2016 NEW EXCHANGE PROGRAM PROCESS ROLL OUT CUSTOMER VERSION

COMMITTED TO SUSTAINABLE
PRODUCTIVITY
COMMITTED TO SUSTAINABLE
PRExOchDangUe CComTpIoVnenItTPYrogram

Product Managers meeting 4th quarter

201620N16EW EXCHANGE PROCESS

New Exchange Program Process

COMMITTED TO SUSTAINABLE PRODUCTIVITY

We stand by our responsibilities towards our customers,
towards the environment and the people around us.
We make performance stand the test of time. This is what
we call – Sustainable Productivity.

NEW ATLAS COPCO EXCHANGE PROGRAM

2016 New Exchange Process structure

 I would like to take the opportunity to bring you what is new at Atlas Copco
with our Exchange Program and its process.

 Our old method of selling our Exchange components is

2016 MRS EXCHANGE PROGRAM GROUP

Key Contacts for ALL your Exchange Component Needs

Dan Thibeault Brian Bernier Nathalie Parent
Exchange Inside Sales Product Manager Exchange Analyst
Exchange Program T- 705-669- 2592
T- 705–669-2907 T-705- 669-2926 C–705–929-0299
C–705–929-2905 C-705–677-9712

Ian Seltzer Dennis Squires
Component Shop Component Shop

Supervisor Planner
T- 705-669- 2934 C–705–919-4411
C–705–690-5591

James Vargo Arthur Rivard Andrew Galipeau
Exchange Inside Sales Exchange Inside Sales Exchange Inside Sales

T- 705-669- 2905 T- 705-669- 2946 T- 705-669- 2916
C–705-561-1216

NEW ATLAS COPCO EXCHANGE PROGRAM

How will the New Process work for 2016?
 One set Exchange Item Price in the system

 One set Cost price in the system

 No Core charge will be initially invoiced

 No Container charge will be initially invoiced

 Eliminating Core Credits on Exchange Items

 Conditions of sale will be noted on the invoice

 If Core is not returned or unrepairable a P.O will be
required from the customer will be invoiced this amount.

 Core Value is based on list price of new less the
Exchange Item Price.

 Tracking Core and Container will remain the same.

NEW ATLAS COPCO EXCHANGE PROGRAM

How will the New Process work for 2016?

Return Policy:
 Individual parts not used and in sellable condition can be returned for

credit.
 A full list of parts indicating this is a return from our installation kits part #

should be sent to our CSR’s from our customer.
 CSR should enter an RMA BPCS for the individual parts.
 Once received in our WHS all will be treated the same as a regular RMA.
 No restocking charges will apply when Install kit parts are returned.

NEW ATLAS COPCO EXCHANGE PROGRAM

How will the New Process work for 2016?

 Exchange Repair kits will be sold the same way in 2016. All
Exchange assemblies will remain the same in the system @ 0.01
ex: - Exchange Wheel End kits, Boom to bucket kits.

 Exchange Installation kits will have a new structure in 2016

I. Part # of the Installation Kits will remain all kits will be individually
stocked and min balances will continue to support the program.

II. Inventory department will make sure that the individual parts to
create the kits are stocked and picked when ordered within a few
hours of the order.

III. Just like filter kits the exchange installations will be handle.

NEW ATLAS COPCO EXCHANGE PROGRAM

How will the New Process work for 2016?
Exchange ( Un used ) Components

Each return request for Un used Exchange components will be treated on a
case-by-case basis to determine the returnable status of these components.
Once approved by Atlas Copco Exchange group, follow customer return
policy.

1. Fifteen percent (15%) if returned within one (1) month of the invoice
date.

2. Twenty-five percent (25%) if returned within one (1) year of the invoice
date.

3. Thirty-five percent (35%) if returned within two (2) years of the invoice
date.

4. Fifty percent (50%) if returned within three (3) years of the invoice date.
5. Invoiced products older than three (3) years are not accepted for return.

EXCHANGE POLICY THE OLD WAY

EXCHANGE COMPONENT POLICY

Exchange Component Warranty:

EXCHANGE COMPONENT POLICY THE NEW WAY

New Proposal in the invoicing and managing the process

If not returned or abused

NEW ATLAS COPCO EXCHANGE PROGRAM

How will it appear in the quotations for the customer?

NEW ATLAS COPCO EXCHANGE PROGRAM

How will the New Process work for 2016?

 The only times that we will need to get another P.O. for the core is if the
Exchange Item does not get returned OR if the core is completely
destroyed beyond repair.

Abused/ Destroyed Acceptable

EXCHANGE COMPONENT POLICY

New Ordering process HELP train the CSR across Canada

EXCHANGE ASSEMBLY KITS

How it works

EXCHANGE COMPONENT INSTALLATION KITS

How it works

NEW FAILURE REPORTS FOR ALL EXCHANGE

FAILURE REPORTING PROGRAM

If required we can send the full failure analysis report for each of
your components.

EXCHANGE COMPONENT After

How are they delivered to our customers

Before

Before After

LIST OF COMPLETE COMPONENTS

Full list of pictures

Complete Engine Complete Transmission Complete ST 1530 Axle

Complete Upbox Complete Rotary Head ADS Complete 282 Boom with bulkheads

GOING WITH NEW CYLINDERS STAND

EXCHANGE CAN BE CUSTOMIZED

Please contact us for new ideas

New BUT 35/32 booms in stands

New T40 & D9 Track frame in stands

New ST1030 & ST 7 models in stands

NEW EXCHANGE HYDRAULIC TEST BENCH

To offer extensive testing and reports with our new Component test bench

ATLAS COPCO NEW EXCHANGE OFFERINGS

Monthly Flyers on new Exchange components

D65 TRACK FRAMES NEEDED ALSO

ATLAS COPCO EXCHANGE PROGRAM

“ Our customers are diverse, but all have something in common – they all
expect the best from Atlas Copco. They expect the best quality, the best
performance, the best productivity and more than anything, they expect the
best value for the price they pay. We’ve got our work cut out for us to deliver

on these expectations”.
“THAT’S WHY WE HAVE TO SET THE BAR HIGH”

COMMITTED TO
SUSTAINABLE PRODUCTIVITY.