FFFWEST Safety Committee Meeting

1. FFFWEST Safety Committee Meeting Tuesday, June 19th 2012 Audio Info: 1-888-396-0833 Participant Code: 9835428 Please hit the 'mute’ button or use *6 to mute your phone until you are ready to speak up. Don’t place the call on hold. No matter how busy you are, putting a conference call on hold forces the entire group to listen to your hold music. If you must step away, use the mute feature or hang up and dial back in.

2. Locations in Attendance…

3. Any Accidents or Injuries…? • PLEASE REMEMBER TO REPORT IMMEDIATELY !! • Reporting injuries immediately is the optimal way to save time, money, and your associates!  If you have questions please contact Risk Management at 757-989-2724. • Workers' Compensation claims must be reported online,  via HR Manager Self Service. • Send supporting documentation for claims to 757-989-2501 OR accident.claims@ferguson.com

4. May-12 Safety Topics Old Business… Branch Crisis Preparedness New Business… Inventory Time… Check your Warehouse Safety

5. Branch Crisis Preparedness Deadline to submit is (TODAY) 6/19/2012.

6. Branch Preparedness • ALL MANAGERS are required to submit a copy of the following: • Associate Recall Roster • Branch Emergency Action Plan (EAP) • (everyone should have this done already…) • Branch Disaster Response Checklist • I forwarded copies of all forms after the 5/29/12 meeting… Deadline to submit is Tuesday, June 19th I have received from the following branches: F721, F724, F727 & F1758

7. Inventory Time & Safety… Check your Warehouse Safety

8. Safety Tips Highlighted… • Ensure floors are kept free of spills and tripping hazards. • Ensure overhead lighting is adequate for all operations. • Ensure warehouse is well ventilated. • Move heavy loads with mechanical equipment, instead of manually lifting them. • Ensure associates understand proper hydration, appropriate clothing, and other best practices for working in hot environments. • Prevent worker fatigue by ensuring associates doing physical work receive adequate breaks throughout shifts.

9. One Last Reminder… • Ferguson Drug & Alcohol Policy • All associates are required to comply with our current set of Drug & Alcohol policies at all times. • As stated in the guidelines: No associate may possess, use, or be under the influence of any illegal substance or alcohol while on company time or property.

10. Some Operational Highlights & Reminders… Physical Inventory June 22nd & 23rd Product Knowledge Training FNW Gaskets May 2012 Sales by Warehouse

11. Physical Inventory Friday, June 22nd & Saturday, June 23rd

12. Physical Inventory – June 2012 • What can you do to better prepare for physical inventory? • Read the PI Manual (Jun-12 version available now). • Make sure your file maintenance is CLEAN. • Make sure specials have been committed and staged properly. Make sure this is done ahead of time. • Ask questions if you don’t understand something.

13. Resources - • Access the Countdown to Physical Inventory Checklist and PI Guide~ • Access Ferguson’s Intranet page, www.ferg.com. • Access the Physical Inventory page at the following path: Human Resources  Training Department,  Systems Help. • Click the Physical Inventory Manual link. The Physical Inventory June 2012 web page displays. From this site you can access the PI checklist, obtain additional copies of the PI Manual, view the Support Center’s Hours, etc.

14. Jun-12 PI Timeline • On-Going • June 11th thru 22nd • June 15th & June 20th • June 20th • June 22nd & 23rd • June 24th  Clean up your file maintenance  Verify “Staging Locations”  Suspension of IBTs  Creation of PI File & Count Sheets  PI Day – Count, Enter, Recount, and Enter  Update On-Hand Balances

15. Frequently Asked Questions… • Do I need to purchase a specific ‘color of paper’ for the count sheets? • No, this is no longer a requirement since transitioning to Trilogie – But optional if you choose to do so. • Do we need to retain our manual count sheets? • Yes. Retain all manual count sheets (including first counts and recounts) for 1 year. • Can I start entering counts before invoicing and purchasing is complete? • Yes, but you cannot enter a count until after 12PM.

16. Frequently Asked Questions… • If I don't enter a count, what happens to the product? • On-Hand Balance (OHB) goes to 0. • With respect to Invoicing and Purchasing complete, how far can my warehouse go before having to wait on other locations? • Each location within the branch may individually run Invoicing and Purchasing Complete, but all warehouses must be completed before any one warehouse can proceed to the next step, Freeze On-Hand Balances. • When entering final counts do I use the actual count or a plus/minus (+/-)? • Actual Count

17. Product Knowledge Training

18. Product Knowledge Training • Knowledge is power and for our business, product knowledge can mean more sales. • It is difficult to effectively sell to a customer if we cannot show how a particular product will address a customer’s needs.

19. Benefits of Product Knowledge Having a through understanding of a product can… • Help Strengthen Communication Skills • Boost Enthusiasm • Grows Confidence • Assists in Overcoming Objections • Increase Sales

20. What We Need YOU to do… • Each Manager will need to schedule a minimum of 3 Product Knowledge Training Sessions over the next 3 months (1/month). • Each manager needs to submit a list including the name of the vendor/products/trainer’s name FIRST (for approval) before scheduling. • This allows you to choose the particular product area(s) that would have the most impact!

21. What We Need YOU to do… • The first Product Knowledge Training Session must commence in the month of July. • Each training session needs to be documented & submitted for credit.

22. FNW Gaskets

23. FNW Gaskets • Ferguson has implemented a comprehensive testing regime for all non-asbestos gaskets purchased through the distribution centers.  In order to maintain the integrity of our testing procedures, we are implementing strict new protocols in connection with the purchase and return of non-asbestos gaskets. • As part of our Product Integrity process, the following changes related to non-asbestos gasket and nut, bolt and non-asbestos gasket kits (“NA NBG Kits”) will be effective immediately.

24. Bottom-line… If you stay away from ordering anything under the FNW codes that is not actually FNW product you will be fine…

25. FNW Gaskets • Branches may ONLY stock FNW non-asbestos gaskets and NA NBG Kits.  • All non-asbestos gasket and NA NBG Kits must be purchased from our distribution network. • The purchase of non-asbestos gaskets from local gaskets suppliers is not permitted, except to fill an emergency order that must be filled on the same day the order is received. • Emergency orders may be purchased locally, but must be purchased using a “SP-code” • Branches may not accept returns of non-asbestos gaskets or NA NBG Kits from customers.  • Branches may not return non-asbestos gaskets or NA NBG Kits to Ferguson DCs. • Branches may not use FNW product codes for any non-FNW products. • In order to ensure that all branch inventory meets Ferguson’s Product Integrity expectations, all non-asbestos gaskets and all NA NBG Kits identified in the attached product codes that are not clearly stamped with the “Teadit” brand name are to be removed from inventory and discarded (and may not be otherwise resold or redistributed).

26. Does the NA mean all rubber types too? • No - Red rubber, and other types of gaskets beyond the fiber-type compressed non-asbestos gaskets do not need to be inspected as part of this effort.

27. May 2012 Sales by Whse. Including Administrative Fees (1798)

28. May 2012 Sales by Whse (Sorted by TP%).

29. Any Questions or Comments?