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8-K - AMTY FORM 8K 2010 SHAREHOLDERS' MEETING - AMERITYRE CORP | f1dec2010form8kfinalsharehol.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 Company’s
periodic report filings with the Securities and Exchange Commission,
including management’s 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 (America’s/ 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 customer’s 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