3M CONFIDENTIAL

QT-I: Low Tier

MV Termination

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3M CONFIDENTIAL

MV Termination Tier Strategy

QT- I

QT-II

M-sealTape

Terminations

QT-III

Strategy: Protect and grow the core with full medium voltage termination portfolio

• Existing QT-II business at good margins (> 50%) in US, Europe (11M$) & Latin America (6M$)

• Some large utility business won by heat shrink and push-on competitors at very low prices

– Good growth opportunity, but:• Low margin if compete with QT-II• Risk eroding good margin QT-II business

• Need Lower Tier product that meets customer specs but has lower Factory Cost than QT-II

– Market QT-I to customers we are NOT selling to or have lost to lower priced competitors

– Gain incremental new business and gain customer intimacy

• Need a QS-2000E for our termination portfolio!– Need product to facilitate transition from heat shrink to cold shrink– Push-on technology accepted and widely used in many countries

Low Tier MV Termination to protect and sustain high margin QTII / QTIII salesQT-I to penetrate Utility market segment against HS and Slide-on tech.

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3M CONFIDENTIAL

3M Share Target 2011: 0.2% 2012: 2.5% 2013: 10% 2014: 15% 2015: 20%

WW Low Tier Termination Market: $130 mil

WW Addressable Market: $60mil

Competitors: Current Market Share Raychem: 50% Nexans: 15% Cellpack: 10% Prysmian: 10% Sudkabel: 5% REPL & Others: 10%

South Asia; $14

Latin America; $4

MEA; $12E-Europe; $10

W-Europe; $19

WW Low Tier Addressable Market identified 60 M$.3M Market Share Target from 2% to 20% in five years

Low Tier Termination Market(HS & Push-on)

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3M CONFIDENTIAL

Construction:– Stress Control: Extruded Silicone Tube – Insulator: Molded Silicone

Advantages:– Can be sold to:

• Heat shrink customers • Customers who will not use heat shrink

– Easier future sell-up to Cold Shrink: QT-I represents an intermediate step to sell-up from HS to QT-II (with good margin). QT-I targeted to be close in price to HS to enable customers to switch.

Disadvantages:– Need specific training for proper installation

QT-I Product Design: Push-On

QT-I Product Design

Indoor Outdoor

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3M CONFIDENTIAL

Country and Customers:– Germany (RWE, E.ON), Italy (AlpiQ , Elettrica System, Boffetti Impianti), Thailand (MEA, SAC Supply), Malaysia (Tenaga

Nasional Berhad TNB), Indonesia (Perusahaan Listrik Negara PLN), Australia (Ergon, Energex, Energy Australia & Integral Energy), Argentina (Edenor, EDET), Peru (Luz del Sur, Edelnor), Brazil (Alex Barbosa Tabisz, Electrocamp/Cet)

Positive Feedback (main reported)– QT-I easy to install, intermediate version between Heat Shrink and Cold Shrink. No needs

of Tools (torch).– Fire risk and complex installation avoidance against HS product.– Like 1 piece design– Several customers will not use QT-III due to price but would consider a cheaper push on

such as the QT-I

Improvement Feedback (main reported)– Sample hard to slide over larger size insulations– Need push-on support tool– Improve base to get better seal– Want inverted version (3% of their applications)

VOC InputQT-I Product Design

QT-I Product design has been validated through extended VOC.“One piece design” and No need for specific Tools (torch) have been

confirmed as main advantages vs HS solution 5

3M CONFIDENTIAL

Improvements based on VOC:– Increased insulation thickness on top of stress

control– Changed installation sequence

• Slide on termination before lug attached– Developing a supporting tool (see below section)

• Reduces force needed to slide on termination– Investigating meeting wider conductor ranges

• Easier installation requiring less force• Insures that the grease remains where it should be• Innovative, simple and inexpensive using 3M supplies• Decision not to be Patented. To be published in order to have freedom to practice.

Improved Installation Process

QT-I Product Design

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3M CONFIDENTIAL

QT-I Product Design

Differentiated Color with QT-III and QT-II7

3M CONFIDENTIAL

QT-I Test PlanElectrical Test Status

Internal electrical feasibility tests done‒ AC/DC, PD, Impulse, Salt fog test‒ Various cable types and cross sections

10kV Internal type test done

20kV External type test ongoing (wk 10) Type test done Humidity test done Salt fog test ongoing

30kV External type test ongoing (wk 14) Internal short term test done Humidity test done

