Alternative Fuel Presentation

Alternative Fuels

Proprietary and Confidential

Topics

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Why Natural GasFuel of the FutureNatural Gas (NG) Fleets GrowingRyder’s Evolving PortfolioRyder and Quantum Strategic PartnershipNG VehiclesMajor ConsiderationsRyder National Gas Shop LocationsAdditional SlidesBusiness Intelligence Information (Internal Only)


Why Natural Gas?

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BENEFITS CONSIDERATIONSBUSINESS CASE

• Reduce Fuel Costs

• Reduce Carbon Footprint

• Support Sustainability Initiatives

• Mitigate Diesel Price Volatility

• Meet Your Customer Requirements

• “1st Mover” Competitive Advantage

• Vehicles cost more than comparable diesels

• Fuel infrastructure is under development

• Fuel tank technology is evolving rapidly

• Less maintenance history

• Qualified maintenance availability

• Undetermined residual values

• Fuel of the future

• US has 100+ year supply

• Not subject to oil price volatility

• Significantly cheaper than diesel

• Major fleets and customers committed to natural gas

• OEMs are ramping up investment and production

• Fuel cost savings offset vehicle premiums

• Incentives from state and local governments

• Better for the environment


Why Natural Gas?

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Components in the Decision Making Process

• Miles• High Mileage• Low Mileage• ROI

• Incentives• State Government• Local Government

• Fuel • CNG vs. LNG• Availability• Cost Savings

• Partner• Acquisition • Service • Disposal

Advantages of Leasing Natural Gas

• Mitigate risk on new and developing technology

• Knowledge and expertise – specs and maintenance

• OEM relationships and influence • Fuel provider relationships and

influence• No disposal obligations• Licensing, permitting and regulatory

compliance• Flexible financial impact• Focus on your core business• Fleet image and driver retention


Why Natural Gas?

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• Reduce fuel costs

• Reduce carbon footprint

• Support sustainability initiatives

• Mitigate diesel price volatility

• Meet customer expectations

• “1st Mover” marketing advantage


Fuel of the Future

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“The take up is just starting: About 5% of all heavy duty trucks sold next year will run on natural gas, up from around 1% this year, according to industry projections.

Barriers to wider use are coming down, driven by the relatively low cost of compressed natural gas...”


NatGas Vehicle Fleets Growing Rapidly

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The Medium/Heavy Duty market is where NGV’s are expected to show the greatest potential for market expansion


Current State Natural Gas & Ryder

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• Entered market in Q4 2010 and took delivery of first vehicles May 2011

• 500+ units in service

• 300+ NG vehicles on order

• 50+ natural gas lease customers

• Ryder NG fleet has operated over 27 million miles – demonstrated capabilities and leadership

• 14 shops upgraded to support natural gas maintenance (3 with fueling)

• All facilities built or expanded in future will be natural gas capable


Rumors and Misinformation

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• “Range anxiety”

• “Underpowered” engines

• “Fuel tank danger”

• Temporary “flavor of the week”

• Drivers won’t like natural gas units

• Residual risks


NG Vehicle Fleet Rapidly Growing

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Source: NGVA Europe

Medium/Heavy Duty market is where NGVs are expected to show greatest potential for market expansion.


Ryder’s Evolving NG Portfolio

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Ryder works with all major OEMs and tank manufacturers.


Ryder & Quantum Strategic Partnership

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http://investors.ryder.com/newsroom/News-Release-Details/2014/Ryder-Partners-with-Quantum-to-Offer-New-Technology-for-Compressed-Natural-Gas-Truck-Fleets/default.aspx

http://www.qtww.com/


•11.9 Liter•Spark Ignited

Manual and Automatic Transmission

Vehicles

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ISX12 G80,000 GVW

•400 HP•1450 lb/ft


•320 HP•1000 lb/ft

•8.9 Liter•Spark Ignited

Automatic Transmission Only

Vehicles

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ISL G66,000 GVW


Major Considerations

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• Fuel storage: CNG vs. LNG

• Fuel tank configurations and ranges

• Vehicle weights, MPG rates and idling impact

• Driver experience

• Natural gas engine differences

• PM intervals and maintenance experience


Major Considerations (Cont.)

