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And Introduction WELCOME AND INTRODUCTION David Hillman VP/ GM, Vocational Product Line International® is a registered trademark of , Inc. Play Some Offense International® is a registered trademark of , Inc. 1 Thank You To Our Sponsors Tom Rost Dave Burley Jeff Spitzner Tom Kastner Ed Lunder Sean Whitfield International® is a registered trademark of , Inc. 2 Branding Changing Needs: • Brand in distress • MaxxForce hangover Residual values New • International New International: ProStar Launch • New management (2007) • UpTime • Conquest customers HPV Launch (2001) International® is a registered trademark of , Inc. 3 Timeline HX Academy: Today TOPS Download: Dec. 15th Deliveries: Las Vegas Launch: Feb. 1, 2016 May 2016 International® is a registered trademark of , Inc. 4 HX Series SFA SBA Short hood Bridge formula BA Sloped hood 115” BBC 13L 13L Long hood Long, square hood Sloped hood 120” BBC 15L 15L Driver’s Truck Performance Versatile Value Aggressive styling Visibility Vocational specs Modern interior Light weight Broad feature coverage Serviceability Durability Twin steer, lift axles, etc. International® is a registered trademark of , Inc. 5 Severe Service Market: US/ Canada 80,000 Premium HD Severe 70,000 Standard HD Severe 60,000 MD Severe 50,000 40,000 PayStar 30,000 WorkStar 7600 20,000 10,000 WorkStar 73/74/7500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Polk Data and Navistar Proprietary Segmentation Groups International® is a registered trademark of , Inc. 6 Severe Service Market: US/ Canada 80,000 Premium HD Severe 70,000 Standard HD Severe 60,000 MD Severe 50,000 40,000 PayStar 30,000 WorkStar 7600 20,000 10,000 WorkStar 73/74/7500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Polk Data and Navistar Proprietary Segmentation Groups International® is a registered trademark of , Inc. 7 Severe Service Market: US/ Canada Vocational Premium HD Severe Market Split: 8,344 Registrations by 7,015 Customer Type/Size 37% Premium HDD ~17,000/Yr Premium HD Severe Registrations 1,166 818 (4/14-3/15) Dealer Retail Dealer Retail Natl Account/ Gov’t Fleet Size Fleet Size Leasing 26+ 1-25 28% Standard HDD 89% of Premium HD Units are Retail Purchases 35% Standard MRD Source: Polk Data and Navistar Proprietary Segmentation Groups International® is a registered trademark of , Inc. 8 Premium Market: Dealer Retail Dealer Retail 15,359 Units/Yr Construction 5,836 Units (38%) Sub Industry Industry %1 Concrete 37% Highway & Street 13% Excavation 9% Water Sewer & Pipeline 6% Services 2,148 Units (14%) Sub Industry Industry %1 Vocational Rental/Lease 19% Oil and Gas 17% Source: Polk Data Reg. for April 2014-March 2015 1 Sub Industry Data Unavailable for Canada. Assumes US % based on reported data. International® is a registered trademark of , Inc. 9 So Let’s Talk About The Construction Business… International® is a registered trademark of , Inc. 10 Construction Market Construction customers typically use trucks to haul materials. Dump Trucks/ Tractors Aggregates Mixer Trucks Concrete Dry Bulk Tanker Cement Wet Tank Water Cranes Drywall International® is a registered trademark of , Inc. 11 What Are Aggregates? Aggregates are the rocks, sand, and crushed stone that provide strength to building materials like concrete and asphalt. What’s the difference between concrete and cement? International® is a registered trademark of , Inc. 12 Cement vs. Concrete Cement is the “glue” that holds concrete together. It is one of the four main ingredients in concrete: 1. Cement You don’t mix 2. Fine Aggregates (sand) CEMENT, you mix 3. Coarse Aggregates (gravel) CONCRETE. 4. Water International® is a registered trademark of , Inc. 13 What Is Asphalt? Asphalt is a sticky, black, and highly viscous form of petroleum. When mixed with aggregates, it is used in paving to make black top, technically called asphalt concrete. International® is a registered trademark of , Inc. 14 Asphalt vs. Concrete Aggregates (rock and sand) + Aggregates Water + + Asphalt Portland Cement (aka: tar, bitumen, pitch) (aka: cement) = Asphalt Concrete = Concrete International® is a registered trademark of , Inc. 15 So… Why Do I Care? Aggregates Cement All of these materials move by truck. Ashpalt Concrete And they move a lot of them: 1 mile of interstate = 38,000 tons of aggregates Nearly 2,000 truckloads International® is a registered trademark of , Inc. 16 What They Haul Approximate Weight By Volume lbs./ yard kg/ m3 Coal 1,500 900 Loose earth 2,000 1,200 Dry gravel, coarse rock 2,500 1,500 Mixed sand 3,100 1,800 Wet earth, wet gravel, wet sand, mud 3,400 2,000 Wet concrete 4,000 2,400 Asphalt, hot or cold 4,200 2,500 16 yard dump truck = 40,000 lbs. of gravel 10 yard concrete mixer = 40,000 lbs. of concrete International® is a registered trademark of , Inc. 17 Dump Trucks Concrete Mixers International® is a registered trademark of , Inc. 18 Dump Trucks Similar Material, Different Configurations Tandem Bomber Dump Tractor Bottom Quad Axle Dump Transfer Michigan Dump Special Arizona Super Dump International® is a registered trademark of , Inc. 19 Dump Trucks Concrete Mixers