Impact of using TCO instead of Price

Exhibit 1 shows the distribution of Chinese Ex Works price as a % of U.S. Ex Works price for hundreds of TCO Estimator user cases. Chinese Ex Works Price averages about 70% of U.S. price.

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In Exhibit 2, the blue line is the same data as Exhibit 1, but smoothed. The red line is TCO (Total Cost of Ownership) for the same cases. The yellow line is TCO if a 15% Trump tariff is in effect. U.S. wins above 100% on the horizontal axis.

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In Exhibit 3, for each metric, U.S. wins the % in the vertical axis corresponding to where the metric’s line crosses the 100% vertical line. Thus 8% based on price, 32% based on TCO, and 46% if a 15% Trump tariff applies.

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Exhibit 4: Various studies show the magnitude of the “Hidden Costs,” which are the difference between Ex Works price and TCO, and average about 20%.

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