The Generac Difference
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2 Generac I US Manufacturer 1 The Generac Difference Wisconsin based manufacturer since 1959 Over 3,300 employees with six manufacturing facilities in WI A leader in innovation with 225 engineers in Wisconsin Largest manufacturing capacity in the industry 24/7/365 customer support staffed in Wisconsin A truly global company with manufacturing in Asia, Europe and Latin America 2
3 Generac I US Manufacturer 3
4 Industry Trends - Gas Engine Pressure Washer Market 4
5 Industry Trends I Gas Engine PW s Stable market, demand for gas pressure washers is strong Source: Stevenson Research, TraQline, Competitive Analyst Reports, Generac Management Updated 03/07/2015 5
6 Industry Trends I Gas Engine PW s Market Units Industrial Commercial Residential > $1500 $1500- $900 $899- $700 $699- $500 $499- $400 $399- $300 $299- $200 < $ psi psi 2300 psi psi 7% 11% 25% 4% 2600 psi psi 2900 psi psi 3200 psi psi 0.40% 1% 1% 3600 psi psi Share % 2% 1% % 1% 2% % 3% 6% 4% 24% % 13% 82% Total Units 1,841,000 R 1,491,000 C 257,000 I 92,205 Majority Share MS 53% or 745k Units are sold between PSI Key X Y X = Current Sub-segment market size in % (As share of total market value) Y = Current sub-segment market units in thousands 6
7 Top Markets I 2016 Gas Engine Pressure Washers 7
8 Consumer Profile - Gas Engine Pressure Washer Market 8
9 Consumer Profile I Gas Engine PW s User Demographics Residence Type- Where they live- Equipment they already own- 96% own at least 1 piece Exposure to category- 62.7% had experience or owned Source: Tableau, Product Registration Survey 9
10 Consumer Profile I Gas Engine PW s Shopping Behavior Category Awareness- Where they were first exposed to PW s Brands Considered- 30%+ shopped the big box and chose GNRC Product Research- Internet up 8% YoY 90.0% 80.0% 70.0% 60.0% 81.6% (Select all that apply) (n= 2,694) Factors in Purchase Decision- Top 3 (PSI, Easy to Use & Price) 50.0% 40.0% 30.0% 26.5% 20.0% 10.0% 0.0% 4.2% 3.9% Internet Store Print Media TV/Radio Other Source: Tableau, Product Registration Survey 10
11 2016 Generac Pressure Washers 11
12 Product Development I Consumer Focus from Market Research Consumer Top Concerns PSI Ease of Use Price Warranty User Research Product Development, Production & Shipment to Market Cleaning Power Value Extended Life When making your decision to purchase, how important were the following factors to you? (n = 2,604) Source: Generac Power Trends
13 2016 Program I Focused User Segments Residential Users Homeowners and light contractors using a pressure washer for tough jobs 2-3 times a year. Resi / Pro Users Homeowners and professionals using their equipment on a regular basis for maintenance or job site use. Professional / Rental Contractors and professionals using pressure washers on a weekly basis to maintain equipment and complete the toughest of tasks. Key Assets Quick Assembly, No Tools Easy Access pump Ergonomic User Features Key Assets OHV Engine Upgrades AR Triplex Pumps Upgrades Protective Roll Cage Frame Key Assets 3X Longer Life Up to 50 lbs. lighter competition 10 Pneumatic Wheels 13
14 Consumer Profile I Key Profiles Residential Users Resi / Pro Users Professional / Rental Single Suburban Home Avid user of power equip. Seeks out: Value Cleans siding, decks and driveways Uses it 1-2x a month in peak season Small Business Experienced Users Seeks out: Performance Cleans large equipment, walkways and businesses Uses it 2-4x a month in multiple season Contract Professional Professional User Seeks out: Long-Life Cleans jobsites, commercial spaces, heavy equipment, repetitive activities Uses it 4-8x a month in all seasons 14
15 Generac I 2016 Pressure Washers: Residential 2500 PSI / 2.4 GPM 2800 PSI / 2.4 GPM 3100 PSI / 2.4 GPM Ideal for medium duty residential tasks such as decks and siding Generac 196cc OHV engine Larger.8 gallon fuel capacity Better lubrication Horizontal axial cam pump Easy access hose connections Oversized never-flat wheels Easy transport on rugged terrain and up stairs 25 High pressure hose Non-marring Abrasion resistant Ergonomic gun Inverted trigger and cushion grip for extended use On-board detergent tank Conveniently use cleaning solutions to improve results 1 ¼ steel frame Durable, protects components during shipping Comfort grip handle Engineered and Built in the U.S. CARB approved 15
16 Generac I 2016 Pressure Washers: Residential 2800 PSI Variable PSI 3100 PSI Fixed PSI Fixed PSI AR Axial Cam Pump AR Axial Cam Pump MSRP: $299 POWERDIAL Control PSI at the turn of a dial MSRP: $389 MSRP: $399 16
17 Product Development I Consumer Focus from Market Research Best in Class Ratings Generac Briggs & Stratton TTi FNA (Simpson) Stars # of Reviews Stars # of Reviews Stars # of Reviews Stars # of Reviews 2500 PSI /2800 psi /3100 psi psi variable pressure Commercial 3000/3100 psi Commercial 3800 psi Commercial 4200 psi Weighted Average Reviews found on: *Ratings pulled on 2/10/16 17
18 Generac I 2016 Pressure Washers: Commercial Use Faster Cleaning, Longer Life, Best in Class Value 3600 PSI, 2.6 GPM ideal for: High performance pro tasks Large equipment cleaning 50 Steel-reinforced hose for extended reach Abrasion resistant Non-marring Powerful 212cc Generac OHV engine Low-oil shutdown protects the engine Large.8 gal gas tank for long run-time Ergonomic Gun Inverted trigger and cushion grip for extended use Heavy duty AR triplex pump Up to 4X LONGER LIFE vs. axial cam pumps Re-buildable for easy maintenance Durable roll-cage frame Protects the engine and pump from impacts Folding handle for easy transport and storage Rugged never-flat wheels Prevents downtime 18
19 Generac I 2016 Pressure Washers: Commercial 3600 PSI Commercial Fixed PSI AR Triplex Pump 4200 PSI Commercial Fixed PSI AR Triplex Pump 3800 PSI Professional BELT-DRIVE Control PSI at the turn of a dial MSRP: $699 MSRP: $899 MSRP: $
20 2016 Generac Pressure Washers -Appendix 20
21 Specifications I 2016 Pressure Washers 21
22 Specifications I Comp Shop 2800 PSI 22
23 Specifications I Comp Shop 3100 PSI 23
24 Contacts Ann Schuhmacher Director of Sales S45 W29290 Hwy 59 Waukesha, WI Ryan Schmitt National Sales Manager Phone: GENERAC x2325 Hardware Sales Support Amy Hart Phone: GENERAC, ext Hardware fax: Retail Sales fax:
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