1. MWUG Spring 2016 Presented by: MOGGIE BRADY - Capital Safety/3M ALEX KIM - 32 Soft Inc.

2. Who is Capital Safety?

3.  1973 – DB Enterprises founded – Red Wing, MN  1998 – Capital Safety Group founded  2003 – DBI Sala and Protecta merge  2012 – KKR purchased for $1.12 billion  2015 – 3M purchased for $2.5 billion  Doubled in size every 5-7 years  Completed 60,000 sq.ft manf addition in 2015 History Highlights

4. Who is Capital Safety?

5. Global Footprint Production Facilities  Red Wing, MN 1  Toronto, Canada  Bogotá, Colombia  Curitiba, Brazil  Banská Bystrica, Slovakia  Carros, France  Sydney, Australia Sales Offices  Red Wing, MN  Atlanta, GA  Toronto, Canada  Mexico City, Mexico  Bogotá, Colombia  São Paulo, Brazil  Curitiba, Brazil Warehouses  Los Angeles, CA  Edmonton, Canada  Red Wing, MN  Mexico City, Mexico  Houston, TX  Windsor Locks, CT  Atlanta, GA  Toronto, Canada  Bogotá, Colombia Training Centers  Tustin, CA  Mexico City, Mexico  Houston, TX  Red Wing, MN  Bogotá, Colombia  Curitiba, Brazil  Toronto, Canada  Calgary, Canada  Saddleworth, UK  Paris, France  Nice, France  Banská Bystrica, Slovakia  Dubai, UAE  Singapore  Shanghai, China  Sydney, Australia  Drolshlagen, Germany  Curitiba, Brazil  Redditch, UK  Nice, France  Banská Bystrica, Slovakia  Shanghai, China  Osaka, Japan 3  Perth, Australia  Sydney, Australia  Auckland, New Zealand  Hamburg, Germany  Shanghai, China  Singapore  Sydney, Australia  Darwin, Australia  Dubai, UAE 3  Lima, Peru 3  London, UK 3  Carnegie, Scotland 3 New locations since FY2012  Shanghai, China 2

6. Extended Expertise

7. Sales Statistics  Unique SKUs:  11,000 per year  4,300 per month  Sales lines shipped:  30,000 per month  1,400 per day Market Demand Challenges:  Short lead times demanded  45% of spend sourced offshore  14+ week standard lead time  55% remaining spend 4+ week lead time

8. Supply Chain Statistics Active SKU Count: Added Items in 2015 YTD: Daily adds in 2015: 49,088 3,126 16 Active SKU Mix  Components  Sub-assemblies  End items  Total PurchasedMake 15,170 0 2,288 17,458 0 13,822 17,808 31,630

9.  Master Scheduler Jan 2010, Supply Chain and Materials Process Leader since July 2012  Warehouse/Receiving  Inventory Performance  Prior Experience - 6.5 years with SPX Corp  International Procurement  Sourcing  Buyer/Planner  Human Resource Generalist Moggie Brady

10. Obstacles  45% Surge in sales in 2010  Double-digit growth every year since  Response time to Customer Service: 2 hours  Resources limited  Time needed to complete projects  Life/work balance needed  IT Resources prioritized to other projects

11. Story

12. Looking for Solutions  Find proven success of OTTR report – customer service interface  Establish a more streamlined process for review of BOMs  Create 100s of work orders efficiently  Create a Lean PO placement process  Eliminate Manual PO creations  Have all needed data in one location  Automate Email to supplier with PO

13. Production Planner Tool

14. PO Automation Tool

15. Summary  Gained 70% efficiency in PO creation  Developed 15+ additional tools for procurement and 80+ for CS Global  ROI in months vs. years  Sustained headcount of eight employees  Learning curve minimal, Excel based

16. Alex Kim  ERP Implementations (since 1994)  IT Management  QAD Consulting  32 Soft Founder (2001)

17. 32 Soft Inc  Plug-and-play programs for QAD  Clients in NA, EU, AP  Sponsor of QAD Explore 2016

18. Core Values  Long-term philosophy:  Client relationships  Caring and talented team  Software programs  Winning attitude

19. Helping Capital Safety  Met at 2009 MWUG Conference  Discussed the needs list with Wade and Moggie  Clarified objectives and leadership  Admitted not all tasks were easy…  Tackled one item at a time

20. Summary  Completed the list in three months  Learned about the outcome 2 years later  Knew it was a great accomplishment by Moggie’s team  Recognized wise management of resources

21. Q & A