Business Review

Business Review

Advanced Concrete Tools, Inc.Advanced Concrete Tools, Inc.

The Centerpoint Condo Project in Tempe, Ariz.

Advanced Concrete Tools, Inc.

Advanced Concrete Tools Is Engaged in Design, Manufacture and Marketing of Product Solutions for the Concrete Placement and Finishing Industry

•Vibratory Wet Screeds•Concrete Vibrators•Curb Roller and Roller Screed•Concrete Hand Tools•Concrete Chemical Solutions

Indiana University’s New End Zone Seating Facility


Interstate-35W crossing over the Mississippi River in Minneapolis

Market Position

• 500 Plus Dealers in Our Network

• Over 10,000 Contacts in Our Data Base

• A Strong Brand Presence• $100 Bil Global Equipment

Market• Developing Critical Global

Relationships


Investment ObjectiveOur Objective is to Significantly Increase the Value of ACT as a Strategic Investment

• Rapidly Expanding Our Capability to Participate in the World Wide Investment in Infrastructure Development

• Developing Partnerships With Major International Firms–Utilize Our Channel to the US Equipment Market–Provide ACT Products Access to Global Markets

• Increasing Our Manufacturing Value Add in the US• Development of Proprietary Technology• Rapidly Expanding Our US Market Channels• Creation of Manufacturing and Distribution in Brazil • Managing the Business to Attract Private Capital Investment

to Execute Growth Strategies–Develop ACT as US Manufacturing Partner–Complementary Acquisitions


Strengths

• Brand Awareness Through Over 3000 Contacts in the US

• Product Reputation for Performance and Reliability

• Patented Bar That Significantly Outperforms Other Bars

• Ability to Partner With Major International Firms

• Management Team Experience in Successful Businesses

All Night Pour at Denver Museum of Science


• Become an Increasingly Significant and Important to Our Distribution Channel Partners• Manufacturers Representatives• 550 US Dealers

• Focusing on Products That Enable the Concrete Contractor• Rapidly Adding High Value Products to Provide Our Distribution

Partners an Opportunity to Sell Everyday• Increasing Awareness of Concrete and Construction Contractors

to Our Products and Our Brand• Implementing Effective Merchandising and Promotions to Sell

Through Our Channels• Industry Leading Warranty and Outstanding Product Service

Primary Success Factors


• Founded in 1996 in Hendersonville Tenn. By Roy Frazier

• Acquired Design and Patents From Weber Concrete Tools of Fort Smith, Ark.

• Developed Distribution in 50 States• Founder Died From Sudden Heart

Attack• Wife Kim Ran Company After Roy’s

Death• Paid Down Debt• Maintained Steady Sales• Conservative Financials• Run As Life Style Business


Market Summary

• $5.6 Trillion Global Construction Industry

• $100 Billion Construction Equipment Industry

• $60 + Billion Ready-mix Concrete Production $30 Billion US

• The North American Equipment-rental Industry $38.3 Billion in the United States and $3.0 Billion in Canada.

Twin Condominium Towers Site in Miami


United States Customer Base

There Are 32,583 Concrete Contractors in the United States

• 5,444 in the Southeast• 2,105 in Florida. • 3,276 in California • 2,113 in Texas

There Are 9,444 Ready Mixed Concrete Manufacturers in the United States.


ARA 2008 State Of The Equipment-Rental Industry Report

• The North American Equipment-rental Industry Is the Largest in the World, Generating $38.3 Billion in the United States and $3.0 Billion in Canada.

• Construction & Industrial Equipment Generated 69% of the Revenue With $24.5 Billion.

• General Tool Accounted for $8.4 Billion in Rental Revenue in 2008, Which Remains Consistent With 2007 Rental Revenue of $8.5 Billion.

• 2008 Revenue Was Only Down (2.7%) From 2007. Declines Are Not Expected to Last in 2011 & Beyond.


• US$ 355 Billion Is Greater Than the GDP of Many Medium-sized Countries,

• It Is Greater Than the Size of the German Market - the Fourth Biggest Market in the World

• Additional Spending to Shore-up Economic Growth in 20 Major Economies Is Set to Exceed US$ 1.9 Trillion, of Which US$ 795 Billion Has Been Ear-marked for Construction

• Most of This Will Be Spent in 2009 and 2010

The Potential Boost to the Global Construction Industry From Fiscal Stimulus Packages Over the Next Two Years Could Be Enormous.

Global Stimulus

Downtown Mall Light Rail Extension Project. Portland, Ore.

