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CHEMSTATION
International Franchise
      Ownership
CHEMSTATION Background

    ChemStation began in 1977 and developed and patented
n
    machinery necessary to automate the detergent
    manufacturing process. The machinery and the
    techniques used to manufacture ChemStation products
    are unique in the industry.
        The development of computerized manufacturing equipment
    ¡
        allows the ChemStation manufacturing equipment to
        communicate by way of proprietary software.
        This places the manufacturing process near the user, thus
    ¡
        formulae can be created for a particular purpose and/or a
        particular individual or department with an extremely short
        turnaround between R&D and delivery.
        Products developed for a specific purpose in one part of the
    ¡
        world can be instantly available in other parts by a simple
        electronic message between the computers operating the
        manufacturing equipment.
CHEMSTATION Background

    ChemStation has grown its focus from simple
n
    refillable containers into specialized markets and
    segments.
        ChemStation maintains departments that look after
    ¡
        such issues as:
            Training
        n

            Research and Development
        n

            Regulations and other government issues
        n

            Customer service
        n

            Equipment design and repair
        n

            National account administration
        n
FAQ’s

What is CHEMSTATION?
    ChemStation is industrial detergent manufacturing using
n
    a patented process and equipment.
    ChemStation is just-in-time manufacturing and delivery.
n
    ChemStation may be the only available manufacturing
n
    franchise opportunity.
    ChemStation produces environmentally friendly
n
    products.
    ChemStation delivers the product to the customer in
n
    refillable containers, eliminating drums and other
    containers that end up as landfill waste.
    ChemStation customers are usually cleaning something
n
    in the printing, parts washing, vehicle cleaning, food
    processing, landfill, refining, and general maintenance
    industries.
FAQ’s

   What does it take to become a
     CHEMSTATION team
     member?
        You need to be comfortable with
   n
        selling and the sales process.
        You need the ability to manage and
   n
        motivate 7-10 employees.
        You do not need a chemical
   n
        background.
        You will need to be financially
   n
        secure in order to exploit the market
        opportunities within your country.
FAQ’s

What do I get when I sign on with
  CHEMSTATION?
    You get a unique way of doing business that makes it hard
n
    for the customers to say no.
    You get a support system consisting of a team of chemists,
n
    a technical service department, on-call equipment
    technicians and financial advisors to help you every step
    of the way.
    You get initial week-long training, regional training
n
    meetings, industry-specific training at the corporate
    headquarters, and a four-day annual meeting for all
    owners.
    A proprietary software system like none other in the
n
    chemical industry.
The CHEMSTATION System

    ChemStation is industrial detergent
n
    manufacturing using a patented process
    and equipment. ChemStation is just-in-
    time manufacturing and delivery using
    a system of refillable tanks that
    eliminates container disposal.
CHEMSTATION Advantages
    Local manufacturing facilities
n
    JIT delivery to minimize inventory carrying costs
n
    Fastest possible response in the industry
n
    Maximum 24-hour delivery guarantee for emergencies
n
    Service personnel on call 24/7
n
    6,317 Custom-formulated products (and growing)
n
    Provide service and quality sanitation systems wherever it is needed
n
    Trained staff for a number of industries
n
    Refillable containers eliminate the need to order, handle, inventory,
n
    and dispose of other disposable containers
    ChemStation employs personnel that are available to assist and
n
    oversee plant set-ups
    Proper dilution controlled with proportioning or automated
n
    dispensing systems
    ChemStation maintains the functionality of installed equipment
n
How it Works
            ChemStation products are blends of proprietary
        n
            chemicals manufactured and shipped from Dayton,
            OH and commodities purchased from a local
            commodity distributor.
            Once a formula is custom-manufactured it is
        n
            delivered by your staff into refillable containers at
            the customer location.
CHEMSTATION Products
                  y, 5%
             odit
      omm
    C
       Blends, 5%

                     Commodities – Over 30 ChemStation-
                     approved commodities (e.g., Sodium
                     Hydroxide, Sodium Hypochlorite,


H2O,
                     Phosphoric Acid, etc.) purchased from
                     your local distributor.
       90%
                     Blends – Over 80 proprietary formulas
                     developed by and shipped from
                     ChemStation International.
Industries Served

                           Paper

                                   Hotel
               Asphalt


     Concrete                              Bottling


     Brewery                               Food Plants


                                           Car Wash
      Landfill


                                   Refineries
                 Airport
                           Parts
North America Network
Your CHEMSTATION Staff

    ChemStation is primarily a marketing opportunity. We have made
n
    the Operations side of the business relatively simple. You will
    initially need to hire, train, and motivate a staff of 7-10 employees.
              The Staff:
         n
                    General Manager
                n

                    Operations Manager
                n
                    Delivery Driver
                n
                    Administrative Assistant
                n
                    3-5 Salespeople
                n
The Support System

