IIA Chicago Chapter 53rd Annual SeminarApril 15, 2013, Donald E. Stephens Convention Center

@IIAChicago

#IIACHI

Recruitment, Retention and Development of Staff

Trak Patel, VP Internal AuditNickie Warren, Internal Audit Manager

Small MotorsLarge

Motors

Generators

MechanicalDrives Other

Blowers

Company Overview

Revenues (PF)$3B +

ManagementExperienced, Credible,

Stable

Total Shareholder Returns 7-Year TSR

138%

Founded 1955Beloit, WI

DividendsRaised 7 out of

last 8 years

Revenue Growth7-Year CAGR

11.9%

p 2

Sales by Product/Platform Percentage of Sales

Sales by Geography Cyclicality

Asia

EuropeRoW

Canada

USA

Early 37%

Mid 47%

Late 16%

39%

27%

34%

ResidentialIndustrial

Commercial

Necessary and Innovative Products

Electric Motors

p 3

Power TransmissionElectric Controls

Power Generation

Diverse Applications

p 4

Global Foot Print

Able to Meet Customer Demands Anywhere In the World

Aligning with Faster Growing Economies

p 5

Financial Performance Profile

2007 – 2011 Sales CAGR

Performance Consistent With Best In Class Industrials

p 6

11.6% 11.2% 10.5% 10.4% 9.7%

3.2%

0.0%

5.0%

10.0%

15.0%

RBC DHR ROP AME IEX EMR

140.5% 137.6% 123.0%108.3% 103.1% 98.6%

0.0%

50.0%

100.0%

150.0%

RBC ROP AME IEX DHR EMR

_____________________Source: Capital IQ and BloombergNotes: CAGR represents cumulative annual growth rate for the 2007 – 2011 calendar periods.Free cash flow as a percentage of net income is defined as cash flow from operations less capital expenditures divided by net income.

2007 – 2011 Free Cash Flow / NI

Successful Acquirer and Integrator

Acquisition Strategy– Technology and Energy Efficiency

– Expand Geographic Footprint

– Margin Improvement

Rigorous Evaluation and Integration Process Drives Return On Investment

Acquisition Pipeline Continues to Be Active

2010

2011

HARGIL

DYNAMICS

PTY.

LTD.

Consistent and Successful Acquirerp 7

2012

Recruitment

• Identify level of experience– Manager, Senior, Staff

• Staff – Recruitment from College– Regal Finance Leadership Program

– Developed a program to build talent within the organization

– 2 year rotation program

• Manager & Senior Auditor– LinkedIn

– Personal Network

p 8

Recruitment Cont…

• Key areas to consider:

– Personality and fit for department

– Skill set

– IT experience, operational, Financial

p 9

Retention

• Different ways of retention– Compensation

• Pay for CPA exam• Snacks, Drinks, etc…• Team Challenge

– Encouragement– Constant Feedback– Career Pathing– Rewards– Glamorous/high profile projects– Travel Opportunity

p 10

Development

• Training– Regal focuses on training extensively– Online training courses– Six sigma training– Learning group focused on training– IA Lunch and Learns

• One on One Coaching• Opportunity for Staff and Seniors to directly interact with V.P.• Challenging Work

– M&A activity– Assisting in integration (SOx design new sites)

• Rotation– Regal has a proven record of promoting from within

p 11

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