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Off Highway Tires Off Highway Tires

Off Highway Tires - PowerPoint Presentation

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Off Highway Tires - PPT Presentation

North American Tire amp Retread Expo New Orleans Louisiana April 16 2015 Agenda OHT Market Size and Breakdown Some observations on main relevant sectors Thoughts on whats coming down the pike ID: 389699

tire oht tires market oht tire market tires global construction business mining otr size dealer users service spins forecasted

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Slide1

Off Highway Tires

North American Tire & Retread Expo

New Orleans, LouisianaApril 16, 2015Slide2

Agenda

OHT Market Size and BreakdownSome observations on main relevant sectors

Thoughts on what’s coming down the pike….Slide3

A Little Bit About Me…Slide4

Some OFF HIGHWAY TIRE observations…Slide5

Great People

Cool Products, cool machines

End users appreciate value!

It’s a relationship business.Slide6

OHT Business Good Size

Big enough to grow in and to make money

.

Small

enough to be involved and make an impact.Slide7

OTR vs. OHT??Slide8

Forestry

Mining / Earthmover

Construction

8

Segments

of OHT Market

AgricultureSlide9

Above OHT market size excludes solid tire, racing tires and aircraft tire.

Source: Annual reports; Global Tire Report from Rubbernews.com

Global

OHT Tire

Market ~$

14B

!

OHT Market

Other MarketsSlide10

Above OHT market size excludes solid tire, racing tires and aircraft tire.

Source: Annual reports; Global Tire Report from Rubbernews.com

Global OHT Market

OHT Market

OEM

Aftermarket / ReplacementSlide11

Above OHT market size excludes solid tire, racing tires and aircraft tire.

Source: Annual reports; Global Tire Report from Rubbernews.com

Global OHT Market

OHT Market

Europe

ROW

North AmericaSlide12

Global Market BreakdownSlide13

North

American OHT MarketSlide14

MiningSlide15

Mining….

“It was the best of times….it was the worst of times”

Charles Dickens, A Tale of Two CitiesSlide16

Mining….

Highly specialized

Very regionalized

Cost of failure very high

High cost to serveSlide17
Slide18

Mining Pockets of Opportunity

Underground

mining

Sand

and GravelSlide19

Agriculture

THEIKPSOIUPRTESlide20

AG vs. MiningSlide21

Agriculture

Also specialized and

regional

But not as much as

mining

Farms in every state….opportunities unless you are an urban dealerSlide22

Farmers Very Tech Savvy

Farmers research EVERYTHING online before buying

Make sure your website is easy to find and easy to use.Slide23

GPS Guided Farming!Slide24

Heavy Users of Social MediaSlide25

Productivity Driven….Slide26

Not Just Tractors….Slide27

Segment break-up of OHT market

Key

OHT Segments

Agriculture

Forestry

Mining

Construction

ConstructionSlide28

Construction is Booming

2014 machinery sales up 8.7%

2015 forecasted to be even higher 8.9%

2016-2019 looking strong with CAGR of 4.5% or higherSlide29

Growth is Across the Board

2015

Single Family Housing

Forecasted to

be up 15% over 2014

Commercial Building

also forecasted in the 15% range

Construction is

EVERYWHERE

….not just in Southeast or West.

Not just suburbs as in past.

INFILL in cities, led by millennials, driving urban construction Slide30

Construction EquipmentSlide31

70% Of All OTR Tires 24”-25”

13.00-24

14.00-24

15.5-25

17.5-25

20.5-25

23.5-25

25.5-25

29.5-25Slide32

OTR Segment Offers Greatest Short Term Opportunity

You don’t have to be an OTR dealer to participate

.

Any

commercial dealer, with a lift gate truck, can handle majority of tire sizes used on construction and industrial machinesSlide33

Go Where the Numbers Are….

800,000+ Skid Steers in the USA alone

600,000 on tires

2.4 MILLION SS Tires in the field right now

Severe use. High scrub rate. Wear out fast

Limited sizes to

inventory

10-16.5

12-16.5Slide34

Rental Companies Are Hot…Slide35

Rentals Are Hot!

Over 50% of 2014 new equipment purchased by rental

companies

Trend

forecasted to be even higher

2015-2019

Driven by continuing

uncertainty

Users increasingly deploying specialized equipment for specialized jobs. More economical to rent than

own

Uncertainty over long term Federal Highway BillSlide36

So What?

Do not ignore the rental fleets

They are growing fast

Get to know local people at rental company branch locations

United Rentals

Sunbelt

Cat Equipment

Etc.

They are everywhere. In all markets.Slide37

Where to Look….Slide38

ForestrySlide39

OHT…It’s a Dealer’s World.

OTR Users Need Dealer Service and Value their servicing dealer

You offer what manufacturers do not:

24 Hour emergency service

Inventory close at hand.

Trained technicians/OSHA certified

Data driven recommendations to help lower production costs/reduce downtimeSlide40

It’s All About Productivity & Cost

No one cares about tires except for those of us in this room

!

Customers

only care about lowering their production costs and improving

productivity

If this could occur through some new, disruptive technology, we’d be out of businessSlide41

Good News…You are the Critical Link!

Right service partner is still the critical link in making everything work

Right tire recommendation

Right service offerings

You are in the driver’s seat. Customer appreciates what you can do for him more than the brand of the tire.

You can recommend the right bundle of products and services that you feel will help your customer best.Slide42

Majors De-Focused

Pirelli spins off AG tire business to

Trelleborg

Goodyear spins off AG business to

Titan

Continental spins off OTR business in U.S. to

Titan

Conti spins off AG business in Europe to

MitasSlide43

It will be a buyer’s marketSlide44

You Will Have Even More Choices in the Future….

Emerging Players starting to challenge the global

giants

Emerging players more sophisticated

Choose Wisely….Slide45