nexstar presentation

FRANK & LINDY PLUMBING & HEATING COMPANIES

Prepared for Frank & Lindy Plumbing & Heating Comapanies, May 9, 2005

POWERMATE = PROFITS

Initially, many Plumbing - HVAC/R contractors look at PowerMate, without understanding the true value of the product.

They soon recognize that PowerMate is not an expense, but an investment giving them substantial return on investment (R.O.I.).

The payback period for a PowerMate is consistently less than a year and frequently less than 6 months.

This presentation has been created to show you how your Company can take advantage of investing in PowerMate.

1Prepared for Frank & Lindy Plumbing & Heating Comapanies, May 9, 2005

WHO IS POWERMATE?

• Over 28 years of business expertise in safety moving systems• Business is built on product value and customer relationships• Proven International vendor• Work with Companies to assist them in achieving their objectives• Creating a “Win-Win” situation• Best in class on-site operator training and post sales support• Demonstrated track record for meeting and exceeding customers expectations• Superior quality assurance program• We are the manufacturer, responsive and eager to work with you to develop solutions to your challenges


INDUSTRY EXPERIENCEPLUMBING - HVAC/R

• Providing solutions to your industry for over 28 years• Plumbing-HVAC/R = approximately 35% of our total business• What our Plumbing-HVAC/R Customers say about PowerMate:▸ Arnold & Son’s Plumbing, Heating & A/C

• “We purchased our PowerMate in March of 2000 and could not be happier...The time saved and added safety have paid for this machine 10 fold... I would recommend your product to anyone! ...we have had no down time or repairs with our Powermate. Who could ask for anything more? We consider it the most valuable tool in our warehouse or on the job.”

▸ Jack Hall Plumbing & Heating, Inc.• “It not only cuts your time on getting the equipment in and out of houses, but you get to keep your other techs out in the field making you money on other jobs... It has definitely paid for itself time and time again.”

▸ Stein Plumbing• “We purchased a unit from you about five years ago and it has quietly become one of the best purchases I have ever made. Before we purchased your product I would always struggle when it came to moving large water heaters and other heavy objects. How many people do I need? How can I get them there at the same time? Should I hire a moving company so I don’t risk hurting one of my employees? Your product changed all those questions into ‘Don't forget the Powermate’.”


INDUSTRY EXPERIENCEPSE&G

NEXSTAR - (CONTRACTORS 2000)

DIRECT ENERGY

PowerMate is a Nexstar Preferred Vendor. Nexstar is a member owned organization built on a cooperative business model.

Converting their fleet of Plumbing & Heating installation vehicles with potential to generate over $5 million+ / yr. in incremental revenue! R.O.I 11:1 in year one alone!


EXECUTIVE SUMMARYSAMPLE

The following are excerpts from a business analysis for a business in the Plumbing-HVAC/R Industry...

Based on your findings and supplied information, PowerMate can save your Company

over $5,200,200 per year or more than $26,001,000 over the next 5 years.

R.O.I = 11:1


SUMMARYSAMPLE SAVINGS SUMMARY

SAFETYReduce incidence of injuries by 50% or moreExceed target of 15% or moreReduce lost work days $1,025,000

Get injured workers back to work - more productive, soonerReduce modified duty days $175,200

LABORSupport Corporate objective to increase efficiency Better allocate Company resources (Labor Savings) $4,000,000

SAVINGS BY END OF YEAR ONE

$5,200,200


SUMMARYSAMPLE SAVINGS SUMMARY

• Additional revenue based on time savings• More additional revenue from increased billable hours• Decreased Worker’s Compensation premium, even earn a rebate!• Decreased product damage• Decreased property damage• Increased professionalism = customer retention and referrals• The right tool = optimum efficiency• Increased productivity• Increased sales due to higher customer and employee satisfaction

PLUS:


SAMPLE R.O.I.YEAR 1 - 5

On initial investment

Year Ratio

1 11:12 22:13 33:14 44:15 54:1


SAMPLE PAYBACK!*

PowerMate saving you 18 new injuries

OR

PowerMate getting 18 injured people back to work and productive

OR

All installation vehicles operating for 19 days without a helper


POWERMATETHE INDUSTRY STANDARD

• Increase Safety▸ No manual lifting required, PowerMate does 100% of the lifting▸ Decrease employee fatigue and resulting injuries▸ Reduce injuries, lost work days and modified duty days▸ Lower Worker’s Compensation premiums

• Lower Labor Costs▸ Better allocate Company resources through increased efficiency▸ Opportunity to send one person out on a job instead of two▸ Create additional revenue by sending the second person out to another call▸ Save time on each job

• Decrease Product Damage▸ Have complete control of the load at all times▸ Heavy duty reinforced straps & adjustable strap bars to secure the load in place


POWERMATETHE INDUSTRY STANDARD

• Decrease Property Damage▸ Non-marking wheels and anti-skid protector guards▸ Well-balanced so operator has complete control at all times

• Professionalism▸ No more planks and ropes to lower heavy loads into basements▸ Best in class tool adds to “Red Carpet” image

• Reliability▸ Low maintenance▸ Top of the line battery▸ Heavy duty extruded aluminum construction

• Quick & Substantial R.O.I.


