Straight from the Engineer: Selling the KOHLER Advantages

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Straight from the Engineer: Selling the KOHLER Advantages Kohler Generator Leadership Summit Breakout Session Billy Brandenburg and Chris Taylor 2-26-2018 KOHLERPOWER.COM / 1

Agenda Review what s most important to customer Product Specific competitive differentiators 14/20kW range RESV RCL RCA reveal New Kohler engines reveal Summary consumer selling points KOHLERPOWER.COM / 2

What Do Consumers Want Most in a Standby Generator? Lots of research to answer the question Some variation One overwhelmingly consistent theme In a word. KOHLERPOWER.COM / 3

KOHLERPOWER.COM / 4

ATTRIBUTES RATED VERY IMPORTANT TO PURCHASE DECISION (Survey of 308 Owners of Standby Generators) Reliability Durability Safety Ease of use Automatically switches on when needed Ease of maintenance/repair Power quality/voltage regulation Prevention of power backfeed Type of fuel used Fuel efficiency Price Run time between refueling Length of warranty/guarantee Number of circuits on transfer switch Ease of installation Quiet operation Type of engine Being fully enclosed Low oil warning Low emissions Generator brand name Engine brand name Dealer recommendation 53% 51% 48% 47% 47% 44% 44% 43% 43% 41% 41% 40% 40% 39% 38% 37% 36% 32% 31% 26% 60% 54% 54% Factors most likely to be rated very important (7 on a scale of 1-7) when shopping for an installed standby generator, are: -reliability (60%), -durability (54%), -safety (54%) and -ease of use (53%). 0 10 20 30 40 50 60 70 Q22. How would you rate the importance of the following attributes when shopping for your installed standby power generator? Source: The 2008 Gallup Study of the Market for INSTALLED STANDBY POWER GENERATORS

Prioritized Purchase Criteria Intenders Owners Reliability Dependability low maintenance Capacity Powers whole house Sound quiet Price Brand Warranty Aesthetics Size Easy installation Easy to use Safety Reliability Dependability low maintenance Capacity Powers whole house Aesthetics Brand. Quality Technology Warranty Sound Price Value Easy installation Two focus groups each in St. Louis and West Palm Beach markets: -One group of current Owners -One group of Purchase Intenders (considering purchase within next 12 months) -Six-to-eight consumers participated in each group discussion

Kohler s Builds Reliability into Everything We Do KOHLERPOWER.COM / 7

Reputation for Reliability Honing the generator craft for 98 years Roots in backing up critical industrial grade applications Earned the trust where nothing but complete reliability is acceptable Hospitals Airports Data centers Nuclear power plants National Weather Service Home Depot stores KOHLERPOWER.COM / 8

Consumers Can Count on Kohler For Reliable Engines Motorstarting Power quality Fast Response Truth in advertising KOHLERPOWER.COM / 9

Product Specific Differentiators KOHLERPOWER.COM / 10

14/20 Product Line Standout benefits of our most popular, award-winning models KOHLERPOWER.COM / 11

KOHLER Command PRO Engine Commercial Grade Engines Physically larger and stronger than the competition. Engine is 7 lbs. heavier than competition Larger engine means that the heat will dissipate more easily. Built to run continuously under full load. Each engine is factory tested for 30 minutes. Kohler 20kW 26.9 lb. with oil pan Competitor 20kW 19.66 lb. with oil pan KOHLERPOWER.COM / 12

KOHLER 20kW Engine Head Modern strong springs Large cooling areas High quality polished casting improves gas and exhaust flow Smooth, machined surface; tight fit valve cover Competitor 20kW Engine Head Kohler 20kW Engine Head KOHLERPOWER.COM / 13

KOHLER Hydraulic Valve Lifters Hydraulic lifters never need adjusting High quality polished casting improves performance Reduced total cost of ownership No need to adjust valves at install or every 100 hours as required by other brands. When valves go unadjusted results could lead to: low engine compression, blown pistons, burnt rings, bent crank arms.= engine failure Kohler 20kW Lifter Competitor 20kW Lifter KOHLERPOWER.COM / 14

KOHLER Crankshaft High temperature forged steel Precision balanced Key way locked gear Large and durable Has 500-lb. thrust and/or side loading capability as well as flywheel side PTO capability Kohler 20kW Crankshaft/Piston/Rod Competitor 20kW Crankshaft/Piston/Rod KOHLERPOWER.COM / 15

