The only “design ready” Low / Zero VOC compatible machines in North America

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

A Global Company

The only “design ready” Zero VOC Automatic Colorant Dispensers in North AmericaThe only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Legacy Canadian based company located in Vancouver, CanadaStability 44 years manufacturing paint equipmentCompetitive World-wide producer of a full line of POS equipmentResponsible Only World Class producer where the owners are the operatorsCapacity 5 production facilities: Canada, Italy, Brazil, China, and IndiaVariety Full complement of mixers and shakers and manual machines

plus more than 50 models of automatics Resourceful Specialty manufacturer of in-can and in-plant tinting equipmentProgressive Fastest growing POS equipment provider in the worldSuccessful Surpassed 10,000 machines built & shipped in Y2012. An

impressive growth rate for a company with newest technology in this market

Who we are:

Custom Dispensing Solutions

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Overview of Our Major Customers: PPG/AKZO/Sigma Exclusive supplier of manual dispensers & automatics to NA “Stores” Division and preferred vendor

status with independent dealer division

Sherwin-Williams Current full-line Supplier to “Brands” Division, + manuals and mixers approved with stores Approved supplier to all Comex US and Canadian divisions, with various products

Benjamin Moore & Co. One of only three preferred vendors approved for automatics in North America as certified dispenser supplier in US / Canada. Over 250+ units installed for both Color Preview and Gennex

Valspar Hardware / cooperative sector plus their new business initiative, The Paint Drop

The Home Depot Exclusive supplier to THD Mexico for automatics - endorsed by Behr, with successful installation of 600+ units during Q4 2012 and Q1 2013

Walmart Preferred Vendor Status automatics and manual machines for Mexico & Canada, with automatic installations totalling over 700 units in past 3 years. Exclusive supplier to Walmart US for automatics during June/10 thru May/13

US / Canadian Co-ops True Value - we currently earn just under 70% of their business. Supplier to Do it Best since 2009, Orgill, Home Hardware - surpassed 600 units installed in past 4 years, Canadian Tire - 250 units installed in past 3 years, United Hardware & Rona

Nova Club Largest World-wide buying syndicate. The majority of all equipment is supplied to the 12 Nova Club members by HERO, including; Plascon, Tambour, Sinteplast, CIN, VALENTINE, Pintuco, Cloverdale Paint & some installations with Diamond Vogel, etc.

Guild CPO Largest US Buying Syndicate. Several members rely on HERO’s vast product portfolio

Blanco Group Preferred Vendor to the whole group - Caribbean & Central & South America

Latin America BASF – Brazil, Sherwin-Williams, Pintuco Colombia & Ecuador, Condor/SW Ecuador, HB Fuller, SurQuimica, Sinteplast, Ceresita, Sipa, Iquine, Sayer Lack, Pintex, BASF-Suvinil , AkzoNobel, Sherwin-Williams, PPG, Killing, Eucatex, Universo, Hydronorth

Global Nippon, Berger Paints, Plascon, Tambour, CIN, Valentine S.A., among others

HERO – Snapshot of our Industry ExperienceSampling of Paint Channel Customers

Sampling of Paint Company Customers

Buying Groups that have partnered with us

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

HERO’s Top Customers

2012 - Global AKZO NOBEL India Limited

AKZO NOBEL LLCBEHR

Berger PaintBLANCO GROUP

CIN CV.Calsura Lines

DISTRIBUIDORA KROMA S.A. DE C. (Comex) Franchi&Kim

GENERAL PAINT LTDNippon PaintNovyy Dom

Plascon PPG

PT.Propan Raya I.C.C.RVC International .Pte.Ltd (Sales)

Sinteplast Tambour

2012 - National AKZO – International Paints

AKZO NOBEL Longuiel Quebec ALLPRO Corporation

Benjamin Moore & Co.,Canadian Tire Corporation

Carboline Dryvit

Dunn-Edwards Home Hardware

General PaintsOrgill, Inc.

PPG Corporate Stores Sherwin Williams

True ValueUnited Hardware Distributing

Valspar Vista Paints

Walmart

HERO – Our Line of Products

Full complement of mixers and shakers, manual dispensers and automatic dispensers