POWERMATE L-1

The PowerMate L-1 is the perfect solution to residential hot water tanks, moving water conditioners, brine tanks, drain cleaning equipment, A/C units, furnaces and residential boilers on and off vehicles, over thresholds, and up and down stairs.

Perfect for tight landings - turns on a dime.

Top of the line, maintenance free battery.

Tried and proven in the Plumbing-HVAC/R Industry.

INTRODUCTION


POWERMATE LE-1The PowerMate LE-1 is perfect for moving motors, compressors, hot water tanks, furnaces, pumps, boilers, generators, radiators, stoves, and commercial A/C units on and off vehicles over thresholds and up and down stairs.

Dual drive screw allows for perfectly balanced loads and effortless deliveries.

Vertical lift capability - Perfect for pedestals!

Fully automated braking system.

Tried and proven in the Plumbing -HVAC/R Industry.

INTRODUCTION


POWERMATE M-1

The PowerMate M-1 is the perfect for moving large boilers, motors, compressors, generators as well as heat pumps and cast iron bathtubs on and off vehicles, up and down stairs.

Can be adjusted into a 4-wheel dolly.

Rugged steel outer frame


Tried and proven in the Plumbing-HVAC/R Industry.

INTRODUCTION


POWERMATE M-2B

The PowerMate M-2B is the perfect for moving radiators and commercial hot water tanks, boilers and A/C units on and off vehicles, up and down stairs.

Can be adjusted into a 4-wheel dolly.

Rugged steel outer frame


Tried and proven in the Plumbing -HVAC/R Industry.

INTRODUCTION


LG-6 500 lbs.The PowerMate LG-6 is the perfect compliment to our machines for moving hot water heaters, boilers, A/C units stoves, and furnaces on and off vehicles your cube trucks and full-sized vans.

Works from vehicle electrical system.

Articulated arm movement.

Load and unload in smaller space.

Durable construction, low maintenance.

Regular tail gate lifts cost $6K to $8K, the PowerMate LG-6 will save you more than 50%.

INTRODUCTION


BUSINESS ANALYSISSAFETY

• Reduce your injury incidence rate by 50% or more• PowerMate Ergonomic Report reveals 87% less back strain• Decrease fatigue related accidents• Decrease Worker’s Compensation premiums, even get a rebate• One injury costs your Company over $29,000/year US• (direct and indirect costs)• Increase productivity through less lost days and less modified duty days• Attract and keep valuable experienced employees


Statistics support that people working in Plumbing - HVAC/R and Electrical Industry have an incidence rate of 7.4

WHO IS AT RISK?


HOW MUCH TIME IS LOST DUE TO BACK INJURIES?


WHAT DO INJURIES COST?


THE INJURY MANAGEMENT PROBLEM:Direct & Indirect Costs

WorkWell Systems Inc. 2004

Overtime WorkersComp

Long &Short Term

Disability

HealthcareInsurance

AbsenteeismMorale

Recruiting Training

LostProductivity

Legal

PaidTime Off

AccidentInvestigation

WHAT ARE THE COSTS MADE UP OF?


BUSINESS ANALYSISLABOR

• PowerMate opens the door to efficient use of Company resources• Decrease labour costs by as much as 50% or more with PowerMate• Efficiently complete installations with one person▸ Through increased productivity, create additional billable revenue

• PowerMate will still save you 20% of the time spent at each job▸ Complete the work faster and safer


BUSINESS ANALYSISPRODUCT DAMAGE

PROPERTY DAMAGE

• Decrease the incidence of product damage and loss to virtually 0.

PROFESSIONALISM• Increase your professional image with the right tool for the job and promote customer satisfaction, retention and referrals.

RELIABILITY• With little to no maintenance, your PowerMate is there for you.

• Decrease the incidence of customer property damage to virtually 0.


OTHER BENEFITS• Increase employee satisfaction and morale• Provide the opportunity to hire employees regardless of age, physical size or gender• Decrease monies spent on paying the lease on a sitting or non-productive vehicle• PowerMate fits with the best in class “Red Carpet Treatment” image• Consistent with Your Corporate objectives• Dedicated Partner in PowerMate• Increase customer satisfaction, drive customer loyalty• Differentiate your Company from competitors• PowerMate will help both you and your Company be successful -Bonuses and adding to your Companies bottom line• Continue to position your Company as a Forward Thinking, Professional, Progressive Organization that is a Leader in Best Practices in the Plumbing-HVAC/R & Electrical Industry


SOLUTION

Prepared for Frank & Lindy Plumbing & Heating Comapanies, May 9, 2005

25

NEXT STEPSPowerMate proposes we continue to work together with you to define how best we can form a mutually beneficial business relationship. It is our hope to pro-actively finalize a detailed implementation strategy and program over

the coming weeks.

Thank you for your time today. We look forward to working with your team over the months and years to come!

Ivan Vander DeenV.P. Sales & MarketingEmail: [email protected] Free: 1-800-697-6283 ext.115

For more information, visit the PowerMate Web site at www.powermate.info


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