NACE - Mack Trucks Update

Tim Wrinkle Construction Product Manager

April, 2018

Update Session – NACE April 2018 1 PROUD BEGINNINGS First Mack Vehicle – 1900

Mack Trucks was born in 1900 when brothers Jack, Gus and William Mack built their first motorized vehicle - a bus - that carried sightseers around Brooklyn’s Prospect Park in New York.

Update Session – NACE April 2018 2 Update Session – NACE April 2018 Update Session – NACE April 2018 MACK IN NORTH AMERICA Dealer Network

Full Line 311 Parts & Service 123 Total Outlets 434

Update Session – NACE April 2018 5 MACK IN NORTH AMERICA Facilities

U.S. MANUFACTURING: – LVO Plant Macungie, PA – Cab & Vehicle – Hagerstown, MD – Powertrain

COMPETITORS: • Company X – 7% of trucks manufactured in U.S. • Company Y – 39% of trucks manufactured in U.S. • Company Z – 80% of trucks manufactured in U.S.

Update Session – NACE April 2018 6 PRODUCT LINE – NORTH AMERICA

Mack® TerraPro® Cabover

Used for severe service refuse, concrete boom pump and other construction equipment. • Rugged exterior built to handle tough jobs • Powered by MP® Series engine family (MP®7 and MP®8) • Panoramic visibility • Tight wheel cuts

Update Session – NACE April 2018 7 PRODUCT LINE – NORTH AMERICA

Mack® TerraPro® Natural Gas

Combines the advantages of natural gas with Mack reliability and performance. Sets new benchmark for lower alternative fuel lifecycle costs. • Narrow cab width for tight working conditions • Equipped with Cummins Westport L9N (near zero emissions) natural gas engine • Meets EPA and CARB emission standards

Update Session – NACE April 2018 8 PRODUCT LINE – NORTH AMERICA

Mack® Low Refuse (LR)

Puts the driver's needs first with upgraded features designed to provide greater visibility and comfort for increased productivity. • Superior visibility • Versatile configurations • Ergonomic design, easy-entry • Expanded storage • Powered by mighty MP® Series engines • Can be equipped with Cummins Westport L9N (near zero emissions) natural gas engine

Update Session – NACE April 2018 9 PRODUCT LINE – NORTH AMERICA

Mack® PinnacleTM

The Mack Pinnacle is available as a sleeper or day cab. • Axle-forward configuration • Completely redesigned living environment (2018 model year) • Mack Co-Pilot™ display • Mack Advantage™ chassis • Dependable performance and fuel economy

Update Session – NACE April 2018 10 PRODUCT LINE – NORTH AMERICA Mack AnthemTM

The Mack AnthemTM is the next-generation in highway trucks. • Axle-back configuration • Bold design delivers superior aerodynamics and fuel efficiency • Completely re-engineered living environment for better control and comfort • New 70” stand-up sleeper with 35% more space and generous headroom (7’1”) • Easy maintenance and smart serviceability with tilt-assist hood

Update Session – NACE April 2018 11 Mack Granite

The No. 1-selling heavy-duty conventional straight truck in the U.S.* *Based on IHS Markit U.S. Class 8 VIN defined conventional straight truck new vehicle registrations for 10 liters and larger engines, January-December 2016

Update Session – NACE April 2018 12 PRODUCT LINE – NORTH AMERICA Mack® Granite®

The Mack Granite remains #1 conventional straight truck model for good reason. • Axle-forward or axle-back configuration • Powerful and fuel-efficient MP Series® engine • High horsepower and low-end torque • Granite MHD powered by Cummins L9 • Galvanized Steel Cab offers – Best in class visibility, more room, quieter ride, protection and durability only steel can provide Update Session – NACE April 2018 13 MACK GRANITE - RESALE VALUE • In the Dec 2017 edition of the Black Book Commercial Truck Guide, Mack vocational trucks reign as leaders in resale value over competition. • This is testimony to the quality and longevity that comes with a Mack. • Mack customers not only have a truck that delivers on strength and durability for all work requirements, but also delivers on resale value. • Comparisons are based on 6x4 equipment with 10-speed transmissions, 20,000 lb. front and 44,000 lb. rear axles, plus comparable 450hp engines and components.

