PROTECT Building a New Category of Opportunity for your Business
DIVERSIFIED OIL SERVICES AND PRODUCTS Recycling Network Recycle approximately 200 million gallons of used oil per year 75% of re-refining capacity in North America Operating at full capacity Large Collection Network 3 2 VACUUM DISTILLATION HYDROTREATING FUEL STRIPPING 1 LIGHT-END RECOVERY ANALYTICAL TESTING DEHYDRATION 479 oil collection trucks, 2 re-refineries 31 oil terminals, 4 barges and over 1,000 rail cars In 2008, over 200 million gallons of used oil collected 14% of used oil market Variety of automotive and industrial customers Marketplace Products In 2008, produced and sold over 100 million gallons of base and blended lubricating oils Meets American Petroleum Institute (API) quality standards 43 million gallons of reprocessed fuel oil (RFO) Passenger Car Engine Oils Heavy Duty Diesel Engine Oils Base Oils Hydraulic Oils Re-refined Products US Military Formulations Automotive & Industrial Gear Oils Automatic Transmission Fluids
State-of-the-Art Oil Re-Refining Facilities Re-refined oil produced in two locations Breslau, Ontario since 1979 East Chicago, Indiana since 1991 Largest re-refinery in the world Operated under robust technical services and quality control Most product testing in the industry Exactly the same engine testing and specifications as the highest quality conventional base oils produced in the U.S.
DIFFERENTIATE Protecting the environment is the right thing to do It can also create differentiation and growth for your brand Our products and services help you start or add to your sustainability story
Today s Consumers are Buying Green in a Big Way Don t Buy Green Would Consider Green 6% Mostly Buy Green 10% 8% 84% of Consumers are Green Targets 76% 76% Sometimes Buy Green Source: The Green Revolution; Grail Research; September 2009
EcoPower can attract more customers. 87% of eco-responsible consumers surveyed say they will buy more from businesses that show they care about the environment* *Source: Maslansky, Luntz and Partners, 2011 Survey of DIFM Consumers: If a garage or chain that performs oil changes offered a motor oil that was better for the environment, how would that affect your opinion of the garage or chain?
76% of consumers agree: I have made it a top priority in my life to live a more sustainable lifestyle 78% of consumers agree: I am willing to give up my regular brands if I can find substitutes that are less harmful to the environment. Source: The Futures Company, 2011
Proprietary Formulation Makes EcoPower Great for Your Customers Vehicle Highest quality re-refined base oils Safety-Kleen s re-refining process produces recycled base oils with exceptional purity and lubricating properties that are every bit as good as base oils from crude Advanced synthetic base oil Provides an extra measure of protection and performance under the most severe operating conditions State-of-the-art performance additives Specially engineered blend of viscosity index improvers, detergents, dispersants and anti-wear agents provide maximum protection against oil breakdown and engine wear
PROTECT EcoPower recycled and refined from reclaimed oil Torture-tested for millions of miles Military Vehicles, Ryder, EHI, Dollar/Thrifty, Quick lubes, tire stores Guaranteed and exceeds manufacturers warranty requirements* *For vehicles requiring API SN/ILSAC GF-5 or previous versions
Eco Power & Safety-Kleen Products Synthetic blend API SN/ILSAC GF-5» 5W-20, 5W-30 and 10W-30» Available in bulk, drum, case New Dexos1 5W-30» First re-refined oil to be Dexos1 licensed» Synthetic blend more cost efficient than full synthetic» Available in drum and cases New High Mileage 5W-20 & 5W30» Dual purpose» Carry less inventory» Available in drum and cases New Safety-Kleen Full Synthetic 0w20 Available in drum and cases SN/ ILSAC GF-5
PROTECT Uses up to 85% less energy to produce than from crude Conserves nonrenewable resources Keeps used oil out of our environment As with crude, impurities are taken out and used oil is renewed to meet same base oil standards It s just the right thing to do
REDUCE = Source: Maslansky, Luntz and Partners, 2011 Survey of DIFM Consumers EcoPower reduces our dependence on foreign oil. It takes 42 barrels of crude oil to refine the same amount of base oil as from 1 barrel of used motor oil. 50% of green DIFM customers would buy EcoPower because it reduces dependence on foreign crude*
