PROPOSAL FOR Monarch Library Systems - January 25th, 2017

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PROPOSAL FOR Monarch Library Systems - January 25th, 2017
PROPOSAL FOR Monarch Library Systems
                                                 January 25th, 2017

  Confidential and Proprietary – © 2014 Penske
PROPOSAL FOR Monarch Library Systems - January 25th, 2017
AGENDA

 1. A little bit about Penske
 2. Our value as your partner
 3. Economics and ROI discussion
 4. Next steps

                           Confidential and Proprietary – © 2014 Penske   2
PROPOSAL FOR Monarch Library Systems - January 25th, 2017
ABOUT US

      Confidential and Proprietary – © 2014 Penske   3
PROPOSAL FOR Monarch Library Systems - January 25th, 2017
OUR CORE SERVICES

                       TRUCK LEASING
                       Is a leading transportation services provider in North
                       America, offering:
                            Full-Service Leasing
                            Contract Maintenance

                       TRUCK RENTAL
                       Operates one of the newest and most diverse truck
                       rental fleets in North America providing both:
                            Commercial Rental
                            Consumer Rental

                       LOGISTICS
                       Serves companies in North America, South America,
                       Europe, and Asia, offering:
                            Dedicated Contract Carriage (DCC)
                            Transportation Management (TM)
                            Distribution Center Management (DCM)

                    Confidential and Proprietary – © 2014 Penske
PROPOSAL FOR Monarch Library Systems - January 25th, 2017
WE ARE EVERYWHERE YOU NEED TO BE

                                                    WE HAVE CONVENIENT LOCATIONS
                                                    ACROSS YOUR ENTIRE REGION TO
                                                     PROVIDE SERVICE AND FUELING

  Our Standardized Processes
  Ensure Consistent Customer
    Service At All Locations               Your maintenance history can be accessed at all Penske locations

                               Confidential and Proprietary – © 2014 Penske                                   5
PROPOSAL FOR Monarch Library Systems - January 25th, 2017
A SIMPLE STRATEGY

                                       The Power of Partnering with Penske
          We manage your transportation details, saving you time to focus on your business.

     MANAGING MULTIPLE SUPPLIERS                                                         PARTNERING WITH PENSKE

     Body Shop      Fuel               Tires       Towing

      Parts                                       Compliance

                           Fleet Manager

    Rental Trucks                              Roadside Assistance

                                                                                                 Fleet Manager

           Lack of consolidated reporting                                      Centralized, detailed reporting with MyFleet
     Limits visibility to costs by unit                                       Easy access by unit, component, vehicle
     Hard to make informed decisions                                          Full visibility to operation costs
                                                                               Makes proactive decision making easier

                                                  Confidential and Proprietary – © 2014 Penske                                6
PROPOSAL FOR Monarch Library Systems - January 25th, 2017
OUR VALUE AS
YOUR PARTNER

      Confidential and Proprietary – © 2014 Penske   7
WE ARE OBSESSIVE ABOUT VEHICLE UPTIME

                                                      KEEPING YOU                KEEPING YOU    KEEPING YOU
            WE HELP YOU WIN                             MOVING                    INFORMED     SAFE/COMPLIANT

 It’s all about vehicle uptime.              WE BEGIN BY SPEC’ING THE RIGHT TRUCK
                                              Our specialists work with OEMs to “build” the truck that will best
                                               meet your needs
                                              Focus is on the specific task of the truck, driver demands, fuel
                                               economy, and longevity

                                             WE CONTINUE BY KEEPING TIGHT TABS ON IT
                                              Preventive maintenance schedules exceeding federal guidelines
                                              Our goal is trucks that run from PM to PM without incident
                                              We comply with all FMCSA and CSA regulations

                                             WE MAKE IT EASY FOR YOU TO GET SERVICE
                                              We provide off-hour service to reduce interruption and make sure
                                               that your trucks are ready when you need them
                                              Consistent one-stop service, rental, and repair in many locations
                                              Investing in technology for self-diagnosing equipment

                                             YOU’LL HAVE A FRONT ROW SEAT
                                              We give you visibility to your data with MyFleet
                                              Get immediate access to monthly bills, preventive maintenance
                                               schedules, and fleet/unit data
                                              With all your fleet data in one place, bookkeeping, taxes, and
                                               regulatory reporting are easier and more accurate

