COMPANY OVERVIEW

For over 35 years, KLONDIKE Lubricants Corporation has been challenging the status quo and become the leading independent lubricant brand in Canada. With KLONDIKE’s main concentration being across Canada and the Western U.S., it serves over 1,400 distributor locations with a complete offering of 700 SKUs across 10 product families ranging from engine oils, hydraulic fluids, transmission fluids, greases, specialty chemicals, coolants, process oils and food grade lubricants. KLONDIKE currently partners with five main dealer types: (i) diversified aftermarket auto parts providers, (ii) fuel and lubricant distributors, (iii) agricultural distributors, (iv) general industrial distributors and (v) industrial OEM dealers.

Through these channels, the Company serves a diverse set of end markets and covers over 95% of market applications, including heavy-duty equipment, marine, automotive, agriculture, construction, manufacturing, forestry, mining, food grade and oil and gas.

A national success story, KLONDIKE has consistently achieved sales growth since 2015. This is largely a result of the company’s focus on helping its distributors grow their business through capturing opportunity, and its commitment to never sell directly to end users or mass merchandisers. The result is loyal customer behavior as evidenced by their best-in-class revenue retention metrics.

Additionally, KLONDIKE has expanded its warehousing and delivery capacity to answer the wide-ranging and specialized needs of the Canadian marketplace and more recently into the U.S. market. The Company has achieved a market leading position in Canada, with significant room for future growth, and is rapidly expanding into the U.S. KLONDIKE has achieved these results organically, experiencing rapid growth in every territory it enters while remaining profitable throughout.

The Business Model and the “WHY”KLONDIKE’s growth has been driven by disrupting the market through its Unique Selling Proposition (USP), which is a consultative sales approach. This has resulted in the Company gaining significant share from local and global oil and gas majors alike:

• Consultative approach supports distributor end-market expansion. In addition to providing a full range of products, KLONDIKE’s experienced Business Development Managers (BDMs) add value through their own knowledge, advice/training, and end-user “detailing” (i.e., sales calls). The BDMs also “quarterback” the various support teams the company offers such as technical, marketing, client care, digital, tele-marketing and data including prospect lists to support distributors’ expansion into new end markets and capture opportunity. Personalized consultative support such as annual strategy meetings with key dealer stakeholders to set up an annual roadmap for success sets KLONDIKE apart from its competition.

• Distributed nationwide inventory. The Company sells its 650 SKUs through a network of 1,400 distributor locations across Canada and the U.S., who in turn carry millions of liters of lubricant on their own shelves.

• Unparalleled customer service and direct access to key decision makers: KLONDIKE provides a personalized level of service that makes dealers feel valued across the Company. The empowered Client Care team works directly with the distributor to give them the quickest response times and solutions to their inquiries. BDMs know distributors’ stakeholders on a first name basis and working with their teams regularly allows them to capitalize on their strengths in the market.

• KLONDIKE price positioning supports maximum distributor growth. KLONDIKE is in the middle-market for pricing. This market position allows for maximum growth by attracting price-based consumers through the many features of the range for small increase and gives savings to the global brand buyer while maintaining consistent or better product performance and specifications. It’s value for money is unmistakably the best in the market when incorporating the quality of the product, complete product offering, the benefit of the complete support program and advantage of the loyal partnership.

• Distributor growth support leads to brand loyalty. Through its commitment to distributors’ growth and disciplined approach to never sell directly to end users or to mass merchandisers, KLONDIKE earns distributors’ loyalty and this partnership benefits from growing sales for its products year over year. This translates into KLONDIKE’s “WHY”: We Grow Independent Business.

COMPANY OVERVIEW

For over 35 years, KLONDIKE Lubricants Corporation has been challenging the status quo and become the leading independent lubricant brand in Canada. With KLONDIKE’s main concentration being across Canada and the Western U.S., it serves over 1,400 distributor locations with a complete offering of 700 SKUs across 10 product families ranging from engine oils, hydraulic fluids, transmission fluids, greases, specialty chemicals, coolants, process oils and food grade lubricants. KLONDIKE currently partners with five main dealer types: (i) diversified aftermarket auto parts providers, (ii) fuel and lubricant distributors, (iii) agricultural distributors, (iv) general industrial distributors and (v) industrial OEM dealers.

Through these channels, the Company serves a diverse set of end markets and covers over 95% of market applications, including heavy-duty equipment, marine, automotive, agriculture, construction, manufacturing, forestry, mining, food grade and oil and gas.

A national success story, KLONDIKE has consistently achieved sales growth since 2015. This is largely a result of the company’s focus on helping its distributors grow their business through capturing opportunity, and its commitment to never sell directly to end users or mass merchandisers. The result is loyal customer behavior as evidenced by their best-in-class revenue retention metrics.

Additionally, KLONDIKE has expanded its warehousing and delivery capacity to answer the wide-ranging and specialized needs of the Canadian marketplace and more recently into the U.S. market. The Company has achieved a market leading position in Canada, with significant room for future growth, and is rapidly expanding into the U.S. KLONDIKE has achieved these results organically, experiencing rapid growth in every territory it enters while remaining profitable throughout.

The Business Model and the “WHY”KLONDIKE’s growth has been driven by disrupting the market through its Unique Selling Proposition (USP), which is a consultative sales approach. This has resulted in the Company gaining significant share from local and global oil and gas majors alike:

• Consultative approach supports distributor end-market expansion. In addition to providing a full range of products, KLONDIKE’s experienced Business Development Managers (BDMs) add value through their own knowledge, advice/training, and end-user “detailing” (i.e., sales calls). The BDMs also “quarterback” the various support teams the company offers such as technical, marketing, client care, digital, tele-marketing and data including prospect lists to support distributors’ expansion into new end markets and capture opportunity. Personalized consultative support such as annual strategy meetings with key dealer stakeholders to set up an annual roadmap for success sets KLONDIKE apart from its competition.

• Distributed nationwide inventory. The Company sells its 650 SKUs through a network of 1,400 distributor locations across Canada and the U.S., who in turn carry millions of liters of lubricant on their own shelves.

• Unparalleled customer service and direct access to key decision makers: KLONDIKE provides a personalized level of service that makes dealers feel valued across the Company. The empowered Client Care team works directly with the distributor to give them the quickest response times and solutions to their inquiries. BDMs know distributors’ stakeholders on a first name basis and working with their teams regularly allows them to capitalize on their strengths in the market.

• KLONDIKE price positioning supports maximum distributor growth. KLONDIKE is in the middle-market for pricing. This market position allows for maximum growth by attracting price-based consumers through the many features of the range for small increase and gives savings to the global brand buyer while maintaining consistent or better product performance and specifications. It’s value for money is unmistakably the best in the market when incorporating the quality of the product, complete product offering, the benefit of the complete support program and advantage of the loyal partnership.

• Distributor growth support leads to brand loyalty. Through its commitment to distributors’ growth and disciplined approach to never sell directly to end users or to mass merchandisers, KLONDIKE earns distributors’ loyalty and this partnership benefits from growing sales for its products year over year. This translates into KLONDIKE’s “WHY”: We Grow Independent Business.