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

A100/A150 ARCHIMEDE™

A100 Sequential (1) Colorant DispenseFlow Rate: 7 ounces per minute

A150 Simultaneous (4) Colorant DispenseFlow Rate: up to 28 ounces per minute

Progressive Cavity Pump (PCP) Technology

Compatible with Water-based, VOC Free or Universal Colorants

Canister Capacity: 2.1 quarts

Automatic humidifier cap

Laser cross hair can or bung hole locator

16 Canisters

Average Precision +/- 1%

Footprint: 32” H X 26.25” W

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

World’s Smallest Automatic Colorant Dispenser

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

A210/A260 ARCHIMEDE™

A210 Sequential (1) Colorant DispenseFlow Rate: 10 ounces per minute

A260 Simultaneous (4) Colorant DispenseFlow Rate: up to 40 ounces per minute

Progressive Cavity Pump (PCP) Technology

Compatible with Water-based, VOC Free or Universal Colorants

Canister Capacity: 2.6 quarts

Automatic humidifier cap

Laser cross hair can or bung hole locator

16 Canisters

Average Precision +/- 1%

Footprint: 32” Diam. X 47”H

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

A450 EUREKA™

A450 Simultaneous (4) Colorant Dispense Flow Rate: 40 ounces per minute

Progressive Cavity Pump (PCP) Technology

Compatible with Water-based, VOC Free or Universal Colorants

Automatic humidifier cap

Laser cross hair can or bung hole locator

16 Canisters

Average Precision +/- 1%

Canister Capacity:16 circuit - 12 x 3.7Quart + 4 x 5.1Quart

Foot Print: 49”H x 37”W x 33”D

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

A461 EUREKA™

Progressive Cavity Pump (PCP) Technology

Compatible with Water-based, VOC Free or Universal Colorants

Automatic humidifier cap

Laser cross hair can or bung hole locator

Roller Conveyor

16 Canisters

Average Precision +/- 1%

Canister Capacity:16 circuit - 12 x 3.7Quart + 4 x 5.1Quart

A461 Simultaneous (4) Colorant Dispense High Flow Rate: 80 ounces per minute

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Foot Print: 49”H x 37”W x 33”D

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

A961 EUREKA™

Progressive Cavity Pump (PCP) Technology

Compatible with Water-based, VOC Free or Universal Colorants

Automatic humidifier cap

Laser cross hair can or bung hole locator

Roller Conveyor

16 Canisters

Average Precision +/- 1%

Canister Capacity:16 circuit - 23.2 quart + 9.5 quart + 5.7 quart + 3.6 quart

A961 Simultaneous (4) Colorant Dispense High Flow Rate: 80 ounces per minute

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Foot Print: 52.1”H x 47.3”W x 42.1”D

Largest Capacity Canisterswith the Smallest Footprint

HERO – TintWise POSTM (HERO’s equipment utilities software)

Manage the dispenser

Manage color formulas

Functions include:• Product look up• Can size specification• User security• Label printing• Color database

management• Custom formula

generation• Bar code reader

compatibleCompatible with most common brands of spectrophotometer and color matching software.

• Simple interface

• Intuitive• Easy to use

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

HERO’s technical support and service coverage

We have North America covered

4 Factory technicians plus 35 3rd party technicians in Canada

6 Factory technicians plus135 3rd Party Technicians in the U.S.A

HERO-N.A., maintains two Engineers to support its customer service needs

All customer support calls are directed to HERO’s 24/7 Call Center in Vancouver, B.C. Canada

Technicians are dispatched to perform field service calls as needed

Spare parts lead time: less than 24 hours

Service call interventions lead time: 24/48 hours in US and Canada depending on locations

FROM THE EXPERTS…

Progressive Cavity Pump (PCP) versus Gear Pump (DVX)

• Regarding flow rate variations:  “… PCP pumps appear to have distinct advantages. The volumetric flow rate variations per each complete shaft rotation are typically small; whereas for the DVX pumps the discharge rate varies sinusoidally from zero to a max value as the stepper motor traverses one half of a complete rotation.” - Professor Gareth McKinley, Department of Mechanical Engineering, Massachusetts Institute of Technology

• “Although the particle sizes are relatively small and would be handled by a typical gear pump, the general designs are more complex than the HERO system, hence more expensive to manufacture and replace.” - Professor Ian A. Frigaard, Department of Mechanical Engineering, University of British Columbia

• “For low (or no) VOC applications, I would be cautious at using gear pumps. These are typically made to high precision and will lose performance with wear.” - Professor Ian A. Frigaard, Department of Mechanical Engineering, University of British Columbia

• Conclusions:  “In continuous operation, the flow rate variation per cycle will be higher in the DVX system; whereas PCP systems provide more uniform flow rate output; in my general experience the flow rate output from PCP systems are largely insensitive to changes in fluid rheology; by contrast the possibility of fluid-dependent pump slip (and/or cavitation) in the DVX system (and the variability from one paint formulation to another) is likely to be higher.” -- Professor Gareth McKinley, Department of Mechanical Engineering, Massachusetts Institute of Technology

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

The Technology:

Automatic Dispensers

HERO has a customized product portfolio of automatic dispensers to fit the needs of today’s coatings companies. HERO uses the newest technology providing:

• Low frequency maintenance• Calibration free design• Lowest “Total Cost of Ownership” in the

industry• Continuous flow• Reverse flow capability• Compatibility with ALL colorant types• Ergonomic design and easy to use software• HERO offers the smallest automatic dispenser

footprint in the industry

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Rotor & Stator Canister and pump assembly

Core components: Canister and pump assembly

Pump assembly

HERO’s patented Progressive Cavity Pump (“PCP”), technology developed in Europe for low- and zero-VOC colorants, allows HERO’s line to be ready for the entry of low- and zero-VOC colorants into the North American Market. In other words, there will be no added expense for any of HERO’s automatic dispensers in having to upgrade them to accommodate the new colorants.

