This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

IntroductionJanuary 2012

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

We’ve enjoyed tremendous success by focusing on value and the dealer…

Best total value

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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We’ve enjoyed tremendous success by focusing on value and the dealer…

Best total The dealer is the brand

Consistent market share

growth!

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

…but we can do even better by refining our strategy

“Change before you have to.”

former Chairman & CEO of General Electric

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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…but we can do even better by refining our strategy

“Change before you have to.”

Jack Welch,former Chairman & CEO of General Electric

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

We have a target on our back

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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We have a target on our back

®

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

So what are we doing about it?

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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So what are we doing about it?

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

We have always listened to our dealers

Dealers have told us that five things matter most to them…

warranty

distributor

price

availability

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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We have always listened to our dealers

Dealers have told us that five things matter most to them…

distributorequipment

availability

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

First, we dug deeper…

Our dealers Our team

Conducted in-depth interviews with 75

dealers, plus a survey of 400 dealers

Interviewed ~100 Goodman employees across all levels of the

organization

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Our competitionOur team

Interviewed ~100 Goodman employees across all levels of the

organization

Performed site visits with interviews at 20

competitive distributors nationwide

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Next, we identified where our opportunities lie

Reduce dealer churn

We lose about 20% than our competition

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Next, we identified where our opportunities lie

lose about 20% more dealers than our competition

loses

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Next, we identified where our opportunities lie

0

20

40

60

80

100%

13

74

Primary brand SEERas percent of totalSEER spend

Improve dealer share-of

Some competitors get as much as

$100 more per $1,000 spent

on HVAC equipment

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Next, we identified where our opportunities lie

13 SEER

53

83

SEER spendtotal

Improve dealer of-wallet

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Next, we identified where our opportunities lie

Even for 13 SEERthere are plenty of dealers who don’t buy any Goodman

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Next, we identified where our opportunities lie

Continue to focus on new business

Even for 13 SEER, plenty of who don’t

buy any Goodman

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Next, we identified where our opportunities lie

0

20

40

60

80

100%

13

74

Primary brand SEERas percent of totalSEER spend

Reduce dealer churn

Improve dealer share-of

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Next, we identified where our opportunities lie

13 SEER

53

83

SEER spendtotal

Improve dealer of-wallet

Continue to focus on new business

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Now, we have a plan

From working with our teams

To build on our strengths

Goodman teams focused on dealer

experience, salesforceexcellence, and online

The dealer will still be the brand

No consumer advertising

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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To build on our strengths

For closing gaps in performance

The dealer will still be the brand

No consumer advertising

For example, improve the warranty process & expand and promote

our tech support

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Our goal moving forward:

#1 consumer close rate for

our dealers

Best dealer partnerHVAC industry

Our vision:

Leading quality

Lowest complexity

Leading responsiveness

Leading cost structure

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Our goal moving forward: DealerFirstTM

Best equipped salesforce for serving dealers

Best dealer partner in the HVAC industry

Our vision:

Leading quality

Lowest complexity

Leading responsiveness

Leading cost structure

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

DealerFirstTM will help us continue to grow

Best total value

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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will help us continue to grow

GOAL: Continued market

share growth!

Best total The dealer is the brand

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

We’ve always been a great value to our dealers…

Still the best total value

We’ve always been a great value to our dealers…With DealerFirstTM, we can be much more

Better partnership with your TSM

Better online presence to drive dealer close rate

Best-inwarranty, period.

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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We’ve always been a great value to our dealers…We’ve always been a great value to our dealers…, we can be much more

Faster, more accurate in-store

service

Better partnership with your TSM More responsive

& helpful tech support/training

in-class warranty, period.

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

What will I have to do differently?

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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What will I have to do differently?

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

You are integral to the success of DealerFirst™

What we need from you

•Understand the changes that will affect your department and the organization

•Continue to focus on your daily responsibilitieswill communicate as special arise

•Think about ways that we can and share these ideas with your manager

•Raise your hand with questions and comments feedback is critical and will be acted upon

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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You are integral to the success of DealerFirst™

What we need from you

that will affect your department and the organization

focus on your daily responsibilities; we will communicate as special DealerFirst™ related projects

Think about ways that we can expand DealerFirst™, with your manager

with questions and comments –feedback is critical and will be acted upon

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

We will continue to communicate with you to help make DealerFirstTM

• If you have engage your manager

• Your manager will update you about relevant DealerFirst™ progress and changes

• Keep a lookout DealerFirst™company communications

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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We will continue to communicate with you to TM a success

If you have questions, please engage your manager

manager will update you about relevant DealerFirst™ progress and changes

Keep a lookout for DealerFirst™-related news in company communications