2014 Distributor Meeting Atlantic City, NJ POWERTECH ENGINES, INC

2014 Distributor MeetingAtlantic City, NJ

POWERTECH ENGINES, INC.POWERTECH ENGINES, INC.

OverviewOverview•Industrial Ford Business

•(10:00 – 10:15) Break

•Ford Component Sales Presentation/ Industrial Ford Business

•Marketing and Advertising

•Ford 1.6L – 1.5L Transition

•Ford 2.5L

•(12:00 – 1:00) LUNCH

•Introduction of the Ford 3.7L

•Ford 6.8L & Turbo CAC

•Transmissions & Gear Reductions

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Key to SuccessKey to Success

Sales + Service = Survival

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Distributor TerritoryDistributor Territory

• Distributor Territories• Service Dealers within Territories

• Current list of service dealers within your distributor territory

• Growing your service territory (Better Service Network for our customers)

• Once we establish a service network, EDI would like to have this listed on our website.

• Distributor/Service Training• EDI can offer in-house training or on-site at your location

• Service• Technical Support

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Warranty ProcedureWarranty Procedure

• New 5 Year/5000 hr. warranty for OEM’s• 5 year program must be approved by EDI’s engineering department.

• Service/Warranty Department must approve all Ford related warranties prior to service work.• Our Service Department needs to be involved in any issues that are

deemed catastrophic or a down situation. Our group of Customer Service and Engineers will work through the steps of evaluating the issues.

• Our warranty statement can be found on our Google site: https://sites.google.com/site/edifordinfo/Engines-Home

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Current Market Strategy and CompetitorsCurrent Market Strategy and Competitors

• Discuss future growth opportunities within territories• Competitive Strategy

• New OEM opportunities• EDI and FCS will support on the sales, technical, service and

warranty side.• Contact EDI for support with pricing and technical information for

large volume OEM’s.

• New Product Offerings• 1.0L• 1.5L • 3.7L• 6.8L Charged air Cooled Turbo

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Automotive AdvantageAutomotive Advantage

• The Ford Industrial Market Gas and Diesel has a huge advantage over our Industrial diesel counterparts.

• Quality through millions of engines produced.

• Incremental Cost Pricing: Method of pricing an engine in which the price of a unit produced (after all fixed costs of production have been met) is based on variable costs (and not on the total cost) incurred in its production. Includes sustained pricing with minimal increases.

• Availability: The ability to receive engines in lead times that are not even available through the Diesel Industrial Markets.

• Latest Ford technology available to Industrial

Percentage of Revenue 2014Percentage of Revenue 2014

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Example of a Gas Customer from DieselExample of a Gas Customer from Diesel

VAC-CONVAC-CON

2012 2012 – 6% Gross Profit – All Diesel

20132013 – 8% Gross Profit – 75% Gas/25% Diesel

20142014 – 12% Gross Profit – 90% Gas/10% Diesel

Increased profit selling the Ford with market share gain

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Increased share in the following marketsIncreased share in the following markets

• Air compressor• Turf• Ground support for major companies and carriers• Irrigation with new markets continually embracing the Ford engines

• Pork farmers

• FL Orchards and sugar industry

• Delaware/Maryland Farmers

• Midwest Farming region

• Florida Tradewinds – PO issued $1.3M for 6.8L & 2.5L Engines• Largest Citrus Juice provider in the country

• Man Lifts• Generation Power USA and Abroad

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EPA and CARB ProgramEPA and CARB Program

• Currently every engine in our line-up is EPA certified. Please note our engines meet or exceed all CARB and EPA regulations. Our engines are near zero NOx to the point we are cleaning the air in some situations.

• Due to regulations by CARB for our current status, EDI is required to do a Deterioration Factor known as DF testing. EDI is required to select one model for testing that will encapsulate the CARB cert for the entire LSI line. We have selected the V10 gas to mimic the worse case scenario. Our testing is complete for the CARB DF test. FedEx supplied a V10 with high hours for CARB to perform the DF Testing. We are CARB Certified for all models.

