History of Innovation

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History of Innovation Fred Jones invents transport refrigeration unit Thermo King makes first HVAC system for Bus Thermo King invents NWD 62, first to use diesel engine Over 10,000 people associated with the Thermo King brand 1938 1955 Thermo King founded by Joe Numero 1956 Thermo King builds first Marine container refrigeration unit 1962 1997 Ingersoll Rand adds Thermo King to its portfolio Today 2013

The Making of Precedent The Assignment 2009 Identify and analyze all available technologies that could be used for the purpose of transport refrigeration.

The Assignment - System Architecture The team developed a matrix of unique criteria based on: Customer contextual interviews Primary and secondary VOC data Involvement and review with our dealer body (IDAC) Participation with our commercial sales and service teams The team rationalized the design options to three: Direct drive compressor with a mechanically driven refrigeration system Direct drive compressor with a electrically driven refrigeration system Electrically driven compressor with a electrically driven refrigeration system

System Architecture Option 1. Direct Drive Compressor with Mechanical Refrigeration System

System Architecture Option 2. Direct Drive Compressor with Electrical Refrigeration System

System Architecture Option 3: Electrically Driven Compressor with Electrical Refrigeration System

The Assignment - System Architecture The team then investigated and analyzed the performance of a fully optimized design for each option. Using the matrix: Performance was evaluated in a number customer criteria including: Life Cycle Costs Performance First Cost Operational Cost Maintenance Cost User Interface Cooling / Heating Environmental Sustainability Performance was then weighted and scored across six market segments: Fleet Customers Owner Operators Leasing Companies Grocery Distribution Food Service Distribution Food Manufacturer

The Recommendation The team s recommendation to leadership was for the development of design option 2. A direct drive compressor with an electrical refrigeration system. This recommendation was driven by option 2 s performance in fuel efficiency, maintenance costs, unit operational flexibility and its adaptability to accept future design enhancements.

Selected System Architecture Diesel Direct Electric (DDE) Drives Optimum Efficiency

Precedent A Look Inside

Precedent Compressor Directly coupled to engine, delivering most efficient transfer of power.

Precedent Generator 3.5 KW LS and 5.25 KW high-speed belt driven Permanent Magnet Generator. Belt driven generator allows the engine to be optimized to the compressor (primary draw) & generator delivering maximum system efficiency.

Precedent Condenser Coils Dual extra-large microchannel condenser coils Superior high ambient performance Improves pull-down Reduces run time Maximizes efficiency, less fuel

Precedent Condenser Fans Dual electrically controlled induction condenser fans Flexibility to meet broad spectrum of load conditions Optimize fuel consumption while meeting refrigeration demands o Both off o Both on o One off, one on

Precedent Evaporator Full width evaporator provides maximum coil surface area Maximizes performance Centralized air-discharge for optimal air delivery into trailer

Precedent Evaporator Fans Dual speed induction fan allows maximum air flow at both low and high engine speeds Improves fuel economy Performance advantages in certain fresh product applications Service access from front of trailer

Precedent Refrigeration Module All key refrigeration components located in one location Easily accessible for service and maintenance Piping runs minimized

Precedent Extended Component Life All belts designed for 12K hour life Belts and SmartPower items covered under major component warranty

Precedent Cooling Channel Vented bottom panel Draws air in past battery Cooling channel for o ECU o Battery Charger o Battery Improved reliability & longevity

Precedent Electronics & Controls 3 2 1 Modular Control System 1. SR-4 controller 2. Fan Contactors 3. Smart Power All new SR4 Controller Enhanced User Interface

Dimensional Differences 81.7 in. 83.5 in. 23.9 in. Height Width Depth Precedent 83.5 81.7 23.9 SB 83.5 76.1 23.3

The Engine Choices

Precedent Engines (Tier 4 Final) S-600/S-700 (>25 hp) C-600 (<25 hp)

2013 Single-Temp Models Precedent C-600 (<25Hp) EPA Compliant CARB 7-Year Life to 2021 Precedent S-600 (>25Hp) EPA Compliant CARB Evergreen SB SB-230 (>25Hp) EPA Compliant CARB 7-Year Life to 2020

Precedent C-600 (<25Hp) Full EPA Compliance 7 year life in CA to 2021 o Technologies available to extend life Precedent diesel direct electric ( DDE) architecture w/ 430 recip Smart Power Available Smart Power Prep Available Reduced maintenance costs Increase residual value vs. SB

Precedent S-600 (>25Hp) Full EPA Compliance Evergreen in CA Industries most environmentally friendly solution Precedent diesel direct electric ( DDE) architecture Smart Power Available Smart Power Prep Available Trade cycle flexibility o Extended trade cycle Increase residual value vs. SB and C-600

Full EPA Compliance Evergreen in CA to 2020 Traditional all-mechanical SB SB-230 (>25Hp)

SB vs. Precedent Model Line Up ( Capacity at 35/100 & -20/100*) Precedent C-600 57K/21K Precedent S-600 60K/20K Precedent S-700 68K/25K SB-130 53K/18K TG-200 51K/21K SB-230 60K/21K SB-230/50 60K/21K SB-330 68K/25K * Preliminary data

2013 Emissions Reduction (Regulatory Levels) 140% 120% 100% 80% 60% 40% 20% 0% 133% 100% 100% 100% 54% 10% Tier IV I 2013 < 25 HP 2013 > 25 HP CTC and TK Only TK NOx PM Precedent offer choice of engine options to allow you to select an emissions output that complies to different engine standards.

Precedent Unit Configuration Thermo King elected to phase out the SB platform to allow you the opportunity to phase the Precedent platform into your operations. 2012 2013 2014 2015 Current SB Platform Precedent

CARB and the EPA (Tier IV I) Unit Model Year Calendar Year 2012 X 2011 2012 2013 2014 2015 2016 2017 2018 2019 2013 X X 2014 X X X 2015 X X X X 2016 X X X X X 2017 X X X X X X 2018 X X X X X X X 2019 X X X X X X X X X 2020 X All Engines in 2012 and after will be 2012 Engines (SB Platform) >7 7+ 7+ 5+ 4+ 3+ 2+ 1+ <1

Precedent Phase in SB Phase out (ST) Today 12/31/12 1/1/13 4/30/13 5/1/13 12/31/13 1/1/14 12/31/14 SB 230 / 50 Precedent S-600 SB 230 TG-200 TG-200 SB-130 Precedent C-600 SB-330 Final phase out date determined by compliance rules Precedent S-700

The Precedent Message Compliance Choices without Compromising Performance Providing industry-leading heating and cooling capacity without the uncertainty of future compliance Choices for Today and Tomorrow A range of product configurations and options allow you to transition to the new platform, when the time is right, based on the specific needs of your business Double-Digit Fuel Savings Diesel Direct Electric ( DDE) architecture engineered specifically to deliver double-digit fuel savings in real-world applications Thermo King Peace of Mind Industry s largest and most reliable dealer network, combined with lowest lifecycle cost solutions, confirm you have made the smartest long-term decision for your fleet