    ChemStation Corporate has a staff
n
    of employees to support you
    and your team.
        Technical
    ¡
            Food Team
        n
            Parts Team
        n
            Vehicle Team
        n

        Computer and Operations
    ¡
            Information Technology (IT) Team
        n
            Equipment Team
        n
Food/Odor Control Team

    Our Food/Odor Control Team consists of:
n
        Full-time Chemists
    ¡

        Technical Support people
    ¡



        Industries Served:
    ¡
            Any Food Manufacturer
        n
            Bottling
        n

            Dairies
        n

            Odor Control
        n
            (landfills, sewage treatment, etc.)
Parts Team

    Our Parts Team consists of:
n
        Full-time Chemists
    ¡

        Technical Support people
    ¡


        Industries Served:
    ¡
            Any manufacturer of various parts
        n
                 Automotive
            ¡
                 Machinery, etc.
            ¡

            Printing (water- or soy-based inks)
        n
                 Corrugators
            ¡
                 Newsprint
            ¡

            Petrochemical
        n
                 Refineries
            ¡
Vehicle Team

        Our Vehicle Team consists of:
    n
            Full-time Chemists
        ¡

            Technical Support people
        ¡
                Industries Served:
            n
                     Any vehicle cleaning
                ¡
                     Cars
                ¡
                     Trucks
                ¡
                     Airplanes
                ¡
                     Boats
                ¡
                     Equipment
                ¡
                General Maintenance
            n
                     Floor Cleaning
                ¡
                     General Degreasing
                ¡
References
    Food Industry               Vehicle Industry
n                           n
        Tyson                       Penske
    ¡                           ¡
        Del Monte                   Ryder
    ¡                           ¡

        Perdue                      Alamo/National Car Rental
    ¡                           ¡
        Sara Lee                    Schneider National
    ¡                           ¡

        Interstate Brands           Superior Carriers
    ¡                           ¡
        Russell Stover          Other Industries
    ¡                       n
    Parts Industry                  Weyerhaeuser
n                               ¡
        American Showa              Mead/Westvaco
    ¡                           ¡

        Northrup Grumman            Chevron
    ¡                           ¡
        Dynex                       Dow Chemicals
    ¡                           ¡

                                    Dupont
                                ¡
                                    Shell
                                ¡
Information
Technology Team
    Our IT Team supports:
n
        H-700 Software
    ¡
        (Proprietary ChemStation software.)
        Operates the patented H-700 blending
        machinery.
        TANK Software
    ¡
        (Proprietary ChemStation software.) Runs
        the operations side of the business. Customer
        and prospect management.
H700 Software

    User-friendly interface
n

    Manages manufacturing
n
    of custom formulations
    Simple intuitive prompts
n

    Visual manufacturing
n
    indicators
TANK Software

    Customer management
n

    Product management
n

    Delivery auto-scheduling
n

    Truckload management
n

    Inventory management
n

    Vast reports menu
n
        Sales
    ¡

        Operations
    ¡

        Inventory
    ¡
Equipment Team

      Our Equipment Team consists of:
  n
          Equipment Development staff
      ¡
          This team keeps your ChemStation equipment running properly
          and helps design and develop equipment intended for customer
          installations.
          Customer Equipment
      ¡
              Detergent Application Systems
          n
              Centralized Systems
          n
              Proportioning Equipment, etc.
          n
Your CHEMSTATION Facility

           8,000 – 14,000 sq ft including:
       n
               1,500 sq ft office space
           ¡
                   General Manager office
               n

                   Sales office
               n

                   Operations Manager office
               n

                   Administrative Assistant space
               n

               6,500 – 12,500 sq ft Warehouse
           ¡
                   Manufacturing Area
               n
                   Chemical Storage
               n
                   Equipment Storage
               n

                   Container Storage
               n
                   2 Docks
               n
Join Our Success
                         # of Drums Eliminated

250,000



200,000

                                                                                                                             Total Customer Tanks
150,000
                                                                                                   35,000

100,000
                                                                                                   30,000


                                                                                                   25,000
 50,000

                                                                                                   20,000
    -
                                                                                                   15,000
          19


                 19

                         19


                                19

                                        19

                                               19

                                                       20

                                                              20

                                                                      20

                                                                             20

                                                                                     20

                                                                                            20
                                           9




                                                          0




                                                                         0




                                                                                        0
             9




                            9




                                                                                               0
                    95




                                   97




                                                  99




                                                                 01




                                                                                03
                                          8




                                                         0




                                                                        2




                                                                                       4
            4




                           6




                                                                                              5



                                                                                                   10,000


                                                                                                    5,000


                                                                                                      -
                                                                                                            19


                                                                                                                  19


                                                                                                                        19


                                                                                                                               19


                                                                                                                                     19


                                                                                                                                           19


                                                                                                                                                 20


                                                                                                                                                       20


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                                                                                                                                                                         20


