Technology, Integration and School Bus Advancement Presented by: Kirk Lacko Senior Product Marketing Manager, Blue Bird Corporation Private & Confidential Technological Advancements Private & Confidential Product Planning / Advanced Engineering Development of Product Cycle Plan Investigate technologies from adjacent industries for applicability to school buses Ideation on new features and technologies for school buses Bring new concepts to implementation readiness Observe, explore and propose responses to industry and competitor trends Over 200 years of combined experience in advanced engineering Private & Confidential 3 School Bus Technology Evolves Automotive and Trucking technologies continue to influence the school bus marketplace Telematics; GPS, Navigation, Engine Diagnostics, Student Tracking Integrated systems = less mechanical Light-weight materials Greater Alternative Fuel adoption Camera’s and sensors inside/outside of the bus Active safety technology Passive safety technology Blue Bird is embracing technological advancement Private & Confidential 4 Voice of Customer Research Private & Confidential 5 Owner Feedback Integrating owner feedback into future product development Propane Owner’s Survey Customer Satisfaction Index (CSI) New Product / Product Enhancement Surveys Business Case Studies Private & Confidential 6 Case Studies Omaha Public Schools -- One Year of Propane Autogas: Alternative Fuel Buses Drive Down Costs A case study that reviews the fuel cost and maintenance cost savings that a major fleet experienced after one year of using Blue Bird’s propane autogas school buses • Savings of almost 50 percent per gallon on fuel costs were experienced when compared to diesel • 42.6 million fewer pounds of carbon dioxide emitted over the lifetime of the fleet • 96 percent of the fleet is operating on propane autogas New York School District Lowers Operating Costs, Reduces Emissions with Propane Autogas School Buses A case study that reviews the fuel cost and maintenance cost savings that Washingtonville Central School District experienced with just 20 percent of their fleet being propane autogas • Annual fuel savings of about $21,000 per year for the autogas fleet • 30 percent less spent on routine maintenance expenses per year for the autogas fleet • About 120,000 pounds of carbon dioxide per bus eliminated from Washingtonville’s carbon footprint, during the lifetime of the vehicle Private & Confidential 7 Supplier Reviews and Partnerships Private & Confidential 8 Technology and Features Safety and Durability Vision/Camera Surveillance GPS Reporting/Tracking Bus Maintenance Alerts Ridership Tracking Driver Distraction Controls Efficiency/TCO Alternative Energy Solutions Engine Diagnostics Route Optimization Ergonomics Driver Time & Attendance Diverse Markets “Special Needs” Features International Standards Aligning technology with brand leaders will drive growth Private & Confidential 9 Enhancing Supplier Relations Areas of Focus Supplier Enablers • Total Cost Ownership (TCO) • Design & material reviews, logistics, SKU management • Quality and reliability • Supplier development, warranty management, PPAP process, supplier audits • Product innovation • Early supplier involvement, NDA’s, Supply Agreements • Supplier optimization • Category strategies, supplier assessments, preferred supplier listing • Lead-time reduction and Forecast accuracy • Forecasting, inventory management programs Private & Confidential 10 Blue Bird Buses Designed with Kids in Mind Private & Confidential 11 Practicality, Functionality and Safety Safety Driven Real Life Application Enhanced Student Ridership Riding the Bus to School is Fun Child safety is paramount Private & Confidential 12 Purpose-Built with Children’s Safety in Mind Purpose-Built Chassis Made just for school bus application Chassis protection Best-In-Class Driver’s View Exceptional mirror systems 6.5’ Headroom Private & Confidential 13 Ease of Operation Increased ease of operation with our new Blue Bird E-Z Windows™ Children can easily operate Blue Bird E-Z Windows™ due to new interlocking technology which allows for smoother operation New latches are ergonomic and emergency door is easier to operate Private & Confidential 14 Student Tracking Improve Student Rider Safety and Security Maximize Bus Utilization Provide Better Customer Service Automate Reimbursement Reporting Private & Confidential 15 Blue Bird Connect™ Private & Confidential 16 Blue Bird Connect™ GPS Powered by Synovia Solutions Embedded OEM solution Factory option or retrofit OEM buses are pre-wired Integrated engine diagnostics Turn-key all-inclusive package No upfront costs Simple monthly service fee Factory installed GPS and NO UPFRONT COSTS! Private & Confidential 17 Blue Bird Connect™ is Fully Equipped Child Check| function check & check completed Video Camera| function check RedFlasher| On/Off Yellow Distance| calculation External Antenna| best Verizon connectivity GPS Unit| in a hidden location Driver Panic Button| alert & location stamp Driver| monitor harsh braking and acceleration Driver| Confirm run/route that is being serviced Inspection Checklist| real-time updates Key Door| Performance open or close Indicators| Speed, idle, on-time performance, etc. Driver| Real-time, location, date & time stamp Student| up-to-date manifest for clock in & out Private & Confidential 18 New Product Technology and Enhancements Private & Confidential 19 New Blue Bird E-Z Windows™ Blue Bird E-Z Windows™ are an innovation in windows! Smooth Operation Interlocking Construction Leak-Resistant Seals Ergonomic Latches Blue Bird E-Z Windows™ Feature Superior Leak Resistance and Ease of Service Private & Confidential 20 New Blue Bird Air Conditioning Driver A/C Dash Evaporator is standard System is not an “aftermarket” installation No seat and body plan limitations on special needs buses System does not intrude into seating area Common design in Vision and All American bus models No custom parts for ease of service Installed at Blue Bird, not an “aftermarket” solution Private & Confidential 21 New Luggage Box Redesign Full Perimeter Bulb Seal New Latches Door Reinforcement Sturdy and waterproof Private & Confidential 22 New Bendix Air Disc Brakes Blue Bird is pleased to offer the new Bendix Air Disc Brake option Shorter Stops Significantly shorter stops in demanding applications that even than even the best drum brake designs Better Braking Feel Improved side to side brake consistency Quick pad changes Quick change pads- 15 minutes per brake (with wheels off) Active safety technology from the industry leader Private & Confidential 23 Audio Enhancements New generation Source Unit - “Mechless Radio” New standard radio offering on all Blue Bird Buses Combo of radio and MP3 player Public Announcement (PA) system optional Lower warranty costs without mechanical CD Player Wire Molding Profile Neater (tidy) appearance throughout the ceiling Easier to service dome lights, radio speakers, including wiring Reduces interference of some optional components to the dome lights and speakers, such as air conditioning systems and book racks Private & Confidential 24 Product Enhancements from Micro Bird Private & Confidential 25 Micro Bird Features Ranking 10 Top Features 1 32” entrance door with standard electric control 2 Completely sealed floor with sound deadening 3 8” rear buffer zone 4 Double leaf lift doors with custom hinges 5 Superior body construction using mechanical fasteners 6 Side impact barriers with 3/16 one piece angle iron at the seat level 7 GM and Ford approved mounting blocks with no maintenance required 8 Powder coated wheel hubs 9 Completely R6 insulated including roof bows 10 Altoona tested The G5 delivers; Quality, Safety, and Comfort all under the yellow paint Private & Confidential 26 Micro Bird: Superior Riding Comfort Double acting isolators the full length of the chassis: no maintenance required R6 rated fiber glass covering all side, rear, front and roof panels Roof bows one piece hat section terminate at floor with insulated, mechanical fasteners Private & Confidential Micro Bird: Enhanced Features 32 inch door opening. One piece glass window, sealed bearing standard, electric mechanism standard Our GM chassis features a 551 square inch driver view; the largest in the industry Private & Confidential 28 Technology, Integration and School Bus Advancement Thank You Private & Confidential 29