<PAGE> 1
[COOPER LOGO]
LEHMAN BROTHERS
INDUSTRIAL SELECT CONFERENCE
DECEMBER 1, 2000
<PAGE> 2
Material in this presentation may include forward looking statements
under the Private Securities Litigation Act of 1995. These statements
are subject to various risks and uncertainties, many of which are
outside the control of the Company, such as the level of market
demand, competitive pressures and future economic conditions. A
discussion of these factors may be found in the Company's annual
report on Form 10-K and other recent SEC filings.
This is a copyrighted presentation of Cooper Industries, Inc. and is
intended for the exclusive use of the participating audience. No other
use of this presentation may be made without the express written
consent of Cooper Industries.
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COOPER INDUSTRIES
A Growing Presence in Worldwide
Electrical & Electronic Markets
<PAGE> 4
AGENDA
o Historical Perspective
o Current Performance Trends
o Long-term Potential
<PAGE> 5
COOPER INDUSTRIES
1995
[PIE CHART]
Pro-Forma Annualized Revenues $6.1 Billion
<PAGE> 6
STRATEGIC ACTIONS
o Exit low return businesses with limited upside potential
<PAGE> 7
COOPER INDUSTRIES
1995
[PIE CHART]
Low Return Businesses
Annualized Revenues $3.3 Billion
<PAGE> 8
STRATEGIC ACTIONS
Continuing Operations
1995
[PIE CHART]
$2.8 Billion
o Focus remaining business lines on growing earnings
and cash flow
o Strengthen existing businesses and expand product
scope with complementary acquisitions
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COOPER INDUSTRIES
Continuing Operations
1995 2000
[PIE CHART] [PIE CHART]
$2.8 Billion $4.5 Billion
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REVENUES
($ Billions)
[BAR GRAPH]
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OPERATING EARNINGS
($ Millions)
[BAR GRAPH]
<PAGE> 12
EBITDA
($ Millions)
[BAR GRAPH]
<PAGE> 13
EARNINGS PER SHARE
[BAR GRAPH]
<PAGE> 14
RETURN ON
INVESTED CAPITAL RETURN ON EQUITY
[BAR GRAPH] [BAR GRAPH]
<PAGE> 15
DIVIDENDS PER SHARE
[BAR GRAPH]
o Current yield of 3.5%
<PAGE> 16
COOPER GROWTH PLATFORMS
-------------------- --------------------
Hazardous Duty Circuit Protection
Electrical Equipment
-------------------- --------------------
[COOPER LOGO] Crouse-Hinds [COOPER LOGO] Bussmann
-------------------- -------------------- -------------------
Lighting Power Systems Tools
-------------------- -------------------- -------------------
[COOPER LOGO] Lighting [COOPER LOGO] Power Systems [COOPER LOGO] Tools
-------------------- ---------------------- -------------------
General Duty
Wiring Devices Electrical Equipment Europe
-------------------- ---------------------- -------------------
[COOPER LOGO] Wiring Devices [COOPER LOGO] B-Line [COOPER LOGO] Menvier
Estimated Annual Revenues $5.0 billion
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[COOPER LOGO] Crouse-Hinds [PIE CHART]
Electrical products designed to protect
electrical systems in demanding
commercial and industrial environments.
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Used in commercial, industrial and
hazardous area environments.
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[COOPER LOGO] Bussmann [PIE CHART]
Circuit protection and power
management products designed to
protect electrical and electronic systems.
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Used in electrical and automotive
systems, telecommunications products, consumer
electronics, computers and peripherals.
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[COOPER LOGO] Lighting [PIE CHART]
Lighting fixtures and related
products for indoor and outdoor use
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Used in residential and commercial
installations, including homes, office buildings,
shopping centers, sports facilities, parking lots and
industrial plants.
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[COOPER LOGO] Power Systems [PIE CHART]
Equipment, components and systems
for the distribution and management of
electrical power.
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Used by electrical utilities and
significant commercial and industrial power producers.
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[COOPER LOGO] Menvier [PIE CHART]
Emergency lighting, security equipment,
fire detection systems and lighting fixtures.
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Residential, industrial
and commercial.
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[COOPER LOGO] Wiring Devices [PIE CHART]
Wiring devices, switches, plugs and
receptacles to deliver and control
electrical power
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Residential, commercial and
industrial use.
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[COOPER LOGO] B-Line [PIE CHART]
Support systems and enclosures used in
the installation and retrofitting of electrical,
mechanical and telecommunications
applications
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Used by commercial, industrial, utility
and original equipment manufacturing markets.
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[COOPER LOGO] Tools [PIE CHART]
Electric and pneumatic industrial power
tools, automated assembly systems and
premium hand tools.
[PHOTOGRAPH] [PHOTOGRAPH]
Major Markets: Power tools: aerospace, automotive,
general industrial and energy applications.
Hand tools: general manufacturing, electronics,
agricultural, consumer and construction industries.
