HOWDY

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HOWDY!

• Marshall Maedgen 93 Austin General Manager
• Mark Hanley South Texas Region Manager

LCR-M
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LCR-M

• Introduction to LCR-M
• Plumbing Industry
• Intern Program
• Management Training Program
• Questions

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LCR-M

• Wholly owned subsidiary of Hajoca Corporation
• Third largest plumbing distributor in North
  America
• Incorporated in 1912 under name Craft-Rushworth,
  LTD
• 600 associates
• 52 locations in Texas, Louisiana, Arkansas and
  Mississippi operating under five trade names
• Serve plumbing and mechanical contractors,
  builders, municipalities, consumers, industrial
  users and niche markets

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LCR-M

• Decentralized structure
• Profit center manager is key
• Centralize where specific expertise or economies
  of scale required
• High performance expectations
• 35 Return on Assets
• Market Leadership
• Profit Sharing

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LCR-M

• External and internal growth
• Seven acquisitions in last nine years
• 18 same-store, compounded annual growth last
  three years
• The Bath Kitchen Showplace initiative
• Value added services
• Private label product introductions

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Mission Statement

• Our mission is to be the BEST at what we do in
  each market we serve.
• As a customer dedicated supplier, we will offer
  such exceptional, error-free service and
  dependability that extra value is added to the
  products we sell.
• We will maximize profits and benefits for our
  customers, ourselves and our suppliers while
  operating in a professional and ethical manner.
• By doing so, we become THE preferred source of
  supply, offering opportunities for personal and
  professional growth to everyone in the Company.

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Plumbing Industry

• Growth Industry
• 16 increase in household formations next ten
  years
• Health care facilities and residential housing
  for aging population
• Schools in South and West
• Remodeling expected to exceed new construction
• Introduction of water conservation and energy
  efficient products

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Plumbing Industry

• Fragmented contractor customer base
• Relationships and value added services
• Increased demand for technology
• Consolidation at builder level
• Top ten builders represent 21 of housing starts
• Greater influence in channel
• Consolidation at distributor level

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Intern Program

• New for 2007
• Twelve weeks divided into two parts
• Austin, Dallas/Ft Worth, Houston, San Antonio
• Top management involvement

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Intern Program

• Week 1 Orientation/Warehouse
• Week 2 Warehouse/Delivery
• Week 3 Counter sales
• Week 4 Counter sales/Contractor/Showroom sales
• Week 5 Inside sales/Outside sales/Manufacturers
  rep
• Week 6 Operations/Administrative/Regional
  support
• Week 7-11 Customer satisfaction survey
• Week 12 Analysis/Presentation

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Management Training Program

• Started in 1992
• Five year structured program
• Six month introduction
• Inside sales
• Outside sales
• Operations management
• Company commitment

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Management Training Program

• Nine graduates managing businesses
• Five in Texas since 1999
• Four I.D. graduates
• Two graduates in outside sales
• Eight in program today
• Six I.D. graduates

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Questions?
LCR-M