1. FRANKE GMBH & FRANKE BEARINGS LTD IN 2012
GIVE BRIEF OVERVIEW OF LMS FOR OTHER FRANKE AGENTS

2. Franke Bearings
2 CONTENTS 3 FRANKE BEARINGS LTD & LMS 4 UK MARKET SITUATION 5 FORECAST OF FRANKE WEBSITE 7 ADVERTISING 8 MAILSHOTS SHOTS 9 EXHIBITIONS 10 WINNING NEW CUSTOMERS IN NEW WAYS NWAA, AGENTS, ERIKS, PR 11 SUGGESTIONS APPLICATIONS, SIEMENS SITES, REFERALS, 12 SUGGESTIONS SUPPORT FROM FRANKE 13 SUGGESTIONS EXCLUSIVE FRANKE PROMOTION WITH ERIKS 14 SUGGESTIONS KAYDON, KMF, ROLLIX, 15 SUGGESTIONS SEGMENT/QUADRANT BEARINGS NEW PRODUCTS 16 SUGGESTIONS ALUM. LDV, SEPERABLE LDV GEARRINGS 17 SUGGESTIONS REFERALS 18 SUGGESTIONS WIDE RAIL SYSTEM 19 CATALOGUES PACKAGING 20 FRANKE PROMOTIONAL GIFTS
TALK THROUGH TOPICS

3. A SEPARATE OPERATING COMPANY
Franke Bearings
3 FRANKE BEARINGS & LMS FRANKE BEARINGS LTD IS NOW
A SEPARATE OPERATING COMPANY
We still use the same CRM software & database but all enquiries orders, invoices, orders on Franke, Banking, VAT, etc is separate from LMS business. This has been more complex, costly, & time consuming than I had expected.
At the time of writing LMS as a going concern is up for sale, we hope to dispose of all Hiwin stock & MID/Toptek stocks & sell these & the goodwill & database, We have at present interest from more 2 buyers.
We may retain the Zimmer business within Franke Bearings or possibly as a separate company to be sold on with the stock.
Our target is to have completed the sale of LMS by March 2012 latest.
Our hope is to have agreed & completed the sale by January 2012

4. Franke Bearings Ltd
4 UK MARKET SITUATION to date has been better than expected, manufacturing in the UK continues to decline & is stagnant, however some of our major competitors in the linear market have de-stocked or abandoned the UK market completely. THK have now closed their UK operation. Bosch-Rexroth,IKO, NSK, INA, & others have continuing delivery problems & long leadtimes, we have seen growth mainly on recirc. guideway sales from new customers who cannot source product & each time this happens we have an opportunity to introduce Franke FD types. Price differentials for Franke FDA against recirc. types continue to be a problem, Our mailshots & shots have generated interest & orders on LDV. We still look to improve our knowledge, efforts & sales on Franke rotary product but will benefit from the advice & help of Franke, & our colleagues at this workshop.

5. Franke Bearings
5 FORECAST FOR 2012 LINEAR PRODUCTS For Linear products we believe the market will remain strong & with our focus entirely on Franke linear product we hope to improve sales further on our existing customer base & through new customers with renewed efforts & promotion. ROTARY PRODUCTS We intend to promote rotary product more strongly as again our focus will be totally on Franke. Sales of LDV present good opportunities as we carry stock & customers often need product on short delivery times. We see Bearing elements as more difficult as new applications will always be bespoke. We did successfully convert 1 customer from Healy to Franke last year but we still have much to learn about this market. We expect to maintain & increase our order volumes on Franke by 15% in Our target is €200,000.00

6. Franke Bearings
6 FRANKE WEBSITE We have already invested in a Franke website The site is up & running & hits the 1st page on Google if the search is for Franke Bearings, searches for other keyword/metatags are not as successful & need further work We are discussing further modifications & the addition of a search routine on the main website & addition of part numbers/descriptions to enhance the website & increase the visibility. We would like to agree links with the other Franke representatives to improve visibility further. We have also bought several additional domains with a plan to create single page sites linking back to our main site to improve page position.The link to Franke linear product & LMS will be broken. bearingelements.co.uk lddbearings.co.uk ldlbearings.co.uk ldvbearings.co.uk ledbearings.co.uk legbearings.co.uk lelbearings.co.uk lerbearings.co.uk lezbearings.co.uk slewingringbearing.co.uk turntablebearing.co.ukwireracebearing.co.uk

