RunWise Advanced Series Hybrid Drive System October 1, 2013
Key Facts about Parker: FY2012 Global Leader in Motion and Control (NYSE:PH) $13.1 Billion in Revenue 861,000 Products Sold 468,000 Customers 60,000 Employees 13,000 Distribution/MRO Outlets Worldwide 1,100 Markets 142 Divisions 48 Countries
Energy Recovery Parker Timeline 1980 s - 1990 s Cumolo Tech. Nissan Bus Fleet Fiba-Canning Demo. 2003-2006 RunWise Tech. Alpha Prototype Developed Concept Verified - Fuel Economy Demonstrated 2007-2008 Beta Prototype System / Vehicle Optimization Base field test evaluation 2009-2010 Field Evaluation / Customer Feedback Reliability and Performance Verification - Preparation for Series Production 2010 Pre Production Units Built and running in South Florida Fleet 2011 RunWise commercial launch Parker Developed new Division to promote Parker s hybrid drive systems. The division is located in Columbus, OH
Hybrid Drive Systems Division Headquartered in Columbus Ohio, Hybrid Drive Systems is a leader in hydraulic hybrid technologies. Markets We Serve: Waste Collection Food & Beverage Parcel & Delivery Transit 4
RunWise Benefits Overview: Reduces Fuel Consumption Up to 35-55% Lower GHG Emissions 38-55 tons per year Increases Productivity Up to 5-15% Reduces Maintenance Costs Brake Changes: Once in the life of the vehicle 5
6 How Advanced Series Hydraulic Hybrids Work?
Benefits Reduced Fuel Consumption Average annual fuel usage for a Class 8 refuse vehicle: 8,600 gallons per year RunWise reduces fuel consumption 35%- 55% depending on route density and operating conditions, a substantial savings in fuel costs by any measure. 7
Benefits Lower Emissions A single truck s CO2 emissions are reduced by up to 55 tons per year This is equivalent* to: Removing 10 mid-sized cars from the road or Planting 1,300 trees and letting them grow 10 yrs. RunWise is contributing to a greener planet. 8 *EPA figures cited by Autocar
Benefits Better Drivability The hydrostatic drive contributes to smooth and quick launch speeds, enabling drivers to cover routes quicker, increasing productivity. 9 Route drivers say that trucks equipped with RunWise are a pleasure to drive.
Benefits Increase in Productivity RunWise increases your productivity by 5-15%, with a combination of quick launch, smooth shifting, and superior braking Reduction of 30 to 90 minutes on daily routes 10
Benefits Less Brake Wear Brake energy recovery significantly extends the replacement cycle for new brakes, requiring just One brake job throughout the life of the vehicle Saves money in maintenance costs and reduced vehicle downtime 11
Benefits Lower Operating Costs The hydrostatic drive powers the refuse truck during route collection, reducing diesel engine wear and lowering maintenance costs. The RunWise innovative cradle assembly was designed for ease of maintenance. 12
Real World Results: Seymour, IN Autocar E3 delivered in June 2012 Received funding through Greater Indiana Clean Cities Coalition Fuel savings ACX E3 average is between 36% - 46% NO brake service on their truck Truck has been very reliable 13
Real World Results: Florida Greater Miami Trucks Three municipalities with E3s in service for ~33 months 11 Autocar E3 s with RunWise systems Average fuel consumption is approaching 50% Fuel reduction has trended upwards over time NO brake service on any of these E3s Two 3 rd party inspections indicate at least 6 full years One brake job throughout life of truck Productivity: Drivers are saving 1-2 hrs/day within routes. Fleet Status: City of Miami 1 unit 5 additional added Miami Dade 6 units 29 additional added City of Hialeah 4 units No purchases of any trucks 14
Real World Results: RunWise Fleet Numerous Municipalities and Fleets with Autocar E3 s National fuel savings fleet average is 43% NO brake service on any of these E3s One brake job throughout life of truck National Fleet Reliability on RunWise is greater than 97% uptime. Accumulating over 75,000 hours and 680,500 miles of dependable service. 15 Productivity: Drivers like trucks. 5% to 15% more productive
ROI and Life Time Cash Flow (LTCF) 10-yr life Assumptions Good Better Best Municipality 40 hrs/wk Public Fleet 45 hrs/wk Public Fleet 50 hrs/wk Fuel Savings 35% 40% 45% $3.80/gal, 4.5 gph $156k $201k $227k Brake Savings 1x 1x 1x $1000 per brake job. 3 axles/yr. $27k $27k $27k Productivity 5% 10% 15% $50/hr. cost to operate a truck $52k $117k $176k ROI / LTCF 4.4 yr / $153k 3.1 yr / $263k 2.5 yr / $347k 16
CNG RunWise Update Working with Autocar to develop a commercially available CNG RunWise hybrid. Very positive customer response Value Proposition: 17 Productivity Restores acceleration to better than diesel Emissions Cleaner than CNG Fuel Savings 30% - 45% Brakes 1X during the life.
Commercial Availability Available through your local Autocar dealer 18