Liquid Controls Channel Partner Prospectus - Aviation

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LIQUID

CONTROLS CHANNEL PARTNER PROSPECTUS AVIATION BUSINESS LINE

LIQUID CONTROLS, LLC An IDEX Energy & Fuels Business

105 Albrecht Drive Lake Bluff, IL 60044 USA

+1 847.295.1050 +1 800.458.5262

sales@lcmeter.com www.lcmeter.com


LIQUID CONTROLS An IDEX Energy & Fuels Business

LIQUID CONTROLS LIquid Controls flowmeters, including Liquid Controls and Avery-Hardoll brand meters, have proven for decades to provide customers the most accurate and reliable fuel measurement available in the aviation industry.

From its start in 1956, Liquid Controls, a unit of IDEX Corporation (NYSE:IEX), has been dedicated to providing high quality flow meters and accessories for accurate liquid measurement in both custody transfer and process control applications. Continuously branching out from the original military aircraft fueling requirement which gave us our start, we now serve a wide variety of industries. Our manufacturing team is made up of the most highly skilled craftspeople in the industry and in-house engineers to ensure that our customers around the world are supported with technology and capability tailored to industry and customer requirements. Since 1932, Avery-Hardoll meters have been the standard for fuel measurement accuracy.

Pioneer in Flowmeter Technology Liquid Controls (LC) sold their first fuel flowmeter to the U.S. Air Force in 1956 and Avery-Hardoll in 1932. Since then, LC has grown to become the leader in the aviation industry for high quality, reliable flowmeter systems and innovations that enhance metering performance, increase safety, and streamline data management.

Leader in Measurement Accuracy With proven measurement accuracy as low as .1%, Liquid Control’s Avery-Hardoll meters are unmatched in maintaining the most accurate fluid measurement in the world.

Authority in Data Management

Liquid Controls is focused on measuring and delivering accurate fueling data wirelessly, ensuring maximum operational efficiency and data quality control.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

OUR AVIATION TEAM Liquid Controls

Fred Niemeier

Frank Montalvo

Steve Sharp Ph.D.

Bill Hughes

Over 15 years leading, growing, and improving businesses with experience in private equity, management consulting, and industrial technology companies covering Europe, Asia, and global markets.

Over 15 years with Liquid Controls serving customers, managing sales, marketing, and business development with over 20 years in the metering industry.

Over 15 years of new product development, design leadership, cross functional team management, and development of new technologies that provide measurable customer benefits.

Over 10 years serving customers and channel partners at Liquid Controls and over 30 years fluids experience in the metering industry.

President Liquid Controls

Vice PresidentAviation Business Line

The Liquid Controls aviation team is made up of highly tenured metering professionals who have dedicated their careers to providing the highest quality metering products in the world. Keeping in mind that the most important thing to our customers is their customers,

Director Engneering

Global Manager Aviation & Gov’t Sales

our employees are focused on providing our channel partners, customers, and end users with the most measurable benefits to improve our customers’ operations, data, and relationships with their customers.

LC’s New Product Development Center has 15 full time research and development engineers, software engineers, manufacturing engineers and product specialists dedicated to creation of innovative metering technologies. CHANNEL PARTNER PROSPECTUS|3


LIQUID CONTROLS An IDEX Energy & Fuels Business

WHY LC? The 2015 Global Aviation Fueling Survey polled aviation fueling professionals on equipment preferences across core products, brands, and industry needs and trends.*

86% Preferred Brands

86% consider Liquid Controls or Avery-Hardoll meters as preferred brands among all meter manufacturers, globally.

84% Most Innovative

84% of industry decision makers view Liquid Controls and Avery-Hardoll as “most innovative brands with relevant new products to improve fuel measurement�.

70% Need Wireless Data 70% of the industry said their biggest needs are wireless dispatching, wireless data reporting, and inclusion of fuel quality data in reporting.

*As reported by the 2015 Global Aviation Fueling Survey

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LIQUID CONTROLS An IDEX Energy & Fuels Business

LC BRANDS PREFERRED Everywhere you go in the world you will find Liquid Controls brands (LC or Avery-Hardoll) as preferred brands for accuracy, reliability, and innovation.

Liquid Controls Avery-Hardoll

North America

Middle East / Africa

South America

Asia

Europe

Southeast Asia / ANZ

LC maintains greater than 75% market share in North America in aviation fuel metering products.

