FCX Performance, Inc.

The Power of One 2 World class flow control solutions built on over 100 years of experience FCX does not run businesses; we provide our operating units with the tools to serve customers and grow their business with key vendors. All sales, customer & vendor management remains with the business unit. FCX provides Administrative & Strategic Support. We are the back office financial engine to facilitate sales growth.

Background 3 Leading specialty flow control distributor of valves, actuators, accessories, process instrumentation, pumps and mixers. Total solutions provider of valve automation, pump repair, instrumentation and other technical services Over 10,000 customers in diverse end markets Strong relationships with leading vendors Serves 30 states through 17 locations, including five distribution centers Balanced revenue model – 75% MRO;25% OEM and project business Experienced sales force offering technical solutions (>13 years average experience) Proven leadership team

What We Do 4 Providing Technical Solutions to Large & Sophisticated Customers Fittings Flanges Pipes Transaction Supplier Strategic Solutions Partner Commodity Valves - Water Gas HVAC Control Systems Valve Packages Smart Positioners Actuators & Instrumentation Metal Seated & Stainless Steel Severe Service Control Valves

Everything on the Pipe Valves Instrumentation Valve Automation Flow Measurement Steam Products Pumps & Mixers Service & Repair 5

Solutions, Services & Products 6 Valves Instruments Process Equipment Pumps & Mixers Services & Solutions Pipeline & Storage Power Refinery & PetrochemicalLNG

Baro Facility Machine Shop Certified Welding Center Valve Automation Center Repair & Service Center Inventory

Shop Capabilities Complete In house Automation 30 Ton Lift Capacity Experienced Craftsmen Complete Test Facility ISO Quality

Over 60,000 sq feet Assembly area for Valve Automation

Engineered Solutions for Industry

End User Challenges & Expectations 11

Challenges we see today with end users 12 Customers doing more with less Customers tasked with production, reducing down time, plant efficiency and planning Customer expects Distributor to be up on Technology Customer expects Distributor to take full responsibility for specifications, applications, selection of equipment and maintain aggressive competitive edge. Lead time demands have exceeded many manufacturers ability to deliver. Customers require a wider variety of valve designs: severe service & high alloy. Manufacturers have to be more flexible in their engineering and manufacturing to accommodate. Customers demand Distributors with wider ranges of products and broader capabilities. Customers requiring Distributor to Manage Sub Vendors of a Manufacturer Foundry Reports Manufacturing Schedules: machining, welding, assembly, packing

Challenges we expect from end users in the future 13 Greater emphasis on faster delivery / reduced lead times Increased competitive pressure from lower end manufacturers Customers are becoming more tech savvy. Increased use of E-Sourcing, on-line bidding and other technology based procurement systems that drive commoditization of engineered products Increased interest in broader supply agreements, alliances. Higher demands for speed of response on all levels of the sales cycle. This is hampered by reductions in people and resources available from the manufacturer.

How can a manufacturer help us address these challenges? 14 Improved management of your global supply chains to increase flexibility and reduce lead times. Increased incentives to stocking distributors to maintain more effective buffer inventories Lower costs to manufacture that actually translate to increased competitiveness and improved profitability for the distributor as well. Improved product quality and increased R&D investment all based on customer input and driven by their needs. Better marketing tools and collateral with emphasis on specific industry segments and applications. More resources dedicated to project proposals, specifications, technical/engineering/applications and sales support to help meet the customers expected speed of response.

Service & Repair Comments by End Users 15 Extensive Repair Evaluations Incoming & Outgoing Valve Tolerances Before & After Pictures of Valve Package BOMs used on valve by part number Seat Testing Verification R&D on root cause failures of repaired products

And thats no bull 16