1. National Truck Plan: Modernising the Australian Truck Fleet Fremantle, 13 June 2014 1

2. Who is TIC? Truck Industry Council, formed 2001 – Previously Commercial Vehicle Committee of the Federal Chamber of Automotive Industries Promotes new trucks as: “Safer, Greener, Essential” 9 full members,  17 truck brands (March 2014) 3 associate members (engine & component suppliers) Today’s Safer Trucks 2

3. Australian Truck Market: 17 TIC Member Truck brands 3 Today’s Safer Trucks

4. Engine & Major Component Brands Represented 4 Today’s Safer Trucks

5. 5 Australian Truck Market by Volume

6. Source of Australian Trucks 6 Total Truck Market: 30,745 Units (2012) Today’s Safer Trucks

7. 7 NOTE: Australia total INCLUDES, all Kenworth, all Mack, local IVECO & local (most) Volvo Total HD Truck Market: 11,378 Units (2012) Today’s Safer Trucks HD definition: All 4x2 and 4x4 over 39t GCM + all Multi-Axle

8. TIC’s Proactive Stance on Emissions Performance TIC has been working with government to develop emissions ADRs since 2002 It take over 60 post 2007 trucks to equal the PM emissions of just 1 pre 1995 truck 8 Today’s Safer Trucks 1 x Pre 1995 60 x Post 2007 EQUALS

9. National Truck Plan (NTP) – V4 2014-2022 Contains proposals that will assist government achieve its goals for – environment, – public health, and – safety Investment allowance restricted to trucks with Gross Vehicle Mass > 4,500 kg. Matches those trucks that are eligible for Road User Charge Assume Carbon Tax component NOT applied 1 Jul 14 A document updated 1-2 times/yr to adjust to policy and market changes 9 National Truck Plan 2014-2022

10. Plan seeks to address average age: Today’s technologies to modernise the fleet 10 National Truck Plan 2014-2022

11. Proposed Incentives National Truck Plan offers government a 5-year proposal to modernise the truck fleet The proposed incentive is in two parts: 1.A 15% investment allowance for new trucks meeting the latest emissions standard 2.A 25% investment allowance for new trucks exceeding the current standard, such as alternative fuel vehicles and hybrids A potential funding option is: 1.A Road User Charge varied by the emissions standard of the vehicle (Fuel Tax Credit lower for older trucks). Note: Savings here help pay for the investment allowances 2. This option (outlined in NTP – V4) details an incentive plan that is revenue neutral (or cash positive) over 5 years 11 National Truck Plan 2014-2022

12. Tax Credit vs Emissions Standard (V4 Proposal) 12 National Truck Plan 2014-2022

13. Cashflow over 5-Year Period 13 Net revenue exceeds cost during year 2, and remains ahead. NOTE: By 2020, HVCI Reform model (Mass-Distance-Location) may be in place National Truck Plan 2014-2022

14. Cumulative avoided health costs: Targeted vs BAU scenarios 14 National Truck Plan 2014-2022

15. 15 National Truck Plan 2014-2022 Forecast required average growth rate

16. Total Non-Budget benefits 16 National Truck Plan 2014-2022 Very Conservative; Fuel economy gains post 2017 >5%

17. Headline Figures Total net revenue gain of $47million in 5 years Cost savings could continue beyond the 5 years, or can revert to an alternative HV Charging & road funding model after 2020 Total non-budget Benefits of between $3.57 billion and $7.03 billion by 2022 Fleet renewal accelerated by 102,000 trucks Timed to extract maximum benefit from current HV pricing scheme before any HVCI Reform 17 National Truck Plan 2014-2022

18. Government and NTP: Common Goals Ageing truck fleet and transport workforce The NTP aims to significantly reduce the truck fleet age and with more modern trucks new (younger) drivers will be enticed to the transport industry Improving road transport safety The NTP will modernise the national truck fleet bringing new trucks with the latest safety features (ABS, FUPS, ESC) Reduce road transport fuel use and emissions The NTP will significantly reduce the number of pre 1995 Trucks on the road, replacing them with trucks that have the latest emission technology (Euro 5 and 6) and from 2017 new trucks will potentially benefit from legislated fuel consumption improvements in Europe, USA and Japan 18 National Truck Plan 2014-2022

19. Government and NTP: Common Goals Increase productivity The NTP will result in a younger truck fleet, with new trucks offering much higher levels of telematics data. New trucks with RFS will replace older trucks with non RFS compliant suspension systems. These features can be used for HML, just one example of increased productivity gained from a newer truck fleet Improved data sharing By replacing the number of pre 1995 trucks in the national truck fleet with new trucks, the NTP will raise the level of truck telemetry and data gathering, much of this data cannot be gathered on pre 1995 (non CAN) trucks. This increased level of truck data could be shared and used by the broader Australian transport industry and government organisations 19 National Truck Plan 2014-2022

20. Thank you www.truck-industry-council.org Regular updates and monthly truck market commentary National Truck Plan 2014-2022 Tony McMullan, Chief Executive Officer – Mob. 0427 941281 Mark Hammond, Chief Technical Officer – Mob. 0408 225212