Eaton Corporation, PLC · NYSE:ETN

Eaton — Merger or Acquisition (April 2017)

10 slides from Eaton's merger presentation, Apr 10, 2017

  1. Slide 1: Eaton - Cummins Joint Venture

    Eaton - Cummins Joint Venture April 10, 2017 Craig Arnold – Chairman and Chief Executive Officer Richard H. Fearon – Vice Chairman and Chief Financial & Planning Officer © 2017 Eaton. All Rights Reserved..

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements We have included in this discussion certain information about our expectations for the future performance of the new joint venture and for our company going forward, particularly the assets remaining in our vehicle business. These are forward looking statements and are sub

  3. Slide 3: Strategic Rationale

    Strategic Rationale • Commercial vehicle industry faces continued regulatory challenges • History of regulatory changes driving significant emissions reductions • Future includes more demanding fuel economy standards • JV leverages capabilities of two leaders in powertrain technology • Builds on the

  4. Slide 4: Scope of the 50/50 Joint Venture

    Scope of the 50/50 Joint Venture – Eaton Cummins Automated Transmission Technologies • Future generations of automated medium and heavy duty transmissions for global markets • Includes design, development, assembly, sales, support and service • Includes recently launched automated medium duty ® tran

  5. Slide 5: Joint Venture Structure

    Joint Venture Structure • Eaton/Cummins will be 50/50 partners in the joint venture • Eaton to receive $600M for 50% interest in the business • Eaton contributes to the JV: • Current design for next generation automated heavy duty transmission • Current automated medium duty transmission product, Pr

  6. Slide 6: Financial Implications of the Joint Venture

    Financial Implications of the Joint Venture • 50/50 joint venture with revenue consolidated by Cummins • Financial implications of the JV for Eaton: • 50% of joint venture earnings to be reported within Vehicle Segment results • Financial impact for Vehicle Segment • Revenues • 2017: Approximately $

  7. Slide 7: Eaton's Vehicle Business Post Joint Venture

    Eaton’s Vehicle Business Post Joint Venture Commercial Vehicle Business Global Automotive Businesses  Global manual transmissions  Engine valves  Global clutch business  Valve actuation  Light duty and agricultural  Supercharger transmissions  Current heavy duty and  Torque control, fluid co

  8. Slide 8: Vehicle Business Post Joint Venture

    Vehicle Business Post Joint Venture Eaton’s Vehicle business will continue to be a strong contributor to the overall results of the company • Mid to high teens segment margins through the cycle • Very attractive returns on invested capital • Market leadership positions in technologies vital to emiss

  9. Slide 9: Summary

    Summary • Joint venture positions the automated transmission business to best address future industry demands for increased fuel economy, lower emissions and improved drivetrain performance • Provides broader access to global transmission market • Will take advantage of sales and service network of

  10. Slide 10: © 2017 Eaton. All Rights Reserved..

    © 2017 Eaton. All Rights Reserved.. 10

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