Dick Braun describes how Parker Hannifin's Win Strategy has significantly increased both sales and margins by improved value creation and value capture. Dick will discuss layering in value management pricing strategies on top of Parker's already robust product and customer segmentation price practices. Learn the concepts of "value triangulation" - whereby the pricing team dynamically adjusts value propositions based on competitive position and customer-specific economics. See how a $12 billion global diversified manufacturer endeavors to deploy a consistent value management approach.

1. Improving the Value Proposition for New Products
with Dick Braun, Parker Hannifin
Monthly Webinar Series - October 2011
Copyright © 2011 by LeveragePoint Innovations Inc.
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This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
COMPANY CONFIDENTIAL

2. Today’s Presenter
Dick Braun is Corporate Vice President of Strategic
Pricing at Parker Hannifin Corporation. Dick's work was
detailed in the Wall Street Journal feature article, "Seeing
Perfect Prices, CEO Tears Up the Rules." Previously, he had a
24-year career at GE. As leader of Parker Hannifin's pricing
program, he significantly contributed to Parker's earnings
growth over the past 7 years.
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3. Parker Strategic Pricing
Webinar
Dick Braun
V.P. Finance Corporate Strategic Pricing

4. Key Facts about Parker: FY2011
• $12.4 Billion in Revenue
• 839,000 Products Sold
• 471,000 Customers
• 55,000 Employees
• 13,000 Distribution/MRO Outlets Worldwide
• 1,100 Markets
• 132 Divisions
• 46 Countries
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5. Broad Technology Platforms
Aerospace Refrigeration Electromechanical
Filtration Fluid Handling Hydraulics
Pneumatics Process Control Sealing & Shielding
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6. Strong Global Presence
More than Half of Industrial Sales now International
FY11 Sales: $12 Billion
NA Industrial
28,000 Employees 1,600 15,000 Employees 7,000 Employees
8%
187 Plants Employees 91 Plants INTL Industrial Plants
33
5 Plants
18% 36%
Aerospace
38% Climate Industrial
Controls
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7. Significant Product Mix
>800,000 Products Sold
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8. Diverse Markets Served
OEM and Distribution

9. Parker Strategic Pricing
Introduction
Strategic Pricing = Key Center-Led WinStrategy
Initiative
Vision The #1 Motion & Control Company
#1 Premier Financial Profitable
Goals
Customer Service Performance Growth
S  Delivery of Quality Products  Suppliers  STRATEGIC  Internal
on Time PROCUREMENT Acquisitions Globalization
T
R
A  Operation  LEAN  Innovative Products
T  Value Added Services
E
G  Customers  STRATEGIC  Systems Solutions
I PRICING
E  Best Systems-PHconnect
S
 European Initiatives  Strong Distribution
Empowered Employees 9

10. Parker Strategic Pricing
Value Streams
3 Key Value Streams With Distinct Strategies,
Processes & Objectives
List Prices New Quotations Contract Renewals
~500,000 Quotes
~5,000,000 Prices ~50,000 Contracts
$5.6B Value
$5B Sales $5B Sales
$2B Sales
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