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Advanced Concrete Tools, Inc.
        Business Review




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 Universitys New End Zone Seating Facility
Advanced Concrete Tools, Inc.
                    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                          Interstate-35W crossing over the
                                  Mississippi River in Minneapolis
 Developing Critical Global
  Relationships
Advanced Concrete Tools, Inc.
                    Investment Objective
Our 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
Advanced Concrete Tools, Inc.
                            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
Advanced Concrete Tools, Inc.
                   Primary Success Factors
   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
Advanced Concrete Tools, Inc.

              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 Roys
               Death
                 Paid Down Debt
                 Maintained Steady Sales
                 Conservative Financials
                 Run As Life Style Business
Advanced Concrete Tools, Inc.
                   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
Advanced Concrete Tools, Inc.
              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.
Advanced Concrete Tools, Inc.




  $30 Billion US Ready Mix Industry
Advanced Concrete Tools, Inc.
      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.
Advanced Concrete Tools, Inc.
                                    Global Stimulus
    The Potential Boost to the Global
    Construction Industry From Fiscal Stimulus
    Packages Over the Next Two Years Could
    Be Enormous.
     US$ 355 Billion Is Greater Than the
      GDP of Many Medium-sized
      Countries,                                 Florida Hospital Memorial Division
     It Is Greater Than the Size of the         Project in Daytona Beach
      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
                                                 Downtown Mall Light Rail Extension
                                                 Project. Portland, Ore.
Advanced Concrete Tools, Inc.
                                    Global Stimulus
   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)         California Science Center Expansion
    France Will Invest EUR 10.5 Billion (US$ 14      In Los Angeles
    Billion)
   Spain's EUR 11 Billion (US$ 14.5 Billion)
    Construction
   Chile $ 700 Million to Public Works This Year
   Mexico US$ 54 Billion


                                                         Access Shaft of the East Side
                                                         Combined Sewerage Overflow
                                                         Tunnel Project in Portland, Ore
Advanced Concrete Tools, Inc.


Residential construction spending is 59.3% below the peak of early
2006

Non-residential construction spending is 8.5% below the peak of
last September
Advanced Concrete Tools, Inc.




Nonresidential spending is now slightly
negative on a year-over-year basis, and
will turn strongly negative going forward.
Residential construction spending is still
declining, although the YOY change will
probably be less negative going forward.
Advanced Concrete Tools, Inc.
           Business Development




A 450-ton Deck Section on the New     The Long Tan Hydropower Plant in
Tacoma Narrows Bridge                 Tian, China




Structural Engineering Teaching &     Benicia-martinez Bridge in Northern
Research Laboratory for Villanova     California
University's College of Engineering
Advanced Concrete Tools, Inc.
          Products
Advanced Concrete Tools, Inc.
                   Business Development
Developed an OEM Agreement With Stone
Construction Equipment to Provide Screeds
Under Their Brand World Wide
 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     Screed Bull
  York, in a 175,000 Square-foot Facility
Advanced Concrete Tools, Inc.
             Business Development




Developed an Exclusive
Arrangement to Distribute
                            Spyder Electronic High Frequency Vibrator
ENAR Vibrators and
Screeds in the United
States and

Now selling the ENAR
Products Into the US
Market
                               Dingo High Frequency Electric Vibrator
Advanced Concrete Tools, Inc.
                          Business Development
Agreement With Nox-Crete Chemical to
Expand Our Line of Concrete Chemical
Solutions


Concrete Bomb - Original                          Concrete Blast Off
Concrete Bomb - New Green                         Chemically reacts with concrete and mortar
Chemically reacts with the alkalies in concrete   buildup. This effervescent reaction quickly
to instantly prevent fresh concrete from          bubbles away buildup. Byproducts are easily
bonding and to gradually soften existing          rinsed away with water
concrete buildup. Apply before each use.
                                                  Bio-Klean
Concrete Gardcoat
Chemically reacts instantly when applied to       Concentrated, Biodegradable,
form a waxy, protective coating that is both      Citrus Based Concrete Cleaner
chemically and physically welded to the           And Degreaser.
surface.                                          a powerful, water dilutable cleaner that deeply
                                                  penetrates concrete surfaces to safely and
                                                  effectively remove most surface contaminants.
Advanced Concrete Tools, Inc.
                    Business Development