                                                                                                                                                                               20
                                                                                                             94


                                                                                                                   95


                                                                                                                         96


                                                                                                                                97


                                                                                                                                      98


                                                                                                                                            99


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                                                                                                                                                              02


                                                                                                                                                                    03


                                                                                                                                                                          04


                                                                                                                                                                                05
                                                                                                                                                        01
05
                                                                                                         20
                                                                                                              04
                                                                                                         20
                                                                                                              03
                                                                                                         20
                                                                                                              02
                                                                                                         20
                                                                                                              01
                                                                                                         20
                                                              Total Revenue




                                                                                                              00
                                                                                                         20
                                                                                                              99
                                                                                                         19
                                                                                                              98
                                                                                                         19
                                                                                                              97
                                                                                                         19
                                                                                                              96
                                                                                                         19
                                                                                                              95
                                                                                                         19
                                                                                                              94
                                                                                                         19
                                                                                                    05
Grow With Us




                                                                                                 20
                                                                                                    04
                                                                                                 20
                                                                                                    03
                                                                                                 20
               Number of Franchise Locations




                                                                                                    02
                                                                                                 20
                                                                                                    01
                                                                                                 20
                                                                                                    00
                                                                                                 20
                                                                                                    99
                                                                                                 19
                                                                                                    98
                                                                                                 19
                                                                                                    97
                                                                                                 19
                                                                                                    96
                                                                                                 19
                                                                                                    95
                                                                                                 19
                                                                                                    94
                                                                                                 19




