LAUNCH PRESENTATION JANUARY 2016

CONSTRUCTION HAMMERSPHASE 1 - “LAND & EXPAND”

$400M C AT E G O R Y G L O B A L LY

• Construction Growth is Primary Driver

• 3.5-4.0% Category Growth Rate

CONSTRUCTION HAMMER MARKETPLACE

Home Centers represent almost half of total US Market

NORTH AMERICA HAMMER MARKETPLACEMarket Share By Channel

CONFIDENTIAL IRWIN INFORMATION - DO NOT REPRODUCE, DUPLICATE OR, DISTRIBUTE

$120M C AT E G O R Y I N N A

Home Cen-ters45%

Hardware20%

I/C 30%

Other5%

57%

32%

11%

Column1

4

Framers, Trim Carpenters, General Contractors, Machinist and Fabricators.

END USER OVERVIEWProfile and demographics

Professional Tradesman

Drive or pound nails into wood, remove nails from wood, separate joined materials, and beat, form and shape metal surfaces

Target User

Applications

Where users buyChannel Percentage %Home Centers 45%

Hardware 20%

I/C Distribution 30%

Other 5%

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CONSUMER INSIGHTS Qualitative Market Perceptor

Preference for handle types and materialsIt varies from tradesman to tradesman. Some prefer the “traditional materials” of wood and steel and some feel more reassured by the durability and modernity of fiberglass and other materials. However, all have a downside

Steel Hammers Wood Hammers Fiberglass Hammers Titanium Hammers

(Estwing hammers were frequently mentioned) are beautifully designed and are all one piece, which reassures that they will not break. On the negative side, steel is seen to be unforgiving on the hands

These are seen as a more forgiving material, reducing hand pain and fatigue; however, wood hammers break easier and more frequently.

These are viewed as sturdy and fairly easy on the hands, but can be highly dangerous as they shatter when they break.

Ratio of weight vs. strike power ensures a good strike and prevents hand fatigue, but prices are extremely high

6

Opportunity to enter the hammer and demolition tools market

• IRWIN is regarded as credible and quality player

• Open space to play

Opportunities for improvement:

• Balance• Weight vs Strike Power• Tips, Edges and Faces• Curves and Bends• Grip and Comfort

Commercialization opportunities

• Create a strong communication and advertising plan around new product offering

• Merchandising alignment to drive consumer trial

CONSUMER INSIGHTS Qualitative Market Perceptor

Critical to QualityBalance and Feel | Shock Absorption

| Durability | Grip

HAMMERS USABILITYPhase I – Framing Scope and Ergonomics

Integrate waffle texture face on framing hammers to prevent hammer from slipping off head of nail

Handle should be rounded as opposed to oval to aid comfort and fit

Integrate a significant curve at bottom of handle to increase confidence that handle will not slip out of hand during use

HYBRID HANDLE DESIGN

Features a straight shaft and round handle with an integrated curve at the bottom to increase grip

8

Framing

HAMMER SALES BY APPLICATIONAll Hammer $ Sales; All Stores FY 2013

67%

9%

General Purpose

Specialty

24%

PRODUCT OVERVIEW16 OZ. FIBERGLASS GENERAL PURPOSE 20 OZ. STEEL GENERAL PURPOSE21 OZ. CALIFORNIA FRAMING

PRODUCT OVERVIEW Phase I – Framing Scope and Ergonomics

16 oz. Fiberglass General Purpose Hammer

Hybrid Handle DesignRounded for optimal comfort and fit Curved bottom to prevent slippageHardened end cap for added durability

ProTouch GripFor maximum control

Forged Steel HeadSuperior strength and durability

Smooth FacePrevents surface marks

Rip ClawIdeal for nail removal and prying applications

PRODUCT OVERVIEW Phase I – Framing Scope and Ergonomics

20 oz. Steel General Purpose Hammer

Hybrid Handle DesignRounded for optimal comfort and fitCurved bottom to prevent slippageHardened end cap for added durability

ProTouch GripFor maximum control

Forged Steel HeadSuperior strength and durability

Smooth FacePrevents surface marks

Magnetic Nail HolderHands free versatility when setting a nail

Rip ClawIdeal for nail removal and prying applications

PRODUCT OVERVIEW Phase I – Framing Scope and Ergonomics

21 oz. Wood California Framing Hammer

Axe Style Hickory HandleCurved for control and comfort

Rip Claw

Extended Reach and Impact15.5” handle offers extended reach and optimal swing speed