 Agreement With Goldblatt Hand Tools to
 Distribute Their Line of Concrete Hand
 Tools in the United States
 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
Advanced Concrete Tools, Inc.
                Business Development


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
Advanced Concrete Tools, Inc.
            Business Development
Developed New Distribution in Florida, Southeast US and Far West
Advanced Concrete Tools, Inc.
    Business Development
Upgraded to a State of the Art Scalable CRM System
Advanced Concrete Tools, Inc.
               Business Development

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
Advanced Concrete Tools, Inc.
                                   Economic & industrial performance
                  Gross Domestic Product




    Source: IBGE  Brazilian Institute of Geography and Statistics             Latest update: Upgraded to investment-grade in 2008




                                                      Source: Brazilian
                                                      Ministry of         Petrobras
    Itaipu dam                                        Finance, Moody's    oil rig           Embraer jet
                                                      and Fitch.
     Economically, Brazil has performed very strongly, reflected in its 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

                                                                                                                                  4
Advanced Concrete Tools, Inc.
                                Infrastructure Development
                                                                                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.




                                                                          Sao Paulo airport: Brazil has the
Curitiba: internationally recognised as a   Porto Alegre: home to
                                                                          2nd largest number of airports in
model city for urban & infrastructure       modern infrastructure, incl
                                                                          the world (~3,000)
development.                                metro system
                                                                                                              4
Advanced Concrete Tools, Inc.
                            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
Advanced Concrete Tools, Inc.
             US Equipment Distribution
 Equipment Supply
    White Cap Supply
    Ram Tool
 Rental
    United
    Sunbelt
    RSC
    CAT Rental
 Major Construction Firms
 Construction Supply
 Internet  Construction Complete
Advanced Concrete Tools, Inc.
                         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
Advanced Concrete Tools, Inc.
               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
Advanced Concrete Tools, Inc.
                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
Advanced Concrete Tools, Inc.
                    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
Advanced Concrete Tools, Inc.
                   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
Advanced Concrete Tools, Inc.
  Small Equipment Segment Open to Focused Business
 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
Advanced Concrete Tools, Inc.
                  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

