IDC-USA Goodyear Hydraulics A Formula for

IDC-USA & Goodyear Hydraulics – “A Formula for Growth!” October 20, 2010 Brian S. Milek 1

Agenda • • Who We Are Today What We Offer How We Go To Market Next Steps 2

Commercial Organization Petillo Marketing Mgr Kish Channel Milek Sales- U. S. Davison Product Corbett Sales- CA Maul Catalog/ Applications 3

N. A. Hydraulic Hose Plants & Warehouse Granford, Quebec – Manufacture large bore, hand-built hose (Water S&D, Food, Chemical, Petroleum, Specialty) Norfolk, Nebraska – Manufacture braided textile and wire rubber hose (Pressure washer, steam, hydraulic, hose) Moberly, Missouri - Hose, Fittings, Accessories Warehouse Distribution Center 4

Granford, Quebec Fully owned subsidiary 1979 306, 000 Square Feet Production Capabilities ü Hand-built ü Spiral Plied Hose: 3/8” through 18” ID ü 400’ lengths up to 6” ID, 100’ lengths 6”-10” ID, 50’ lengths 10” 18” ID Products: Chemical, petroleum, food, custom ISO 9001 Certified November, 1994 5

Norfolk, Nebraska Built in 1979 (New) 250, 000 Square Feet Production Capabilities ü Banbury ü Mandrel & Non-Mandrel ü Braided hose: 3/16” - 2”, Textile and Wire ü Curing: Sheath, Wrap, Open Steam Products: Pressure washer, steam, hydraulic, specialty ISO 9001 Certified August, 1995 6

Moberly, MO - Distribution Center • 495, 000 square feet • 40’ clear height • 19. 8 mil Cu Ft • $29 million inventory • RF Scan Network • 25 truck doors • 1 drive in door • Drop yard • Moberly floor space is equal to 8 football fields Occupancy: May 2004 • Associates: • 132 Hourly • 10 Management & Support 7

What We Offer - Fittings Rank Thread Type 1 JIC 37° 2 NPTF 3 Code 61 4 ORFS 5 Code 62 6 BSPP 7 SAE 45° 8 DIN 24°L 9 OR Boss 10 DIN 24°H 11 NPSM 12 JIS 30° 13 Kom 30° Metric 14 Standpipe 15 DIN 60° 16 BSPT 17 Cat Flange • Swivels and Solid Configurations 18 Tube Fitting • Metric, ISO, and North American Standards 19 Inv. 45° 20 Kom Flange 21 BSP Flat Seat Goodyear has a complete line of hydraulic fittings Application Coverage: • One-Piece non-skive fittings for hoses up to 2” 100 R 13 • Bite the Wire on 100% of our medium, high and very high pressure wire reinforced hose • Reusable fittings for 100 R 5 Goodyear’s has the fitting styles you need: • Male & Female ends • 22. 5°, 45°, and 90° Elbow configurations • Short, Long, and Standard Length Elbows 8

What We Offer - Hoses BRAIDED Wire Hose high pressure e. g. SAE 100 R 1 AT/1 SN SAE 100 R 2 AT/2 SN SAE 100 R 17 SAE 100 R 16 BRAIDED Textile Hose low pressure e. g. SAE 100 R 3 SAE 100 R 4 (with wire) SAE 100 R 5 (with wire) SAE 100 R 6 SPIRAL Wire Hose very high pressure e. g. SAE 100 R 12 SAE 100 R 13 SAE 100 R 15 EN 856 4 SH EN 856 4 SP Thermoplastic Hose high pressure Special Application e. g. SAE 100 R 7 SAE 100 R 8 SAE 100 R 18 e. g. Jack Hose (10000 PSI) Grease Gun Hose Saflex Teflon Air Conditioning 9

PC 125 M Up to 1 1/4” 2 Wire Braid Mobile crimper to handle all your field crimping needs Die Set Pneumatic Pump Power Unit PC 150 & PC 150 H Up to 1 ½” 4 Wire Spiral Stationary crimper with more power to manufacture hose assemblies PC 125 Up to 1 1/4” 2 Wire Braid Suitable for shop service and bench mounting Die Set PC 200 & PC 400 Up to 2” 6 Wire Spiral High capacity, stationary, production-style crimper Die Set Die Cabinet Die Set 10

Positive Stop Crimp Conversion Kits • Kits Designed for Weatherhead Crimpers – PSW-100 (T 400) – PSW-101 (T 420) NEW • For use with popular 1 & 2 wire hydraulic hoses: – – – GR 1 SN GR 2 SN GR 16 SC GCP 3 GR 17 11

Extended Portfolio Stainless Steel Fittings • CPE tube and cover • Offered with 10 fitting types Coast Guard Approval 12

Extended Portfolio SAE 100 R 14 Hose and Fittings Quick Disconnect Fittings 1 -Piece CAT Flanges • 22 Degree • 30 Degree • 45 Degree • 60 Degree • 67 Degree • 90 Degree • Straight Connectors • Jump Sizes 13

Military Hose 14

Look how we’ve grown… 2008 2004 Count of Part Number Category Accessories Adapters Assembly Equipment Ferrules Fittings Hose Literature & Sales Tools Grand Total 2009 -2010 Adapters Quick Disconnects Count of GY PN Total Category 172 3146 181 51 2857 372 19 6798 3000 235 Accessories Adapters Assembly Equipment Ferrules Fittings hose Literature Grand Total 123 0 113 32 1551 211 5 2035 Now over 10, 000 SKU’s 15

Hydraulic Market Size - Justification The $1. 2 billion NA Fluid Power Market is indexed to grow at 3. 5%, following average industrial GDP 16

How We Go To Market - Hydraulics Market Share Goodyear EP 5% Other 9% 7 years into this market Gates 16% Parker 42% There’ s Market Share for the taking! Eaton 28% 17

Competitor benchmarking Parker Benchmark August 2009 18

Competitor benchmarking RYCO Benchmark May 2010 19

Customer satisfaction - Email from recently converted hydraulic distributor 20

Support made easy Point of sale Goodyear branded rugs- new in 2010 Goodyear branded counter stools- new in 2010 Outdoor metal sign- new in 2010 Wall charts, counter mats Trade show Product banners- new in 2010 Itinerant display YOUR NAME HERE! Marketing Customizable brochures Training On site Veyance program 21

2010 Crimper Growth Program • Information submitted and recorded by local GTM – No forms for the distributor to fill out or submit • 50% up front credit and the remaining 50% Credit after meeting goal within 1 year 22

When To Start - Milestones Sales Blitz / Open House Discussion w. Key Accts Initial Usage Analysis Changeover Orders Staged Proposal Finalized Changeover Training Meeting Day 1 Day 35 Day 8 Day 21 Day 60 Day 55 Day 90 23

Still growing… 24

Thank you! “Veyance and IDC-USA will be a successful formula for growth. . . ” YOUR NAME HERE! Mike Braucher Director, IP Field Sales Goodyear Engineered Products 25