@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 100 series Markets and Competition

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Consumption - DI and IDI 34% 66% DI ( ) IDI ( ) Total Market: 425, hp, l, Off - Highway

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Water Cooled Consumption DI and IDI 84% 16% DI (53,000) IDI (279,000) Total Market: hp, l, Water Cooled, Off Highway

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Consumption Europe and North America 60% 38% 2% Eastern Europe (6,000) North America (193,131) Western Europe (121,000) Total Market: 320, hp, l, Water Cooled, Non-integrated Off Highway

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Consumption - Sectors 18% 24% 5% 1% 5% 10% 19% AGRICULTURAL (10%) CONSTRUCTION (18%) GENERAL INDUSTRIAL (18%) LAWN AND GARDEN (18%) MARINE (5%) MATERIAL HANDLING PUMPS & COMPRESSORS (5%) WELDERS & GENERATORS (19%) Total Market: 320, hp, l, Water Cooled, Non-integratedOff Highway

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Consumption - Key Players % Sales 5% 23% 10% 2% 3% 1% 5% 8% 38% 5% PERKINS (8%)IHI-SHIBAURA (5%) DEUTZ (1%)ISUZU (2%) KUBOTA (38%)LISTER-PET. (5%) LOMBARDINI (5%)MITSUBISHI (10%) YANMAR (23%)OTHERS (3%) Total Market: 320, hp, l, Water Cooled, Non-integrated Off Highway

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Consumption - Key Players Europe 28% 1% 8% 20% 13% 9% 16% 3% 1% PERKINS (16%) DEUTZ (3%) ISUZU (1%) KUBOTA (28%) LISTER-PETTER (9%) LOMBARDINI (13%) MITSUBISHI HVY (20%) VM (1%) YANMAR (8%) OTHERS (1%) Total Market: 127, hp, l, Water Cooled, Non-integrated Off Highway

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 1999 Perkins Sales by Sector 17% 7% 2% 40% 10% 3% 21% CONSTRUCTION (40%) GENERAL INDUSTRIAL (21%) LAWN AND GARDEN (10%) MARINE (17%) MATERIAL HANDLING (7%) PUMPS & COMPRESSORS (2%) WELDERS & GENERATORS (3%) Total Sales: 26,500

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Competitor Analysis Kubota

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Introduction Main sector - agricultural equipment Compact tractor manufacturers in Japan Other sectors - construction and industrial Non-captive engine sales now exceed captive Employees, over 15,000

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Kubota International Sales Europe 28% S.E Asia 10% Others 2% N.America 60% N.America Europe S.E Asia Others 205,000 units produced in 1999 ; 125,000 exported

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Engine Series Super Mini Series (SM) kW Super Three Series kW Super Five Series kW V Series50.7 & 61.9 kW Kubota's Product Range (Water-cooled)

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Kubota versus and 404C-22 Kubota Super 3 Series ModelV2203-E* Power rpm Cylinders4 CoolingWater Max Torque154.5 Nm Envelope m30.21 Dry Weight180 kg Power Density (kW/m3) Power Density(kW/kg) Series rpm 4 Water 141 Nm kg * Turbo version available (-TE). Output of rpm # 404C-22T will develop rpm. 400 Series 404C-22# rpm 4 Water 143 Nm kg Power Density (kW/l)

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Competitor Analysis Yanmar

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Introduction Yanmar Diesel Engine Co. Ltd Japanese HQ in Osaka –Japanese family ownership –No annual report Established post-war production now over 10 million units Employees c sales revenue - GBP 1412 million Engines revenue - c. 23%

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Yanmar Production (volumes exclude 1 cylinder product) Products for all sectors - marine, industrial, construction, agriculture & others Power range kW

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Agricultural 50% Gen Set 10% Construction 30% Marine 10% Yanmar Sectors c.200,000 units p.a Represents c. 50% marine pleasure market share below 300 hp

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Yanmar International Sales 120,000 units exported in 99 N.America rapidly increasing S.E Asia recovering (construction machinery) South East Asia North America Europe ROW (excl Japan) 55% 11.7% 2.5% 30.8%

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Yanmar Product Range Series for export –TNE Series water-cooled, vertical, IDI & DI 11 models: kw –TF Series water-cooled, horizontal, all DI 39 models: kW –LA Series air-cooled, all DI 7 models: kW –Marine engines up to 28 litres

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Yanmar Models Competitive engines in TNE series c. 108,000 exported per annum Popular models –3TNE84, 88 4TNE84, 88 –= 54% or 108,000 units Future products look to be going DI for improved fuel consumption

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Yanmar versus Perkins ModelYanmar 4TNE88 Power 3000 Capacity (cc)2190 Cylinders4 CoolingLiquid AspirationNatural InjectionDI Bore & Stroke (mm)88 x 90 Envelope (lwh mm)639 x 525 x 629 Envelope (m3)0.21 Torque 1600rpm Weight (kg)160 Power Density (kw/m3) Power Density (kw/kg)0.23 Power Density (kw/l)16.67 Perkins Liquid Natural IDI 84 x x 466 x rpm Perkins 404C Liquid Natural IDI 84 x x 426 x rpm

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Competitor Analysis Lombardini

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 2% 8% 63% 4% 15% 8% Agriculture Gen set Materials Handling Construction Vehicles Ind'l - pumps, compressors, l.towers, reefers Lombardini Engine Consumption (1998) by Sector Excluding Marine Claims to have 29% of up to 90 hp European diesel engine market Total diesel engine sales 1998 (excluding Asia) = 87,995 units

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Product range: Lombardini Vs. Perkins series LD315/350 LD360/400/435/325c LD640/705/820 LDW1204 LW1204/T LD825-3 LD Series LD825-4 LD930-4 LDW2004MT T 900 Series PerkinsLombardini hp

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved Product Range Best known historically as producer of small air cooled diesels Approx. 42% of groups production is water-cooled units 31 different engine models over a very narrow hp band 4 main groups 1. Air-cooled petrol engines from kW 2. Liquid-cooled petrol engines from kW 3. Air-cooled diesel engines from kW 4. Liquid-cooled diesel engines from kW

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 100 SeriesLombardini FOCS Series Lombardini FOCS Series Model103-10LDW903LDW1003 Power rpm rpm rpm rpm rpm 1500 rpm Cylinders333 CoolingWater Max Torque58 Nm53.5 Nm37 Nm Envelope m30.09 Dry Weight83 kg85kg87 kg Power Density (kW/m3) Power Density (kW/kg) versus Lombardini

@ Perkins 100 Series Markets and Competition - revised by C Marrannino January Proprietary Information of Perkins Engines Limited © All Rights Reserved 100 SeriesLombardini CHD Series Lombardini CHD Series Model104-22LDW2004*LDW2204* Power rpm rpm rpm rpm rpm Cylinders444 CoolingWater Max Torque141 Nm130 Nm138 Nm** Envelope m Dry Weight184 kg190 kg192 kg Power Density (kW/m3) Power Density (kW/kg) versus Lombardini