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DEALER NETWORK FOR LONGWALL MININGJUNE 14TH, 2017
LW USA
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Confidential22
• June 2007: Bucyrus acquires DBT
• July 2011: Caterpillar acquires Bucyrus
• 2012-2015: Cat divests Bucyrus business to dealerships
Acquisitions
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Confidential33
Nearly two centuries of underground mining equipment experience
1994 2001 2002 2003 2004 2005
Merger 12/94
Hemscheidt
1993 - 1998
Halbach & BraunMarmon-Herrington
Westfalia BecoritSimmons-RandBecorit Mining
AndersonNorth American
Jeffrey
Saartech
Eimco(CM division)
Seneca
1826
Gewerkschaft Eisenhütte Westphalia
1991
Westfalia Becorit
Formation of DBT
2006 2007
DBT acquired by BUCYRUS
1995
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Confidential44
US Longwall Bucyrus Locations
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Confidential55
• Caterpillar divested the former Bucyrus / DBT aftermarket facilities to dealers.
– Berry Rd : CB Mining
– Carrier Mills : Fabick Mining
– Huntington : Wheeler
• 7 other Cat Dealers with longwalls in territory to support US mines.
• Some dealers opt to operate as a stand alone business.
Transition to Dealers
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Confidential66
USA CAT Longwall Population by CAT Dealer 2016
Wheeler3 LW/ 2
CAT
WyomingCAT
3LW/ 1 CAT
Wagner5 LW/ 3
CAT/ 1 ID
T+E1 LW/½
CAT
Thompson5 LW/ ½+½ CAT/ 2 ID
Walker2LW/ ½
CAT
CB Mining18 LW/ 12
CATFabick7 LW/ 4 CAT/
1ID
Ohio CAT2 LW/ 0
CAT
Carter2LW/ 1CAT
ID= Idle
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Confidential77
2016 Longwall Population
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Confidential88
• Started September, 2013
• Separate legal entity, stand alone business, family owned
• Only serve underground coal
• Berry Rd rebuild facility
• 89 ex-Bucyrus employees
• 3 Cleveland Brothers employees contracted to lead
• Additional facility added November 2013
CB Mining
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Confidential99
• Longwall equipment is unique and specific to each mine.
– Requires specialized employees
– Not like traditional Cat products
• One size doesn’t fit all
– Flexibility to use what works from traditional and not forced to use what doesn’t.
• Business has to perform on its own – Focused employees
Why Separate Dealer ?
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Confidential1010
CB Mining Territory
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Confidential1111
Longwall Mines
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Confidential1212
CB Mining Longwall Install Base
17 of 45 US operating Longwalls 38%
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Confidential1313
• Roof support: 68%
– 2824 Cat / 4180 Total
• AFC / BSL: 71%
– 12 Cat / 17 Total
• Shearer: 0%
– No Cat shearers at this time
In Territory Market Share
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Confidential1414
Mine 2016 Production 2015 Production % Change
Bailey Mine - CNXC 12,056,165 10,185,898 18.4%
Sugar Camp – Foresight ( IL) 11,443,835 10,587,790 8.1%
Marshall Co – Murray 10,523,671 10,294,865 2.2%
Enlow Fork – CNXC 9,638,245 8,999,294 7.1%
Cumberland – Contura 6,959,706 7,490,061 -7.1%
Tunnel Ridge – Alliance 6,593,227 5,893,600 11.9%
Harrison Co- Murray 6,586,715 7,106,441 -7.3%
Ohio Co – Murray 6,265,878 6,081,768 3.0%
US LW Production by Mine
• 7 out of the top 8 longwalls in CB Mining’s territory• All of top 8 have Cat as major system components
• Source Coal Age Feb 2017
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Confidential1515
Corporate Values are our foundation
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Confidential1616
• Building relationships
– What will it take for the customer to be successful?
– What value will this add for the customer?
• Know the customers business
– What areas can we help ?
– Move schedules, inventory planning.
• Liaison for the customer
– Cat owns the product, but the dealer owns the customer.
Customer Focused
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Confidential1717
• Support is local
• Flexibility to meet needs
• Accountability
• Member of the community
• Knowledge share on global platform
• Cat Financial
• Cat Dealer Network Family
Small Business feel, Large Cap Strength
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Confidential1818
• Full 45,000 sq. ft. OEM rebuild center
• 75,000 sq. ft. warehouse dedicated to longwall inventory
• Life Cycle Management team
• In house vibration analysis specialists
• Electronic repair shop for IS and XP reconditioning
• Cable manufacturing, hydraulic shop with testing
• 13 technical service reps dedicated to longwall
• HYMAC: Laser Cladding, machining, LW hydraulic cylinder reconditioning.
Capabilities
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Confidential1919
• CB Mining has been successful as a Cat Dealer dedicated to longwall by:
– Having the people in place that know the products.
– Stand alone business, focused on underground coal only.
– Using the dealership principals ( Values, customer focus, Dealer Network) to build relationships by better serving the customer.
– Expanding capabilities to satisfy the customers needs.
– Being centered in the heart of longwall country, USA.
THANK YOU for your time !
Summary
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Confidential2020
QUESTIONS ?