Chicago American Manufacturing, dba CAMAir, LLC product line review for portable fans

1. Product Line Review
Portable Fans
Chicago American Manufacturing, dba CamAir LLC
Eric Hunger - VP Sales and Marketing, Camair

2. 2
Discussion Topics
I. Company Overview & Capabilities
 Company Profile
 Manufacturing Capabilities
 Supply Chain Capabilities
 Current Performance with THD
II. Market Intelligence
 External Market Analysis
 Competitive Assessment – SWOT Analysis
 Customer Insights
III. Product Assortment
 Current Assortment Review
 Go Forward Assortment
 New Product Submissions
IV. Execution & Support
 Execution & Vendor Support
V. Financial Considerations
 Program Discounts

3. 3
I. Company Overview & Capabilities

4. 4
Company Profile
Key Customers - Chicago American Manufacturing
Financial ( 3 Year)Company Background
Key Customers - CamAir
 Revenue Trends: Up 20% year over year.
 Margin Trends: Maintaining historical levels.
 Operating Profit Trends: Maintaining historical levels.
 Key News Affecting Financial Stability: None
 Place/Date of Incorporation: Chicago, IL in 1972
 Public/Private: Privately Held
 No. of Employees: 230
 Geographic Locations/Capabilities: From our Chicago
location, we service North, Central, and South America
 Key Brands: AeroSpeed, Cool Master

5. 5
Manufacturing Capabilities
Quality
Unique ExpertiseManufacturing Footprint
Sustainability Focus
 List Any Quality Certifications (ISO 9000, etc): ISO 9000
certification for our Blackhawk Steel and Dockside Steel
 Current Defect Rate: Less than 0.75%
 Environmental, Heath & Safety Programs: Meet current
OSHA standards.
 Waste Reduction: All steel, cardboard products, and
waste water are recycled.
 Green Packaging: Recycled cardboard for packaging.
 List & Describe Manufacturing Locations: Chicago, IL.
 Annual Capacity in Units: 7.5 million units
 Describe Investment in Continuous Improvement:
CamAir has added $1.1MM in robotic equipment used
to manufacture box fans, 4 new injection molding units
and expanded warehouse capacity
 Describe any Unique Technical Expertise: Our engineers
have over 100 years in fan design and production.
 Vertical Integration: Both Dockside Steel and Blackhawk
Steel are owned and operated by Chicago American
Mfg.(CA M). These factories provide steel and
component parts for our fan production.
 Describe Any Manufacturing Patents: CamAir has
patents on motors and grills designs.
 Describe Any R&D Investments: Developing motor mfg.
in North America and new fans for 2013.

6. 6
CamAir’s Chicago Facility
 650,000 sq. ft. of production and
warehouse space
 Midwest’s largest powder coating line
 Robotic laser and assembly
 7.5 million units of fan capacity

7. 7
Supply Chain Capabilities
1
 All manufacturing and
warehousing is centrally
located in Chicago.
 Camair ships product to
customers in Canada, the
entire United States, Mexico,
and South America from the
Chicago facilities.

8. 8
Current Operational Performance with THD
 Avg. last 13 week Fill Rate %: 99.0%
 On Time Delivery Performance: 97.0%
 Lead Time – Direct to Stores: 2 weeks
 Lead Time – THD Regional DCs: 2 weeks.
Chicago American Mfg. (CAM), parent company of Camair LLC, has
been supplying lumber carts and display fixtures to Home Depot for
over 6 years. Based on this experience, our organization knows the
commitment and the service levels that are required to be a key supplier
to Home Depot. The following metrics are CAM’s performance
indicators Y-T-D 2014.

9. 9
II. Market Intelligence

10. 10
External Market Analysis
 Total Market Size: $430 million
 Total Market Growth: 1-2%
 Home Improvement Market Size: $118 million
 Home Improvement Market Growth: 1-2%
 Market Share Trends/Drivers: OPP box fan, 20” air
circulator, and 16” pedestal fan drive 72% of the
business.
Portable Fan Market Size by Channel
Overview Portable Fan Dollar Share % by Outlet
Market Share by Brand
$118
million
$229
million
$9 million
$22 million
$21 million
$25 million
$8 million
Home Improvement
Mass merchandise
Co-op / Independent
Specialty
Wholesale / Distributor
Internet / Catalog
Other
12%
13%
33%
1%
2%
17%
2%
2%
18%
Home Depot
Lowe's
Walmart
Menards
Sears
Target
Ace
Amazon
Other
26%
23%
10%
41%
Lasko
Jarden (Sunbeam and
Holmes)
CamAir (Cool Master and
Aerospeed)
Imports and Other

11. 11
Competitive Assessment - SWOT Analysis
Opportunities
Strengths Weaknesses
Threats
 Home Depot’s strong brand – communicates authority on
product selection and instills trust in consumer
 Competitive pricing
 Assortment – product offering addresses key SKUs yet
has fewer SKUs in store than competition making the set
easier to manage and easier to shop
 Home Depot store presence
 Location of product (fans) within Home Depot stores is
easily accessible and generally close to a high traffic area
 Retail proliferation – many retail outlets offer at least a
minimum number of portable fan SKUs
 Competitors are selling below cost to drive traffic
 Home Depot does not include certain elements of POP
such as aisle violators and index card size signage that
communicates key features and benefits of the fans
 Home Depot does not utilize end caps to drive fan sales
– end cap on the aisle with the fan bays could make a
statement with the OPP 20” box fans and draw
customers down the aisle
 Undifferentiated product offering from competition
 Opportunities to engineer more comps into assortment
by selling customer up to a higher retail price item
 Air circulator (20”), which sells at higher retail, is
the #2 seller in the NE, Mid-Atlantic, and SE
regions, yet air circulator unit volume for THD
doesn’t illustrate this trend
 Establish drum fans as a destination shop for the pro
customer with more robust off-shelf program at pro end
of store

12. 12
Customer Insights
 The fan customer is predominantly female
 The consumer does not identify with any brands in portable fans
 Portable fans is not a destination category
 Customers do not “shop around” online or across various retail outlets
when purchasing a fan
 Consumers have a preference for a white/gray for most fans; consumer
preference is black for desk fans

13. 13
III. Product Assortment

14. 14
Current Assortment Review
By Price Point Structure By Finish
By Style

15. 15
V. Execution & Support

16. 16
Execution and Vendor Support
 Camair will work with The Home Depot to
manage the weather swings in this
seasonal business
 To capitalize on weather-related sales
opportunities, Camair proposes to keep
extra fan SKUs (5% of overall forecast) in
storage at our facilities in Chicago that will
be ready to ship to stores within 24 hours
 Camair manufacturers and assembles all fans included in this proposal in the
U.S.(Chicago). The only component that is sourced from overseas is the fan
motor. To hedge against any potential motor sourcing issues, Camair
proposes to have all motors, that are forecasted as of October 1, 2011,
physically in the U.S. by mid-January 2012.
 Camair commits to proactively managing the business by analyzing POS
data on a weekly basis to identify issues that are negatively impacting sales
(e.g., zero on hands, zero or declining sales)