LEADING with We Are Lincoln Industries Lincoln Industries

LEADING with

We Are Lincoln Industries ��

Lincoln Industries Beliefs • Our people and their unique individual talents are valued • Appropriate recognition motivates our people to be successful • Leaders create value • Innovation creates continuous improvement • Profitability ensures the survival of our company • Positive relationships build loyalty • Honesty is essential in all transactions • We create value for our customers • Wellness and healthy lifestyles are important to our success

People vs. Employees “Our people and their unique individual talents are valued”

Talent Based Organization “Select” vs. “Hire” Individual Lincoln Industries Opportunities 1. Fit = Culture: Beliefs & Drivers 2. Talent = Hardwiring, natural strengths 3. Skill = Teachable, experience, education Individual Opportunity Project Engineer “No” Business Development “No” Area Leader “Yes”

Wellness and healthy lifestyles are important to our success. THE BELIEFS IN ACTION

The Value Proposition of Wellness Simple: Healthier, Happier, Engaged People Perform Better & Cost Less Foundational Culture Healthy People Optimal Business Performance And, they impact our society as whole in a more positive way.

The History of Wellness 1970’s • First aid cart and blood pressure checks • Occupational nurse hired 1980’s • Education and awareness activities 1990’s • • • Wellness committee formed in 1990 Education campaigns Lincoln Plating receives the Silver WELCOA award in 1992 Team based competition starts in 1995 WELCOA Gold award received in 1997

The History of Wellness 2000 and 2010 Wellness Manager selected in 2000 Education and intervention become integral components of program Tobacco free campus established in 2002 Annual 14, 000’ mountain climb challenge established WELCOA Platinum Award Quarterly health screens required for all people in 2003/04 Wellness becomes integrated into performance management process and incentive plan • Wellness, Benefits and Safety become integrated effort • Recipient of the C. Everett Koop Health Award • • 2011 – Current • Outcomes based approach (Metabolic Syndrome) • “Healthy. U” – on-site medical facility and “Healthy. U Fit” – on-site fitness center opened

The Five Pillars of Wellness 1. Leadership 2. Policies & Practices 3. Programs 4. Resources 5. Results

Leadership Wellness is an expectation • “ 3 for 3” • Lead and Manage Change, • Development of Self and Others • Wellness of Self and Others • Walk the Talk • Monthly “Wellness Mondays” • Leadership Development Programs

Policies and Practices • Tobacco-free campus • Daily pre-shift stretch program • Individual Wellness objectives for all people included in performance management • Annual health screens for our people and spouses • Post-offer functional capacity testing • Health insurance designed with Wellness

Programs • • • go! Platinum Tobacco cessation Weight management Cooking classes Life Plan Wellness newsletter Health education seminars On-site fitness classes Fitness reimbursement Benefits design

Life Plan What: • “A personalized, living, and ever evolving plan that helps guide our thoughts, behaviors and actions toward our defined purpose”. Why: • Take a broader, “life view” approach with our people for the benefit of increasing the quality of their life – personal and professional. Physical Career Spiritual Purpose Family Development Financial Emotional

Dreams Achieved!

Platinum Climb

Resources • • Wellness Manager Wellness Committee Occupational Nurse Benefits Manager/Benefits Committee Wellness Interns Safety Manager Leadership Team Healthy. U and Healthy. U Fit

Healthy. U

It’s GOOD for Business!

Human Capital Investment: Sales Person Key: Company A: “Dated” People Practices, Talent Initiatives nonexistent Company B: Fundamentals/Traditional People Practices Company C: Talent/People Initiatives in early stages Lincoln Industries: Talent/People Initiatives in early/growth stage Company D: Fully integrated Talent Model/Best Cultural Practices

Tobacco Use 45. 0% 42. 0% 40. 0% 35. 0% 28. 0% 30. 0% 27. 0% 23. 0% 25. 0% 19. 1% 20. 0% 16. 0% 15. 7% 15. 5% 15. 1% 2010 2011 2012 15. 0% 13. 7% 10. 0% 5. 0% 0. 0% 2004 2005 2006 2007 2008 2009 2013

Turnover U. S. Ave. Lincoln Industries 2013 Data

Total Health Care Costs $14, 000 $12, 000 $11, 176 $9, 378 $10, 000 $11, 664 $12, 136 $9, 967 $8, 481 $8, 000 $7, 015 $7, 257 $7, 605 $7, 394 $6, 249 $6, 176 $6, 000 $4, 338 $4, 000 $3, 434 $7, 311 $5, 830 $5, 007 $3, 918 $2, 000 $0 2005 2006 2007 2008 Lincoln Industries Cost per Person 2009 2010 2011 Norm Cost per Person (Region) 2012 2013*

Questions?