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 University’s 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 Roy’s
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.
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
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 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
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