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3M CONFIDENTIAL

3M QT-I, QT-II, QT-III Feature & Benefit

Meet ROHS and REACH requirements Contain no SVHC

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3M CONFIDENTIAL

Competitors Overview

Documentation included in the QT-I Launch Package10

3M CONFIDENTIAL

QT-I Application Range

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3M CONFIDENTIAL

IN OUT IN OUT IN OUT

SMALL size BO1BO7 + AD15

MEDIUM size BO2BO8 + AD19

LARGE size BO3BO9 + AD28

BO5 BO8

BO6 BO9

QT-I Range Coverage

10KV 20KV 30KV

BO4 BO7

To be Released by Jul

Released

To be Released by May

QT-I Availability

60% of the Total Market covered by the first 4 Sizes released (10KV to 30 KV In and Out Application)

Small and Medium cable application will be completely covered by May 2012 (10KV to 30KV)

Complete QT-I product portfolio to be released by July 2012

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3M CONFIDENTIAL

QT-I Portfolio

QT-I Kit can be ordered from March ‘12 through the reported SN

min max min max

92-EU 61-1 BO 1 12-I-12 10kV Indoor 25 120 $34.0 € 25.092-EU 62-1 BO 2 12-I-19 10kV Indoor 150 300 $35.3 € 25.9

92-EU 63-1 BO 3 12-I-28 10kV Indoor 400 63093-EU 61-1 KE-2341-2079-5 BO 4 24-I-15 10kV Outdoor 70 240 20kV Indoor 25 150 $38.6 € 28.4

93-EU 62-1 KE-2341-1849-2 BO 5 24-I-19 10kV Outdoor 150 300 20kV Indoor 70 240 $38.6 € 28.4

93-EU 63-1 BO 6 24-I-28 10kV Outdoor 400 630 20kV Indoor 300 630

94-EU 61-1 KE-2341-2080-3 BO 7 36-I-15 20kV Outdoor 25 150 30kV Indoor 25 50 $39.0 € 28.7

94-EU 62-1 KE-2341-1848-4 BO 8 36-I-19 20kV Outdoor 70 240 30kV Indoor 50 150 $40.8 € 30.0

94-EU 63-1 BO 9 36-I-28 20kV Outdoor 300 630 30kV Indoor 185 50094-EU 61-2 BO7 + AD15 AD15 30kV Outdoor 25 50

94-EU 62-2 BO8 + AD19 AD19 30kV Outdoor 50 15094-EU 63-2 BO9 + AD28 AD28 30kV Outdoor 185 500

TC(Eur/kit)

TC(USD/kit)3M Kit

TC related to 3 core kit without Lug - exchange rate Eur = 1.36 USD

Cable range Cable rangeVoltage class

Kit Stocknumber Used body names Application ApplicationVoltage

class

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3M CONFIDENTIAL

QT-I Kit ContentQT1 BOMs for 3-core termination kits

3 Body New3 Grease 10g New6 Mastic Tape 2230 20 mm x 152 mm 80-6108-3462-66

3

Scotch70 Tape 25 mm x 457 mmorSilicont Tube AHT 20,8 x 2,79

78-8050-9150-7

78-8113-5008-73 Glove KR-9992-4943-59 cable tie, lenght 280-400mm1 3M Vinyl Tape 10m x 15mm x 0,13 mm3 small Polybag to cover cable lug while slide on the body New1 Instruction1 Carton Box 44200048286

QTY / kit Description Ref. No.

QT-I basic Kits with 3-core Terminations without Lugs.Dedicated kits can be released with Mechanical Lugs included.

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3M CONFIDENTIAL

• 20% lower Transfer Cost than QT-II and 50% lower than QT-III

• Contribution margin expectation is 30% to 45% – Less than QT-II, but enables us to sell and build relationship– Can leverage position to sell up to cold shrink

QT-I Cost & Price Position

Europe QT-III, QT-II Average Selling Price and Cost (single phase)

SN Description Voltage Conductor Range

Transfer Cost for 1

Termination

2011 Average Sell Price for 1 Termination

YTD 2011 Contribution Gross Margin

GE700020714 QT-III 92-EP 631-2 20kV Outdoor 70 - 240mm2 28.70€ 80.96€ 65%

KE232055357 QT-II 94-EB 63-1 20kV Outdoor 70 - 240mm2 12.89€ 35.82€ 64%

KE234118484 QT-I 94-EU 62-1 20kV Outdoor 70 - 240mm2 9.98€ 14.50€ 31%

Without Molding Tools depreciation:8.70 € 14.50€ 40%

QT-I vs. QT-III Cost & Price Difference 65% 82%

QT-I vs. QT-II Cost & Price Difference 23% 60%15

3M CONFIDENTIAL

Contacts

Laboratory: Armin Koch-Binzer

Marketing: Gerardo Merola

Supply Chain: Birgit Blum

Manufacturing: Paola Pasquale

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3M CONFIDENTIAL

QT-I in Summary Low Tier MV Termination to penetrate Utility market segment

against HS and Slide-on tech protecting and sustaining high margin QTII / QTIII sales. Enabler for future sell-up to Cold Shrink.

