Corning CAH GOLD Connections Meeting 22 January 2019 David Moser - PowerPoint PPT Presentation

Corning CAH GOLD Connections Meeting 22 January 2019 David Moser CAH Account Manager Eric Dvorak PLM, C&A Hien Nguyen CAH Account Manager

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Welcome and Introductions GOLD CAH CORNING BS Cable Company Kevin Mooney PLM, C&A Eric Dvorak C Enterprises Steve Yamasaki Technology/C&A Eddie Parkman Lynn / GCS Mike Boulanger Account Manager (CAH) David Moser Lynn / GCS Scott Lewis Account Manager (CAH) Hien Nguyen CP Technologies Rick Hsu Application Engineer Spencer Greer Netsource Kevin Ladabouche Netsource Phil Morin Zero Connect Steve Rockwell Zero Connect Jeff Van Polen Corning Restricted Corning Optical Communications 3

Agenda Start Time End Time Duration Description 12:00 12:10 10 min Introductions 12:10 12:20 10 min Marketing Updates / Logo 12:20 12:35 15 min Market Update 30 min 12:35 1:05 GOLD Program Refresh Update 1:05 1:15 10 min BREAK 1:15 1:45 30 min GOLD Program 2019 Focus 1:45 2:00 15 min Q & A Corning Restricted Corning Optical Communications 4

OEM Sales Organization New organization in place to support the growth Corning Restricted Corning Optical Communications 5

Assemblies and Components Product Line Mgmt Current organization expanding to support the growth Global Cable Global Connectors Assemblies & Adapters Corning Restricted Corning Optical Communications 6

Marketing Updates David Moser

Marketing Change to Logo • Corning changed CAH Connections GOLD Program Logo on 01.01.19 • New logo should be used going forward and changed on electronic documents by end of 1Q’19. • Use of current logo permitted on hard goods marketing can be used until exhausted. • Logo should be used in accordance to Corning’s standard requirements*. * Note: Corning Logo Requirements will be provided via email Corning Restricted Corning Optical Communications 8

Market Updates David Moser / Eric Dvorak

Market Drivers Network Operators need fiber, and more of it IP Traffic 20% CAGR Crossing E-O Chasm Fiber Rich Networks In 2021 80% Video 27B Connected Deices 60% Mobile …and more of it. Networks are stressed Fiber is needed Corning Restricted Corning Optical Communications 10

Market Size Third part market size estimates for 2018 1&2F Jumpers Market size by geography Total NA EMEA APAC ROW Customer segment Datacenters $195M $96M $42M $47M $10M Enterprise Hyperscale $102M $53M $20M $25M $4M Network $294M $49M $93M $119M $33M Telecom elements Last mile $551M $76M $114M $334M $27M LAN $213M $10M $38M $154M $12M  Server connectivity and switch to router within data centers Datacenters  Jumpers supporting local area networks for enterprises LAN  FTTx, hubsites, towers, and PoP sites Telecom Corning Restricted Corning Optical Communications 11

Market Size Opportunity to grow lies outside of Corning’s 22% Share 1&2 F jumpers NAFTA EN Corning Generic Corning Corning Gold CAH Branded Corning Restricted Corning Optical Communications 12

Corning Gold CAH Program Gold Program aligns to Corning Strategy for Growth Competitive Advantaged Customer Differentiated Optical Total Cost Access Solutions • Enable Corning to • Increases access • Custom & focus on standard & & maintains Quick turn high volume products Corning Specs capabilities Revenue Growth CAH Partnership • Our vision, is to say yes to every single opportunity for cable assemblies • To Protect, Service and Grow the Corning brand within the cable assemblies market • Corning strives every day to have the best level of service, customer specifications, at the lowest cost • Corning’s big and complex operations have limitations • Maintain control of buying process • Partners for agility and customization `17 `18 `19 `20 `21 `22 Corning Restricted Corning Optical Communications 13