Forged Steel HeadSuperior strength and durability

Milled FacePrevents slippage when striking nail head

Magnetic Nail HolderHands free versatility when setting a nail

Ideal for nail removal and prying applications

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Pricing

Framing

General

Specialty Mallets Demolition

$$ Sept . 17 Sept . 17 Sept . 17

$$$

$$$$$$$

$$$

$$

$$$$$

$$$$

$$$$$$

US HAMMER MARKETPLACEManufacturers by Category

COMPETITIVE LINE-UPFiberglass General Purpose

ModelSurestrikeMRF16S

Irwin1954889

HuskyN-G16CHD-HN

Plumb11419

StanleySTHT51511L

Kobalt62742

Weight 16 oz. 16 oz. 16 oz. 16 oz. 16 oz. 16 oz.

Length 13” 13” 13” 13” 13” 13”

Face Smooth Smooth Smooth Smooth Smooth Smooth

Claw Rip Rip Rip Rip Rip Curve

Grip Over-Mold Pro-Touch™ Comfort Grip / Thumb Indent

Rubberized Ergonomic Comfort

Slip Resistant Rubberized

Magnetic Nail Holder

No No Yes No No No

Target Retail $17.50 $9.98 $9.97 $9.47 $8.98 $8.98

ModelVaughan

R20DeWalt

DWHT51054EstwingE3-20S

Irwin1954888

Stanley FatMax51-943

Kobalt62739

1 pc Forged Yes Yes Yes Yes Yes YesWeight 20 oz. 20 oz. 20 oz. 20 oz. 20 oz. 20 oz.Length 13 3/4” 14” 13 3/4” 14” 14” 14”

Face Smooth Smooth Smooth Smooth Smooth SmoothClaw Curve Rip Rip Rip Curve RipGrip Over-Mold PVC

Non-SLip GripRubberized Over-Mold

Comfort GripPro-Touch™

Comfort GripErgonomic Grip Comfort

Vibration Reduction

Yes (Shock-Block Plug)

No Yes No Yes (Tuning fork design)

No

Magnetic Nail Holder / Side

Puller

No / No Yes / Yes No / No Yes / No No / No Yes / No

Target Retail $29.98 $29.97 $26.00 $22.98 $20.75 $18.98

COMPETITIVE LINE-UPSteel General Purpose

ModelVaughanCF1-HC

VaughanCF1

DeWaltDWHT51411L

EstwingMRW25LM

Irwin1954890

Kobalt62994

Weight 23 oz. 23 oz. 17 oz. 25 oz. 21 oz. 23 oz.Length 17” 17” 16” 17.5” 17.5” 17”

Face Milled Milled Smooth Milled Milled MilledClaw Rip Rip Rip Rip Rip Rip

Handle Curve Straight Curve Curve Curve CurvedOverstrike Protection

No No No No No YesStrike Shield™

Magnetic Nail Holder

Yes Yes No Yes Yes Yes

Retail $30.20 $25.98 $21.00 $20.75 $19.98 $18.23

COMPETITIVE LINE-UPWood Framing California Hammer

F&B{Milled vs.

Smooth / Handle Type}

WEIGHTOz.

[Intended use & Preference]

Establish Communication Hierarchy

APPLICATIONFraming

General Purpose[Narrows Focus}

PACKAGING STRATEGY

IRWIN CONSTRUCTION HAMMERS

NEW IRWIN CONSTRUCTION HAMMERS AVAILABLE Q2 2016*In-store at Lowe’s Feb 9th

Irwin 20 oz. Steel General Purpose

Hammer

Irwin 16 oz. Fiberglass General Purpose Hammer

Irwin 21 oz. California Wood Framing

Hammer

Sku # 1954888 1954889 1954890

List $33.44 $16.17 $28.06

Packaging Plastic Tag Plastic Tag Plastic Tag

Case Pack 3 6 3

Master 24 24 24

Lead Time 115 days

PHOTOGRAPHY

LAUNCH MATERIALS

• Sales Presentation• Sell Sheet

• Master Data Content• Price List

• Images – In-use &• Static

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