QT-I Product design validated through extended VOC. “One piece design” (stress control integrated) and No need for specific Tools (torch) are the main advantages vs HS solution.

20% lower Transfer Cost than QT-II and 50% lower than QT-III. CGM expectation from 30% to 45%.

First 4 Sizes released to cover more than 60% of the Total Market (10KV to 30 KV In and Out Application). Full portfolio available from July.

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3M CONFIDENTIAL

Launch Package Content QT-I Presentation:

Low Tier Termination Market Overview QT-I Design & Product features (including comparison with QT-II and QT-III) MV Termination Competition Overview Product portfolio including SN, TC, Application Range and Timing QT-I Kit Content MV Termination tier strategy (pyramid) QT-I price and margin positioning Contacts QT-I Business Plan and Control Plan

QT-I Data Sheet QT-I Instruction Drawings QT-I Installation Video MV Termination Competition Overview 3M MV Termination Features and Benefits QT-I Dashboard

93-EU 61-1 and 93-EU 62-1

94-EU 61-1 and 94-EU 62-1

QT1 93-EU 62-1 QT1 94-EU 62-1

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3M CONFIDENTIAL

QT-I Control Plan

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3M CONFIDENTIAL

Region Country

Country market VOLUME

(1 phase equiv. vol)

1 phase equivalent

price

Country maket SALES potential for

low tier termination 1st year 2%

2nd yera 5%

3rd year 10%

4th year 15% 5th year 20%

South As ia Australia 240,000 $21 $5,040,000 $100,800 $257,040 $524,160 $801,360 $1,088,640South As ia Indonesia 129,000 $21 $2,709,000 $54,180 $138,159 $281,736 $430,731 $585,144South As ia Malaysia 54,000 $21 $1,134,000 $22,680 $57,834 $117,936 $180,306 $244,944South As ia New Zealand 24,000 $22 $528,000 $10,560 $26,928 $54,912 $83,952 $114,048South As ia Philippines 15,000 $22 $330,000 $6,600 $16,830 $34,320 $52,470 $71,280South As ia Singapore 39,000 $22 $858,000 $17,160 $43,758 $89,232 $136,422 $185,328South As ia Thailand 84,000 $21 $1,764,000 $35,280 $89,964 $183,456 $280,476 $381,024South As ia Vietnam 63,000 $21 $1,323,000 $26,460 $67,473 $137,592 $210,357 $285,768

648,000 $21 $13,686,000 $273,720 $697,986 $1,423,344 $2,176,074 $2,956,176

Latin America Argentina 45,000 $13 $585,000 $11,700 $29,835 $60,840 $93,015 $126,360Latin America Chi le 27,000 $22 $594,000 $11,880 $30,294 $61,776 $94,446 $128,304Latin America Peru 27,000 $22 $594,000 $11,880 $30,294 $61,776 $94,446 $128,304Latin America Brazi l 131,250 $20 $2,625,000 $52,500 $133,875 $273,000 $417,375 $567,000

230,250 $19 $4,398,000 $87,960 $224,298 $457,392 $699,282 $949,968

MEA Middle east 410,256 $16 $6,564,103 $131,282 $334,769 $682,667 $1,043,692 $1,417,846MEA North Africa 153,846 $16 $2,461,538 $49,231 $125,538 $256,000 $391,385 $531,692MEA South Africa 205,128 $16 $3,282,051 $65,641 $167,385 $341,333 $521,846 $708,923

769,231 $16 $12,307,692 $246,154 $627,692 $1,280,000 $1,956,923 $2,658,462

E-Europe Poland 102,564 $18 $1,846,154 $36,923 $94,154 $192,000 $293,538 $398,769E-Europe Russ ia 487,179 $16 $7,794,872 $155,897 $397,538 $810,667 $1,239,385 $1,683,692

589,744 $17 $9,641,026 $192,821 $491,692 $1,002,667 $1,532,923 $2,082,462

W-Europe France 150,376 $23 $3,458,647 $0 $176,391 $359,699 $549,925 $747,068W-Europe UK 179,487 $17 $3,051,282 $70,000 $155,615 $317,333 $485,154 $659,077W-Europe Germany 273,224 $17 $4,644,809 $150,000 $236,885 $483,060 $738,525 $1,003,279W-Europe Spain 153,374 $16 $2,453,988 $49,080 $125,153 $255,215 $390,184 $530,061W-Europe Nordic 205,128 $18 $3,692,308 $50,000 $188,308 $384,000 $587,077 $797,538W-Europe Benelux 102,564 $18 $1,846,154 $40,000 $94,154 $192,000 $293,538 $398,769

1,064,154 $18 $19,147,187 $359,080 $976,507 $1,991,307 $3,044,403 $4,135,792

3,301,378 $19 $59,179,905 $1,159,734 $3,018,175 $6,154,710 $9,409,605 $12,782,859

3M Sales plan in $

South Asia

Latin America

W-Europe

MEA

E-Europe

TOTAL

Country input data

QT-I Business Plan

Total expected Sales in 2012 about 1.1M$, to 12M$ in 2016.