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• Vehicle premiums, availability, and lead times

• Duty cycles and routes

• Fueling access and frequency

• Specialized maintenance availability

• Purchase vs. lease

• Grant / incentive availability

• Residual values


NG Product Portfolio Update Recap

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• Dedicated operations support team

• Dedicated sales specialists

• Growing product portfolio • ISB & DT NG engines

• CNG/LNG tank installation capabilities (Quantum, Chart, Clean Energy)

• Growing partnerships (Quantum, Mansfield, US Oil, BLU, CE)

• Continued excellence in grants/funding

• Continued investment in maintenance capabilities and scale coupled with best-in-class maintenance capabilities


Ryder National Gas Shop Locations

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Current Locations

Under Construction

Sales Opportunities

West Sacramento, CA

Rancho Dominquez, CA

Orange, CA

Santa Fe Springs, CA

Fontana, CATucson, AZ

Livonia, MI

Grand Rapids, MI

Dunbar, WV

Shreveport, LA

Las Vegas, NV

Kirkwood, NY – On-site/PrivateSalt Lake City, UT

Fort Worth, TX Atlanta, GA

Scranton, PA

Grapevine, TX

Eagan, MN

Chicago, IL

Indianapolis, IN

Chattanooga, TN

Memphis, TN

Houston, TXSan Antonio, TX

Denver, CO

Charlotte, NC

Cincinnati, OH

Tampa, FL

Montreal, QB


Ryder Natural Gas Shop Locations by Region

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Additional Slides

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Medium/Heavy Duty CNG Growth Projection

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Natural Gas registrations are projected to accelerate


Leaders in Natural Gas

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“UPS sees 40% Savings by Switching to Long-Haul Fleet to Natural Gas”--Bloomberg News

“FedEx is going green with cheaper natural gas. The CEO says 30% of company’s long-distance trucks could make the switch within 10 years.”

--Top Stocks

“P&G to Convert 20% of its for-hire truck loads to natural gas. P&G invests in growth of natural gas industry by awarding loads to eight natural gas carriers.”

--P&G Newsroom

“Our goal is to replace all of our diesel-powered dedicated fleets with natural gas trucks by the end of 2017”

--Steve Palmer, VP of transportation, Transport Topics

“Alternative fuel vehicles make up close to 10% of Coca-Cola's heavy-duty truck holdings, with plans to double this percentage in the next seven years.”

--Transport Topics

“NFI recognized as top 50 Green Fleets by Heavy Duty trucking magazine.”--NFI Newsroom


Ryder Leading the Way

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• Investing in natural gas since 2009

• Deep knowledge base• 500+ Natural Gas Tractors/Trucks

• 20+ Million “Real World” Miles

• 11 NatGas Compliant Shops (+5)

• Diesel/CNG/LNG Fuel Portfolio

• Customer access to fleet innovation• Latest natural gas fleet technology

• CNG & LNG fueling infrastructure

• Maintenance & roadside services

• Safety and technical expertise

Alternative Fuel Fleets

Fuel Network

Maintenance and Roadside Service

Paving the way for next wave of alternative fuel vehicles

http://www.willowrunfoods.com/WelcomeToWillowRunFoods.aspx


Ryder Value Proposition and Key Learning

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Sustainable Efficiencies Made Simple :Ryder is your single turnkey partner to comfortably introduce Natural Gas units into your fleet, to reduce fuel costs, reduce your carbon foot and increase your marketability and market access.• New technology knowledge and access

• New product risk mitigation

• Real world experience

• Scale and reputation

• First mover advantage

• NatGas is very different from diesel

• “Real World” experience is required

• Infrastructure expanding rapidly

• Mis-Information Everywhere

• Requires right spec for the job

• 1st mover adoption reluctance

• Fits leasing business model


Ryder Leading the Way

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“Ryder people are incredible. When any issue comes up for our business, Ryder jumps in and handles it.”

Bill Osteen, Senior VP of Business Operations,

Golden Eagle Distributors


Ryder Leading the Green Way

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“In the course of this 5,800-mile round trip, the truck will reduce its carbon emissions by 7,656 pounds – more than a pound a mile.”

Bill Osteen, Senior VP of Business Operations,

Golden Eagle Distributors

Online carbon footprint calculators are easy to use and underscore green benefits and customer marketing potential.


Fuel Cost Savings

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Fuel Pricing: Diesel vs. Natural Gas

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Natural Gas (Nov. 2013)Retail Price: $2.00/gallon*

Diesel (Nov. 2013)Retail Price: $3.90/gallon*

* Estimated Prices


Natural Gas Providers and Price Stability

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Questions & Answers

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NatGas Truck Engines

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ISB6.7 G• CWI JV • 6.7 Liter• Spark

Ignited • 2015 launch

ISL G• CWI JV• 8.9 Liter• Spark Ignited • 250-320 hp• 660-1000 lb/ft

ISX12 G• CWI JV• 11.9 Liter• Spark Ignited • 320-400 hp• 1150-1450 lb/ft • 2013 launch

ISX15 G• Cummins • 15 Liter• Spark Ignited • 400 – ~450 HP • 1450 -1750 lb/ft• 2016 launch


CNG Fuel Tank Analysis

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Documents

Alternative Fuel Presentation