COMMUNICATE Collaborate to tell story and take sustainability leadership in category In your stores Showroom Service lanes In your advertising Free materials Certificate for Wall Hanging Wall Poster Door Window Decal
SAMPLE POINT OF PURCHASE - FREE Bay Banner Drum Cover Counter Card Poster
How Big is the Eco-Friendly Oil change Target Market? 38% of adults 18+ almost always or regularly purchase green products. That s 119,087,440 million people. (Same percentage should be found in your customer base) Source: Mintel Green Living Report, Feburary 2011
64% of consumers agree that companies should help consumers become more environmentally conscious. They re even willing to pay an average of $6.47 more. The most eco-responsible people said they will pay an average of $12.15 more per oil change. Source: Simmons, 2011
COLLABORATE Retain and attract more customers Best practices for environmental services Eco-friendly motor oil and other products and services Messaging that makes people appreciate your actions
»Eco Power Pricing
EcoPower Base Pricing Original Synthetic Blend Bulk Drum Standard Price: EcoPower Original Synthetic Blend API SN GF 5 $8.20 / Gallon 5w20, 5w30, 10w30 $8.85 / Gallon 5w20, 5w30, 10w30 EcoPower Standard Brand Development Off Invoice Allowance (BDA): $1.25 / Case $0.25/gallon bulk & drum Case $48.25/Case 5w20, 5w30
EcoPower Base Pricing High Mileage & Dexos1 Drum - High Mileage Case- High Mileage Standard Price: EcoPower High Mileage and Dexos Licensed API SN GF 5 $9.25 / Gallon 5w20, 5w30 $49.75/case 5w20, 5w30 4x5 quart EcoPower Standard Brand Development Allowance (BDA): $1.25 / Case $0.25/gallon bulk & drum Drum - Dexos Case Dexos $10.05 / Gallon 5w30 $52.00/case 5w30 4x5 quart
Introductory Eco Power Rebate 90-Day Introductory BDA Allowance EcoPower Only $0.50 / Gallon on drums of EcoPower $1.00 / Gallon on cases and bulk EcoPower Individual store offer 90-Day Period commences with placement of first order from each store
Product Volume Rebate Schedule EcoPower Annual Volume Per Location 165 Gallons 220 Gallons 275 Gallons 330+ Gallons EcoPower Rebate / Gallon $0.25 on all EcoPower Gallons $0.50 on all EcoPower Gallons $0.75 on all EcoPower Gallons $1.00 on all EcoPower Gallons Performance Plus Rebate/Gallon must hit minimum Eco Power gallons to qualify $0.05 / Gallon on all Perf. Plus Gallons $0.10 / Gallon on all Perf. Plus Gallons $0.15 / Gallon on all Perf. Plus Gallons $0.20 / Gallon on all Perf. Plus Gallons Example: If you own 1 location and you buy 200 gallons of Eco Power and 2000 gallons of Performance Plus, you receive the max rebate of $1.00/gallon on Eco Power and $.20/gallon on Performance Plus volume.
Eco Power Primary Bulk Program If a dealer elects to convert his Primary Bulk oil from his current supplier and feature Eco Power. The dealer will automatically receive the maximum Volume Rebate of $1.00/gallon OFF INVOICE. The store will not have to wait to the end of the year to claim New Off-Invoice Equipment allowance For all dealers who feature Eco Power as their primary bulk oil Dealer will receive a $0.20/gallon allowance off-invoice
Feature/ Primary Eco Power Net Price If a dealer features Eco Power as their primary bulk Oil their net invoice price will be: Net Price of $5.75/gal on bulk first 90 days Net price of $6.75/gal on bulk day 91+ Save significant money on cost of goods.
Performance Plus Pricing Private Label Synthetic Blend
Private Label Pricing Performance Plus is a Private Label product that is API SN GF-5 o Bulk Invoice Price for Performance Plus Private Label 5w20, 5w30, 10w30: $6.55/gallon o Stores can achieve up to $.20/gal volume rebate on Perf. Plus paid annually. This rebate is based on achieving the minimum volume of Eco Power purchases as stated in the above rebate chart. So, you can net down to $6.35/gallon. Performance Plus engine oil is premium synthetic blend engine oil formulated with high quality, High VI base oils and high performance additives to provide the deposit, wear and corrosion control demanded by modern engines. It is API SN-GF5. This is a Non-Green oil.
Next Steps Thanks! If you are interested in carrying Eco Power and/or Performance Plus Synthetic Blend products, please contact: Steve Collins Director Strategic Automotive Accounts Office: 804-739-4179 Cell: 804-892-7591 Email: Steve.Collins@safety-kleen.com Next Steps: Credit App, New Account Set Up form, tax exempt form