DESCO INDUSTRIES, INC. Employee Owned Who is Desco Industries, Inc.? 10/15 ©Copyright 2015 DESCO INDUSTRIES INC. DESCO INDUSTRIES, INC. Outline Corporate Brands History of Desco Industries, Inc. Market Product Lines Sales & Distribution Structure Strategic Issues in Sales & Marketing DescoIndustries.com DESCO INDUSTRIES, INC. ESD Process Control Solutions European Brand-Direct Sell Focus Clean Room Assembly and Packaging DescoIndustries.com DESCO INDUSTRIES, INC. Net Sales – Brand % Pie DescoIndustries.com DESCO INDUSTRIES, INC. Historical Overview Desco Industries Incorporated in 1979. Company is 36 years old. Started as a Specialty Tools Manufacturer Specialized in Circuit Tracers and Solderaids Background in Distribution set the initial strategy Desco launches distribution strategy Desco hires first reps DescoIndustries.com DESCO INDUSTRIES, INC. Opportunity Knocks 1982 - Desco starts manufacturing static control products - private label 1984 - Desco enters static control market with wrist straps & ground cords 1985 - Desco adds matting products Static control becomes primary revenue generator DescoIndustries.com DESCO INDUSTRIES, INC. Pieces Fall Into Place Desco Industries, Inc. begins roll-up strategy in static control market place 1988 - Control Static Ionization, Test Equipment, Bob West 1990 - Charleswater - Packaging, Floor Finish, Foot Grounders 1995 - Plastic Systems - Complementary direct sales channel DescoIndustries.com DESCO INDUSTRIES, INC. Acquisitions 1998: 1999: 1999: 2000: 2002: 2002: 2002: 2003: 2004 Conductive Products - European distribution/sales Wescorp - ESD Tape line Pilgrim - Continuous monitor/tester offering Menda - Specialty Tools brand/platform EngineeredStatic - Specialty Bags Protektive Pak - ESD and Electronics Packaging SpectraScan - Manufacturing Product Semtronics - High Electronics SPI - Room Ionization Process Ionization, new customer base DescoIndustries.com DESCO INDUSTRIES, INC. Acquisitions Cont…. 2007: Patlon – Expand manufacturing capabilites, custom cutting and sewing, garments, foot grounders, field services kits 2007: American Liberty – Expand manufacturing capabilites, metal expansion bands, custom stampings 2007: Vermason – Expand European presence & market share 2008: CVinyl – RF Sealing of custom vinyl products 2008: Coastal Data Products – Computer-based automated time and attendance systems. DescoIndustries.com DESCO INDUSTRIES, INC. Acquisitions Cont…. 2010: Illinois Tool Works - Electrostatic dissipation grounding coils, cords, straps and field test kit apparatus business 2013: SpecialTeam Medical Services – Contract assembly and packaging facility that provides expertise in clean room processing and manufacturing systems. 2015: SCS - assets of 3M’s Static Control business DII steps up its drive to buy market share and expand its solutions/offering and customer base. DescoIndustries.com DESCO INDUSTRIES, INC. Annual Revenue 2015 $64,000,000 DescoIndustries.com DESCO INDUSTRIES, INC. Recent Acquisition On January 2, 2015 Desco Industries, Inc. of Chino, California purchased the assets of 3M’s Static Control business. The operations will continue in the Sanford, North Carolina facility under the new brand, SCS. DescoIndustries.com DESCO INDUSTRIES, INC. Recent Acquisition SpecialTeam Medical Services On December 6, 2013 Desco Industries, Inc. of Chino, California purchased the assets of SpecialTeam Medical Services. SpecialTeam Medical Services occupies a 10,000 square foot facility in Yorba Linda, CA, including about 2,000 square feet of ISO certified Class 6 clean room manufacturing. Services offered are Assembly and Packaging; Sterilization, Validation; Testing; Prototype Projects and Package Design. DescoIndustries.com DESCO INDUSTRIES, INC. New Brands Full Service ESD Solutions DescoIndustries.com DESCO INDUSTRIES, INC. New Brands Clean Room Assembly and Packaging DescoIndustries.com DESCO INDUSTRIES, INC. Desco Industries, Inc. Organization DII Desco Distribution (ESD Focus) Charleswater European (ESD/Packaging) Distribution SCS Distribution Vermason European Direct Sales CMG Menda Distribution Capacity (Diversification) Sales SpecialTeam ProPak Cleanroom Packaging Assembly Channel and Packaging Desco Asia Asia Distribution DescoIndustries.com DESCO INDUSTRIES, INC. Desco Industries, Inc. Executive Management John Brake - CEO Carlos De La Isla VP Sales David Maerzke VP Operations Sandy Staup VP Administration Mark Hempel VP Finance Darryl Allen VP East Coast Operations DescoIndustries.com DESCO INDUSTRIES, INC. Desco Industries, Inc. Sales & Marketing Managers Carlos De La Isla VP Sales Cheryl Uresti Marketing Executive Manager Diane Hoback Corporate Marketing Manager Matt Hempel Corporate Marketing Ganesh Sah Corporate Marketing Gene Felder Corporate Marketing Alyssa Smith Corporate Marketing Matt Bode Sales Manager Asia Ricardo Garcia Sales Manager Mexico Dave Bermani Corporate Marketing Diane Hoback Brand Manager Vermason Jeffry Brake Brand Manager Desco Jeffry Brake Brand Manager Desco Asia Steven Burns Brand Manager Charleswater Cheryl Uresti Brand Manager Menda Vaughan Callan Sales Manager Vermason Fred Tenzer Sales Manager Desco Matt Bode Sales Manager Desco Asia Vaughan Callan Sales Manager Charleswater Daniel Wu Sales Manager Menda Chris Haas Brand Manager CMG Norma Nahale Brand Manager ProPak Cle Williams Manager SpecialTeam Keri Nickerson Allan Claude Daniel Wu Customer Service Product Manager. Inside Sales Sup CMG ProPak SpecialTeam DescoIndustries.com DESCO INDUSTRIES, INC. Locations Letchworth, UK Rochester, NH Crowborough, UK Santa Barbara, CA Canton, MA Sanford, NC Chino, CA Yorba Linda, CA Yachimata City, Chiba, Japan Miami, FL Singapore DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering of ESD Control Solutions DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Personnel Grounding - Wrist Straps, Foot Grounders, Ground Cords, multiple variations Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Garments - Smocks, Gloves Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Worksurfaces - Micastat, 2-layer Rubber, Homogeneous Vinyl, 3-Layer, field service Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering ESD Flooring - Rolled Matting, Modular Anti-Fatigue, Floor Finish, Conductive Paint, Epoxy, Carpet Spray, VCT, Carpet, Rubber Tiles Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Grounding Accessories & Tools Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Test Equipment - Data Acquisition, Continuous Monitors, Personnel Grounding Testers, Static Location, Surface Resistance Testers, Calibration & Verification Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Ionization - Overhead, Benchtop, Compressed air, Process Ionization, Room Ionization Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Packaging, Coating, and Laminating - Static Shielding, Moisture-Vapor-Barrier, Clear dissipative, Unique Bag-In-Bag, Bags on roll, Vacuum Sealers Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Packaging - Protective Pak packaging provides complete ESD and physical protection for static sensitive circuit boards Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering ESD Tapes and Labels - Clear, Conductive Grid, Masking, Kapton, floor marking, Green labels DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Specialty Products - Dispensers, Brushes, Portable Workstation Organizer, ESD Lotion, ESD Vacuum DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Specialty Tools – Stainless Steel Probes, spudgers Cable Ties, Sleeving Cutter, Wire Threader Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Broadest Offering Beauty Supplies – Pumps and Bottles, Aprons, Orange Sticks DescoIndustries.com DESCO INDUSTRIES, INC. Other Markets Identification – Badge Holders, Badge Reels, Lanyards Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Other Markets Time and Attendance Systems Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. Other Markets Clean Assembly and Packaging Made in the United States of