About Equity Plumbing. Network & Share Best Practices Communications Marketing Membership

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2 About Equity Plumbing

3 About Equity Plumbing Our History Founded in 2008 with roots to 1993 Enhancing profitability for independent distributors Our Group 400+ members operating over 550 branch locations 90 preferred suppliers and 18 service providers Our Strength Fastest growing marketing group in the plumbing industry Aggregate member sales approaching $2 billion Financially strong and expanding organization Largest membership base in the plumbing industry

4 About Equity Plumbing Mission Statement Provide a combination of marketing solutions and superior returns to our member distributors while delivering above-average annual market growth to our preferred suppliers.

5 About Equity Plumbing Market Segments Serviced Commercial Residential Industrial/PVF Showroom Institutional Government

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7 Logistics Members are invoiced directly by suppliers Members remit directly to suppliers Suppliers upload member purchase data monthly Base Rebates distributed quarterly Group Growth, GainShare, Gold/Platinum & Supplier Pass Thru programs distributed annually

8 Governance Member Chaired Supplier Committee Member Chaired Marketing Committee Supplier Chaired Advisory Committee Equity Plumbing Executive Staff: o Matt Roos, President and CEO o Bob Snyder, Vice President Supplier Relations o Ted Havel, Vice President of Marketing o Pradeep Lohda, Operations/Financial Manager

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10 Incentives Base Rebate Group Growth GainShare Program Gold/Platinum Program Administrative Savings

11 Best Practices

12 Best Practices Network Groups Members assign senior executives to peer networking groups Each networking group is comprised of noncompeting companies, of similar size and market served Networking groups meet formally at the Equity Plumbing Annual Meeting

13 Best Practices Annual Meeting Networking Meetings One-on-One meetings with key supplier executives Topical seminars, guest speakers, and workshops Show Specials, Suppliers promotions only available to attending members

14 Equity Plumbing Communications

15 Equity Plumbing Communications Website The Equity website ( is the primary resource we use to deliver information to Members concerning Equity Suppliers, planning tools, our on-line University, GainShare reporting and Gold/Platinum status report. Our website is an indispensable business tool for Equity Members that want to make the most of their Membership. Exclusive Equity promotional offers from suppliers and service providers.

16 Equity Plumbing Communications Website Supplier Profile page key information on Equity Suppliers: Key executive contacts Training and education resources Merchandising resources and support Co-op/marketing funds Sales literature New product bulletins Company terms: Freight policy, minimum billing, return goods policy

17 Equity Plumbing Communications Website Product Spotlight highlights new or high impact products from Equity Suppliers. Excess Inventory Bazar provides Members with an effective method to buy or sell material with fellow Equity Members.

18 Equity Plumbing Communications Publication The Plumbing Advocate is the flagship publication of Equity Plumbing. Published quarterly, our magazine is circulated to more than 1,200 industry professionals. Editorial content includes sales and marketing tactics, inventory management, market trends, industry news, information on Equity Suppliers and new product releases. Best Practices Communications Marketing Membership

19 Marketing

20 Marketing Tools and Resources The Gold/Platinum program acknowledges and rewards members that achieve growth with Equity Suppliers and participate fully and effectively in Equity marketing programs. Equity Members that achieve Gold status earn a $500 bonus incentive and a $1,500 bonus incentive for achieving Platinum status.

21 Marketing Tools and Resources The GainShare program is a performance-based incentive designed to increase sales and profit for both Equity Suppliers and Members. GainShare encourages members to develop specific joint marketing plans with mutually agreed annual stretch purchasing goals. The Supplier gains additional sales growth and displaces competition while the member earns additional rebate dollars when their goals are attained.

22 Marketing Tools and Resources Equity University provides member employees with access to high-quality web-based learning modules focused on products and applications from Equity Suppliers. Our online University is dedicated to providing practical, efficient training so members can grow sales and solve customer problems.

23 Equity Membership

24 Equity Membership Application and member agreement Representative from senior management in attendance at Equity Annual Meeting Maintain current credit status with Equity Suppliers

25 The Power that Builds Profits