3Applied Industrial Technologies, Inc. and Subsidiaries
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.
Technology:  
Enhancing Our Capabilities
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.
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.  
Long-Range Strategy:  
Translating Potential Into Results 
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. 
We are a committed,  
strategic acquirer focused  
on clear priorities around  
our core industrial  
distribution business.
Applied has strong  
capabilities, great potential  
and room to grow.
25358_AIT_Report_WT.indd   3 8/23/12   8:33 AM