LC is the preferred meter brand in Brazil, Colombia, Argentina, and the majority of South America.

Avery-Hardoll is the preferred meter brand among European countries.

Avery-Hardoll and Liquid Controls brands enjoy majority market share in the Middle East and Africa.

Avery-Hardoll and Liquid Controls are the two leading brands among most Asian countries.

Avery-Hardoll and Liquid Controls control majority of the market share in Southeast Asia and ANZ.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

CUSTOMER TESTIMONY Fueling customers from around the world recognize LC as a leading integrator of metering, data management, and fuel quality technology.

Mike McCartney

Fueling Director, Southwest Airlines “FlightConnect has NO “per transaction” fees; this completely changes our valuation for this project.”

Tucker Cornwall

VP of Business Development, Swissport Fueling “We do not need an additional handheld computer which seems to be where we have most of our problems with cracked screens, connectors, etc.”

Ron Pattie

Vice President - SkyFuel Aviation Services “With LC, everything comes from a single source supplier so we have one company to call when we need support”

Paul Jurosov

Regional GES Mgr, ASIG / Signature Flight Support “LC also integrates the dP transducer so we have a captured record of the pressure loss across our fuel filters”

We always keep in mind that the most important thing to our cusromers is their customer. Liquid Controls brands are passionately focused on improving the enduser’s experience and satisfaction. 6 |CHANNEL PARTNER PROSPECTUS


LIQUID CONTROLS An IDEX Energy & Fuels Business

PARTNER SELECTION PROCESS 1

2

3

4

IDENTIFICATION INTRODUCTION

QUALIFICATION

SELECTION

We identify potential channel partners in target markets. Potential partners must have a minimum of five years experience in our product lines or complimentary product lines in the industry.

We narrow potential partners down through a series of factors: Experience, customer relationships in the territory, complimentary product lines, after sales service, and reputation among other criteria.

We select our partners based on the best long term mutual fit, because we believe in helping our partners become successful, we can both be successful. We strive to develop our partnerships over the long term.

We notify potential channel partners that we are considering them as a potential distributor of our products in their region. Meeting face to face is a critical step in the selection process.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

LIQUID CONTROLS (LC) Liquid controls has been an industry preferred bulk meter manufacturer since 1954. Since then, the addition of electronic registers, fuel quality systems, and wireless reporting has made LC the leading global innovator in the field of fluid measurement.

Flowmeters

Registers

Wireless Reporting Fuel Quality

60 years of meter innovation LC meters are exclusively engineered with no metal-to-metal contact within the measuring chamber, making use of a thin liquid capillary film between rotating and stationary components for hydraulic sealing. This unique design results in minimal wear, sustained accuracy, and low operating costs. When measuring the flow of a broad range of products, LC’s innovative design results in minimal resistance to flow and the ability to operate on pump pressure or gravity feed. That means efficient performance and low pressure drop across the meter.

The simplicity in design and high quality manufacturing make LC meters morereliable and less costly to operate than other meters.

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Every LC meter is individually tested for full conformance before shipping to our customers.


LIQUID CONTROLS An IDEX Energy & Fuels Business

LC Meters Liquid Controls meters are known for their accuracy and reliability in the most demanding environments and flow rate reqjuirements.

M10 Meter

M25 Meter

400 lpm / 150 GPM

1000 lpm / 300 GPM

Shown with mechanical register.

Shown with mechanical register.

M 40 Meter

M 80 Meter

2000 lpm / 450 GPM

3800 lpm / 1000 GPM

Shown with mechanical register.

Shown with LCR 600 digital register.

LC flowmeters are engineered with no metal-to-metal contact within the measuring chamber and a simplicity of design that results in a long service life, sustained accuracy, and low operating costs.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

LC Registers LectroCount electronic registers contain highly-engineered hardware and software that is compatible with a full range of delivery systems, from the simple to the sophisticated.

LCR II

Digital Register The LectroCount LCR-II™ has earned a sterling reputation because of its simple design and sturdy construction, which provides easy operation and longevity in the most demanding environments.

LCR 600

Digital Register LectroCount LCR 600™, the next generation of LectroCount registers, provides a large display, a user-friendly interface, and increased functionality. The LCR 600 runs FlightConnect fueling software, an automated, data capture and management system for into-plane fueling.

