Nutsteel Business Plan

1. Nutsteel Business Plan June, 2010

2. NutsteelCompany Profile & Update Representatives Distributors Main Office Branch States covered by Nutsteel • Headquarters: Sao Paulo, Brazil • Founded in 1968 with 2009 Sales of R$ 36.5M ($19.7M) • Manufacturing Plant: 1 • Location: Sao Paulo (30K Square Feet) • AL Foundry, Machining, Painting, etc.; ISO 9001 Certified • Sales Offices: 2 • Macae (Offshore Market) • Salvador do Bahia (North) • Greater Than 99% of Nutsteel’s Destination Sales are in Brazil Nutsteel Financial Performance Brazil 3,300M sq mi Pop: 200M Major City: São Paulo Coast line: 4,600 mi Acquisition Rationale: Buy a profitable leader in a key emerging market with a strong IEC product line, which can be used as a platform to grow the region

3. Manufacturing Facility Operates with 1 Shift • Foundry: 50 people – 20T (metric) / Month • 4 Electrical Ovens + 1 Gas (spare) • 5 grinding machines • 4 screw machines , 1 vertical CNC and 3 CNC Lathes • Cleaning Process and Epoxy Powder Booth

4. Nutsteel PortfolioProducts are Certified to IEC Standards R$36.5M Others Fittings Panel Boards Lighting Plugs & Recept Junction Boxes and Control Stations Assembled by Nutsteel under license 70% of Sales are Nutsteel Manufactured Product

5. Nutsteel Financial Plan10.6% CAGR  13.8% CAGR with Synergy R$ M Synergy fueled primary by exporting Nutsteel products to Latin America along with opportunity for Europe, Middle East and Asia Increase capacity to support the plan and improve service level

6. Nutsteel Growth Strategy • Develop Export Sales in Latin America • Southern cone • Non Haz Loc heavy duty mining market in Chile and Peru, MRO driven • Target Mid Market O&G and Petrochem IEC customers: Argentina, Uruguay and Bolivia • Develop distribution channel – Should we have a separate channel • Andean countries • Use new Colombian distributor as the driver for the PactoAndino countries • Francisco Avila and Braulio Leon (Reme) are traveling to Brazil the first week of July • Fill up EGS IEC Portfolio for Middle East and Asia Project • HID lighting, Enclosures (Aluminum Exe), Fittings • Develop Brazilian Offshore Market • Nutsteel has limited participation in the Brazilian Offshore market • Require global coordination and organized project tracking • Do more in Brazil • Local content requirement will raise up to 75% • Eliminate or reduce significantly import duty • Platform for Mercosul • Reduce lead time

7. Latin America Mid Market AssessmentCurrently Expanding out of Brazil

8. Potential New MarketMining Industry • Chile, Peru, Argentina, Ecuador, Colombia • Mainly Copper Mining – Gold and Silver – Iron • Major accounts: • Codelco, BHP Billiton, Barrick, Anglo American, Antofagasta Minerals PLC All new projects and MRO are specified with UL listed heavy duty products. This remains Appleton Business • Medium Size Mines and Small Mine: • New projects and MRO Heavy duty/weatherproof non Haz Loc range lighting like NT850 series, conduit fitting, JB Jorge will bring price feed back

9. Nutsteel Export Capabilities • Have ability to quote and invoice in USD / Customer throughout Latin America will buy in USD • Need USD Price List for Nutsteel products • Need to set up price level for export • Review quote Process and contact people • Adjust T&C’s • Implement Trade Compliance for export • Customer service and quote: Portuguese and Spanish preferred, written English is OK • Collateral: All Spanish speaking countries can use the Portuguese catalog. English not available - Plan to translate

10. 2009 Product Launched • Complete line of Cable Glands, Adaptors and Reducers in Aluminum, Brass and Stainless Steel • Capacity issue • Male/Male Union in Aluminum, Brass and Stainless Steel • ATX Buy Out today • Photocell • ATX Gap

11. 2009 Product Launched • Zone 1 Electronic Siren • ATX Gap • Exd IIC Aluminum Enclosures • ATX cost reduction • Zone 1 and Zone 2 Compact fluorescent lighting up to 42W • ATX Cost reduction

12. 2010 NPD Status • Exe Polyester box • Invested in 3 moulds • Capex: R$140K – Spent R$42k • Certification R$40K • Time to MKT: 6 months • 1 size will close a gap • Complete range of Stainless Steel enclosure • Identified vendor • Use ATX current certification • Time to market: Now

13. 2010 NPD Status • Zone 2 LED Lighting • Equivalent to 70W HPS • Non Hazardous Bulkhead

14. Quick Product Opportunities / Synergy Enclosures and Controls Lighting Panel Boards Further Integration with Powerplex Manufacture Sealed Breaker in Brazil with Components from ATX Vendor in China, Increase Local Content, Rest from Local Sources Flood Lighting Nutsteel to source Areamaster Housing from Chinese vendor Fluorescent Keep sourcing fixture as today Control Stations Use New ATX Control Station Buy Component at Transfer Price Plugs and Receptacles Fittings Cable Glands Re-Establish Relationship with CMP to Free Capacity Align Pricing Globally Make Stainless Steel Version in Brazil Certification for Intermate IEC P&R Keep sourcing P&R from ATX Need Help Testing Product (Temperature, Aging, Power Dissipation

15. Major Projects / Future Objective • In Country • Review Nutsteel quote process • Include Nutsteel in the Global Project Pursuit Team • Global • Provide access to Appleton customers • Consolidate global IEC offering • Brand management – Appleton branded Nutsteel product • Sola • Provide access to Brazilian market