1. 2012 Environmental Solutions Group All Rights Reserved©1CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE Heil’s Integrated Platforming Expected Heil Benefits Hard Savings 20% Productivity Gain 5% Direct Material Savings 25% - 40% Inventory Reduction Velocity Benefits 30% Lead-time Reduction 50% Reduction Time To Market Complexity Benefits 28 RCV Models to 6? 1 Control Architecture 40+% Reduction Part Numbers? Reduced Fixed Costs From Scheduling Procurement Testing NPD Doc control Simplification Warranty Reduction (?) + GUIDED SELLING TO PRECLUDE INCOMING UNFUNDED COMPLEXITY

2. 2012 Environmental Solutions Group All Rights Reserved©2CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE Original Objectives  Back in April/May 2012 the birth of Project GEM started with the following objectives in mind: –Phase 1: Technical PoC Validate SAP, JDE, Endeavor Commerce and PTC integrate with each other, while receiving best practices and direction to scope out Phase 2. –Phase 2: HalfPack 28 Yard PoC Create a limited, but complete process from Pro-E/Configurator through production with a confined option set for the 28 yard HalfPack. –Phase 3: Complete FEL Product family Create a limited, but complete process from Pro-E/Configurator through production with a confined option set for the 28 yard HalfPack.

3. 2012 Environmental Solutions Group All Rights Reserved©3CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE Leading Action Items (Conceptual - bypass ECO release process)  Engineering Bill of Material (BOM) Restructure:  Break down existing HalfPack 28YD Eject BOM structure into “modules”  Eliminate Drop/Add items (require both redesign and restructure)  Re-order/reshuffle components based on new restructure modules  Create new restructured modules in 3D/ProE  Re-order/reshuffle components based on new restructure modules  Define an absolute reference point for consistent module orientation and placement (and to set up for Skeleton model)  JD Edwards (JDE) BOM Restructure:  Create BOMs for new restructured modules  Eliminate Drop/Add items  Replace Phantoms with “Make” where ever applicable  Redefine Stocking Type, G/L Class, Line Type  Potentially eliminate NRM items  Configure a “Production-grade” Proof of Concept (PoC) Truck  Generate PoC Work Order  Eliminate Drop/Add  Redefine or eliminate Sales Part Numbers (SPNs)

4. 2012 Environmental Solutions Group All Rights Reserved©4CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE The Original PoC Quote  Non-CUSTOM dealer Commercial FEL Half Pack  28 cubic yard body  Mack LEU chassis  Mack diesel engine with Allison transmission  Front mounted single pump  Optional 24” toolbox and 60 gallon washout tank

5. 2012 Environmental Solutions Group All Rights Reserved©5CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE The Break-down (PoC Picklist)  As result of joint effort among the Half Pack production line, at least 65 (and counting) standard modules were defined based on floor experience and potential variability of options within each module  Note there are more optional modules than standard modules  For more detail go to PoC Picklist spreadsheetspreadsheet Poc Picklist

6. 2012 Environmental Solutions Group All Rights Reserved©6CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE BOM Structure Hierarchy - Today  Refer to 28YD HP Eject BOM spreadsheetspreadsheet

7. 2012 Environmental Solutions Group All Rights Reserved©7CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE BOM Structure Hierarchy - Tomorrow  Refer to 28YD HP Eject BOM spreadsheetspreadsheet  Advantages versus Today’s BOM Structure: –More flexible (add-on modular approach) –More accurate “real” cost –More streamlined work orders –More effective “real” time

8. 2012 Environmental Solutions Group All Rights Reserved©8CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE Configuration: Today vs GEM Account: Dealer / Direct 1=SPN Chassis Make: Mack LEU Chassis Mack LEU 2=Eng Top Level Arm/loader Arm hydraulics Pump support/driveline Door latch kit Fuel Type: Diesel Chassis Engine: Mack Chassis Transmission: Allison Wtech Body: Half Pack 28yd Eject (includes warranty) Subframe Body sides (LH + RH) Roof weldment Hopper sides (LH + RH) Front header Hopper closure Top door Side door Packer panel Tailgate Tailgate prop Roof access ladder Bumper under-ride Arm cylinders Body weldment (req redesign of bolster covers for other flood light options) Body assembly Hydraulic installation Body valve Packer cylinders Front header screen Body prop installation Forks Fork cylinders Mudflaps front Mudflaps rear Cab protector Cab protector extension Shovel rack Remote lube Fire extinguisher Safety triangle BODY-UNDERCOATING-DPDC Mount Instructions: Factory Mount - Eject Mounting installation HALF PACK MOUNT DPDC Paint Touch-UP CHASSIS CHECKIN & INSPECTION RUN TEST FOR HALFPACK Pump: Front Mnt Vane Pump -E -- Denison Pump installation Oil tank assembly Sensor oil level pump shut off Control Kits: Mack LEU, Eject Com Jstick -- Commercial Joystick Controls Cab control w/o Autolift Cab specific kit Cab control bracket Lighting: Lights LED - Commercial Application specific kit Body Electrical LED Tailgate Electrical Tailgate electrical turn signals Top door electrical National account electrical Work light T/G installation Strobe light Hopper light Overheight warning light Camera (see Camera Matrix 800-0460) Throttle: Throttle Advance - Mack Throttle Advance or Limit Warranty Paint: Paint Color Eject -- as listed on ColorSmart Brochure FINISH PAINT TRIM KIT-HALF PACK HP DECAL KIT HALFPACK MANUAL KIT Miscellaneous Options: Tool Box - 24in (Bumper Mnt)TOOL BOX,T/G MNT'D INST Miscellaneous Options: Washout Tank 60gl Side Mnt -EWASHOUT TANK KIT 14 vs 71 line items For example: 1 vs 32 in “Body” Source: JDE GEM.xlsx

9. 2012 Environmental Solutions Group All Rights Reserved©9CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE PoC 3D/ProE with Restructured Assembly Tree  Refer to video on exploded FEL Mastervideo

10. 2012 Environmental Solutions Group All Rights Reserved©10CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE Example of What to Restructure: Oil Tank Assembly 020-2474  5 levels deep under SPN  49 line items  Eliminate Level 1 Phantom  Eliminate NRM  3 new parts and 3 new BOMs (including converting 2 Phantoms)  GEM = 3 levels deep (cf to 6)

11. 2012 Environmental Solutions Group All Rights Reserved©11CONFIDENTIAL – Do Not Reproduce COLLABORATIVE ENTREPRENEURIAL SPIRIT WINNING THROUGH CUSTOMERS HIGH ETHICAL STANDARDS, OPENNESS, AND TRUST EXPECTATIONS FOR RESULTS RESPECTS AND VALUES PEOPLE Moving Target  During project GEM restructuring progress the following events have or will have been taken place: –Product rationalization nullified –CNG restructured into sub modules in various matrices –Electrical restructured into modules –Side Saddle (Streetwise) hydraulics to be implemented New FEL matrices introduced –Next generation AFL to be “platformed” –New modeling and assembly standards to be introduced Updated start parts with datum nomenclature and layering schemes ModelCheck to drive model consistency Skeleton models and Simplified Representations to be created at top level assemblies –Platforming Strategies workshop and meetings  Essentially a 28YD Half Pack configured today is structured quite differently compared to the original PoC quote in April/May 2012