                                               60



                                                    50


                                                         40



                                                                              30



                                                                                   20


                                                                                        10



                                                                                             0
ChemStation Presentation

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ChemStation Presentation

  • 2. CHEMSTATION Background ChemStation began in 1977 and developed and patented n machinery necessary to automate the detergent manufacturing process. The machinery and the techniques used to manufacture ChemStation products are unique in the industry. The development of computerized manufacturing equipment ¡ allows the ChemStation manufacturing equipment to communicate by way of proprietary software. This places the manufacturing process near the user, thus ¡ formulae can be created for a particular purpose and/or a particular individual or department with an extremely short turnaround between R&D and delivery. Products developed for a specific purpose in one part of the ¡ world can be instantly available in other parts by a simple electronic message between the computers operating the manufacturing equipment.
  • 3. CHEMSTATION Background ChemStation has grown its focus from simple n refillable containers into specialized markets and segments. ChemStation maintains departments that look after ¡ such issues as: Training n Research and Development n Regulations and other government issues n Customer service n Equipment design and repair n National account administration n
  • 4. FAQ’s What is CHEMSTATION? ChemStation is industrial detergent manufacturing using n a patented process and equipment. ChemStation is just-in-time manufacturing and delivery. n ChemStation may be the only available manufacturing n franchise opportunity. ChemStation produces environmentally friendly n products. ChemStation delivers the product to the customer in n refillable containers, eliminating drums and other containers that end up as landfill waste. ChemStation customers are usually cleaning something n in the printing, parts washing, vehicle cleaning, food processing, landfill, refining, and general maintenance industries.
  • 5. FAQ’s What does it take to become a CHEMSTATION team member? You need to be comfortable with n selling and the sales process. You need the ability to manage and n motivate 7-10 employees. You do not need a chemical n background. You will need to be financially n secure in order to exploit the market opportunities within your country.
  • 6. FAQ’s What do I get when I sign on with CHEMSTATION? You get a unique way of doing business that makes it hard n for the customers to say no. You get a support system consisting of a team of chemists, n a technical service department, on-call equipment technicians and financial advisors to help you every step of the way. You get initial week-long training, regional training n meetings, industry-specific training at the corporate headquarters, and a four-day annual meeting for all owners. A proprietary software system like none other in the n chemical industry.
  • 7. The CHEMSTATION System ChemStation is industrial detergent n manufacturing using a patented process and equipment. ChemStation is just-in- time manufacturing and delivery using a system of refillable tanks that eliminates container disposal.
  • 8. CHEMSTATION Advantages Local manufacturing facilities n JIT delivery to minimize inventory carrying costs n Fastest possible response in the industry n Maximum 24-hour delivery guarantee for emergencies n Service personnel on call 24/7 n 6,317 Custom-formulated products (and growing) n Provide service and quality sanitation systems wherever it is needed n Trained staff for a number of industries n Refillable containers eliminate the need to order, handle, inventory, n and dispose of other disposable containers ChemStation employs personnel that are available to assist and n oversee plant set-ups Proper dilution controlled with proportioning or automated n dispensing systems ChemStation maintains the functionality of installed equipment n
  • 9. How it Works ChemStation products are blends of proprietary n chemicals manufactured and shipped from Dayton, OH and commodities purchased from a local commodity distributor. Once a formula is custom-manufactured it is n delivered by your staff into refillable containers at the customer location.
  • 10. CHEMSTATION Products y, 5% odit omm C Blends, 5% Commodities – Over 30 ChemStation- approved commodities (e.g., Sodium Hydroxide, Sodium Hypochlorite, H2O, Phosphoric Acid, etc.) purchased from your local distributor. 90% Blends – Over 80 proprietary formulas developed by and shipped from ChemStation International.
  • 11. Industries Served Paper Hotel Asphalt Concrete Bottling Brewery Food Plants Car Wash Landfill Refineries Airport Parts
  • 12.
  • 14. Your CHEMSTATION Staff ChemStation is primarily a marketing opportunity. We have made n the Operations side of the business relatively simple. You will initially need to hire, train, and motivate a staff of 7-10 employees. The Staff: n General Manager n Operations Manager n Delivery Driver n Administrative Assistant n 3-5 Salespeople n
  • 15. The Support System ChemStation Corporate has a staff n of employees to support you and your team. Technical ¡ Food Team n Parts Team n Vehicle Team n Computer and Operations ¡ Information Technology (IT) Team n Equipment Team n
  • 16. Food/Odor Control Team Our Food/Odor Control Team consists of: n Full-time Chemists ¡ Technical Support people ¡ Industries Served: ¡ Any Food Manufacturer n Bottling n Dairies n Odor Control n (landfills, sewage treatment, etc.)
  • 17. Parts Team Our Parts Team consists of: n Full-time Chemists ¡ Technical Support people ¡ Industries Served: ¡ Any manufacturer of various parts n Automotive ¡ Machinery, etc. ¡ Printing (water- or soy-based inks) n Corrugators ¡ Newsprint ¡ Petrochemical n Refineries ¡
  • 18. Vehicle Team Our Vehicle Team consists of: n Full-time Chemists ¡ Technical Support people ¡ Industries Served: n Any vehicle cleaning ¡ Cars ¡ Trucks ¡ Airplanes ¡ Boats ¡ Equipment ¡ General Maintenance n Floor Cleaning ¡ General Degreasing ¡
  • 19. References Food Industry Vehicle Industry n n Tyson Penske ¡ ¡ Del Monte Ryder ¡ ¡ Perdue Alamo/National Car Rental ¡ ¡ Sara Lee Schneider National ¡ ¡ Interstate Brands Superior Carriers ¡ ¡ Russell Stover Other Industries ¡ n Parts Industry Weyerhaeuser n ¡ American Showa Mead/Westvaco ¡ ¡ Northrup Grumman Chevron ¡ ¡ Dynex Dow Chemicals ¡ ¡ Dupont ¡ Shell ¡
  • 20. Information Technology Team Our IT Team supports: n H-700 Software ¡ (Proprietary ChemStation software.) Operates the patented H-700 blending machinery. TANK Software ¡ (Proprietary ChemStation software.) Runs the operations side of the business. Customer and prospect management.
  • 21. H700 Software User-friendly interface n Manages manufacturing n of custom formulations Simple intuitive prompts n Visual manufacturing n indicators
  • 22. TANK Software Customer management n Product management n Delivery auto-scheduling n Truckload management n Inventory management n Vast reports menu n Sales ¡ Operations ¡ Inventory ¡
  • 23. Equipment Team Our Equipment Team consists of: n Equipment Development staff ¡ This team keeps your ChemStation equipment running properly and helps design and develop equipment intended for customer installations. Customer Equipment ¡ Detergent Application Systems n Centralized Systems n Proportioning Equipment, etc. n
  • 24. Your CHEMSTATION Facility 8,000 – 14,000 sq ft including: n 1,500 sq ft office space ¡ General Manager office n Sales office n Operations Manager office n Administrative Assistant space n 6,500 – 12,500 sq ft Warehouse ¡ Manufacturing Area n Chemical Storage n Equipment Storage n Container Storage n 2 Docks n
  • 25. Join Our Success # of Drums Eliminated 250,000 200,000 Total Customer Tanks 150,000 35,000 100,000 30,000 25,000 50,000 20,000 - 15,000 19 19 19 19 19 19 20 20 20 20 20 20 9 0 0 0 9 9 0 95 97 99 01 03 8 0 2 4 4 6 5 10,000 5,000 - 19 19 19 19 19 19 20 20 20 20 20 20 94 95 96 97 98 99 00 02 03 04 05 01
  • 26. 05 20 04 20 03 20 02 20 01 20 Total Revenue 00 20 99 19 98 19 97 19 96 19 95 19 94 19 05 Grow With Us 20 04 20 03 20 Number of Franchise Locations 02 20 01 20 00 20 99 19 98 19 97 19 96 19 95 19 94 19 60 50 40 30 20 10 0