Florida Hospital Memorial Division Project in Daytona Beach


• China's Extra Investment US$ 450 Earmarked for Infrastructure. Its Investment of US$ 225 Billion Per Year for Two Years Is Equivalent to an Extra +40% Boost to Its US$ 540 Billion Per Year Construction Output.

• United States Us$ 130 Billion Out of of Us$ 800 Billion Invested in Transport and Energy Infrastructure.

• Germany Eur 18 Billion (Us$ 23.4 Billion) • France Will Invest EUR 10.5 Billion (US$ 14

Billion)• Spain's EUR 11 Billion (US$ 14.5 Billion)

Construction• Chile $ 700 Million to Public Works This Year• Mexico US$ 54 Billion

Global Stimulus

Access Shaft of the East Side Combined Sewerage Overflow Tunnel Project in Portland, Ore

California Science Center Expansion In Los Angeles


Business Development

A 450-ton Deck Section on the New Tacoma Narrows Bridge

The Long Tan Hydropower Plant in Tian, China

Structural Engineering Teaching & Research Laboratory for Villanova University's College of Engineering

Benicia-martinez Bridge in Northern California


Products


Screed Bull™

• 100% Employee-owned• Design, Manufacture and Marketing of Light and

Medium Construction Equipment. • Over 375 Products All Designed and Manufactured

for Worldwide Distribution – Concrete and Mortar Mixers – Power Trowels – Concrete and Masonry Saws – Hand Held, Walk Behind and Ride on Dirt and

Asphalt Compactors and Material Handling Equipment

• Founded in 1967 and Is Located in Honeoye, New York, in a 175,000 Square-foot Facility


Developed an OEM Agreement With Stone Construction Equipment to Provide Screeds Under Their Brand World Wide


Spyder Electronic High Frequency Vibrator

Dingo High Frequency Electric Vibrator

Developed an Exclusive Arrangement to Distribute ENAR Vibrators and Screeds in the United States and

Now selling the ENAR Products Into the US Market



Concrete Bomb - OriginalConcrete Bomb - New GreenChemically reacts with the alkalies in concrete to instantly prevent fresh concrete from bonding and to gradually soften existing concrete buildup. Apply before each use.

Concrete GardcoatChemically reacts instantly when applied to form a waxy, protective coating that is both chemically and physically welded to the surface.

Concrete Blast OffChemically reacts with concrete and mortar buildup. This effervescent reaction quickly bubbles away buildup. Byproducts are easily

rinsed away with water

Bio-Klean Concentrated, Biodegradable, Citrus Based Concrete Cleaner And Degreaser.a powerful, water dilutable cleaner that deeply penetrates concrete surfaces to safely and effectively remove most surface contaminants.

Agreement With Nox-Crete Chemical to Agreement With Nox-Crete Chemical to Expand Our Line of Concrete Chemical Expand Our Line of Concrete Chemical SolutionsSolutions



• Founded 1885 120 Year History• Stanley Works Purchased the Goldblatt in

1992 • In March, 2006, Finishpro Tools Purchased

the Brands From Stanley Works • Goldblatt Tool Company LLC Became Its

Own Business in 2006 and Returned to Kansas City

Agreement With Goldblatt Hand Tools to Agreement With Goldblatt Hand Tools to Distribute Their Line of Distribute Their Line of Concrete Hand Hand Tools in the United StatesTools in the United States



Reached Agreement With Curb Roller Manufacturing to Distribute Their Line of Hydraulically Driven Products in the United States


Reached Agreement with Allen Face Companies To distribute their patented Laser Screed Rail


Developed New Distribution in Florida, Southeast US and Far WestDeveloped New Distribution in Florida, Southeast US and Far West



Upgraded to a State of the Art Scalable CRM SystemUpgraded to a State of the Art Scalable CRM System



Have Begun Test Marketing Screeds and Vibrators in Southern Brazil


• Response Has Been Very Positive

• Increasing Manufacturing Input Is Required to Overcome Import Barriers

• The Brazil Opportunity Is Second Only to China

• The basic infrastructure in place to begin marketing in 2009


4

• Economically, Brazil has performed very strongly, reflected in it’s improving risk rating• Brazil has a highly developed industrial base, enjoying world leadership in many sectors:

• Hydro-electric power; Itaipu dam is the world's largest hydroelectric plant • Mineral production; local oil giant Petrobras is a pioneer in the field of deep water oil research. • Aircraft manufacturing; local company Embraer is the world leader in the design & development of smaller scale jet

aircraft • Agriculture production, particularly Biofuels, where Brazil is the largest producer • Advanced space program, with significant launch capabilities and satellite manufacturing

Economic & industrial performance

Source: IBGE – Brazilian Institute of Geography and Statistics

Source: Brazilian Ministry of Finance, Moody's and Fitch.

