Belt Conveyors Separating Fact from Fiction Richard Enning Bob Schaefer Steve Timmer

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1 1 Belt Conveyors Separating Fact from Fiction Richard Enning Bob Schaefer Steve Timmer The opinions of the contributors expressed herein do not necessarily state or reflect those of the International Carwash Association, its directors or employees. Reference herein to any specific commercial products, process, or service by trade name, trademark manufacturer, or otherwise, shall not constitute or imply an endorsement, recommendation, or support by the International Carwash Association. The International Carwash Association makes no warranty, express or implied, nor does it assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process described in these materials. All commentary and information provided by the speakers represents individuals opinion only. The International Carwash Association makes no recommendation or representation regarding such market information and commentary. All such information and commentary is subject to change without prior notice. Any prediction, estimation and projection is not necessarily indicative of future performance and is for reference only. The International Carwash Association will not accept any responsibility or liability of any kind with respect to such information or opinion expressed herein. Investment involves risk. Past performance of any business opportunity is no guide to its future performance. The information or investment opportunities expressed herein may not be suitable for all investors. Before making any investment decision, investors should read and understand the relevant nature, risks, terms and conditions of an investment opportunity and be capable of and wiling to assume the associated risks in light of their own investment objectives, financial circumstances or particular needs and exercise their independent judgment. If needed, investors should seek independent professional advice.

2 It is the policy of the International Carwash Association to comply with all antitrust and competition laws. The fundamental objective of the antitrust laws is to protect and promote free and fair competition. These laws reflect the belief that a competitive marketplace will enable consumers to obtain the highest quality goods and services at the lowest price. The Association supports the public policies embodied in these laws, and it is the Association's policy to comply fully with them. Thus, out of an abundance of caution, if today's discussion appears to implicate, to any degree, prohibited topics such as pricing, price fixing, market allocation, boycotts, exclusive dealings, resale restrictions or preferential treatment, such discussion shall be terminated immediately. Any questions about the propriety of a discussion should be raised immediately with the Association s legal counsel. What is a Belt Conveyor? A plastic or metal belt (chain) slides on top of a plastic or steel plate and carries a load Car wash plastic belts slide on steel plate supported by a frame, driven by a gearmotor and sprockets Around since the 1950s in automotive plants, freight distribution, bottling plants 2

3 Basic Belt Belt Conveyor Concept Easy load Process faster Carry the vehicle (don t roll it, control it) Eliminate conveyor damage More predictable maintenance Safer 3

4 4 Detail Belt 30 Dual Belt

5 What s Changed How is This Different? The all-important customer experience» You pick: Drive through a garage door and put it in neutral, OR Steer your 12 driver side tire into a 13 slot, look at the mirror, look at me and obey my hand signals, read the signs, keep your foot off the brake, don t touch the wheel, wait for the roller, don t panic in a roller jump» Visit a Belt Conveyor site, watch the customers faces, and decide if the experience has changed 5

6 What s Changed How is This Different? Increased wash count and revenue» Customer loads faster (because it s easier)» Customer loads closer (they re not scared)» No roller call» Fewer incidents» Park, turn the wheel, brake don t really care What s Changed How is This Different? Lower maintenance» Eliminates common causes of conveyor breakdowns on busy days» More measurable and predictable Simple construction easy to monitor wear» Fewer moving parts Fewer breakdowns Less to maintain 6

7 What s Changed How is This Different? Fewer damage claims» No conveyor and correlator rails to poke tires, scratch rims, catch ground effects, rub steering knuckles Fewer accidents and injuries» No collisions» Fewer moving parts, lower personnel exposure Product Life Cycle 1 st 12 Detail Belt in 1999, 1 st Dual 30 Wash Belt in 2005 Installations in the hundreds worldwide Some operators on their fourth installation Belt conveyors operating with 1,000,000++ car counts 7

8 Moving from Early Adopters to Growth Economics of a Dual Belt For 100, Belt Cost is 3x Roller Conveyor Capital recovery ~ a couple of years Factors driving payback» Vehicles load faster up to 20%» Higher customer appeal attracts - customers Easier customer loading experience Visibly lower damage potential Raw curb appeal open, colorful, new, novel 8

9 Economics of a Dual Belt Maintenance Costs» Dual Belt and Over-Under Even Over Time» Belt maintenance is less frequent, but more expensive when you do it» Over-under more frequent, but less expensive when you do it» Belt maintenance expenses more predictable Easy to accrue reserve for maintenance Richard Enning Mr. Wash - Germany One of the car washing dynasties» 33 locations» 7 MM washes in 2013 Serves on ICA Board of Directors Converting sites to belt conveyors 9

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