We are a committed, strategic acquirer focused on clear priorities around our core industrial distribution business. With hundreds of service centers and plans for future  acquisitions, our need for an enhanced, unified information  technology system became increasingly apparent. In  October 2010 we embarked on a multi-year journey – an  ERP initiative – to transform our company’s technology  platforms and enhance our business information and  transaction systems. This initiative supports our current  operations and provides a strong foundation for our  acquisition strategy. Most recently, in April 2012, we announced our expansion  into Australia and New Zealand with the definitive  agreement to acquire the distribution businesses of  SKF. We completed the acquisition effective August 1,  2012, subsequent to our year end. As one of the largest  bearing suppliers in these markets, the SKF Distribution  business provides an excellent foundation for growth. Both geographies present attractive markets, growing  economies, and many common global customers. The  business offers broad geographic coverage of Australia and  New Zealand, with 37 locations reaching targeted vertical  markets such as mining, steel, pulp and paper, agriculture,  construction, and food and beverage. Furthermore,  we have significant growth prospects by extending  complementary product lines and solutions to these valued customers. By completing this acquisition, we increase our footprint  to more than 500 facilities across North America, Australia  and New Zealand. Looking forward, acquisitions will  continue to provide an excellent opportunity to extend  our reach and serve our customers. We are a committed,  strategic acquirer focused on clear priorities around our  core industrial distribution business. With our strong  financial position and proven integration capabilities, we  are confident that we will generate sustained, long-term  value for our shareholders. We remain proud of our past achievements, and we are  encouraged – and energized – by the realm of future  opportunities. We are especially excited about the shared  belief among our management, our associates and our  suppliers that we can do even more to generate profitable  growth. Applied has strong capabilities, great potential  and room to grow.  Applied has strong capabilities, great potential and room to grow. With our phased ERP roll-out, we have had two successful  launches in Western Canada, and our teams are busy  building and planning for our first U.S. deployments in  the fourth quarter of the 2012 calendar year. We are  encouraged by our progress to date and are confident  in our ability to execute across our U.S., Mexico and  Eastern Canadian locations. The common ERP system  will help standardize and simplify our processes, amplify  our operational excellence initiatives and generate value  throughout our business enterprise. 3 Applied Industrial Technologies, Inc. and Subsidiaries Technology: Enhancing Our Capabilities Long-Range Strategy: Translating Potential Into Results 