1. Trish Reed Vice President & General Manager IC BUS

2. What’s happening In The Industry

3. What’s Happening in the Yellow School Bus Industry
Industry Volume
Alternative Fuel Trends
Industry Trends
Technology
Comfort
Driver Shortage
Demographics
Regulations

4. New Bus Registration Trends – Industry Volume
School bus market is stabilizing
2016 ~ C&D Industry
Type A ~8000
Transit Trends
Type D ~ 13%
Future - shift from diesel to alternative fuels
2020 registration forecast:
~65% diesel
~35% alternative fuels

5. Why Are Customers Choosing “Alternative” Fuels?
Propane: Most popular of “green” solutions
Fueling infrastructure cost – most economical
Rebates on asset purchase & fuel vary by state
Spark ignited benefits
Cold starting
Technicians
Gasoline: Why the resurgence?
Frustration with diesel complexity
Type A shift to gasoline
Technology
Reliability & Durability
Electric: Next trend

6. Industry Trends
Technology
Driver Shortage
Transitions
Comfort

7. Regulation IMMI - 3 Point Belts: 55% volume increase over 3 years
IMMI - Child Integrated Seats:
28% volume increase over 3 years

8. What’s happening at IC BUs

9. What’s Happening At IC Bus
Volkswagen Truck & Bus Alliance
Investment
Tulsa Plant
Products
Customer Support
Connected Vehicle
OnCommand Connection (OCC)
Over the Air (OTA)
Industry's Leading Dealer Network
Industry Leadership
Next Stop Initiative

10. Navistar & Volkswagen Truck & Bus Alliance
Strengthens Navistar’s financial position and enables further invest in future products that deliver leading uptime, fuel efficiency, safety and driver appeal
Brings a strategic partner who is aligned with Navistar’s interests and business strategy to grow the International Truck and IC Bus businesses
Allows for collaboration on new commercial vehicle technologies, including powertrains, advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, and cab and chassis components
Provides improved economies of scale through global sourcing power which will allow Navistar to better compete against global competitors

11. IC Bus Investment Incremental Investment 2016-2019 Tulsa Plant
Product breadth & enhancement
Customer support
Tulsa Plant
$17M investment
Safety
People
Quality
Delivery
Powertrain Expansion
CE Series powered by propane
CE Series powered by gasoline
RE Series with Cummins L9 engine – Fall 2017
RE Series with Cummins B6 – Late 2018

12. Propane & Gasoline: IC CE Bus w/ PSI 8.8L engines
645 propane buses deployed
13% Share- first 6 months
Drivability preference
Purpose built
One stop warranty
Commercial powertrain
Engine efficiency
Ride and drive success
Who is PSI?
Largest worldwide manufacturer of natural gas, propane, gasoline, and other diesel-alt. engines
Produced over 70,000 engines last year
Coming soon – PSI 8.8L gasoline

13. Customer First - Enhancements
Driver First
EVIR (Electronic Verification Inspection Report)
Electronic stability control
Collision mitigation
360 cameras
Adjustable pedals
Tire pressure monitoring systems
Seat belt warning
E-brake
Customer Solutions
Telematics Pre-wire
Camera Pre-wire
AC Installation
Technology
USB Ports
Wi-Fi
Remote Start

15. On Time Bus Performance (UPTIME)
OnCommand Connection (OCC)
Early indicators – notifications based on preference
Scheduled downtime vs. unscheduled downtime
Manage entire fleet performance
(All makes Type C&D)
Over The Air
Engine programming in your lot
Benefits of health reports from OCC
Dwell Time
Managing & measuring bus dwell time at all IC/International service locations

16. OnCommand Connection: The Benefits?
Fleet Manager
Unnecessary Stop
Problem Identified
Dealer
Today
Problem Identified
Scheduled
Fleet Manager
Dealer
OnCommand Connection
Problem Predicted
Analytics
Fleet Manager
Proactive
Dealer
OCC population
OnCommand & Analytics

17. On Time Bus Performance (UPTIME)
Over the Air Programming (OTA)
Reliable, wireless technology
Secure two-way engine communication
Latest engine software without service visits
Standard Health Repots via OnCommand Connection
Aftermarket option - Navistar engines
Cummins
Link
Device
Internet

18. On Time Bus Performance (UPTIME)
Accelerator Write-up (Dealer Tool)
Simplifies customer experience
Assigns complaint codes then links to action plans
Write-up data is accessible to customers subscribing to OCC
Reported 22-28
Down to 10-15
Combines up to 5 processes to 1
Eliminate missed symptoms
Eliminate damage disputes
Customer Visibility
30% Dwell Time
reduction
“The Accelerator Write-Up Tool was designed with extensive dealer input with the goal of saving time, removing ambiguity and standardizing procedures during the service check-in process. "The goal is to maximize customer uptime and provide a best-in-class customer experience."

19. IC Dealer Network 17 locations 180 + service techs
1,000+ service locations
9,000+ technicians
225 body shops
24/7 emergency breakdown service
Industry’s most robust parts and service network
Service Supremacy
Culture of On Time, Every Time
Parts availability
Dwell time
17 locations
180 + service techs
50 parts delivery vehicles
$15M + parts inventory
6 mobile units & growing

20. Industry Leadership Next Stop: Imagination Contest
Kid’s vision on the “Bus of the Future”
$1,000 college scholarship awarded and class field trip
Next Stop: Innovation Summit
The industry in 2027…
Forward thinkers from various backgrounds
Diverse mix of speakers, panels and working sessions
Howard Putnam – Keynote Speaker
Topics:
Transportation Topics
Marco Trends
Environmental
Big Data

21. THANK YOU!