PROPOSAL FOR Monarch Library Systems - January 25th, 2017
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PROPOSAL FOR Monarch Library Systems January 25th, 2017 Confidential and Proprietary – © 2014 Penske
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
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
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
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
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 Confidential and Proprietary – © 2014 Penske 9
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 Confidential and Proprietary – © 2014 Penske 11
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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