America DescoIndustries.com DESCO INDUSTRIES, INC. In-House Training and Customer Support Factory Trained Technicians who can perform ESD training and support Inside Sales team provides added support NARTE Certified sales force Product Management and Marketing team provides additional expertise DescoIndustries.com DESCO INDUSTRIES, INC. Largest Manufacturer of ESD Products in the World $32,200,000 in Revenues USA Manufacturer with factories in Chino, CA; Yorba Linda, CA; Santa Barbara, CA; Canton, MA; Sanford, NC; Rochester, NH; Miami, FL; Letchworth, UK World’s largest inventory of ESD Products: Chino, CA; Santa Barbara, CA; Canton, MA; Marlboro, MA; Sanford, NC; Rochester, NH; Crowborough, UK; Letchworth, UK; Yachimata City, Chiba, Japan Partnered with world class suppliers: Biltrite, Chemprene, Whitney Blake, Richmond, Interface, Duracote, etc... Financial and Human Resource Support for Growth DescoIndustries.com DESCO INDUSTRIES, INC. DII Market Driven Strategies Multiple channels to address fragmented market place: • Full Service ESD Solutions provider - Sells through distribution, reps, iNARTE Certified factory personnel • e-Comm driven, direct sell ESD Specialty distributor – sells to end user • European and Asian focus, support globalization of customer base • Custom capacity arm, diversification - Platform to sell DII manufacturing capacity DescoIndustries.com DESCO INDUSTRIES, INC. Information Systems 15 e-Commerce sites: Desco, ESD Systems, Menda, Menda Beauty, Menda Tools, Menda ID, Vermason, Charleswater, CMG, Desco Asia, Desco Japan, EMIT, Smart Clock, Statguard Flooring, and Protektive Pak Goldmine Contact Management Database Web Sites with on-line catalogs in place for all brands Other brands to expand use of e-Comm and websites as marketing tools DescoIndustries.com DESCO INDUSTRIES, INC. Marketing Focus Continue to lead with Webification of Sales Process Increase direct communication with end users Refine e-Comm & web-sites as marketing tools Continue production of the best Product/Sales Catalogs in the Industry Expansion of In-House mail list of 70,000+ end user names Promotion and focus on core brand and delivery vehicle strengths - Solutions DescoIndustries.com DESCO INDUSTRIES, INC. Value of the Brand Establishes brand equity, adds value beyond the generic service or product benefit. Makes an intangible product or service more tangible, allows differentiation. Increases long-term sustainability. Any product can be copied, but a brand cannot. DescoIndustries.com DESCO INDUSTRIES, INC. Value of the Brand Better corporate vision and mission. Provides clear principles to guide management decision. Consistency - both internally and to customers. Provides platform for future service or product developments. DescoIndustries.com DESCO INDUSTRIES, INC. Product Trademarks Statguard® Statfree® Reztore® Micastat® DescoIndustries.com DESCO INDUSTRIES, INC. Product Brands DurAstatic™ DescoIndustries.com DESCO INDUSTRIES, INC. Product Brands Personal and Mat Grounding, Test Equipment Trustat™ Jewel® Ergo Band® DescoIndustries.com DESCO INDUSTRIES, INC. Product Brands Packaging & Personnel Grounding Statshield® Protektive Pak® Auto Shield™ DescoIndustries.com DESCO INDUSTRIES, INC. Product Brands Production Tools Circuitracer® DescoIndustries.com DESCO INDUSTRIES, INC. Web Sites Desco Desco Asia SCS Smart Clock Charleswater Statguard Flooring Menda SpecialTeam Menda-ID ESDSystems.com Menda Beauty CMG Menda Tools Vermason Protektive Pak DescoIndustries.com DESCO INDUSTRIES, INC. Web Sites Web site Features: • e-Commerce shopping cart • 24/7/365 service/support • On-line stock check and pricing • Online catalog • Listing of Reps & Distributors • New Products • Promotions • Package Tracking System • Technical Bulletins & Drawings • Newsletters / Training DescoIndustries.com DESCO INDUSTRIES, INC. Who Is Desco Industries DescoIndustries.com DESCO INDUSTRIES, INC. DII Family of Companies... ... is focused on growth,expansion, & profit! DescoIndustries.com