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8-K - AMTY FORM 8K 2010 SHAREHOLDERS' MEETING - AMERITYRE CORPf1dec2010form8kfinalsharehol.htm

AMERITYRE TOTAL SOLUTIONS

The Future is Now

Welcome Board of Directors

and Shareholders

AMERITYRE CORPORATION

December 1, 2010


AMERITYRE TOTAL SOLUTIONS

AGENDA

Welcome and Introduction: Mr. Lou Haynie

Formal Business

Proposal 1 Election of Directors

Proposal 2 Re-appointment of Auditors

Presentation by Management

Questions and Answers

Motion to Adjourn


AMERITYRE TOTAL SOLUTIONS

FORWARD LOOKING STATEMENTS:

This presentation contains statements of a forward-looking nature

relating to future events or our future financial performance or financial

condition. Such statements are only predictions and the actual events or

results may differ materially from the results discussed in or implied by

the forward-looking statements. The historical results set forth in this

presentation are not necessarily indicative of trends with respect to any

actual or projected future financial performance. This presentation

should be read and considered in conjunction with the Companys

periodic report filings with the Securities and Exchange Commission,

including managements discussion and analysis as well as financial

statements and the related notes.


AMERITYRE TOTAL SOLUTIONS

President/CEO Presentation:  Michael Kapral

Review 2010 Accomplishments

Company Transformation Status

Marketing Strategy:

  Lawn and Garden

  Agriculture

  Forklift Tire

Business Strategy for 2011

Key Success Factors

Risk and Opportunities


AMERITYRE TOTAL SOLUTIONS

Sales Highlights of 2010

Sales Revenues Increased 15% over 2009

Gross Profit increased 30%

Selling, general, and administrative expenses down 40%

Fiscal Net Loss reduced 61% over previous year (2009)


AMERITYRE TOTAL SOLUTIONS

A Review of 2010

Target

Result

+ Cash flow

In Process

PU Growth

15%

Expand PU Business

New Applications

Reformulate Tire Fill

Not Competitive

Expand Solid Tire Business

Not Ready

Manufacturing Issues

Not Ready

Packaging Foam

Low Priority


AMERITYRE TOTAL SOLUTIONS

Longer Term Targets and Goals 2010

Target

Result

Reduce /Control Expenses

Down substantially

Reduce Raw Material Cost

Down by 12%

New Sizes for New Markets

L&G Applications

Grow All Product Areas

Mixed

Car Tire Development

Seeking Potential

Partners


AMERITYRE TOTAL SOLUTIONS

Company Transformation (R&D/Manufacturing)

1.  Personnel

2.  Processes

3.  Equipment

Completion: End Of  2011 Fiscal Year


AMERITYRE TOTAL SOLUTIONS

Marketing/Sales Strategy for 2011

PU Lawn & Garden

Power Equipment (OPE)

o Supply Tire and Wheel Assemblies

o Target Tier Two OEM

o Products Delivered and Quoted

o Deliveries to begin for Spring Purchasing

Hardware

o Tooling Changes Completed

o Targeting New Regional Distributors

o Targeting New OEM Business

o Expect increased Sales Q-3 (fiscal)

Establishing East Coast Distribution

For All PU Foam Products


AMERITYRE TOTAL SOLUTIONS

Marketing/Sales Strategy for 2011

Agriculture

Seeder Tire Sizes (2)

o  Target List Developed

o  Sold Twin Diamond/Beaver Bearing

o  Seasonal Sales Q3 Period (fiscal)

o  Estimated Volume $250,000

Forklift Tires

o  Product Testing Complete

o  Revised Manufacturing Process (larger sizes)

o  K2 Distribution

o  Amerityre Direct Distribution (Q3)

3.  Sales Combined With Rubber


AMERITYRE TOTAL SOLUTIONS

Business Plan for 2011

Sales Forecast for 2011 to increase 22%

Current Situation (Q1)

Continued Cost Reductions

Future Outlook Profitable Growth during this

period.


AMERITYRE TOTAL SOLUTIONS

Future Outlook

Meet/Exceed 2011 Budget

Focus On Sales and Continued Cost Containment

Build Profitable Growth

Develop Shareholder Value


AMERITYRE TOTAL SOLUTIONS

2011 Corporate Goals

Increase Sales with Core Products

Build Core Competencies

o Manufacturing

o Sales

o Distribution

o Marketing

Improved Efficiencies

Continued Cost Reduction Initiatives


AMERITYRE TOTAL SOLUTIONS

Risk and Opportunities

Risk

 Capitalize the Business

 Sales Growth

 Build Manufacturing Competency

Opportunities

 Unique Innovative Products into Mature Markets

 American Made

Ability to Manufacture for Diverse Applications


AMERITYRE TOTAL SOLUTIONS

The Future is

Now!


AMERITYRE TOTAL SOLUTIONS

Business Plan Overview

(Amerityre Industrial Tires)

Background

Current Situation

Industrial tire Market N. America

Amerityre  U.S. Innovation


AMERITYRE TOTAL SOLUTIONS

CURRENT SITUATION

 Transition underway from Research / Development

Structured  organization to Manufacturing organization

 Capital Investment and additional skilled personnel

must be added

 Bottom up budgets and sales forecasts by

product line underway

 Sales / Marketing strategies by product line

under development


MISSION STATEMENT

Amerityre 's new innovative material technology and

patented manufacturing processes bring customers a

NEW future for today's rubber tire products.

Mission is focused on:

 Delivering products and services with safety, quality,

and customer convenience.

 Providing customers  competitive and environmentally

friendly products and world class service.

 Optimizing working capital, developing shareholder value

 Provide employee's a work environment for growth

 Establish a global distribution

network (Americas/ Europe)


MISSION STATEMENT

This Mission will be realized by implementing the

following principles and activities:

  Adopting a continuous improvement attitude

  Acting customer focused and market driven.