South Asia24%

Latin America7%

MEA21%

E-Europe17%

W-Europe31%

2012 Sales est.: 1.1 M$

2012 QT-I Sales distribution by Region:

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3M CONFIDENTIAL

QT1 New product roll-out tracker

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N APAC - Eric Shu Feb-12ChinaHong KongJapanKoreaTaiwanS APAC - Cecil Francis Feb-12AustraliaIndiaIndonesiaMalaysiaNew ZealandPhilippinesSingaporeSri LankaThailandVietnamCEE - Cristian Ioan Feb-12CeskoHungaryIsraelPolandRomaniaRussiaSwitz EastTurkeyUkraineMEA - Mohammad Ghabin Feb-12EgyptGulfKenyaMoroccoPakistanSouth AfricaZimbabwe

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W Europe - Attila Kis Feb-12AustriaBelgiumDenmarkFinlandFranceGermanyGreeceItalyNetherlandsNorwayPortugalSpainSwedenSwitz ZurichUK IrelandLAC - Mike Higgins Feb-12Andean RegionArgentina UruguayBrazilCaribbean RegionCentral America RegChileColombiaMexicoVenezuelaCanadaUnited States - Jim Stanley Feb-12United States

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3M CONFIDENTIAL

QT-I DashboardQT-I Dashboard

Region Country2012

Target Sales Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '122013

Target Sales2014

Target Sales2015

Target Sales2016

Target SalesSouth As ia Australia $2,012 $257,040 $524,160 $801,360 $1,088,640

South As ia Indonesia $54,180 $138,159 $281,736 $430,731 $585,144

South As ia Malaysia $22,680 $57,834 $117,936 $180,306 $244,944

South As ia New Zealand $10,560 $26,928 $54,912 $83,952 $114,048

South As ia Philippines $6,600 $16,830 $34,320 $52,470 $71,280

South As ia Singapore $17,160 $43,758 $89,232 $136,422 $185,328

South As ia Thailand $35,280 $89,964 $183,456 $280,476 $381,024

South As ia Vietnam $26,460 $67,473 $137,592 $210,357 $285,768

$174,932 $0 $0 $0 $0 $0 $0 $0 $0 $0 $697,986 $1,423,344 $2,176,074 $2,956,176

Latin America Argentina $11,700 $29,835 $60,840 $93,015 $126,360

Latin America Chi le $11,880 $30,294 $61,776 $94,446 $128,304

Latin America Peru $11,880 $30,294 $61,776 $94,446 $128,304

Latin America Brazi l $52,500 $133,875 $273,000 $417,375 $567,000

$87,960 $0 $0 $0 $0 $0 $0 $0 $0 $0 $224,298 $457,392 $699,282 $949,968

MEA Middle eas t $131,282 $334,769 $682,667 $1,043,692 $1,417,846

MEA North Africa $49,231 $125,538 $256,000 $391,385 $531,692

MEA South Africa $65,641 $167,385 $341,333 $521,846 $708,923

$246,154 $0 $0 $0 $0 $0 $0 $0 $0 $0 $627,692 $1,280,000 $1,956,923 $2,658,462

E-Europe Poland $36,923 $94,154 $192,000 $293,538 $398,769

E-Europe Russ ia $155,897 $397,538 $810,667 $1,239,385 $1,683,692

$192,821 $0 $0 $0 $0 $0 $0 $0 $0 $0 $491,692 $1,002,667 $1,532,923 $2,082,462

W-Europe France $0 $176,391 $359,699 $549,925 $747,068

W-Europe UK $70,000 $155,615 $317,333 $485,154 $659,077

W-Europe Germany $150,000 $236,885 $483,060 $738,525 $1,003,279

W-Europe Spain $49,080 $125,153 $255,215 $390,184 $530,061

W-Europe Nordic $50,000 $188,308 $384,000 $587,077 $797,538

W-Europe Benelux $40,000 $94,154 $192,000 $293,538 $398,769

$359,080 $0 $0 $0 $0 $0 $0 $0 $0 $0 $976,507 $1,991,307 $3,044,403 $4,135,792

$1,060,946 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,018,175 $6,154,710 $9,409,605 $12,782,859

South Asia

Latin America

MEA

E-Europe

W-Europe

TOTAL

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