dv inspection systems
TRANSCRIPT
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Presented by:
Gary Rutledge, CEO
Garrut Manufacturing Corporation
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What We Do
Design & Build Video Inspection Equipment
Provide Means for Seeing into the Unknown
Take the Guesswork out of the Water Well Industry
Save Firms Money, with Knowledge
Enable Decisions Based upon Facts
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Mission
To Manufacture and Market Video Inspection Equipment
To Introduce a Truly Portable Model
To Price This Model at a level, to Enhance Availability to Drillers
To Create a Branded Identity (in a Market of Unbranded Manufacturers)
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Most Important Commodity
In The World
75% of U.S. Cities Depend upon Groundwater
More than of all Americans rely on Groundwater
95% of all Rural Residents rely on Groundwater
AS THEIR PRIMARY SOURCE OF DRINKING WATER
2 Most Important Segments (Consumption & Irrigation)
Covers 97% of Useable Fresh Water Supply
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22,892
18,068 17,47716,100 15,972
0
5,000
10,000
15,000
20,000
25,000
Wisc
onsin
NewYo
rk
Penn
sylvania
Indiana
N.Caroli
na
Source: U.S. EPA 1997
Public Supply Wellsin place
Top 5 States
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122,000
80,00071,554
59,150
37,300
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Texas Nebraska California Florida rkansas
Sour e: U S Farm Census 1994
Irrigation Wellsin Place
Top 5 States
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Market
Several Hundred Year Old Market SegmentCamera Aided Mining only 50 Years Old
Increased Need due to Water Demand and Regulations
Miniature Video Technology has become Practical
Business Increases due to Immediate Feedback
Technology Provides a Competitive Advantage
Customers: Well Drillers, Contractors, Pump Setters, Work overServices, Municipalities & Commercial Farm Operations
Virtually Untapped Market
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Ho sehold Irrigation P blic pply Co nity pply
Total wells in use 15,923,217
o rce: ational Gro nd ater Association
Market size
U.S. Water Wellsin Place - by End Use
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US* ForeignDrillers, pump setters, service
companies and commercial 12,000
10,000
farming
Municipalities and communitySupply systems ** 18,000 15,000
Total 30,000 25,000
*Includes Canada and Mexico **Largest of 200,000 publicsystems
Prospective
Number of Customers
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Un-tapped markets
U.S Environmental Industry: Groundwater Protection
International Water Industry
Oil & Gas Industry
Pipelines, Tanks & Sewer Systems
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Other Markets
Construction Sites
Plant Facilities
Equipment Trouble Shooting
Electrical & Plumbing Systems
Remote Monitoring
Inspection of Hazardous Areas
Underwater Construction
Various Consumer Applications
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Product Development
Development Began 1997
First Units Shipped to Gould's Pumps, Inc.
100 Units sold Under Blue Vision Name
Designed New System: ViewMaster I
ViewMaster II in Early Design Stages
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Viewmaster I
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OEM Price End User PriceViewmaster ITwo CCD camera head $ 13,500 $ 18,500
Fiber optic cableDepth 1200 feet9" TV/VCR
Viewmaster II
Four CCD camera head $ 17,500 $ 22,500Converging image softwareFiber optic cableDepth 2500 feet9" TV/VCR or optional Remote Eyeglass Display
Product Specifications
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Distribution Strategy
OEM Distributors (Bulk Purchases: Sales by their Team)
Independent Distributors (Smaller Purchases: Their Sales Force)
Manufacturer Representatives (Contract Marketing & Sales)
Direct Sales (From Us to End User)
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Sales Strategy
Industry Tradeshows
Advertising: Publications & Journals
Promotion: Brochures, Product Sheets, Testimonials
Distributors Sales Programs
Financing Programs
Service & Maintenance Programs
Warranty Agreements
Training
Upgrades & Sales Assistance
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United States MARKET (30,000)
CONV
ERSIONU
NITS DV
% SALES 5 YEARPERCENTAGE SOLD OF MARKET PER YEAR TOTAL
10% 3,000 25% 150 75015% 4,500 25% 225 1,12520% 6,000 25% 300 1,500
SalesProjections: US Market
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Competition
GEO VISION LAVAL CVV CUES VM 1 VM 2
$18,650 $39, 000 $32,000 $49,000 $18,500 $22,750
Plastic HighCoaxialCable
S.Steel, High
PressureHousing
Coax Cable
S.Steel, High
PressureHousing
Coax Cable
Glass Dome
S.SteelHousing
Coax Cable
S.Steel, HighPressureHousingFiber OpticCable
S.Steel, HighPressureHousing
Fiber OpticCable
Optional SideView Mirror
Down Viewand 360Side View
Down Viewand 360Side View
HemisphereView
Down Viewand 360Side View -
Flat Lens
Down View,Multiple SideViews, 3-5x
Larger Image
1100 ft 1500 ft 1500 ft 1000 ft 1200 ft 2500 ft
4 LCD/8mm 9 VHS/VCR 9 VHS/VCR 9 VHS/VCR 9 TV/VCR 9 TV/VCROption:RemoteEyeglass
Display
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Management & advisoryboard
MANAGEMENT
Founder & CEO: 30 Years of Experience
Operations: 20 years of Experience
Contract Engineer #1> 30 Years of Experience
Contract Engineer #2> 30 Years of Experience
Contract Engineer #3> 20 Years of Experience
ADVISORY
Legal, Financial, Administrative, Hi-Tech, Industryand Support Services to Complement the ManagementTeam.
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723,000
1,450,000
2,173,000
2,900,000
3,623,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
2001 2002 2003 2004 2005
Projected
Revenue Growth
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54,349
360,513
691,694
1,004,257
1,346,310
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2001 2002 2003 2004 2005
Projected
net Income Growth