                                  Confidential and Proprietary – © 2014 Penske                                      8
WE KEEP YOU MOVING 24/7

   HELPING YOU                                                                    KEEPING YOU    KEEPING YOU
       WIN               WE KEEP YOU MOVING                                        INFORMED     SAFE/COMPLIANT

 Our own 24-hour roadside                     ONE CALL DOES IT ALL
 assistance specialists are available          Call us for breakdowns, flat tires, towing, accident remediation,
                                                emergency permitting, and more
 365 days a year.                              We will fix your vehicle within a small window or provide a rental

                                              EXPERIENCED RESPONDERS
                                               Penske specialists excel at customer service in emergencies
                                               They communicate with you, and your driver, focusing on uptime

                                              BACK ON THE ROAD
                                               Getting you up and running is our key priority
                                               Our 700+ locations and 18,000+ emergency providers can access
                                                your equipment history and get you running again
                                               Replacement/substitute vehicles available

                                              HIGH STANDARDS
                                               We closely monitor our customer service performance
                                               Our vast network ensures the highest quality standards

                                              TECHNOLOGY
                                               We use digital phone recordings, email and text messaging for
                                                fast resolution and to keep management informed
                                               High-tech mapping provides a visual image of the vehicle and all
                                                Penske locations nearby

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MYFLEET

   HELPING YOU     KEEPING YOU                                                             KEEPING YOU
       WIN           MOVING                    WE KEEP YOU INFORMED                       SAFE/COMPLIANT

 More transparency. More                        EXPERIENCE COMPLETE VISIBILITY INTO YOUR
 communication. More time.                      FLEET WITH MYFLEET
 Measure it. Track it. Improve it.               Download data from your entire fleet or specific trucks
                                                 View the maintenance schedule, reschedule or add
                                                  repair work
                                                 View roadside assistance online and track the history
                                                 Locate all Penske and Comdata fueling stops
                                                 View and approve invoices online
                                                 Train drivers online, access compliance reports, safety
                                                  bulletins, upcoming safety events
                                                 More than just fleet information, gain Industry Insights
                                                  into the latest information and trends

                                     Confidential and Proprietary – © 2014 Penske                            10
LEASE ECONOMICS

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LEASE RATES – Isuzu NPR-HD w/ 16’ body
                       Full Service Lease
Number of Units                                1
Year                                        2018
Make                                        Isuzu
                                                                                     Contract Terms
Model                          NPR-HD (16,000 lbs. GVW)
                                                                                     • Rental unit can be used
Lease Term                                 4 years                                     immediately at this rate until
Annual Mileage                             20,000                                      the lease unit is delivered.
                                                                                     • Up to 20,000 miles included
Monthly Fixed Charge                     $ 1159.00                                     per year, any mile over is
Cost Per Mile                               $0.00                                      billed at $0.11 cents per mile
                                                                                       annually
Licensing                              Not Included
                                                                                     • Estimated lead time is 4
Washing                                   Included                                     months from order for
                                                                                       delivery
Substitutions                 Included at any Penske location
PM’s                                      Included
Mechanical Repairs                        Included
Tires Program                             Included
SOS Emergency Road
                                          Included
Service & Towing
MyFleet system                            Included
Partners In Safety                        Included

ANNUAL COST                             $13,908

                                      Confidential and Proprietary – © 2014 Penske                                      12
APPENDIX
Confidential and Proprietary – © 2014 Penske
BENEFITS OF AN OPERATING LEASE

              Our operating lease structure offers you financial flexibility.

 Penske’s full-service lease is                         Your lease payments are off your balance
 categorized as an operating lease,                     sheet and 100% tax-deductible
 according to FASB 13.
 An operating lease is defined as a                     There is no asset or liability recorded on your
                                                        books, simplifying accounting
 contract wherein the owner (lessor)
 permits the user (lessee) to the use
 of an asset for a specified period of                  You will enjoy improved financial ratios such
 time which is shorter than the                         as return on assets, debt-to-equity, and others
 economic life of the asset, without
 any transfer of ownership rights.                      A predictable budget and fewer fluctuating costs
                                                        grants you enhanced borrowing capacity

                                                        You won’t have to worry about the challenges of
                                                        vehicle resale or disposal

                                 Confidential and Proprietary – © 2014 Penske                              14
Confidential and Proprietary – © 2014 Penske
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