Selling It: KOHLER Command PRO Engine The engine is the heart of your generator s performance, reliability and durability Some generator engines are designed specifically to meet the minimum requirements for standby power KOHLER generators are powered by heavy duty commercial grade engines tested and proven in rigorous applications that far exceed the demands of standby power same engine that is used in commercial lawn businesses that run machines 8 hours/day, 5 days/week under extreme conditions Kohler 20kW 26.9 lb. with oil pan Competitor 20kW 19.66 lb. with oil pan KOHLERPOWER.COM / 16

KOHLER PowerBoost Technology Patented tech: Separate stator winding accommodates peak motor starting demand vs. the alternator to prevent overload. Provides unparalleled response and starting power Even KOHLER 10kW can start 5-ton AC Compared to product without PowerBoost, improves power quality when large loads cycle on because of reduced strain to handle the load. This alone can save circuit boards on new appliances, TV s, computers, and other sensitive technology that can cost thousands to fix or replace Kohler 20kW: Peak motor-starting capacity: 40.5 kva at 240 V Kohler 14kW: Peak motor-starting capacity: 33 kva at 240 V KOHLERPOWER.COM / 17

Power Quality Premium power quality protects sophisticated electronics & motors Total harmonic distortion (THD) at full load is less than 3% Voltage regulation, no load to full load RMS: +/- 1% Frequency regulation, no load to full load: isochronous Frequency regulation, steady state: +/- 0.5% Kohler s impressive voltage regulation maintains voltage within +/- 1.0% of the rated 240 volts, regardless of how much load is applied to the generator. When comparing this to other generators, make sure their numbers are also in relation to 240 volts and that the numbers apply to more than steady state On some other generators voltage and frequency can vary significantly based on how much load is applied to the generator. Lower voltage is measured as higher loads are applied, and higher voltage is measured when less load is applied KOHLERPOWER.COM / 18

Power Quality Selling It Protect your expensive appliances and electronics KOHLER generators maintain outstanding power quality even when your home s power demands are fluctuating Voltage regulation is important because when voltage is too high, it can damage sensitive electronics such as LED screen TVs. when voltage is too low, it can affect motor performance on items such as your heating/cooling systems and refrigerators, and over time shorten the life of the motor Frequency will also affect motor performance and reduce efficiencies if the frequency does not match what the motor was designed for KOHLERPOWER.COM / 19

Selling It: KOHLER PowerBoost Technology KOHLER s exclusive, patented PowerBoost technology allows your generator to power more than a comparable generator without it. When large appliances like your air conditioner cycles on and off they create a surge in demand for power KOHLER generators are uniquely capable of handling those spikes in power needs without dropping power to everything else that is running in the home. Kohler 20kW Competitor 20kW KOHLERPOWER.COM / 20

8/10/12 RESV Small but Mighty Performance KOHLERPOWER.COM / 21

KOHLER PowerBoost Technology Extraordinary starting power for the size: KOHLER 10kW can start 5-ton AC with 5000 watt preload KOHLER 8 kw can start 4-ton AC with 4500 watt preload Dealers need to see it to believe it because that kind of power is unheard of in industry Kohler 8kW: Peak motor-starting capacity: 16.8 kva at 240 V KOHLERPOWER.COM / 22

Alternator Built for Reliability & Power Quality KOHLERPOWER.COM / 23

24/30/38/48/60 RCL Family Incredible power with incredibly quiet patented performance KOHLERPOWER.COM / 24

KOHLER Advantages Low-speed, liquid-cooled 1800 RPM operation for Quieter performance Reduced fuel consumption Longer engine and alternator life than higher-speed 3600 RPM solutions Fast response, direct permanent magnet excitation Dynamically balanced rotors for minimal vibration KOHLERPOWER.COM / 25

Extraordinarily Quiet Patented technology provides incredibly quiet operation and exercise Exercises at sound equivalent to normal conversation level KOHLERPOWER.COM / 26

Preview the New 14/20 RCA Everything that is great about the 14/20RESA/RESC with even better new features KOHLERPOWER.COM / 27

14/20 RCA(L) Aluminum enclosure allows for installation as close as 18 inches from a home Enclosure panels can be removed without tools to allow easy access for maintenance and service Improved layout for ease of installation and serviceability RDC2 controller on all models, including L models OnCue Plus included Launching Q2 2018

14/20 RCA

14/20 RCA - Demonstration of panel removal

Introducing the New Kohler Engines KOHLERPOWER.COM / 31

Kohler 6.2L Engines Product line from 48kW to 125kW NA and turbo charged 1800rpm Launching Q2 2018 through Q4 2018 KOHLERPOWER.COM / 32

Selling it Summary/Recap RELIABILITY Stronger Cleaner Faster KOHLERPOWER.COM / 33

Discussion KOHLERPOWER.COM / 34