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Engine Order Lead TimesEngine Order Lead Times

• Distributor Stocking Levels

• Ford Engines & Parts

• 6 - 8 week lead time on new engine orders

• Distributors stocking parts in-house for parts sales, service and warranty repairs.

• Distributor Forecasts

• Forecasted Volumes

• Reduce lead times and allow us to stock appropriately.

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Engine Application ReviewEngine Application Review

• Engine Application Review is extremely Important• Eliminates issues resulting from improper installation

• Product name and Distributor is not tainted due to Improper Install

• Longevity of our Product and eliminates faulty warranty claims

• Methods Documented• Engine Application Reviews (Current and Future OEM’s)

• Emission Install Instructions

• Wire Diagrams

• Air to Boil

• EDI Application Review Form Available on Google Site

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LSI Engine Line Documentation

• All manuals are available on the Google site

https://sites.google.com/site/edifordinfo/Engines-Home• Operators Handbook• Service Parts Manual• Service Manual (available within the next month)• Specification sheets and power curves• Same fault codes and diagnostic tools as 2.3L

• Installation Instructions• Emission install instructions• Body side wiring• Heat rejection, fan flow and coolant flow

• 2D and 3D drawings are available as well

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Propane ProvidersPropane Providers

Get to know your local Propane Provider

•They are very aggressive to sell fuel and will provide the necessary means

•Fuel quality

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Propane is NOT Created EqualPropane is NOT Created Equal

• Fuel rating is extremely important when selecting Propane.

• It is a misconception that all Propane is equal.

• Ratings are given as an HD rating. HD5 is the acceptable fuel for vehicle and our engines. Anything with a higher number is not acceptable. California allows HD10, which will gum the valves. The rating number represents the amount of propylene. As you may know this is part of the composition of plastic.

• We’ve encountered dirty fuel that was HD-5 rated, so always be on the look out

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Valves from an engine operating on bad LPValves from an engine operating on bad LP

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V10 Irrigation PackageV10 Irrigation Package

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Example of WSG1068 in Irrigation Application

Diesel vs. Propane & GasolineDiesel vs. Propane & Gasoline

• Compared the WSG1068 (Gasoline and LP) vs. a Deutz TCD2012L04 2V

• HP Levels shown are continuous

• One day = 8 hours

• One year = 52 five day weeks = 260 days (2080 hours)

• Pricing per Gallon• Gasoline: $3.75• Diesel: $4.00• LPG: $1.50

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Distributor Contribution Costs/MarketingDistributor Contribution Costs/Marketing• Diesel Progress (12 month ad)

• Prime spots within the magazine

• Ground Support Worldwide

• Tree Care – TCI

• We are currently budgeted at $144,306.00 per year for the above advertising. We are currently in the process of re-negotiating our 2015 budget. ARA will be an addition for 2015. We will provide a breakdown and cost once finalized.

EDI 50% - Distributor Body as a whole 50%

• Tradeshows (2015)

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10:00 – 10:15

BREAK

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Ford Component Sales Presentation

Ford PresentationEDI Account Managers Nicholas D’Adamo

Ford 1.6L – 1.5L TransitionFord 1.6L – 1.5L Transition

• 2015 Distributors Forecasts for the 1.6L• 2015 Demand

• Blanket Orders to cover transition

• Current or Potential OEM’s within your territory

• Engine Lifecycle – 1.5L• New production Ford engine

• Supports multiple Ford vehicles

• Production Release Date – 1.5L• Target March 2015

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Ford 1.5L Key Features and BenefitsFord 1.5L Key Features and Benefits

• DOHC valve train with four valves per cylinder

• Aluminum die-cast cylinder head, with hardened valves and seats

• Cast aluminum, low friction coated pistons

• Aluminum open deck cylinder block with iron bore liners

• Distributor less Ignition

• Port Injection gasoline fuel system

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1.5L Sigma Engine1.5L Sigma Engine

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1.5L Automotive Power Curve1.5L Automotive Power Curve

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Ford 2.5L (MSG425) Transition CompleteThe 2.5L Transition is complete

• EPA and CARB Certified on Gasoline, LPG, LP Vapor and (C)NG• Genie has five machines in production with increased orders!!with increased orders!!• TUG has three builds running with increased orders!with increased orders!