More Related Content

Business Review

  • 1. Advanced Concrete Tools, Inc. Business Review The Centerpoint Condo Project in Tempe, Ariz.
  • 2. 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 Universitys New End Zone Seating Facility
  • 3. Advanced Concrete Tools, Inc. 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 Interstate-35W crossing over the Mississippi River in Minneapolis Developing Critical Global Relationships
  • 4. Advanced Concrete Tools, Inc. Investment Objective Our 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
  • 5. Advanced Concrete Tools, Inc. 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
  • 6. Advanced Concrete Tools, Inc. Primary Success Factors 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
  • 7. Advanced Concrete Tools, Inc. 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 Roys Death Paid Down Debt Maintained Steady Sales Conservative Financials Run As Life Style Business
  • 8. Advanced Concrete Tools, Inc. 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
  • 9. Advanced Concrete Tools, Inc. 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.
  • 10. Advanced Concrete Tools, Inc. $30 Billion US Ready Mix Industry
  • 11. Advanced Concrete Tools, Inc. 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 $8.5 Billion. 2008 Revenue Was Only Down (2.7%) From 2007. Declines Are Not Expected to Last in 2011 & Beyond.
  • 12. Advanced Concrete Tools, Inc. Global Stimulus The Potential Boost to the Global Construction Industry From Fiscal Stimulus Packages Over the Next Two Years Could Be Enormous. US$ 355 Billion Is Greater Than the GDP of Many Medium-sized Countries, Florida Hospital Memorial Division It Is Greater Than the Size of the Project in Daytona Beach 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 Downtown Mall Light Rail Extension Project. Portland, Ore.
  • 13. Advanced Concrete Tools, Inc. Global Stimulus 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) California Science Center Expansion France Will Invest EUR 10.5 Billion (US$ 14 In Los Angeles Billion) Spain's EUR 11 Billion (US$ 14.5 Billion) Construction Chile $ 700 Million to Public Works This Year Mexico US$ 54 Billion Access Shaft of the East Side Combined Sewerage Overflow Tunnel Project in Portland, Ore
  • 14. Advanced Concrete Tools, Inc. Residential construction spending is 59.3% below the peak of early 2006 Non-residential construction spending is 8.5% below the peak of last September
  • 15. Advanced Concrete Tools, Inc. Nonresidential spending is now slightly negative on a year-over-year basis, and will turn strongly negative going forward. Residential construction spending is still declining, although the YOY change will probably be less negative going forward.
  • 16. Advanced Concrete Tools, Inc. Business Development A 450-ton Deck Section on the New The Long Tan Hydropower Plant in Tacoma Narrows Bridge Tian, China Structural Engineering Teaching & Benicia-martinez Bridge in Northern Research Laboratory for Villanova California University's College of Engineering
  • 17. Advanced Concrete Tools, Inc. Products
  • 18. Advanced Concrete Tools, Inc. Business Development Developed an OEM Agreement With Stone Construction Equipment to Provide Screeds Under Their Brand World Wide 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 Screed Bull York, in a 175,000 Square-foot Facility
  • 19. Advanced Concrete Tools, Inc. Business Development Developed an Exclusive Arrangement to Distribute Spyder Electronic High Frequency Vibrator ENAR Vibrators and Screeds in the United States and Now selling the ENAR Products Into the US Market Dingo High Frequency Electric Vibrator
  • 20. Advanced Concrete Tools, Inc. Business Development Agreement With Nox-Crete Chemical to Expand Our Line of Concrete Chemical Solutions Concrete Bomb - Original Concrete Blast Off Concrete Bomb - New Green Chemically reacts with concrete and mortar Chemically reacts with the alkalies in concrete buildup. This effervescent reaction quickly to instantly prevent fresh concrete from bubbles away buildup. Byproducts are easily bonding and to gradually soften existing rinsed away with water concrete buildup. Apply before each use. Bio-Klean Concrete Gardcoat Chemically reacts instantly when applied to Concentrated, Biodegradable, form a waxy, protective coating that is both Citrus Based Concrete Cleaner chemically and physically welded to the And Degreaser. surface. a powerful, water dilutable cleaner that deeply penetrates concrete surfaces to safely and effectively remove most surface contaminants.
  • 21. Advanced Concrete Tools, Inc. Business Development Agreement With Goldblatt Hand Tools to Distribute Their Line of Concrete Hand Tools in the United States 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
  • 22. Advanced Concrete Tools, Inc. Business Development 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
  • 23. Advanced Concrete Tools, Inc. Business Development Developed New Distribution in Florida, Southeast US and Far West
  • 24. Advanced Concrete Tools, Inc. Business Development Upgraded to a State of the Art Scalable CRM System
  • 25. Advanced Concrete Tools, Inc. Business Development 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
  • 26. Advanced Concrete Tools, Inc. Economic & industrial performance Gross Domestic Product Source: IBGE Brazilian Institute of Geography and Statistics Latest update: Upgraded to investment-grade in 2008 Source: Brazilian Ministry of Petrobras Itaipu dam Finance, Moody's oil rig Embraer jet and Fitch. Economically, Brazil has performed very strongly, reflected in its 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 4
  • 27. Advanced Concrete Tools, Inc. Infrastructure Development 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. Sao Paulo airport: Brazil has the Curitiba: internationally recognised as a Porto Alegre: home to 2nd largest number of airports in model city for urban & infrastructure modern infrastructure, incl the world (~3,000) development. metro system 4
  • 28. Advanced Concrete Tools, Inc. 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
  • 29. Advanced Concrete Tools, Inc. US Equipment Distribution Equipment Supply White Cap Supply Ram Tool Rental United Sunbelt RSC CAT Rental Major Construction Firms Construction Supply Internet Construction Complete
  • 30. Advanced Concrete Tools, Inc. 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
  • 31. Advanced Concrete Tools, Inc. 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
  • 32. Advanced Concrete Tools, Inc. 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
  • 33. Advanced Concrete Tools, Inc. 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
  • 34. Advanced Concrete Tools, Inc. 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
  • 35. Advanced Concrete Tools, Inc. Small Equipment Segment Open to Focused Business 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
  • 36. Advanced Concrete Tools, Inc. 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