1. © 2016 Eaton. All rights reserved. Implicit Bias: Effect on Supplier Diversity Gloria Ware – JumpStart, Inc.; Principal, Inclusion mailto:Gloria.Ware@Jumpstartinc.org Joe McClain – Eaton; Supplier Diversity Leader mailto:PathricioJMcClain@eaton.com

2. 2 © 2016 Eaton. All rights reserved. Agenda Welcome JumpStart, Inc. – Overview – Gloria Ware Eaton – Overview – Joe McClain Implicit Bias: Supplier Diversity Impact Group Exercise – Request for Proposal (RFP) The Northeast Ohio Company (NOC) Review/Discuss Scenario Team Report Out Wrap-Up Discussion

3. © 2016 Eaton. All rights reserved. JumpStart Inc.: Company Overview Gloria Ware – JumpStart, Inc.; Principal, Inclusion mailto:Gloria.Ware@Jumpstartinc.org

4. 4 JumpStart unlocks the full potential of diverse and ambitious entrepreneurs to economically transform entire communities.

5. Connecting Entrepreneurs to Ohio’s Startup Ecosystem 5 Great Resources Made Available to All Entrepreneurs JumpStart is Ohio’s largest seed-stage investor and is connected to all sources of deal flow across the state. Partners listed and others in Ohio look to JumpStart for collaboration, access to services and JumpStart’s investment capital.

6. Lead a formal network of 13 NEO partners and collaborate with another 100+ NEO entities on a day-to-day basis Manage backbone operations (Metrics, Reporting, Funding, Deal Flow Management) for all 13 NEO collaborators Continue to develop new partnerships with service & capital providers to meet client needs We Manage The NEO Ecosystem 6

7. JumpStart’s Venture Development Model 7 Access to Sales CAPITAL SERVICE S ECOSYST EM Burton D. Morgan Mentoring Program Talent Recruiting Growth Planning NEO NETWORK 8

8. JumpStart And ESP Performance JumpStart Performance 8 Northeast Ohio Network Performance invested in high-growth Ohio companies by JumpStart. $33M + in capital raised JumpStart’s portfolio and client companies. direct, indirect & induced jobs created in Northeast Ohio by JumpStart’s portfolio and client companies. entrepreneurs helped by the Network. raised in capital by these Network entrepreneurs. 1,100 + $1.9 B in revenue created by these Network entrepreneurs. direct, indirect & induced jobs created in Northeast Ohio by the NEO Network. ~10,00 0 $1.4B 8 in revenue has been generated by JumpStart’s portfolio and client companies. $1B+ $821 M ~4,80 0

9. © 2016 Eaton. All rights reserved. Eaton: Company Overview Joe McClain – Eaton; Supplier Diversity Leader mailto:PathricioJMcClain@eaton.com

10. © 2016 Eaton. All Rights Reserved.. 10 Global reach with local responsiveness and support Headquarters: Dublin, Ireland Chairman & CEO – Craig Arnold Key locations in Cleveland, United States; Shanghai, China; Morges, Switzerland; São Paulo, Brazil Regional engineering teams to support products and custom solutions Customers in more than 175 countries Approximately 100,000 employees

11. © 2016 Eaton. All Rights Reserved.. 11 Eaton’s brand promise

12. © 2016 Eaton. All Rights Reserved.. 12 Eaton’s Vision To improve the quality of life and the environment through the use of power management technologies and services.

13. © 2016 Eaton. All Rights Reserved.. 13 Our vision is to improve the quality of life and the environment through the use of power management technologies and services. We develop our employees We delight our customers We deliver for our shareholders We support our communities

14. © 2016 Eaton. All Rights Reserved.. 14

15. 15 © 2016 Eaton. All rights reserved. Electrical Sector Systems and Services VehicleAerospaceHydraulicsProducts We deliver safe, reliable, and efficient power management solutions Industrial Sector Providing safe and efficient electrical solutions from generation through distribution and control 2015 Sales: $7.0B 33% of sales 2015 Sales: $5.9B 28% of sales 2015 Sales: $2.5B 12% of sales 2015 Sales: $1.8B 9% of sales 2015 Sales: $3.7B 18% of sales While helping our customers solve their most difficult challenges Solutions for the world’s most demanding power needs Mission critical, safe, and reliable solutions Leader in fuel economy and emissions reduction 2015 Sales: $7.0B 33% of sales 2015 Sales: $5.9B 28% of sales 2015 Sales: $2.5B 12% of sales 2015 Sales: $1.8B 9% of sales 2015 Sales: $3.7B 18% of sales

16. © 2016 Eaton. All Rights Reserved.. 16 Everywhere Eaton does business, we follow our Global Ethics and Compliance guidelines; we’re committed to doing business right, which includes: Ethical standards for our people Environmental stewardship of our facilities Fair treatment and health & safety of employees Local support of the communities in which we live and work Committed to doing business right “We take great pride in our reputation as an ethical company, and we share the responsibility for supporting and strengthening our high integrity culture.” – Craig Arnold, Chairman & CEO

17. © 2016 Eaton. All rights reserved. Implicit Bias: Supplier Diversity Impact Joe McClain – Supplier Diversity Leader mailto:PathricioJMcClain@eaton.com

18. 18 © 2016 Eaton. All rights reserved. Strategic Sourcing Process Below is a typical phase-gate Uniform Sourcing Process for major purchasing projects. There are six major phases identified below. For the purpose of the exercise we will focus on: Phase 1 and Phase 2

19. 19 © 2016 Eaton. All rights reserved. Phase 1: Develop the Sourcing Strategy Critical Components Validate sourcing opportunity Determine Scope Geographic, Number of facilities, Key Stakeholders, etc. Annual Purchase Value Support needs Prioritize opportunity Key Outcomes Company Goals Sourcing Method

20. 20 © 2016 Eaton. All rights reserved. Phase 2: Supplier Selection & Award

21. © 2016 Eaton. All rights reserved. Group Exercise: The Northeast Ohio Company (NOC) – RFP Gloria Ware – JumpStart, Inc.; Principal, Inclusion mailto:Gloria.Ware@Jumpstartinc.org

22. 22 © 2016 Eaton. All rights reserved. Exercise Instructions – 20 Minutes 1.Select Roles Timekeeper – Ensure timely completion of assignment. Scribe – Document key information discussed. Facilitator – Report team findings 2.Review the Scenario – Individually – 10 Minutes Take notes on key components Select Projected Winner 3.Document Team Summary – 10 Minutes Overview of RFP - Key Points Identified Benefits/Challenges of each Vendor “Projected Winner” – based on information provided Support Information for decision

23. 23 © 2016 Eaton. All rights reserved. Team Presentation(s) Overview of RFP - Key Points Identified Benefits/Challenges of each Vendor “Projected Winner” Support Information for decision

24. 24 © 2016 Eaton. All rights reserved. Wrap-up Discussion How do you avoid poor sourcing decisions? 1.Provide effective training for employees that are responsible for sourcing. 2.Utilize a standard approach to identify and select qualified vendors 3.Focus on Purchasing and SCM Professionals to improve internal diversity

25. 25 © 2016 Eaton. All rights reserved. Questions / Wrap-Up