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IDC-USA & Goodyear Hydraulics –“A Formula for Growth!”

October 20, 2010

Brian S. Milek

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Agenda

• Who We Are Today • What We Offer • How We Go To Market• Next Steps

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Commercial Organization

Petillo Marketing Mgr

KishChannel

DavisonProduct

MaulCatalog/

Applications

CorbettSales- CA

MilekSales- U.S.

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N.A. Hydraulic Hose Plants & Warehouse

Granford, Quebec – Manufacture large bore, hand-built hose (Water S&D, Food, Chemical, Petroleum, Specialty)

Norfolk, Nebraska – Manufacture braided textile and wire rubber hose (Pressure washer, steam, hydraulic, hose)

Moberly, Missouri - Hose, Fittings, Accessories Warehouse Distribution Center

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Fully owned subsidiary 1979

306,000 Square Feet

Production Capabilities Hand-built Spiral Plied Hose: 3/8” through 18”

ID 400’ lengths up to 6” ID, 100’

lengths 6”-10” ID, 50’ lengths 10”-18” ID

Products: Chemical, petroleum, food, custom

ISO 9001 Certified November, 1994

Granford, Quebec

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Built in 1979 (New)

250,000 Square Feet

Production Capabilities Banbury Mandrel & Non-Mandrel Braided hose: 3/16” - 2”, Textile and

Wire Curing: Sheath, Wrap, Open Steam

Products: Pressure washer, steam, hydraulic, specialty

ISO 9001 Certified August, 1995

Norfolk, Nebraska

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Moberly, MO - Distribution Center

•495,000 square feet

•40’ clear height

•19.8 mil Cu Ft

•$29 million inventory

•RF Scan Network

•25 truck doors

•1 drive in door

•Drop yard

•Moberly floor space is equal to 8 football

fields

Occupancy: May 2004

•Associates:

•132 Hourly

•10 Management & Support

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What We Offer - Fittings

Goodyear has a complete line of hydraulic fittings

Application Coverage:

•One-Piece non-skive fittings for hoses up to 2” 100R13

•Bite the Wire on 100% of our medium, high and very high pressure wire reinforced hose

•Reusable fittings for 100R5

Goodyear’s has the fitting styles you need:

• Male & Female ends

• 22.5°, 45°, and 90° Elbow configurations

• Short, Long, and Standard Length Elbows

• Swivels and Solid Configurations

• Metric, ISO, and North American Standards

Rank Thread Type

1 JIC 37°

2 NPTF

3 Code 61

4 ORFS

5 Code 62

6 BSPP

7 SAE 45°

8 DIN 24°L

9 OR Boss

10 DIN 24°H

11 NPSM

12 JIS 30°

13 Kom 30° Metric

14 Standpipe

15 DIN 60°

16 BSPT

17 Cat Flange

18 Tube Fitting

19 Inv. 45°

20 Kom Flange

21 BSP Flat Seat

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What We Offer - Hoses

BRAIDED Wire Hosehigh pressure

SPIRAL Wire Hosevery high pressure

Thermoplastic Hosehigh pressure

e.g.SAE 100R1AT/1SNSAE 100R2AT/2SN

SAE 100R17SAE 100R16

e.g.SAE 100R12SAE 100R13SAE 100R15EN 856 4SHEN 856 4SP

e.g.SAE 100R7SAE 100R8

SAE 100R18

Special Application

e.g.Jack Hose (10000 PSI)

Grease Gun HoseSaflexTeflon

Air Conditioning

BRAIDED Textile Hoselow pressure

e.g.SAE 100R3

SAE 100R4 (with wire)SAE 100R5 (with wire)