International® is a registered trademark of , Inc. 20 Concrete Placement Market 1% Volumetric 7% Pumper 16% Front Discharge 75% Rear Discharge International® is a registered trademark of , Inc. 21 Concrete Mixers How a concrete mixer works Steel fins inside a steel barrel Archimedes screw International® is a registered trademark of , Inc. 22 Concrete Mixers How a concrete mixer works Transit Discharge • In transit, drum slowly • At job site, drum quickly turns clockwise to mix turns counterclockwise • Load shifts to driver side to discharge • Front suspension • Driver controls at back options of body International® is a registered trademark of , Inc. 23 How Do We Stack Up To The Competition? International® is a registered trademark of , Inc. 24 Competitor Targets Mack performs poorly in 2015 brand study, leaving significant opportunity to conquest customers Data analysis revealed 22% of PayStar customers defected to Peterbilt with our exit of short BBC PayStars Considered weakest overall in brand study, but pockets of momentum especially at former Sterling dealers Strong brand loyalty and perception against International, strong position in 2015 brand study Different customer base, different value proposition when combining truck sale with machinery through Cat Financial International® is a registered trademark of , Inc. 25 HX Series Key Charter Deliverables Bold Design Weight Modern Interior Maneuverability Visibility Messaging: ENDURANCE International® is a registered trademark of , Inc. 26 HX Series: Bold Design Optional External Air Functional Sightline Cleaners with ISX Stainless Steel Grille Chiseled Fenders and Surround with and Hood Flanks Aluminum Mesh Bold Headlamps with LED DRLs International® is a registered trademark of , Inc. 27 HX Series: Ergonomics Shoulder Elbow Hip Knee Shoulder Elbow Hip Knee Room Room Room Room (mm) (mm) (mm) (mm) HX Series 411 357 327 342.5 97th Percentile 3rd Percentile Male Female KW T880 409 357 353 335 1” International® is a registered trademark of , Inc. 28 HX Series: Visibility Final Data Pending HX 615 T880 Distance From Bumper To Ground Intercept Vehicle Vehicle Centerline (inches) Driver Centerline (inches) HX615 231.6 228.1 T880 short BBC 245.7 238.1 International® is a registered trademark of , Inc. 29 HX Series: Maneuverability and Weight Final Data Pending Mack GU713 KW T880 Maneuverability 17,800 18,600 40º Wheel Cut With 425 Tires Both Left and Right HX Series Dual Steering Gears Expected Range HX Series Reasons To Believe: • Mega brackets • Metton hood • BBC • Cab suspension • N13 = 2,400 lbs • MX-13 = 2,600 lbs; MX-11 = 2,200 lbs International® is a registered trademark of , Inc. 30 HX Series: How We WIN Bold Design Weight Modern Interior Maneuverability Visibility 1. Parts and Service Dealer 2. OnCommand Connection 3. YOU! International® is a registered trademark of , Inc. 31 HX Series Chad Semler Product Marketing Manager International® is a registered trademark of , Inc. Construction Trucks Dump Trucks • Who is the customer? • What are the state weight laws? • What is the target load? • How do you determine the spec? Mixers • State Bridge Laws • 41 States have some form of bridge law on the books Tractors • Dump or Flatbed • Desired GCVW • Off Road • Fifth Wheel Height and Slide Requirements • Geography International® is a registered trademark of , Inc. 33 Dump Truck Customers Small fleets • Owner started as a driver • Knows the business and his/her needs • Product savvy • Financing may be important Image • The trucks represent the business • High content trucks are moving billboards for the company • Driver shortage is an issue • Need to keep the driver happy – desirable products and features Product • Uptime • Performance • Various configurations, even within one customer’s fleet • Trend is towards more automatic/automated transmissions due to driver training International® is a registered trademark of , Inc. 34 Dump Truck Customer Support • Dealer service support • Parts availability • 7-10 years of parts and service business opportunity Network • Owners and drivers have a network • Word of mouth International® is a registered trademark of , Inc. 35 Dump Truck Considerations Target Load • Sand, Gravel, Rip Rapp, Dirt • Choose body material and size GVW • Stinger axle (ie. Arizona Super Dump) • Pusher axles • Twin Steer • Must comply with bridge laws and local weight laws Performance • Where will the truck be operating? Mostly off- road or longer distances on highways? • Need to pull an equipment trailer? • Max speed requirement? • Air Filtration Safety • Electronic Stability Control • 6-channel ABS with ATC International® is a registered trademark of , Inc. 36 Dump Truck Considerations Weight • If making multiple runs per day, a lighter weight truck means more revenue • A 13 liter engine saves 500 lbs. over a 15 liter • Consider aluminum components, smaller fuel tank, suspension choices Chassis • Configuration (how many axles) • Wheel Base • CA and AF • PTO • TEM integration • Multi-Use • ½” Super Single Frame Rail International® is a registered trademark of , Inc.
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