Liquid Controls’ family of LectroCount™ electronic registers provide near-perfect metering accuracy over a full range of flow rates and deliver enhanced functions including: automated data collection (e.g., date, time, product selection, delivery quantity, and more), on-site ticket generation, meter linearization, electronic temperature volume compensation, and improved security.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

Liquid Controls is the manufacturer of the Avery-Hardoll brand of bulk meters for the aviation fueling industry. All Avery-Hardoll meters are made to original specifications.

Flowmeters

Registers

Over 80 Years of Leadership

Since 1932, Avery-Hardoll BM series of bulk meters have become the industry standard for aircraft refueling, where accuracy, durability, and repeatability are essential. Meter sizes range from 2.5” up to 6” with flow rates up to 3870 liters/minute and ductile iron or fabricated steel manifolds.

Additive Injection

Meters are available with rate of flow indicators, preset facility, strainers, air release vessels, flow control, and automatic additive injection.

Valves

All Avery-Hardoll meters are compatible with MASTERLOAD II, and MASTERLOAD III electronic registers.

The Avery-Hardoll meter is the pioneer in the multi-capsule design. Other meters may look like an Avery from the outside, but It’s what’s on the inside that counts.

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It’s what’s on the inside that counts.

TM


LIQUID CONTROLS An IDEX Energy & Fuels Business

Meters Avery-Hardoll meters have long been recognized for their extreme accuracy and durability and are the preferred fuelmeter in international markets.

BM 250Meter

BM 450 Meter

1140 lpm / 300 GPM

2050 lpm / 530 GPM

A single capsule design for use in applications up to 1140 lpm.

A double capsule design for use in applications requiring flow rates up to 2050 lpm.

BM 650 Meter

BM 850 Meter

3000 lpm / 800 GPM

3870 lpm / 1000 GPM

A triple capsule meter for use in applications up to 3000 lpm.

A triple capsule design for use in applications up to 3870 lpm.

Avery-Hardoll brand bulkmeters are precision made liquid measuring instruments designed for use with a variety of bulk liquids and maintain accurate metering over long periods of operation. Simplicity of design with sustained accuracy has lead to wide use of the meters by major customers around the world.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

Registers Avery-Hardoll branded meters provide industry leading technology and robustness required for long term global use.

MASTERLOAD II Digital Register

The Masterload II is a microprocessor-based electronic meter controller. The Masterload II system consists of a pulse transmitter (mounted on the meter), a display unit, and a power supply unit.

MASTERLOAD III

TE550 Digital Register A dual microprocessor-based electronic meter register with FlightConnect™ wireless distpatching and reporting capability. It monitors and reports up to 20 points of fueling data. The register is equipped with a large display critical information and icons that make training and operation easy.

MASTERLOAD III Screen Map

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LIQUID CONTROLS An IDEX Energy & Fuels Business

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LIQUID CONTROLS An IDEX Energy & Fuels Business

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LIQUID CONTROLS An IDEX Energy & Fuels Business

TM

FlightConnect® is an innovative data communication software that resides on Liquid Controls LCR 600 or TE550 MASTERLOAD III registers.

Features FlightConnect wirelessly dispatches scheduled fueling instructions to LCR 600 or MASTERLOAD III registers. It automatically captures, backs up, and wirelessly transmits pre-selected fueling data of your choosing to your back office.

Receive Dispatch Data Capture

Data Backup

Wireless Transmission

Bottom-Line Benefits of FlightConnect™ • • • • • •

Instant fueling data to back office accounting More fueling-relevant data tracked and reported Simplified fueling procedures Quicker fueling turn around Increased reporting accuracy and content Reduces data entry errors and inventory reconciliation rework

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70%

of industry professionals said their biggest needs are wireless dispatching, wireless data reporting, and inclusion of fuel quality data in reporting.* * As reported by the 2015 Global Aviation Fueling Survey


LIQUID CONTROLS An IDEX Energy & Fuels Business

TM

FlightConnect™ Office resides on our customer’s back office computers and is the software that both dispatches fueling instructions and receives actual fueling data.

A dispatcher sends scheduled deliveries wirelessly from the back office computer to a specific FlightConnect enabled LCR 600 or TE 550 MASTERLOAD III register.

1 Dispatch

Dispatcher transmits fueling instructions to each FlightConnect enabled fuel truck.

2 Receive

Fueler receives dispatch instructions and plans schedule accordingly.

After each fueling, the data gathered by the electronic register is collected and transmitted back to the back office computer for proper accounting and reporting of the fueling transactions.