$140,000 $138,750 Average Retail Price of 3-6 Year Old Vocational Trucks $133,900 $130,000 $127,025 $125,300 $123,000 $122,200 $120,000 $116,650 $116,125 $112,400 $111,400 $110,300 $110,000 $103,625 $102,675 $98,750 $98,200 $100,000 $98,400 $92,400 $91,300 $88,600 $87,775 $90,000 $87,425 $82,775 $81,525 $80,000 $74,450 $73,125 $68,000 $70,000 $66,250 PeteSBA 367 WS 4900SB Granite GU713 Granite GU813 SBA T880 KW 112 M2 FL 7600 Int $60,000 2016 MY 2015 MY 2014 MY 2013 MY The information supplied in the Black Book Official Heavy Duty Truck and Trailer Guide has been gathered from leading dealer auctions across the country plus many special truck and trailer auctions and experienced industry contacts. For more information on the Black Book, including subscription services, please visit www.blackboockauto.com

Update Session – NACE April 2018 Integrated Powertrain

Integration – the key to unlocking improved productivity, performance, fuel efficiency Components designed to work together simply work better

Update Session – NACE April 2018 15 Performance and Efficiency

Mack ClearTech One Mack MP Engines

Mack mDRIVE HD

Mack Axles

Update Session – NACE April 2018 16 Mack mDRIVE HD

The no. 1 transmission choice in Mack Granite models

60% 49% 50% 37% 40%

30% 20% 20%

10% 5% 0% 0% 2014 2015 2016 2017 2018

Update Session – NACE April 2018 17 Mack mDRIVE HD Fully integrated with Mack MP engines • Improved productivity, safety, fuel efficiency • Lower weight, less maintenance

mDRIVE HD 13-, 14-speed models • 13-speed OD has 17.5:1 gear ratio for unmatched startability • 14-speed OD has 32:1 gear ratio for low speed applications

“TWO TRUCKS IN ONE” • No compromises in startability or fuel efficiency • Ability to run highway rear axle ratios while maintaining startability

Update Session – NACE April 2018 18 mDRIVE HD – geared for jobsite and highway

Mack GHG17 Engine Sweet Spot MP7: 1275-1375 RPM MP8: 1250-1350 RPM

Road Speed MPH 65 65 65 65 65 65 65 65 Trans Gear Ratio (12th) 0.79 0.79 0.79 0.79 0.79 0.79 0.79 0.79 RPM at 65mph (11R24.5) 1810 1685 1601 1524 1432 1368 1307 1251 Tire RPM 470 470 470 470 470 470 470 470 RPM at 65mph (11R22.5) 1895 1764 1676 1596 1499 1432 1368 1310 Tire RPM 492 492 492 492 492 492 492 492 Rear Axle Ratio 4.50 4.19 3.98 3.79 3.56 3.40 3.25 3.11

Update Session – NACE April 2018 19 mDRIVE HD – geared for jobsite and highway

1.5% fuel savings in Top Gear for 100 RPM dropped In example dropped 1810-1368 = 442 RPM = 6.6% fuel savings

Update Session – NACE April 2018 20 mDRIVE HD vs. Allison

 Saves some 237 lbs.  Saves 31 quarts of oil  Better Fuel Efficiency . 6 speed vs 12 speed . No fluid coupling (torque converter) . Less heat load applied to vehicle cooling system  Serviceable by Mack dealer  Monitored by GuardDog Connect

ALLISON

Update Session – NACE April 2018 Utah DOT • 505 hp MP8 engines and • Mack mDrive HD • running wing plows through a REPTO. • these two units part of a 25 truck order • Ordered 6 more due to great performance

Update Session – NACE April 2018 All-New, Driver-Focused Granite Interior

Update Session – NACE April 2018 23 All-New, Driver-Focused Granite Interior

• Optimized ergonomics designed for the driver

• Flat-bottomed steering wheel, an industry first • Switches larger, illuminated and laser-etched • All interior lighting now LED-based

• Mack-Exclusive Seating Options

Update Session – NACE April 2018 24 All-New, Driver-Focused Granite Interior

Standard Premium Shown in Steel Gray Shown in Sierra Tan with Satin Aluminum accents

Update Session – NACE April 2018 25 Update Session – NACE April 2018 26 Mack-Exclusive Seating Options

Custom-designed, manufactured by Sears • All-day comfort combined with durability • Air suspension • 30+ feature and fabric combinations • Lumbar adjustment • Fore – aft slide / isolator • 3-position seat bottom tilt / extension • Inboard seat controls • Leather and heated options

Update Session – NACE April 2018 27 Increased Clearance For Underbody Scraper Installation

• New factory option for increased ground clearance needed for underbody scraper applications. • Bodybuilder-ready, saving time and money

Update Session – NACE April 2018 28 Increased Clearance For Underbody Scraper Installation

• Six-inch increase in chassis ride height • Up to 21" of ground clearance* for installation without relocating chassis components • Allows underbody scraper to articulate a full 45° to either side • Modified steps maintain 24-inch max first-step height for no compromise to ingress/egress

21”

*Dimensions in loaded condition with 425/65R22.5 tires

Update Session – NACE April 2018 29 Increased Clearance For Underbody Scraper Installation

SHORTENED WHEELBASE • ~24” shorter than competitors • Improved maneuverability makes it easier to get in and out of tight spots

Update Session – NACE April 2018 30 Mack Granite MHD Built on Mack Cornerstone chassis for durability

