48 HOURS IN EDMONTON - October 2013 48 Hours In Edmonton – October 2013

CRANE BUSINESS UNIT

STRONGCO CRANE BUSINESS UNIT

Strongco is one of the largest crane distributors in Canada

Represent major globally recognized brands

Primary Brands:

Manitowoc Crane, Grove, National Crane

Supporting Brands:

Fassi Crane, Jekko Crane, Taylor Lift Truck

Distribution rights essentially across Canada

6 Branches across Canada in Alberta, Ontario, Quebec and Atlantic

18 additional sub-dealers in BC, Alberta, Saskatchewan, Manitoba and

Quebec

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CRANE BRANCHES - WESTERN CANADA

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STRONGCO BRANCHES

Strongco Branches - 32

•

o Sub dealer Locations - 18

PENTICTON

GLOBAL BRANDS - MANITOWOC, GROVE, NATIONAL

Top 5 Manitowoc Crane

distributors in N. America

Manitowoc Cranes are

recognized globally as market

leaders:

Crawler mounted lattice boom

cranes

Hydraulic All-Terrain mobile

cranes

Rough Terrain hydraulic cranes

National Boom Truck hydraulic

cranes

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GLOBAL BRANDS – FASSI CRANES

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Fassi Articulating Cranes

Italian made

Fassi is in Top 3

manufacturers globally

Ability to produce >9,000

cranes/year

Strongco is the Master Fassi

Distributor for all of Canada

Fassi Product Ranges

Light Duty Cranes 1-12 tm

Medium Duty Cranes 13-38 tm

Heavy Duty 41-127 tm

Complete line of marine,

specialty and military cranes

GLOBAL BRANDS – TAYLOR LIFT TRUCKS

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Taylor Industrial Trucks

Taylor has long been

considered the premium

industrial truck in North & South

America

Family owned and operated in

Mississippi

Used anywhere severe service

heavy trucks required (steel,

heavy precast, pipe)

Complete line of loaded and

empty container handling trucks

(railways, ports, container

distribution and storage)

GLOBAL BRANDS – JEKKO MINI CRANES

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Jekko Mini Cranes

Emerging

manufacturer of rubber

crawler hydraulic mini-

cranes

Used extensively in

curtain wall industries,

rental, general

construction

Compact lift solutions

anywhere space

restrictions, or weight,

prevent use of larger

cranes

CRANE CUSTOMERS

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Customers

Crane Rental Companies (with operator)

Trucking & Transportation ( Heavy Haul, Rig Movers )

Oil & Gas ( Mining, Drilling, Support Services )

General Contractors

Material Handling ( Home Centres, Lumber )

Rail

Government

CRANE MARKET

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Crane Rental

Crane rental companies

Entrec Corporation (Alberta)

Northern Crane Services (Alberta)

Myshak (Alberta)

Mammoet (Alberta, Quebec, Ontario)

End Users

Oil & Gas-Mining, Refining, Drilling, Offshore

Contractors, Bridge Builders, Government

Steel, Concrete, Heavy Construction, Shipping & Ports

Transportation, Trucking, Railways, Material Handling

STRENGTHS

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Facilities & Personnel

Safe working environment at Strongco

Stable workforce, many long time employees

Extensive and on-going factory technician training

Experienced field sales personnel

Expanded Edmonton facility

Larger overhead cranes to handle major boom repairs

More shop space to take on additional crane work since new Volvo facility in

Acheson completed

Increased ability to provide customers and sub-dealers engineered truck stability

and weight solutions

Increased ability to mount larger, more complex cranes on customer supplied

chassis’

OPPORTUNITIES / ISSUES

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Customer Consolidation

Large multi-national and domestic companies buying smaller rental operations

Entrec purchased Mains Crane, Raincoast Crane, GT’s Crane

Challenge to Strongco is their preference to rent this year, buy next year

RPO Inventory investment

These companies operate both sides of the border so have relationships with

other Manitowoc dealers

The market for National and Fassi cranes is shifting to work ready turn-key

truck/crane packages

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CRANE BUSINESS UNIT FINANCIAL TRENDS

CRANE REVENUE

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($ millions)

CRANE PROPORTION OF TOTAL STRONGCO REVENUE 2009 - 2013

2009 2010 2011 2012 2013

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Crane Business Unit Other Business Units

CRANE NOW 24% OF TOTAL STRONGCO REVENUE

CRANE REVENUE ALBERTA

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($ millions)

CRANE REVENUE 2009 - 2013

2009 2010 2011 2012 2013

0

5

10

15

20

25

30

35

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Alberta Rest of Canada

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THANK YOU