7. GOOGLE ADWORDS/SPONSORED WORDS
Franke Bearings
ADVERTISING Our previous advertising efforts have given poor results with little or no feedback/response. We do not have the budgets to mount sustained print advertising but are happy to reconsider if Franke wish to use this route.
GOOGLE ADWORDS/SPONSORED WORDS
We have explored & discussed costings with Google for Google adwords. They advise estimated costs of £1.50 per word per click for Franke keywords. using 5 keywords, eg Franke, Wirerace, Turntable, Slewingring, SlimBearing, With A 10 clicks/day/word limit, for 5 days/week we have a potential cost of over €400/week or €2000+/month. This will not guarantee 1st page presence. & is beyond our budget. I believe interlinked singe page interlinked domains routing back to our main site will work better.
We have already bought several .co.uk domains shown on the previous page to effect this plan.

8. Franke Bearings
8 PLANS 2012 MAILSHOTS/ SHOTS We increasingly use shot to customers when we quotes, CAD files or tech.data. We have developed & will develop more manufacturer specific shots for Franke. We have reviewed & continue to revise our database & can now selectively target customers by type, industry, machine type. etc. We have a bi-monthly programme planned for shots for Franke ranges. We have developed a number of single page pdf sales flyers for FDA, FDC, LDV, LDV Corrotect, etc. Traditional catalogue mailshots continue to be selectively used. DIRECT VISITS will be specific to customer application rather than general sales visits. The analysis we have done shows absolutely that our best & most successful cost effective sales/marketing/enquiry tool is GOOGLE

9. Franke Bearings
9 EXHIBITIONS/TRADE FAIRS TRADE SHOWS We have doubts about the investment/return in UK trade shows. Time, costs, poor attendance & results in the past for us make these shows a poor return on investment generally. We are willing to be guided by Franke in exhibiting in shows where Franke believe our presence will generate results. In the past our best results have come from the ETES Southern manufacturing shows. A list of some events for 2012 is listed below. We are happy to share costs with Franke for any events listed below in /02/2012 AUTOAERO Farnborough Auto/Aerospace manufacturing 21-23/05/12 Total processing/packaging NEC 23-24/05/2012 MEDTEC Medical equipment NEC /09/2012 DSEI Defence industry Excel LONDON /09/12: PPMA NEC Food industry Processing/packaging machines

10. Franke Bearings
10 WINNING NEW CUSTOMERS IN NEW WAYS FBL to join NWAA (North West Aerospace Alliance) Consider joining other trade organisations like PPMA etc to gain potential customer base data (priority targets from Franke ?) FREELANCE AGENTS (so far no success) 1 YEAR SOLE SUPPLY RESALE AGREEMENT WITH ERIKS Eriks have a network of over 200 branches in the UK. The plan would be to run an exclusive rolling promotion by region, supporting branch sales promotions with literature, samples, sample cases etc. to develop sales & promote the Franke Brand name. As Eriks are a reseller we will probably need samples, cases, & price support to generate an interest & return for the Eriks organisation & possibly a prize for the best performing branch PRESS RELEASES If we provide information can Franke issue press releases for FBL ?

11. APPLICATION EXAMPLES FROM FRANKE
Franke Bearings
11 SUGGESTIONS
APPLICATION EXAMPLES FROM FRANKE
We have not made use of these in 2011 due to other work pressures but we hope to do more in 2012 once we are focussed in Franke.
SIEMENS SITES.
We deals with 4 Siemens sites, we know of more sites but do not have a complete list of UK sites, can Franke help ?
REFERRED ADDRESSES FROM FRANKE
We always follow these up immediately. Sometimes they are companies known to us who want to bypass us & have contacted Franke direct. We have generated a little business from referals but no volume.
What amount of total referals (as %) are UK based compared to other countries ?

12. Franke Bearings
12 SUGGESTIONS SUPPORT FROM FRANKE Support From Franke (compared to Hiwin) is excellent. Some ideas we have are listed elsewhere in this presentation.

13. PROMOTING FRANKE EXCLUSIVELY
Franke Bearings 13
PROMOTING FRANKE EXCLUSIVELY
We have made what is a major decision for us to focus on Franke
The new company is running, LMS is for sale/sold, we will dispose of
Hiwin stocks & in 2012 & become exclusively Franke.
Hiwin sales have represented around 65-70% of our turnover.
Profit margins on Hiwin have been better than Franke.
(At this time the Zimmer business is not decided)
The changes have been a major financial decision & commitment from us & involved considerable extra work & costs.
We will have a smaller more manageable business & the time to put more of our efforts into developing Franke sales & the brand.