Weight optimized for lighter-duty cycles • Can be spec’d as Class 7 or Class 8 • Lightweight, dependable Cummins L9 engine

Multiple configurations available • Ideal for municipal applications • customers who need a durable but lighter work truck

Update Session – NACE April 2018 31 Granite MHD Enhancements Short WB for 10’ Dump Body

• New shorter wheelbase is also now available for • 10’ Dump Body = CA of 84“ the MHD model in the 4x2 configuration.  172” WB on MHD axle forward • This is targeted to accommodate a 10-foot dump  150” WB on MHD axle back body, a common municipal configuration • 33k GVW optional

CA 84”

WB 172”

Update Session – NACE April 2018 32 Granite MHD Enhancements

Under Frame Exhaust for MHD axle forward A new under-frame exhaust gives customers more options for body adaptation, further expanding application capabilities, such as tankers, flatbeds, box trucks, cranes and certain municipalities.

Update Session – NACE April 2018 33 Mack Body Builder Support • Expert help before, during and after the sale • Connecting customers and body builders to Mack product experts

Mack Body Builder Portal One-stop shop for all Mack body builder resources • Body Builder Manuals • Wiring schematics • Custom-designed PTO & Pump Speed Calculator

Update Session – NACE April 2018 34 BodyLink III

Update Session – NACE April 2018 35 Bodylink III

• J1939 on pins 21 & 22 • Power and lighting circuits are included. • PTO inputs & remote speed control inputs to V-MAC IV are provided • neutral and park brake signals provided. • Wiring is attached for the optional BodyLamp and assignable switch pack.

Update Session – NACE April 2018 36 Cab Pass Through

Update Session – NACE April 2018 37 What do these things have in common?

1. Bridge 2. Two Goats 3. Bulldog

Update Session – NACE April 2018 38 Update Session – NACE April 2018 39 Update Session – NACE April 2018 40 Update Session – NACE April 2018 41 UPTIME LEADERSHIP

Mack is here to keep our customer’s trucks on the road – and doing the job.

Update Session – NACE April 2018 42 Today’s Industry Challenge: Downtime

Update Session – NACE April 2018 UPTIME SOLUTIONS

GuardDog® Connect

Connects vehicle data to Mack OneCall® team, decision maker and dealer via Mack ASIST. • Proactive support for vehicle diagnosis and repair planning • Confirmation of parts and bay availability before truck arrives for service • Online tracking of case status in real time

Update Session – NACE April 2018 44 UPTIME SOLUTIONS

OneCall ®

Around-the-clock emergency roadside assistance; 24 hours a day, 7 days a week. • 600 employees dedicated to uptime • Truck and trailer breakdown support • Tire replacement • Towing Services • Multi-language support

Update Session – NACE April 2018 45 UPTIME SOLUTIONS Mack® ASIST

Keeping the customer, dealer and support on the same page. • Web-based system allowing you to work together, in real time, with service providers • Faster estimates • Streamlined check-in at Mack dealers nationwide • Service status updates

Update Session – NACE April 2018 46 Mack ASIST App

• Flexibility to manage day-to-day diagnostics, service events and ASIST communications from anywhere • Free download from Android and Apple app stores

Update Session – NACE April 2018 47 UPTIME SOLUTIONS Mack Certified Uptime Centers

We’ve Given Repairs a Lane of Their Own

Update Session – NACE April 2018 48 UPTIME SOLUTIONS Mack Certified Uptime Centers – Committed to Customers

CHECK-IN - Prompt Assessment of Vehicle Status Service advisor will perform a walk-around assessment. Check-in and initial diagnostics should be completed in under two hours.

UPTIME BAY - Expedited Service for Short Repairs If the assessment indicates quick diagnostics and repair, a customer’s truck goes directly to an Uptime Bay.

ADVANCED BAY - Dedicated Service for Longer Repairs Trucks requiring advanced diagnostics and repairs are routed to an Advanced Bay. Customers are advised regarding anticipated repair time and costs.

MESSAGING - Ongoing, Up-to-the-minute Updates Service advisors keep customers informed; if customers choose to use ASIST direct messaging, they receive status alerts during the entire service event.

Update Session – NACE April 2018 49 Mack Trucks: Connectivity and Uptime

Direct Customer Communication GuardDog Mack OneCall ASIST Certified Uptime Connect Over The Air Centers

Update Session – NACE April 2018 50 Investing for Industry-Leading Uptime Results

Investing in reliable, real-time connectivity: • More than 65,000 trucks with GuardDog Connect

Investing in dealer network: • More than $600 million invested since 2010 • 53% more service bays, 431% more Mack Master techs • 114 Mack Certified Uptime Centers • 235 bays dedicated to repairs less than four hours

Update Session – NACE April 2018 51 Update Session – NACE April 2018 Visit us in the MACK booth enter drawing to win this Lego set

Update Session – NACE April 2018 53