Gross Domestic Product

Latest update: Upgraded to investment-grade in 2008

Itaipu dam Embraer jetPetrobras oil rig

Advanced Concrete Tools, Inc.Infrastructure Development

4

Sao Paulo airport: Brazil has the 2nd largest number of airports in the world (~3,000)

Sao Paulo, a modern international city of over 10m people, with 1st world infrastructure services

Sao Paulo metro, which has received awards in the recent past as one of the cleanest systems in the world by ISO9001.

Curitiba: internationally recognised as a model city for urban & infrastructure development.

Porto Alegre: home to modern infrastructure, incl metro system


Next Products

• Introduction of Platinum Beauty With Equilateral Triangle Bar

• Add ENAR Back Pack Vibrator

• Add ENAR Vibratory Float

• Add Laser Rail

• Evaluate Opportunities to Add a Line of Compaction and Power Trowels to Our Product Line

• Enar

• Kentsel Machinery Company Turkey

• Dynapac France

• Rhino-tuff USA

• Ingersoll-Rand Small Equipment Line


US Equipment Distribution

• Equipment Supply• White Cap Supply• Ram Tool

• Rental• United• Sunbelt• RSC• CAT Rental

• Major Construction Firms• Construction Supply• Internet – Construction Complete


Sales Strategy

• Implement Floor Plan and Sales Incentive Program with Major Accounts

• Utilize CRM to implement systematic initial contact and sales follow up• 5-STAR Dealers• Solution Programs – Major Dealers• Hot Zones - L.A, N.Y, and Chicago, Houston, DFW • End-Users / Mega-Buyers

• Relationship Development • Easy to buy – Easy to Sell• Superb Product Availability and Customer Service

• Expanded relationship with Stone and ENAR


Major Customer Targets

• Ram Tool – Southeast US – 15 locations• Stowers CAT – East Tennessee• Puckett CAT - Mississippi• Thompson CAT – Alabama, Georgia, North Florida• Gerdau - Enco group – Southeast – 8 Locations• SCS – Southeast – 4 Locations• American Construction – California• McCann - Chicago• Lincoln Construction - Ohio• Mustang CAT - Houston


Marketing Strategies

• Implement improved Web Site and Strategies to Increase Hits and Opt Ins

• Build Contacts From the Blue Book of Concrete Contractors in Focus Areas

• Enhance Email, Direct Mail and Fax Capability to Professionally Reach Decision Makers

• Develop Effective Trade Advertising• Evolve Viral Marketing and Networking Strategies to

gain access to early adopters in the industry


Competition

Multi Line Manufacturers• Atlas-Copco - Sweden $8.9 Bil Sales• Wacker Corp - Germany $1.2 Bil Sales• Doosan - South Korea - $15 Bil Sales• Multiquip Inc. - Carson, California $100 Mil +• Stone Construction Equipment - Honeoye,NY $50 Mil +• Allen Engineering- Paragould, Arkansas• MBW - Slinger, Wisconsin $30 - $50 Mil


Consolidation

• Dynapac Acquired by Atlas-Copco of Sweden• Wacker Corp acquired Neuson Equipment• Doosan aquired Construction Equipment line from

Ingersoll Rand• Multiquip aggressive acquirer of brands


• Focus on Large Equipment Sales Leaves Small Equipment Market Underserved

• Relatively Low Brand Awareness and Loyalty• Dealers Evolve Toward Multi-line Suppliers but Will Sell

Products Their Customers Are Seeking• Multi-line Suppliers Such as Multi-Quip are effectively

roll ups lacking credibility with the end users• Contractors Tend to Return to What Works but Are

Very Receptive to Try New Products• Dynapac and Ingersoll Rand exit small equipment

segment• MBW and other firms struggling financially

Small Equipment Segment Open to Focused Business


Capital Structure

• Immediate Financing Requirements• $350,000 Replace Existing Bank Financing• $50,000 ENAR Letter of Credit• $50,000 Bank Line of Credit for Working Capital• $200,000 First Round Equity Investment for

Marketing, Product Development and Brazil• Second Round Financing

• $50,000 Additional ENAR Line of Credit• TBD Bank Financing and Private Equity for

Acquisition and US - Brazilian Manufacturing

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