  Delivering innovative new products and services to meet

tomorrow's customers needs.

  Achieve "low cost"  producer status without compromising

quality, seek supplier relationships to improve service,

and reduce cost.

  Develop business culture, built on mutual respect,

partnership for all employee's and shareholders.


AMERIT YRE TOTAL SOLUTIONS

CORE VALUES

  COMPETITIVE / QUALITY / ENVIRONMENTALY FRIENDLY

PRODUCTS

  RELIABILITY / PERFORMANCE

  COMMITMENT TO SERVICE EXCELLENCE

  PEOPLE BUILDING THE FUTURE


Marketing North America

MARKETING GOAL

To develop the AMERITYRE brand as a leading

quality brand within the Material Handling Industry.

Primary focus will be establishing a limited

distribution network utilizing franchisees,

independent forklift and tire dealers. In addition,

this brand will be positioned with select Original

Equipment (OE)material handling producers.


MARKETING PHILOSOPHY

Value Added Market Approach

Not a Price competitor

  Innovative Product with Quality Kryon

Material

  Press-on and Pneumatic shaped Tires

  Skid Steer Tires

  Product Availability (U.S.A.)

  Customer Service

  Superior Product Performance


INDUSTRIAL TIRE MARKETS

 MATERIAL HANDLING (Forklift)

 MINING EQUIPMENT

 INDUSTRIAL TRAILERS

 AIRLINE GROUND SUPPORT

 TOWING TRACTORS

 MILITARY VEHICLES

 CONSTRUCTION LOADERS

 SCISSOR LIFTS

 PAVING EQUIPMENT

 PERSONNEL CARRIERS

 SWEEPERS AND SCRUBBERS

 SEA PORT HANDLING EQUIPMENT


INDUSTRIAL TIRE MARKET

CURRENT MARKET SITUATION

 Numerous Brands - No Product Differentiation

 A Weak Economy Disrupting Replacement

Schedules

 Non Existent New Product Innovation

 Manufacturers Competing with their own Dealer

Network

 Price Driven Market


INDUSTRIAL TIRE MARKET

CURRENT MARKET SITUATION

A. MARKET  DEFINITION:

Material handling i.e. Forklifts Class 1, 4, and 5

Projected Industry Growth $98B Industry by 2015

MARKET SIZE:

Assuming the useful life of a forklift is ten years we will look at

shipments of new forklifts into the North American market over

ten year period. This will be our baseline fleet size to be serviced

by our product. We will assume that the fleet

size prior to this period was zero.

Number of Units

Class 1 Shipments 1998-2007

334,051

Class 4 / 5 Shipments 1998-2007

913,942

Total Estimated fleet size 1, 4/5

1,247,993


INDUSTRIAL TIRE MARKET

MARKET POTENTIAL

A. Assumption: Tire replacement = 1 ½ Tires/yr/unit

Replacement Potential = 1,871,989 Tires Per Year

Press-On  70% = 1,310,392 @ A.S.P. $130 = $170M

Resilient  20% =    374,397 @ A.S.P. $192 =  $  72M

Pneumatic 10% =  187,198 @ A.S.P.  $ 91 =  $  17M

Total Potential = $260M


INDUSTRIAL TIRE MARKET

CURRENT MARKET SITUATION

MARKET  SEGMENTATION:

In terms of sales channels the market has three

Segments: 1. Replacement

2. Original Equipment

3. Export (Latin America/Canada)

COMPETITORS:

Solideal, Trelleborg, Maine, Continental, Watts, Mitco have a

combined market share over 65%.


INDUSTRIAL TIRE MARKET

MARKETING OBJECTIVES

 Establish Brand Visibility

 Develop Dealer Network

 Build National Accounts

 Establish O.E.M. Presence


INDUSTRIAL TIRE MARKET

MARKETING STRATEGY

Utilize the Four Principles of Marketing

Product, Performance, Promotion, and Price.

A.Product - positioned as high quality engineered

product with performance benefits received from

technical competence (New Material).

 Performance - positioned as high value product with

wear properties superior to leading industry brands.


INDUSTRIAL TIRE MARKET

MARKETING STRATEGY

 Promotion - develop introductory Test Order

program

 Price - positioned at introduction to be highest value

for money at price equal to market leaders.


INDUSTRIAL TIRE MARKET

DEVELOPMENT AFTERMARKET

A.Develop target dealer list

Offer Test Order" program as required

Provide dealer limited distribution incentive

Reach agreement purchase volume 2011


INDUSTRIAL TIRE MARKET

DEVELOPMENT O.E.M.

  Original Equipment

Target Three Top Ten O.E.M. Accounts

Provide Cost Reduction Value Pkg.

Share Independent performance test data

Begin Approval Process

Gain Approval / Begin supply


FUTURE OUTLOOK

Next Steps for Success

1.Develop a Budget to Capitalize the Business

2.Capitalize the Business to Transform into Manufacturing

3.Build Manufacturing Capacity to Enter the Industrial Tire Market

4.Develop a business plan for Sales Forecast through various

Distribution Channels

5.Finalize / Implement Sales and Marketing Strategy

6.Secure Investment for Growth


FUTURE OUTLOOK

 Complete Transition to Manufacturing / Sales Co.

 Profitable Growth

 Add skill sets needed for growth

 Focus on Sales Growth and manufacturing

 Continued Improvement

 Customer Service

 Product development / Quality

 Seeking Low Cost" Manufacturing


Amerityre U.S. Innovation

Market is Ready

Superior Product Performance

Short Lead-times

Competitive with Market Leaders


Amerityre U.S. Innovation

Ser ving Industry

Material Development

Product Development

Advanced Production Techniques

High Value Products