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NORTH AMERICAN ELECTRICAL INDUSTRY
Cooper's Current Markets
[PIE CHART]
$40 billion (47th) of $85 billion Market
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KEY DRIVERS OF NEAR-TERM
PERFORMANCE
<PAGE> 27
RECENT ACQUISITIONS
[B-LINE LOGO]
[EAGLE ELECTRIC LOGO] [WILLSHER & QUICK LOGO]
[S&S LOW TENSION SWITCHGEAR, LTD. LOGO] [SHAPER LIGHTING LOGO] [KME LOGO]
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RECOVERY IN ENERGY INDUSTRY
PROJECT SPENDING
Active Petrochemical Projects
(Worldwide)
[LINE CHART]
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COMMERCIAL AIRCRAFT PRODUCTION
[BAR GRAPH]
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HIGH-GROWTH PRODUCT LINES
[PHOTOGRAPHS]
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MAJOR COST IMPROVEMENT PROJECTS
COOPER LIGHTING
[MAP]
Status
-------
o Monterrey start up underway/
operations restructuring
complete by year end
o Headquarters relocation 4Q/01
o China outsourcing gaining
momentum
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MAJOR COST IMPROVEMENT PROJECTS
COOPER MENVIER
[MAP]
Status
-------
o Holmes Chapel closed 7/00
o Banbury to be closed by year end
o China production being expanded
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MAJOR COST IMPROVEMENT PROJECTS
COOPER WIRING DEVICES
[MAP]
Status
-------
o 200+ positions to be moved by
year end
o Transition inventories being built
o China sourcing being developed
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MAJOR COST IMPROVEMENT PROJECTS
COOPER TOOLS
[MAP]
Status
-------
o Mexican manufacturing facility
under construction
o Low cost production begins in
2001
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COOPER GROWTH PLATFORMS
-------------------- --------------------
Hazardous Duty Circuit Protection
Electrical Equipment
-------------------- --------------------
[COOPER LOGO] Crouse-Hinds [COOPER LOGO] Bussmann
-------------------- -------------------- -------------------
Lighting Power Systems Tools
-------------------- -------------------- -------------------
[COOPER LOGO] Lighting [COOPER LOGO] Power Systems [COOPER LOGO] Tools
-------------------- ---------------------- -------------------
General Duty
Wiring Devices Electrical Equipment Europe
-------------------- ---------------------- -------------------
[COOPER LOGO] Wiring Devices [COOPER LOGO] B-Line [COOPER LOGO] Menvier
<PAGE> 36
COOPER GROWTH PLATFORMS
-------------------- --------------------
Hazardous Duty Circuit Protection
Electrical Equipment
-------------------- --------------------
[COOPER LOGO] Crouse-Hinds [COOPER LOGO] Bussmann
-------------------- -------------------- -------------------
Lighting Power Systems Tools
-------------------- -------------------- -------------------
[COOPER LOGO] Lighting [COOPER LOGO] Power Systems [COOPER LOGO] Tools
-------------------- ---------------------- -------------------
General Duty
Wiring Devices Electrical Equipment Europe
-------------------- ---------------------- -------------------
[COOPER LOGO] Wiring Devices [COOPER LOGO] B-Line [COOPER LOGO] Menvier
-----------------------
[LEVERAGE]
-----------------------
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STRATEGIC SOURCING
o High volume, limited supplier base
-- Direct negotiation
o High volume, multiple supplier base
-- Freemarkets auction
o Other
-- Cooper integrated business model
<PAGE> 38
STRATEGIC SOURCING
o High volume, limited supplier base
-- Direct negotiation
o High volume, multiple supplier base
-- Freemarkets auction
o Other
-- Cooper integrated business model
---------------------------------------------
$50 million
annualized savings
---------------------------------------------
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-------------------------------------------------------------------------------
THE COOPER CONNECTION
-------------------------------------------------------------------------------
[COOPER LOGO]
Connection
The Power
Behind the Brands.
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THE COOPER CONNECTION
o Observations
-- Cooper is the #1 or #2 largest supplier at most
major electrical distributors in North America
-- Typically, distributors do not carry all available
Cooper products
-- There is potential for expanded sales of
currently carried products at most distributors
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-------------------
Hazardous Duty
Electrical Equipment
--------------------
[COOPER LOGO] Crouse-Hinds
---------------------- ------------------
Lighting Circuit Protection
---------------------- ------------------
[COOPER LOGO] Lighting [COOPER LOGO] Bussmann
THE
COOPER CONNECTION
------------------------- ------------------------
Wiring Devices General Duty
Electrical Equipment
------------------------- -------------------------
[COOPER LOGO] Wiring Devices [COOPER LOGO] B-Line
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THE COOPER CONNECTION
o Distributor Benefits
-- Incentive to grow Cooper business
o Cooper Benefits
-- Enhances revenue growth
Easy to understand -- Simple to administer
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KEY DRIVERS OF NEAR-TERM
PERFORMANCE
o Recent acquisitions
o Recovery in electrical construction
materials and aerospace tools
o Higher growth product lines
o Cost improvement projects
o Strategic Sourcing
o The Cooper Connection
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CASH FLOW
($ Millions)
[BAR GRAPH]
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[COOPER LOGO]
A Growing Presence in Worldwide
Electrical & Electronic Markets
o Leading Business Platforms
o Expanding Growth Opportunities
o Strong Cash Flow
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[COOPER LOGO]