HERO’s Progressive Cavity Pump (“PCP”) Technology

The Technology:

HERO – Why Hardware Stores prefer HERO

HERO – Lowest Total Cost of Ownership

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #1Model A461-16

1/192 1/48 48/48 Avg. Variance

Install Date : May 11, 2011Last Full Calib. date: May 11, 2011Check date : April 17, 2013

Install Date : May 11, 2011Last Full Calib. date: May 11, 2011Check date : April 17, 2013

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #2Model A461-16

1/192 1/48 48/48 Avg. Variance

Install Date : June 20, 2011Last Full Calib. date: June 20, 2011Check date : December 11, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #3Model A560-16

1/192 1/48 48/48 Avg. Variance

Install Date : August 3, 2010Last Full Calib. date: August 3, 2010Check date : October 4, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #4Model A560-16

1/192 1/48 48/48 Avg. Variance

Install Date : June 2, 2010Last Full Calib. date: June 2, 2010Check date : December 12, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #5Model A560-16

1/192 1/48 48/48 Avg. Variance

Install Date : August 13, 2012Last Full Calib. date: August 13, 2012Check date : December 13, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #6Model A461-16

1/192 1/48 48/48 Avg. Variance

Install Date : June 2, 2011Last Full Calib. date: June 2, 2011Check date : December 7, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #7Model A560-16

1/192 1/48 48/48 Avg. Variance

Install Date : July 8, 2010Last Full Calib. date: July 8, 2010Check date : December 10, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #8Model A461-16

1/192 1/48 48/48 Avg. Variance

Install Date : June 7, 2011Last Full Calib. date: June 7, 2011Check date : December 10, 2012

-4.00%

-2.00%

0.00%

2.00%

4.00%

B B C C D E F G J L L M V W W Z% V

aria

tion

Colorant

Store #9Model A461-16

1/192 1/48 48/48 Avg. Variance

Install Date : June 13, 2012Last Full Calib. date: June 13 2012Check date : August 24, 2012

Calibration Metric

Data collected from 9 stores

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Calibration Metric (cont.)

Store Store #1 Store #2 Store #3 Store #4 Store #5 Store #6 Store #7 Store #8 Store #9Overall Average Variance 0.02% 0.00% 0.03% 0.09% -0.05% 0.19% -0.04% 0.21% 0.07%

Calibration Check Date 17-Apr-13 11-Dec-12 4-Oct-12 12-Dec-12 13-Dec-12 7-Dec-12 10-Dec-12 6-Dec-12 29-Aug-12Installation Date 11-May-11 20-Jun-11 3-Aug-10 2-Jun-10 13-Aug-12 2-Jun-11 8-Jul-10 7-Jun-11 29-May-12

Last Full Calibration Date 11-May-11 20-Jun-11 3-Aug-10 2-Jun-10 13-Aug-12 2-Jun-11 8-Jul-10 7-Jun-11 29-May-12

1%

-1%

1%

-1%-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

B B C C D E F G J L L M V W W Z

Colorant

Average Variance by Store

Store #1 Store #2 Store #3 Store #4 Store #5 Store #6 Store #7 Store #8 Store #9

-0.10%

0.00%

0.10%

0.20%

0.30%

Store #1 Store #2 Store #3 Store #4 Store #5 Store #6 Store #7 Store #8 Store #9

Overall Average Variance

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America

Competitive Advantages

Product verification standardization, only automatic equipment provider with the same technology produced in all 4 production facilities

Scalable technology, suited to a wide range of applications, singular technology platform for cost efficiency and band width capabilities

Focused on local customer requirements, more production facilities located closer to the key customers

Lowest “Total Cost of Ownership” (“TCO”), automatic dispenser producer

Less calibration & less pump replacements, less pump wear, lowest pump pressure requirements in the industry

Lowest pump cost of all auto dispenser producers, lower TCO

Balanced investment in R&D & Customer Support, one of the two most profitable equipment producers of the global players

Corporate Stability, fewer key staff movement, providing better customer continuity

Dedicated Resources, channel representative that receives unparalled support of parent company

1 of only 3 world wide producers of a full line of POS equipment

Thank you

The only “design ready” Zero VOC Automatic Colorant Dispensers in North America