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Heresite Business Review Friday July 15 th , 2011 Madok Head Office

Heresite Business Review Friday July 15 th , 2011 Madok Head Office. Madok Manufacturing Overview. Company formed in 1975 as a manufacturer of custom designed copper tube/aluminum plate-fin heat transfer coils Based in Brantford, Ontario

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Heresite Business Review Friday July 15 th , 2011 Madok Head Office

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  1. Heresite Business Review Friday July 15th, 2011 Madok Head Office

  2. Madok Manufacturing Overview • Company formed in 1975 as a manufacturer of custom designed copper tube/aluminum plate-fin heat transfer coils • Based in Brantford, Ontario • Core business was rapid replacement of ‘exact’ coils that had failed/fatigued due to freezing, corrosion or physical damage • Business expanded into manufacturing of coils for new applications in addition to replacement units

  3. Madok Manufacturing Overview • Early days – founder and a small number of employees operating from original building • Madok became exclusive Heresite P-413 coating licensee for Canada in 1986 • New ownership in 1996 • Track record of slow, consistent, carefully managed growth over ensuing period • Operations primarily serve the provinces of Ontario and Quebec. Limited distribution to rest of Canada

  4. Madok Manufacturing Overview • Company has expanded to occupy 2 facilities (one devoted to coating operations), expanded coil production, 11 employees • Developed reputation for quality manufacturing, quick turn-around and excellent customer responsiveness • New partner joins company in 2011 – brings significant experience & proven track record in sales, marketing, operations and distribution Consistent investment to lay the foundation for profitable growth.

  5. Heresite Sales Performance COIL NON-COIL LIQUID $ 6 1 0 $ 5 0 2 $ 4 8 9 $ 4 7 3 $ 4 7 4 $ 4 4 6 $ 4 6 9 $ 4 5 5 $k (CAD) $ 3 9 6 $ 3 7 7 Growth tied to Mfg / Application OperationsOpportunities: Sales, Mktg & Distribution

  6. Heresite Coatings & Madok Strategy for aggressive growth • Align Madok strategy with Heresite strategy • Identify key segments and potential distribution channels. SWOT analysis required • Develop marketing program designed to promote Heresite and Madok brands; product F&B’s • Develop and execute sales plan to deliver 20% growth over next 12 months. Specific emphasis will be placed on non-coil/liquid product growth. • Expand distribution opportunities beyond Ontario -Quebec borders Pick up the pace! Ramp up focus on sales, marketing and distribution excellence to fuel growth.

  7. Heresite Coatings & Madok Next Steps • Which segments need to be expanded/developed first? • Where can we develop lucrative non-traditional markets? • How can we leverage cross-organizational promotion activities? • What resources are available from Heresite? Now and in the future? • Schedule of future business reviews?

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