•2015 Distributor Forecasts – 2.5L• 2015 Demand• Current or Potential OEM’s within your territory• Application Review

•Engine Lifecycle – 2.5L• New production Ford engine• Supports multiple Ford vehicles

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12:00 – 1:00 LUNCH

LUNCH

Ford 3.7L V6 Introduction (CSG637)Ford 3.7L V6 Introduction (CSG637)

• Potential Markets and OEM’s

• Competitive Information• Market Data• Competitive Pricing

• Engine Lifecycle – 3.7L• New production Ford engine

• Production Release Date• January 2015

• Technical data will be added to Google Site over the next quarter

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Ford 3.7L V6-Cylinder Specifications

Ford 3.7L Key Features and BenefitsFord 3.7L Key Features and Benefits

• Twin independent Variable Cam Timing (Ti-VCT)

• Deep Sump Oil Pan

• Four mains with side bolts through the block for strength & durability

• Piston cooling jets for improved fuel economy

• Coil on plug ignition

• Injectors are E85 capable

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Ford 3.7L OPU V6 DimensionsFord 3.7L OPU V6 Dimensions

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V10 Current Business StateV10 Current Business State

• V10 Engine production is at 6 to 8 weeks lead times.

• This year our orders continue to increase from our large current OEMS, generator markets, ground support and Irrigation.

• We need a push to take the irrigation business by storm and take market share away from Bucks.

• Large Industry leading Corporations in Ground Support, Agriculture, Generation, Equipment Mfg. and Irrigation have chosen the Ford Product for the future.

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Are we getting our share of Irrigation?Are we getting our share of Irrigation?

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Ford 6.8L Turbo and Charge Air Cooled Platform• Goal will be 125kw @ 1800 RPM max speed

• Same fuel system as the current certified Natural Aspirated engine.

• Same Cat Muffler

• New CAC will be side by side radiator package

• NG/LPG Capable

• Preliminary Drawings to follow• Front & Side View

• Production Release Date (middle 2014)

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Ford 6.8L Turbo with CAC

Front View Side View

Transmissions & Gear Reductions 6R80 & 6R140Transmissions & Gear Reductions 6R80 & 6R140

• 6R80 Transmission• New from the plant, not remanufactured

• Electronically Controlled• Adjustable shift points• Communicates with the Engine ECU via J1939• Six forward gears

• Available with and without a parking brake.

• Mates directly to CSG637 and MSG425 via an adapter housing

• Specification sheet available on Google site• 3D drawings available on Google site

• TUG has multiple prototypes running with a Diesel• Other OEMs Running with MSG425

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6R80 with parking brake

6R1406R140

• Early stages• New from plant

• Six forward gears

• Electronic Shift Control• Uses same TCU as 6R80

• 37,000 lbs. GCVW• Comparable to an Allison 2000 series for GVW

• Directly mates with the WSG1068

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Propane vs. Diesel – 130hp 1000 hrs.Propane vs. Diesel – 130hp 1000 hrs.

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Propane Council results of testingPropane Council results of testing

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Updated EDI Website Launching Soon!!!Updated EDI Website Launching Soon!!!

• New updated design

• Distributor search map• Type in City or Zip Code and closest distributor will appear

• Possibly add a Ford dealer locator

• Distributor login (password protected)• All Google documents will be moved here• Certain Google documents will only be accessible from here (3D Drawings)

• Latest pricing sheet available here

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Open Floor DiscussionOpen Floor Discussion

Questions?

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