RA Internal Learning - ESC Optimizing LOTO and more.

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1 RA Internal Learning - ESC Optimizing LOTO and more. This presentation is meant for the viewing and usage of Authorized Rockwell Automation Distributors for learning purposes only. PUBLIC Unauthorized usage is prohibited.

2 2 RA Internal Learning ESC ESC is the #1 largest provider of LOTO services globally What s ESC here to do and why should we be selling it? ESC offers unique solutions only available through Rockwell and is known for high impact on production improvement.

3 3 RA Internal Learning ESC ESC s goal is not simply a transaction but establishing extreme value (quickly) to common industry pain points (typically LOTO). How is selling ESC going to help the rest of Rockwell? Our solution typically leads to long term partnerships and a desire for clients to ask: What else do you do? Once value and trust has been established with ESC s installed solutions, there is a high likelihood that the client will benefit from additional complimentary services and products.

4 4 ESC s core purpose - Balance Balancing Safety with Production. Changing common industry perspective that safety doesn t have to come at the expense of production / business goals.

5 5 ESC Services What is it? Engineered Safety Control Not simply compliance services like other companies. ESC specializes in offering a comprehensive service that leverages best-in-class engineering discipline to improve program performance. Delivering specialized engineering: Lockout-Tagout, Confined Space, Arc Flash, Machine Guarding, and more.

6 How ESC compliments Rockwell s portfolio ESC Solutions ESC addresses common OSHA pain points in a comprehensive and turn-key approach that yields high value Earns client s trust and learns client s business goals to consult on next steps. PUBLIC Rockwell Automation brings in a comprehensive portfolio to deepen and widen the partnership with the client. RA Solutions U.S. Businesses* *Same concept applies to global businesses however positioning is: To implement effective safety programs that don t hinder production. (still compliant with local codes, but no mention of OSHA) 6

7 Some of the well known brands that use and trust ESC...

8 ESC, as part of Rockwell Automation, serves global clients with local experts North America over 1,000 engineers Average 13+ years automation experience operating locally in 80+ countries helping you to install, operate, and maintain with 80+ locations and over 23K employees Latin America over 400 engineers United Kingdom World Headquarters Remanufacturing/Repair Centers Parts/Exchange Hubs Solution Engineering Centers Support & Sales Centers Remote Support Centers

9 ESC Market Climate Lockout-Tagout is the #1 most cited regulation in the manufacturing industry (and top 5 for all industries). Lockout-Tagout has remained on the top 10 most cited regulations for over 10 years for all industries. PUBLIC But one of the biggest areas of risk goes unnoticed by most until experienced first hand lawsuits

10 ESC Market Climate (true risk and cost) Total estimated lockout-tagout accident costs to industry with OSHA fines + lawsuits: Downtime and Damage to Equipment / Property = $28MM Insurance Annual Premium Increase = $70MM LOTO fines ~$14MM (federal + state stats combined) Settlement Estimates ($14 x 50 = $700MM) Downtime $28 Annual Insurance Increase $70 OSHA fines $14 Total = $812 Million Cost To US Businesses Yearly (Does not include cost to brand damage and damaged PR.) Settlements $700 (In Millions of Dollars)

11 ESC Market Potential So who is the target customer? Any business with 50 or more employees is a potential client and would stand to highly benefit from our solutions. Doesn t that mean the market is in the hundreds of millions of dollars? Yes. And it s ripe and ready for ESC (not just any generic competitor offering. Here s why.esc takes an approach designed to target productivity in addition to safety. ESC s services are designed to improve Operational Effectiveness (OE) in a quick, significant, and measurable way and then segue into RA complete portfolio.

12 Global - Market Potential By Segment Hotel/Casino/Museum Insurance Financial Waste Management Utilities (water & power) Mining Machinery and Equipment Repair Food Manufacturing Aerospace Manufacturing Chemical Manufacturing Plastics Manufacturing Notice that Manufacturing (while oftentimes the most thought of industry when it comes to LOTO) only represents a small fraction of the total market. PUBLIC Wholesale Trade and Distribution Rail Transportation Educational Services Hospitals Remember Every company needs LOTO compliance and will benefit most from our approach vs. the generic safety services company

13 13 Deliverables (next 4 slides) Note: These next 4 slides are only meant to give you a better understanding of our typical approach to project execution (in case you re asked). If you want to show clients the ESC brand-friendly message, simply guide them through our website (or recommend they self-guide if they prefer).

14 ESC Engineers gather detailed equipment isolation data. High resolution photos taken to be processed by ESC s remote engineering team (based in Milwaukee HQ). Unique equipment data (energy source magnitudes, isolation techniques, impact to adjacent equipment, etc.) is gathered and linked with corresponding photos.

15 Procedures typically created remotely by ESC s engineering team in Milwaukee using a customized MS Excel template A full Quality Check (Q.C.) of the procedures is completed before a return visit takes place. Procedures are electronically prepared for on-site review/q.c.

16 Certified ESC engineers review procedures on site to ensure consistency, quality, and safety. Energy source isolation point tags are installed near corresponding shut-off and control points. ESC - Injection Molded Tags High Chemical Resistance Superior UV Resistance Superior Pull Strength

17 Procedures are then typically installed at point of use for convenience. Optional Injection Molded format. Outdoor rated, UV protected, chemical resistant. Optional Electronic Only format. QR code installed for quick reference by ScanESC users

18 Electronic Files Reference Binder List of Device Recommendations Program Management Training ScanESC Usage Training (when applicable)

19 19 ESC Long-term mutual win relationships ESC often leads with LOTO services, then when value and trust have been established, offers the other proper components and follows the pattern around like a staircase as the relationship matures. Often, other RA products/services compliment the offering and add additional value as the client s needs are understood.

20 20 ESC - Key Differentiators ESC delivers engineered safety not just minimum compliance. Our solutions are designed to yield a more efficient safety program and thus less burden to any business. For businesses that benefit from lower downtime (manufacturing, oil/gas, pharmaceuticals, etc.) we offer APM (Alternative Protective Measure) solutions that are custom made procedures designed to be effective alternatives to LOTO for select situations.

21 Engineered Safety Control Visit for more information PUBLIC

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