Distribution and Transportation Houghton Mifflin Harcourt John George Operations Manager

Moving forward together Distribution topics Distribution key facts Key impacts Shipping Presentation Packing lists World Languages TX Avancemos 2018 TX Bien Dit Subscription Process Go Math, Science, Social Studies, and High School Math Email to Customer Customer Care website Other Replacements (smaller volumes – will CE cover?) Life of Title Value added services / special requirements SPEAKER NOTES First, we want to share some general information about the Distribution and Transportation teams from a value add perspective along with providing you statistics for 2016. Then, we want to have an open dialog about taking our delivery to the customer to the next level and how Sales and Distribution can work together to achieve these positive changes. As part of this, I have some examples to help provide context around communications and delivery expectations – along with a focus on key factors impacting transportation, residential and storage container deliveries, and barcoding. Lastly, wanted to discuss ways our teams can move forward together this year to achieve these goals. Moving forward together

142 Indy, IN (506K sq. ft.) Troy, MO (596K sq. ft.) Full time employees 210 Busy Season Temps 142 Total years of work experience 3,412 Avg. yrs. experience 16.2 Indy, IN (506K sq. ft.) 6-12 Foreign Language, Language Arts, Science, and Social Studies K-5 Science Trade + 5.5 miles of conveyor Geneva, IL (516K sq. ft.) K-5 Language Arts, Math, Reading, and ISG K-12 Troy, MO (596K sq. ft.) Supplemental, K-5 Social Studies and 6-12 Math Heinemann SPEAKER NOTES There is a strong and experienced team leading and delivering distribution and transportation services for HMH physical products. Remainder of facts on PPT page.

Typical Peak Season Shipping Dock (Geneva, IL) SPEAKER NOTES Here is an quick view of a typical day at an HMH warehouse during busy season. This picture only shows a part of the lines/spurs at the Geneva. Multiply this activity by six to get an estimate of the action going on in one day at the 3 distribution centers.

Shipment Presentation Inside Delivery Liftgate truck (campus or district warehouse without standard dock) Carton labels facing out Pack and Palletize Options Pack by grade – Same grade will be packaged in a carton, no grades will be mixed within a single carton. Palletize by grade – All cartons for a specific grade will be shipped on a separate pallet. The grade level label is added to each carton. Depending on order size, grades may be consolidated on a single pallet (K and 1, 2 and 3, etc.)   Palletize by school – (Non-EMAT orders only) Each school is palletized separately when shipping to one address (District warehouse). Depending on order size, two campuses may be consolidated on a single pallet but will be separated with campus names 8X10 label.   Standard transit times for Texas

Shipment Presentation Problem – Delivery of truckload with double stacked pallets Full Truckload (TL) shipments – after loading, TL is sealed by HMH DC (same color seal for each DC). HMH carrier pick-ups and delivers to district warehouse without stopping off at their local carrier hub center. If seal is broken or if different color/type, please take picture so that we can address with HMH carrier SPEAKER NOTES Customers/Sales Reps ask for duplicate packing lists information. Packing lists are always included with a shipment, but the list is placed in different locations based on LTL/Truckload (8x11 envelope) or UPS (located in first carton of the order). Loose content label (1) is located on the outside of the carton and provides the content of these cartons that contain less than full carton quantities Trailer label (2) value added label that provides special information such as grade level. Packing list for truckload or LTL (less than trailer) (3) UPS Ground (4) ‘packing list enclosed’ appears on the content label.

Problem – Customers can not find packing list Packing lists TRUCK – PALLETS Packing list located on outside of palette (8x10 envelope) Multi-pallet shipments - packing list included on the number 1 pallet. Problem – Customers can not find packing list Packing lists are always included with a shipment, but the list is placed in different locations based on type of transportation (parcel or truck). SPEAKER NOTES Customers/Sales Reps ask for duplicate packing lists information. Packing lists are always included with a shipment, but the list is placed in different locations based on LTL/Truckload (8x11 envelope) or UPS (located in first carton of the order). Loose content label (1) is located on the outside of the carton and provides the content of these cartons that contain less than full carton quantities Trailer label (2) value added label that provides special information such as grade level. Packing list for truckload or LTL (less than trailer) (3) UPS Ground (4) ‘packing list enclosed’ appears on the content label. Parcel (UPS) text on the outside of box indicates “packing list inside”

TX Avancemos 2018 Category Material ISBN Material Name Pieces per Case Cases per Pallet Piece Weight Case Weight Core Student 1645812 9780544840652 Texas Student Edition Level 1A 13 36 2.42 32.66 1645624 9780544841932 Texas Student Edition Level 1B 12 2.38 30.00 1645625 9780544841949 Texas Student Edition Level 1 35 3.24 40.30 1645626 9780544841956 Texas Student Edition Level 2 10 40 3.44 36.04 1645627 9780544841963 Texas Student Edition Level 3 30 3.84 39.74 1645628 9780544841970 Texas Student Edition Level 4 25 2.96 36.90   Core Teacher 1645629 9780544841987 Texas Teacher Edition Level 1A 11 3.14 35.64 1645630 9780544841994 Texas Teacher Edition Level 1B 3.26 37.12 1645631 9780544842007 Texas Teacher Edition Level 1 8 45 4.26 35.20 1645632 9780544842014 Texas Teacher Edition Level 2 7 4.70 34.12 1645823 9780544842021 Texas Teacher Edition Level 3 4.68 39.02 1645824 9780544842038 Texas Teacher Edition Level 4 3.42 35.56 Student Resources 291358 9780618765966 Cuaderno: Practica por niveles Student Edition Level 1A 0.80 32.48 291359 9780618765973 Cuaderno: Practica por niveles Student Edition Level 1B 46 37.28 291366 9780618765935 Cuaderno: Practica por niveles Student Edition Level 1 24 1.44 35.82 291356 9780618765942 Cuaderno: Practica por niveles Student Edition Level 2 42 1.40 34.90 291357 9780618765959 Cuaderno: Practica por niveles Student Edition Level 3 20 1.42 29.48 1388291 9780547255439 Cuaderno Student Edition Level 4 68 0.50 34.98

TX Bien Dit Category Material ISBN Material Name Pieces per Case Cases per Pallet Piece Weight Case Weight   Core Student 1645825 9780544842045 Texas Student Edition Level 1A 20 35 1.84 34.00 1645826 9780544842052 Texas Student Edition Level 1B 18 2.02 37.04 1645827 9780544842069 Texas Student Edition Level 1 11 36 2.72 31.38 1645828 9780544842076 Texas Student Edition Level 2 2.92 33.58 1645829 9780544842083 Texas Student Edition Level 3 10 3.24 33.74 Core Teacher 1645830 9780544842090 Texas Teacher Edition Level 1A/1B/1 9 4.04 37.40 1645831 9780544842106 Texas Teacher Edition Level 2 8 4.14 34.62 1645832 9780544842113 Texas Teacher Edition Level 3 4.58 37.46 Student Resources 1519172 9780547951836 Grammar Tutor Levels 1A/1B/1-3 38 42 0.76 29.48 1519166 9780547951867 Cahier de vocabulaire et grammaire Student Edition Level 1A/1B/1 76 0.48 36.30 1519203 9780547951843 Cahier de vocabulaire et grammaire Student Edition Level 2 80 38.38 1519204 9780547951850 Cahier de vocabulaire et grammaire Student Edition Level 3 0.46 37.82

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Contact Information John George Houghton Mifflin Harcourt Home based in Corinth, TX Office : 617.351.3400 Cell : 214.394.8630 Email: john.george@hmhco.com