Amerityre Corp. · OTC:AMTY
Amerityre — Shareholder Meeting (December 2010)
36 slides from Amerityre's shareholder meeting presentation, Dec 1, 2010
Slide 1: The Future is Now
AMERITYRE TOTAL SOLUTIONS “The Future is Now” Welcome Board of Directors and Shareholders AMERITYRE CORPORATION December 1, 2010
Slide 2: Agenda
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
Slide 3: Forward Looking Statements
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 fr
Slide 4: President/CEO Presentation: Michael Kapral
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
Slide 5: Sales Highlights of 2010
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)
Slide 6: A Review of 2010
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
Slide 7: Longer Term Targets and Goals 2010
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
Slide 8: Company Transformation (R&D/Manufacturing)
AMERITYRE TOTAL SOLUTIONS Company Transformation (R&D/Manufacturing) 1. Personnel 2. Processes 3. Equipment Completion: End Of 2011 Fiscal Year
Slide 9: Marketing/Sales Strategy for 2011
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 Di
Slide 10: Marketing/Sales Strategy for 2011
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 (larg
Slide 11: Business Plan for 2011
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.
Slide 12: Future Outlook
AMERITYRE TOTAL SOLUTIONS Future Outlook • Meet/Exceed 2011 Budget • Focus On Sales and Continued Cost Containment • Build Profitable Growth • Develop Shareholder Value
Slide 13: 2011 Corporate Goals
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
Slide 14: Risk and Opportunities
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
Slide 15: The Future is Now!
AMERITYRE TOTAL SOLUTIONS The Future is Now!
Slide 16: Business Plan Overview (Amerityre Industrial Tires)
AMERITYRE TOTAL SOLUTIONS Business Plan Overview (Amerityre Industrial Tires) • Background • Current Situation • Industrial tire Market N. America • Amerityre U.S. Innovation
Slide 17: Current Situation
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
Slide 18: Mission Statement
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 compet
Slide 19: Mission Statement
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 cos
Slide 20: Core Values
AMERIT YRE TOTAL SOLUTIONS CORE VALUES • COMPETITIVE / QUALITY / ENVIRONMENTALY FRIENDLY PRODUCTS • RELIABILITY / PERFORMANCE • COMMITMENT TO SERVICE EXCELLENCE • PEOPLE BUILDING THE FUTURE
Slide 21: Marketing North America
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 posi
Slide 22: Marketing Philosophy
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
Slide 23: Industrial Tire Markets
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
Slide 24: Industrial Tire Market: Current Market Situation
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
Slide 25: Industrial Tire Market: Market Definition and Size
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 Americ
Slide 26: Industrial Tire Market: Market Potential
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 = $2
Slide 27: Industrial Tire Market: Segmentation and Competitors
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 ov
Slide 28: Industrial Tire Market: Marketing Objectives
INDUSTRIAL TIRE MARKET MARKETING OBJECTIVES • Establish Brand Visibility • Develop Dealer Network • Build National Accounts • Establish O.E.M. Presence
Slide 29: Industrial Tire Market: Marketing Strategy
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 val
Slide 30: Industrial Tire Market: Marketing Strategy
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.
Slide 31: Development Aftermarket
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
Slide 32: Development O.E.M.
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
Slide 33: Future Outlook: Next Steps for Success
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.Finali
Slide 34: Future Outlook
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
Slide 35: Amerityre U.S. Innovation
Amerityre U.S. Innovation Market is Ready Superior Product Performance Short Lead-times Competitive with Market Leaders
Slide 36: Amerityre U.S. Innovation
Amerityre U.S. Innovation Ser ving Industry Material Development Product Development Advanced Production Techniques High Value Products