SAE 100R6

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PC125M

Up to 1 1/4” 2 Wire Braid

Die Set Pneumatic Pump Power Unit

Mobile crimper to handle all your field crimping needs

Die Set

Die Set Die Cabinet

Die Cabinet

Die Set

Die Cabinet

PC125

Up to 1 1/4” 2 Wire Braid

PC150 & PC150H

Up to 1 ½” 4 Wire Spiral

PC200 & PC400

Up to 2” 6 Wire Spiral

Suitable for shop service and bench mounting

Stationary crimper with more power to manufacture hose

assemblies

High capacity, stationary, production-style crimper

Die Set

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Positive Stop Crimp Conversion Kits

• Kits Designed for Weatherhead Crimpers

– PSW-100 (T400) – PSW-101 (T420)

• For use with popular 1 & 2 wire hydraulic hoses:

– GR1SN– GR2SN– GR16SC– GCP3– GR17

NEW

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Coast Guard Approval

Stainless Steel Fittings

Extended Portfolio

•CPE tube and coverCPE tube and cover•Offered with 10 fitting typesOffered with 10 fitting types

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SAE 100R14 Hose and Fittings

Quick Disconnect Fittings

Extended Portfolio

1-Piece CAT Flanges1-Piece CAT Flanges•22 Degree•30 Degree•45 Degree•60 Degree•67 Degree•90 Degree •Straight Connectors•Jump Sizes

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Military Hose

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Look how we’ve grown…

2008 2004

Count of Part Number Count of GY PN

Category Total Category Total

Accessories 172 Accessories 123

Adapters 3146 Adapters 0

Assembly Equipment 181 Assembly Equipment 113

Ferrules 51 Ferrules 32

Fittings 2857 Fittings 1551

Hose 372 hose 211

Literature & Sales Tools 19 Literature 5

Grand Total 6798 Grand Total 2035

2009-2010AdaptersQuick Disconnects

3000235

Now over 10,000 SKU’s

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Hydraulic Market Size - Justification

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

Sa

les

(b

illio

ns

)

2003 2004 2005 2006 2007

NA Sales Trend

Adapters

Fittings

Hose

The $1.2 billion NA Fluid Power Market is indexed to grow at 3.5%, following average industrial GDP

NA Fluid Power MarketTotal: $1.2 billion

Hose$720 million

60%

Fittings$360 million

30%

Adapters$120 million

10%

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How We Go To Market - Hydraulics Market Share

Parker42%

Parker42%

Eaton28%

Eaton28%

Gates16%

Gates16%

Goodyear EP5%

Goodyear EP5% Other

9%Other9%

7 years into this market

7 years into this market

There’s Market Share for the taking!

There’s Market Share for the taking!

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Competitor benchmarking

Parker Benchmark August 2009

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Competitor benchmarking

RYCO Benchmark May 2010

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Customer satisfaction

- Email from recently converted hydraulic distributor

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Support made easy

Point of sale

Goodyear branded rugs- new in 2010

Goodyear branded counter stools- new in 2010

Outdoor metal sign- new in 2010

Wall charts, counter mats

Trade show

Product banners- new in 2010

Itinerant display

Marketing

Customizable brochures

Training

On site

Veyance program

YOUR NAME HERE!

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2010 Crimper Growth Program

• Information submitted and recorded by local GTM– No forms for the

distributor to fill out or submit

• 50% up front credit and the remaining 50% Credit after meeting goal within 1 year

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When To Start - Milestones

Day 1Day 1

Initial Initial

MeetingMeeting

Day 8Day 8

Usage AnalysisUsage Analysis

Day 21Day 21

Discussion w. Discussion w. Key AcctsKey Accts

Day 35 Day 35

Proposal FinalizedProposal Finalized

Day 55Day 55

Changeover Changeover Orders StagedOrders Staged

Day 60Day 60

ChangeoverChangeoverTrainingTraining

Day 90Day 90

Sales Blitz /Sales Blitz /Open HouseOpen House

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Still growing…

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Thank you!

Mike BraucherDirector, IP Field SalesGoodyear Engineered Products

““Veyance and IDC-USA will be a Veyance and IDC-USA will be a successful formula for growth...”successful formula for growth...”

YOUR NAME HERE!