 150,000 23.7% 187,278 54.4% 24.9% 200,000 6.8% 300,000 50.0% 375,000 25.0%MED Ext 5120 SYNERGY WHITE (UK)  0.0% 0 0.0% 0.0% 0.0% 0 0.0% 0.0%MED Ext 5122 SYNERGY TRADITIONNAL (UK)  0.0% 0 0.0% 0.0% 0.0% 0 0.0% 0.0%MED Ext 5159 SYNERGY GRID  0.0% 0 0.0% 0.0% 0.0% 0 0.0% 0.0%MED Ext 5162 SYNERGY METAL CLAD (UK) 10,712 -100.0% 10,682 -0.3% 0.0% -100.0% 0 0.0% 0.0%MED Ext 5402 COMMERCIAL RANGE (P&S)  0.0% 0 0.0% 0.0% 0.0% 0 0.0% 0.0%MED Ext 6602 BELANKO  3,451,504 3,800,000 10.1% 4,912,672 42.3% 29.3% 5,500,000 12.0% 6,500,000 18.2% 8,500,000 30.8%MED Ext 6603 MILAC (CHINA)  0.0% 0 0.0% 0.0% 0 0.0% 0 0.0% 0.0%MED Ext 6605 MODEL (CHINA)  0.0% 0 0.0% 0.0% 0 0.0% 0 0.0% 0.0%MED Ext 6608 MALLIA  2,048,957 2,100,000 2.5% 1,520,660 -25.8% -27.6% 2,300,000 51.3% 4,000,000 73.9% 5,500,000 37.5%MED Ext 6637 ARTEOR  427,828 900,000 110.4% 1,022,968 139.1% 13.7% 1,150,000 12.4% 1,500,000 30.4% 1,900,000 26.7%MED Ext 7449 ISOLATOR SWITCH  187,644 306,250 63.2% 204,784 9.1% -33.1% 459,375 124.3% 689,063 50.0% 757,969 10.0%

2. Local assembly of WD• The question is limited to the Belanko range• Different points to address:

– local assembly only ?– Local manufacturing with duplication of tooling?– Limitation to class A only?

• Regional needs to be included as well ( Myanmar, Singapore, Indonesia..)• Information required:

– Belanko sales history (and forecast?) per item for the last 18 months– Direct labor cost in Malysia

• A project analysis could start, based on a volume of 2 to 2.5millions pcs per year, subject to M Badouard validation.

Conclusion

• Decision to be taken regarding analysis project of local supply of WD.