14. 2 Customers have told us that KMF via Carter bearings in the UK
Franke Bearings 14
KMF
2 Customers have told us that KMF via Carter bearings in the UK
Can offer alternative/equivalent bearings to LDV at lower cost.
This has come from one of our oldest customers for LDV0200
Do Franke know anything about this ?
KAYDON
We have lost orders on LDV0200A to Kaydon due to delivery problems from Franke What are franke’s stock levels for LDV sizes Are Franke aware of the alternative ranges/sizes from Kaydon
ROLLIX
In October company RNA enquired for 6 bearings for a new application This is a new company to us & Franke. We were offered (A ) € , 17+ weeks delivery
Customer has bought Rollix CRW type 14um app €

15. Franke Bearings
15 SUGGESTIONS SEGMENTED/RADIUSED RAIL LINEAR SYSTEMS. To our knowledge only THK, Hepco, & ?race offer Radius rail linear guideway systems. Is this a product franke might consider & develop ? Curved rail & cassettes with 1 roller/side to enable radiused/sraight travel ? QUADRANT BEARINGS Would Franke consider manufacture of quadrant bearings NEW PRODUCTS When Franke are considering new product do they consult with representatives ? Eg FPA recirc. system. SHOT FLYERS Can Franke help & provide single pdf. Format sales flyers for specific industries, eg medical, scientific, packaging, clean room etc based on their own customer base & knowledge of markets

16. Franke Bearings
16 SUGGESTIONS LDV LIGHTWEIGHT ALUMINIUM LDV Have franke considered producing LDV in Aluminium ? On Larger sizes of LDV weight is sometimes a problem SEPARABLE GEARRINGS FOR LDV Would it be possible to produce separable gearings for mounting onto LDV types ? DELIVERIES OF LDL is there any possibility to consider stock range sizes for LDL so we could offer customers higher spec. LDL bearings in preferred sizes (based on Franke sales history) to overcome long leadtime problems with LDL which sometimes result in lost opportunities & lost orders with new customers

17. Franke Bearings
17 SUGGESTIONS FRANKE MIGHT CONSIDER AGAIN REFERALS Is it possible for Franke/Distributors to provide lists of OEM German/other Machine build customers & the industry segments the OEM’s service. We can then target UK machine agents & endusers in those industries to try to secure replacement business & improve the service to those customers. We may also find other OEM users in those industries We regularly sell Franke to re-sellers who mark up Franke products again, sometimes significantly to sell to users of Grob, Feck, & other machines. This can make users wrongly believe Franke product is very costly & deter them from using or specifying Franke

18. Franke Bearings
18 SUGGESTIONS FOR FRANKE TO CONSIDER AGAIN WIDE RAIL/GUIDE SYSTEM Franke have already produced wide rail variant rail profiles for the TLP/FTC ranges, why not produce this or other suitable profile/s as a linear guideway system for applications where a single wide rail is used. (Dims for WE/HRW types for comparison) Hiwin, IKO, Ina, NSK, THK, & other competitors offer a wide rail option. A wide rail system might be used on a low cost belt drive linear module system AT THE APRIL MEETING I ASKED FOR SAMPLES OF WIDE RAIL PROFILES WE MIGHT CONSIDER TO DEVELOP LINEAR SALES NO SAMPLES HAVE BEEN PROVIDED

19. Franke Bearings
19 OTHER WISHES REQUESTED AT THE APRIL WORKSHOP PLEASE MAY WE HAVE 200 CATALOGUES ? CAN PACKAGING BE IMPROVED PLEASE FD SEALS, S10 SEALS, WIRES, BALLCAGES, OFTEN ARRIVE WITH NO IDENTIFICATION OR QUANTITY SHOWN ON CONTENTS IN THE BOX DO CUSTOMERS WHO VISIT PARTSERVER FOR CAD OR TECHNICAL DATA GET REFERRED BACK TO FRANKE BY PARTSERVER ? MAY WE HAVE A COMPLETE SET OF UP TO DATE 2D & 3D CAD FILES FOR ALL AVAILABLE FRANKE PRODUCTS WHAT ARE RATIOS % OF ENQUIRIES TO FRANKE WHICH ARE REFERRED BACK TO REPRESENTATIVES (BY COUNTRY) ? .

20. 20 PROMOTIONAL GIFTS WILL FRANKE CONSIDER FOR OUR PROMOTION NEXT YEAR
Franke Bearings 20
PROMOTIONAL GIFTS
WILL FRANKE CONSIDER FOR OUR PROMOTION NEXT YEAR
FRANKE MOUSEMATS
FRANKE MEMORY STICK WITH CATALOGUE DATA ON