Gold Program Value and Refresh Eric Dvorak / David Moser / Hien Nguyen

Corning Gold CAH Program CAH Connections Program Value Proposition STRATEGIC Quick-turn Defend Corning Drive Corning Competitive Force Multiplier Capabilities Spec Spec Advantage • Same day to 72 hour • Formidable voice in • No other Corning • GOLDs lead with • Due to high margins Corning to mitigate turns to meet low the market that competitor offers this on Corning SERVICE to its exposure to volume, creates opportunities, GOLDs “groundswell” to customization customers competitive drive Corning spec at customer needs reinforce Corning offerings customers not • GOLDs work spec currently using exclusively through • Standard and • Ensures when Corning products • GOLD salesforces distribution to provide customized customer asks for call distributors high quality quick assemblies from low Corning they receive everyday asking for turn, Corning to high fiber count … Corning business Corning is assemblies when all connector options unable to fulfil Corning is unable Corning Restricted Corning Optical Communications 15

Corning Gold CAH Program Leverage each other's strengths to protect Corning spec Lead Time Customization • Path to lowest cost drives • Fast Ship program ~ 3 days standardization • Quick turn requires • 5 day workflow for new quotes babysitting, pick our battles • Say YES to any Cable assembly opportunity • Arm sales force with tools to • Custom Hyperscale project deliver upon commitments • Special labeling business • Tail Management (i.e MTRJ, Composite) Corning Restricted Corning Optical Communications 16

Corning Gold CAH Program Opportunities Identified • Feedback received on concerns on: – Pricing – Distribution/Sales not supporting the program – Concerns about the future of the program • Lack of onboarding tool for new SE to show program’s value • Stopped supporting audit program and product evaluation Corning Restricted Corning Optical Communications 17

Corning Gold CAH Program Refresh Refreshing and Changing the program for future success Improvements to CAH Gold program: Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price) Corning Restricted Corning Optical Communications 18

Corning Gold CAH Program Refresh Refreshing and Changing the program for future success Improvements to CAH Gold program: Better Control of buying process COMPLETE Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price) Corning Restricted Corning Optical Communications 19

Better Control of buying process Golds complement CAB to protect Corning Spec Golds Protects Corning Driven and Opportunities CAB Grows Corning brand To say YES to all opportunities, Partnership needs to be an efficient machine Corning Restricted Corning Optical Communications 20

Better Control of buying process If Corning cannot deliver, distributor keeps control Current State: ??? 3) Distribution contacts Corning to fulfill 4) If Corning can’t fulfill, 1) COC distribution goes Sales drives elsewhere demand Customer 2) Customer reaches distribution Corning Restricted Corning Optical Communications 21

Better Control of buying process Corning to direct opportunities to Golds Future State: 4) If Corning can’t fulfill – Hand off to CAH via SE and Distribution collaboration 3) Distribution contacts Corning to fulfill 5) CAH 1) COC provides Sales drives product to distributor demand Customer 2) Customer reaches distribution Corning Restricted Corning Optical Communications 22

Corning Gold CAH Program Refresh Refreshing and Changing the program for future success Improvements to CAH Gold program: Better Control of buying process COMPLETE Strengthen Corning Sales COMPLETE relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price) Corning Restricted Corning Optical Communications 23

Strengthen Corning’s Sales relationship Relentless commitment to Gold Value Message Exposure to GOLD Program • National Sales Call > 100 ppl • ES University > 150 ppl • Customer Care > 45 ppl • New Sales On-Boarding > 25 ppl • Regional Sales Calls > 75 ppl • Increase Interactions w Regional Managers re: GOLD value 7 ppl • Tighter Engagement w Local Sales and GOLDs (small wins) 13 ppl Examples: • SE RSM and FSE met with GOLD and agreed to filter all their business Corning is unable to service through the single GOLD … GOLDs being more proactive!! • FSE w GOLDs in their territory are becoming more aggressive in promoting GOLDs … helping others figure out how work with and the benefits of the GOLDs • GOLDs growing relationships with Corning functions … CAB, PnP Corning Restricted Corning Optical Communications 24

Strengthen Corning’s Sales relationship Repeated trainings and support tools drive Gold Message Corning Restricted Corning Optical Communications 25