3

4

Fuel Aircraft

Transmit Data

Fueler completes the fueling of the aircraft according to the dispatch instructions.

FlightConnect automatically transmits all fueling data to back office.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

Fuel Quality Systems LC has pioneered critical fuel quality measurement devices to ensure safety, efficiency, and cost avoidance for our customers.

Slipstream™

Fuel Densitometer Provides real-time fuel data: • Mass • Density • Concentration • Temperature • Viscosity • Measures liquid density between 0.6 to 1.3 g/cc

dP Transducer

Differential Pressure A safety shutdown device and maintenance tool for aviation fueling. Maximum differential pressure (across the full flow fuel monitor or filter separator) and the corresponding flow rate are printed on the ticket.

Both the Slipstream™ densitometer and dP transducers are compatible with LC meter / registers. Together they provide safer and more accurate fueling operations by monitoring system pressures as well as providing more accurate measurements of fuel densities to improve accuracy of onboard fuel loading and reporting.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

Fueling Accessories LC is your one-stop shop for fuel metering and fuel quality accessories.

Mechanical Counter

Large Digit LED Display

With ticket printer

Up to 100 m viewing distance.

Large-numeral counter with 5-digit resettable and 8-digit non-resettable totalizers.

Water Detection

Perfect for aviation refuelers, where longdistance viewing is required.

Printer

In-line water detector

Slip Printer for custom receipts

Recommended for in-situ measurement of particulate matter like free water.

For all mobile and stationary applications from –22 to 158ºF (–30 to 70ºC).

LC provides a full offering of fueling accessories and spare parts for our channel partners to keep in stock for quick turn-around orders to their customers.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

Avery-Hardoll Timeline A dedicated team is focused on achieving the launch schedule below for pre-production shipments and ultimately production order deliveries in June, 2016.

ITEM

JAN

FEB

MAR

APR

MAY

JUN

Pre-Order Planning First Article Shipments Production Orders Accepted Production Mfg / Testing Production Order Shipments STEPS I & II

Pre-Order Planning & First Article Shipments

1. LC will work closely with Channel Partners and Customers to determine near term demand and assign initial production quantities. 2. Key Channel Partners will receive first article samples for review and testing.

STEP IV

Production Mfg / Testing

First run production order manufacturing and testing period.

STEP III

Production Orders Accepted Liquid Controls will release the AveryHardoll product line to the market to receive production orders.

STEP V

Production Order Shipments

Initial production orders to be shipped to customers.

Once the first article units are recevied and approved by key channel partners and customers, LC will begin accepting production orders in mid-April. The LC factory will begin manufacturing initial orders and subsequently testing finished product with the objective to ship first production units by June, 2016.

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LIQUID CONTROLS An IDEX Energy & Fuels Business

GOALS AND OBJECTIVES We strive with our channel partners to ensure mutual growth in our target markets. We rely heavily on our partners to take the lead in their markets and service them proudly.

ESTABLISH LC BRANDS AS THE LEADER IN DISTRIBUTOR’S TERRITORY We clearly communicate our market strategy to our channel partners. We enable our channel partners to become successful. We encourage our channel partners’ profitability. We provide our channel partners with the tools to become successful.

PROVIDE THE BEST AVAILABILTIY AND LEAD TIMES IN THE INDUSTRY LC will strive to provide industry leading availability and lead times on all products. Channel partner shall work closely with LC to provide demand forecasting. LC will utilize forecasts to ensure product availability when it is required. Local inventory held by distributor to ensure continuous supply and availability.

PROVIDE THE BEST AFTER-SALE SERVICE AND SUPPORT IN THE INDUSTRY Local sales and service support provided by distributor Inventory of spare parts held locally by distributor 24 hour turn-around LC for support related issues LC will support our channel partners locally through visits, trade shows, and by phone. Liquid Controls maintains a traditional distribution style business. As such, we rely heavily on our channel partners to work along side us as true partners with common goals. We strive to maintain these relationships into decades - working closely to achieve our common goals, and becoming like family. We understand that our partners need LC to perform to achieve these goals, and LC needs our partners to perform equally well. We are in this together and are committed to supporting our partners wherever necessary.

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LIQUID CONTROLS LIQUID CONTROLS, LLC 105 Albrecht Drive Lake Bluff, IL 60044 +1 847.295.1050 +1 800.458.5262 Sales@lcmeter.com www.lcmeter.com


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