1. Building Sustainable Distribution
Attract Capital Channel Control Profitable Dealers Succession Planning New / Emerging Markets

2. Distribution…has its challenges
Customer Expectations
New
Used
Rental
Service Support
OEM
Dealer / Distributor
Rental Store
End User
Product Support
Global Competitors
Finance Programs
Investment
Capital
Channel Strategy
Marketing

3. OEM…challenges Attracting investment capital to the dealer network
WANTED - Business partners to share financial risks
Sustainable distribution channels
Get product support closer to the customer
Market pricing – especially with new global competitors
Deliverable brand value – attract dealers / customers
Improve profitability of dealers
Competitive Finance Programs – Wholesale / Retail
Profitable dealers sustain delivery systems and grow market share!

4. Dealer …challenges OEM Direct Global Competitors What’s Going Wrong ?
Declining Margins
High Coverage Costs
Aggressive
Rental Companies
OEM Direct
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Sales
Service
Global
Competitors
Changing
Customer Demands
Parts
2003 Script International Inc.

5. Emerging Markets Sales Parts Service Rental
New Machines Only
Good Margins 15-25%
Weak Financing Plans
Product Support not well established
Difficult to source used machines
Sales Margins for used machines are better 18-35%
Margins good 25-40%
Virtually no machine population
Although profitable no real opportunity for years to come.
Margins good 45-55%
Product Support usually lags behind sales development maybe months
Although profitable - service opportunities are weak due to virtually no machine population
Start-up dealers can work on competitive machines, the only problem is sourcing competitive parts and being able to make a reasonable margin
Usually every market has some pent up demand that will handsomely reward the market leader
Concept generally not widely known / accepted
Excellent Gross Profit 45-55%
Typical weak factory Support for fleet financing
Product offering limited to dealership brands
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Rental Fleets have high impact
Immediate Cash Flow
Overall contribution to dealer profitability
Positioning for future used machine sales
Positioning with emerging contractors for future sales activities
New brand / product introduction – low risk to end users
2003 Script International Inc.

6. When Dealer’s Fail…HIGH IMPACT
Corporate Profits
Market Share
Customer Satisfaction
Product Support
Retail Financing
Wholesale Financing
Warranty
Product
Quality
Brand
Awareness
Dealer Profitability

7. Typical Market Development
Dealers are usually averse to inventory that is not floor planned. Rental Fleets don’t just happen…it requires taking calculated RISK.
Customers are usually accustomed to taking all the financial RISK. The market really opens up when others begin to share their RISKS of owning and operating the equipment.
New Machine Sales
Rental Purchase
TIME
Used Machine Sales
Long Term Rental
Short Term Rental
End User
Dealer
FINANCIAL RISK
2001 Script International Inc.

8. Take The Lead….
Rental is a proven method in penetrating emerging markets …make it part of your corporate strategy!
Waiting for the market to mature is actually high risk.
Developing a corporate strategy without real experience and guidance is even higher risk.
Consider some guidance from real experts who can propose / evaluate a proven market strategy that is sustainable.

9. About Us
 Company established in 1996
Highly entrepreneurial leaders in the equipment industry with average experience 25 + years
International work / completed projects in (30) countries
Clients include major OEM’s and their dealer organizations, privately owned start-up businesses, trade associations.
Project milestone – assisted CAT dealers in South America to open 72 rental locations in 48 months.
Provided assistance to CAT dealers in Europe during due diligence work on acquisitions of CRAMO / Hewden Stewart
Other clients include Bobcat, Terex, ARA, AED, Komatsu

10. What We Do Unique Solutions –
What separates our consulting services from the others?
Ability to move quickly
Ability to provide experienced ground personnel (implementation)
Background and experience from a business owners perspective
Background and experience from the customers perspective
Extensive industry background not limited to one individuals background, but rather collaborative best practices approach to solutions
Proven track record with network development / dealer training programs
RESULTS!
For more information contact:
Larry Kaye
(904)