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08 Change Sales New Units $974 $755 29% Aftermarket 753 694 9% Total $1,727 $1,449 19% Operating Income New Units $129 $73 78% Aftermarket 197 185 7% Unallocated (60) (52) 15% Total $266 $205 30% Net Income $169 $121 40% EPS $2.05 $1.43 43% Bookings New Units $358 $1,013 -65% Aftermarket 694 799 -13% Total $1,051 $1,813 -42% 8 Business Model Characteristics ~ revenues tied to new build-out cyclical Flexible manufacturing model to effectively meet demand swings mitigates large swings in new unit margins ~ revenues tied to installed base much less cycle sensitive ~ 75% operating income from aftermarket (installed base) Strong value proposition Low capital intensity Strong Relative Performance in Both Up and Down Cycles 9 New Units - Flexible Manufacturing Model Highly absorbed internally at cycle bottoms Able to flex capacity to meet cycle peaks Flexibility Through Supply Chain Management ($ in Millions) 2001 2008 08 vs

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