Kohler Diesel Update CD Sales Web Ex (4-17-2014) Product Segment - PowerPoint PPT Presentation

“Innovation distinguishes between a leader and a follower” - Steve Jobs Kohler Diesel Update CD Sales Web Ex (4-17-2014)

Product Segment Discussion Diesel  Communication •Who are the “Go to” contacts for service.  Emissions discussion •Spec’s, inventory, replacements •Replacement engine policy  Product •KDI and power pac •KD440  Status on JCB dealer network.  Sales what is needed? 4/22/2014 2

Kohler Diesel Engines Group List of Who’s Who and Contact Information

Kyle Brandemuhl – Director, Diesel Engines Americas MARKETING:  Jeff Wilke – Product Manager, Diesel Engines Americas  Kyle Riste – Market Analyst, Diesel Engines Americas INSIDE SALES:  Heather Cowin – Associate Sales Executive, Diesel Engines Americas APPLICATIONS ENGINEERING:  Patrick Exley – Manager, Diesel Applications Engineering  Jerry Conlan – Superior Diesel (715) 365-0557 jerry.conlan@sdiesel.com SERVICE:  Mark Vande Slunt – Manager, Field & Customer Service  Todd Gadicke – Service Specialist-Diesel  Open - Service Specialist-Diesel Quality:  Todd Allen – Manager, Field Service, Diesel Engines Americas 4/22/2014 4

Who Should I Call? Who Should I Call ?  Always Start with your Area Manager for all Sales related Inquiries: • Engine Inquiries • Model/Spec Needed  If your Area Manager is not available contact Heather Cowin and she can also help with: • Stock & Availability • CAD files and drawings • Model/Spec Needed  Heather Cowin, Diesel Inside Sales (770) 622-3121  KDI opportunities: Bring to Craig & Dave 4/22/2014 5

Emissions Discussions  Export Only prefix code PN-  Replacement prefix code PR-  Military/ National Exemption prefix code PT-  Transition Program for Equipment Manufactures (TPEM) or Flex programs prefix code PX- – Ends 2014 for product less than 19kW  2012 Inventory (hand out)

Current Product and Emissions Status 2014 Power T4F Recommended Kohler Diesel Models Emissions Power Limits Replacement HP kW 2013 Tier Status KD350 6.1 4.6 kW<7.4 (HP<9.9) KD420/KD440 9.1 6.8 KDW702 15.4 11.5 Tier 4 Final KD625-2 22.1 16.5 7.4 ≤kW<18.4 (9.9 ≤HP<24.6) KDW1003 23.4 17.5 KDW1404 (2700 RPM) 24 17.9 KD425-2 18.8 14 7.4 ≤kW<18.4 KD625-2 (9.9 ≤HP<24.6) KD477-2 (2700 RPM) 17.2 12.8 KD625-2 KDW702 KD625-3 36.9 27.5 Exemption Only KDI1903TCR 18.4 ≤kW<36.4 KDW1603 40.2 30 (24.6 ≤HP<48.8) KDI1903TCR KDW2204 49.1 36.6 KDI2504TCR air-cooled

Available T4F Specifications (hand out) Material Export Only Military Replacement TPEM Tier 4 Final Spec PA-KD350-1001 PX-KD350-1001 PA-KD350-1001A PA-KD350-2001 PR-KD350-2001 PX-KD350-2001 PA-KD350-2001A PA-KD350-3001 PX-KD350-3001 PA-KD350-3001A PA-KD350-4001 PX-KD350-4001 PA-KD350-4001A PA-KD350-5001 PX-KD350-5001 PA-KD350-5001A PA-KD350-6001 PX-KD350-6001 PA-KD350-6001A PA-KD350-7001 PX-KD350-7001 PA-KD350-7001A PA-KD350-8001 PA-KD350-8002A PT-KD350-8002A PX-KD350-8002A PA-KD350-8002B PA-KD350-9001 PA-KD350-9002 PR-KD350-9002 PX-KD350-9002 PA-KD350-9003 PN-KD350-9003 PA-KD350-9004 PA-KD350-9005 PT-KD350-9005 4/22/2014 8

Pre-2013 inventory ready for sale Actual Emissions Inventory Family Level Material Description Available Air 2012 ED3B29E4-1 -11LD626-3(DSC) 11 Air 2012 PA-KD420-6101 -KD420 KOHLER(DSC) 15 Air 2012 PA-KD4252-9009 -KD425-2(DSC) 25 Air 2012 PA-KD420-1001 -KD420(DSC) 51 Air 2012 PA-KD350-1001 -KD350 RECOIL START(DSC) 23 Air 2012 PA-KD350-6001 -KD350/D EL.START 5/8" THREAD/LOP(DSC) 5 Air 2012 PA-KD6253-5001 -KD625-3(DSC) 4 (hand out) Air 2012 PA-KD420-6001 -KD420 - SEE NOTE(DSC) 189 Air 2012 PA-KD4252-9006 -KD425-2(DSC) 4 Air 2012 PA-KD420-3001 -KD420(DSC) 11 Air 2012 PA-KD350-9004 -KD350/D WANCO CAMERA TRAILER(DSC) 1 Air 2012 ED3B31E3 11LD626-3 8 Liquid 2012 PA-KDW1003-5026 -KDW1003 8 Liquid 2012 PA-KDW702-1201A -KDW702(DSC) 9 Liquid 2012 PA-KDW1003-5006 -KDW1003 ALLMAND BROS.(DSC) 1 Liquid 2012 PA-KDW2204-2001 -KDW2204/L LOW SPEED GEN SPEC(DSC) 3 Liquid 2012 PA-KDW702-4001 -KDW702(DSC) 10 Liquid 2012 PA-KDW702-5002 -KDW702(DSC) 40 Liquid 2012 PA-KDW1003-3001 -KDW1003(DSC) 9 Liquid 2012 PA-KDW1003-5015 KDW1003 LT SINGLE PACK NEW YORK POWER 11 Liquid 2012 PA-KDW1003-9001 -KDW1003 W/CVT(DSC) 4 Liquid 2012 PH-KDW1003-5020 KDW1003GE 15 Liquid 2012 PA-KDW1003-1101 -KDW1003(DSC) 6 Liquid 2012 PA-KDW1003-5025 -KDW1003(DSC) 0 4/22/2014 9

Replacement engine policy  We will need to track replacements engines  Letter from Emissions group 4/22/2014 10

Replacement engine policy When Can I Request a Replacement Engine? According to U.S. Environmental Protection Agency ("EPA") and California Air Resources Board ("CARB") regulations, Kohler Co. can manufacture and provide "replacement engines" not certified to current emission standards to repower existing equipment only if all of the following are true: 1) The original engine suffered a premature failure 2) Currently certified engines do not match the performance requirements for the existing equipment 3) Currently certified engines do not fit in the existing equipment How is a Replacement Engine Different? Replacement engines are manufactured to a configuration of the same or later model year as the original, failed engine. Replacement engines feature labeling in accordance with EPA and CARB requirements. (hand out) What is Required of the OEM, Dealer or Distributor If possible, select an engine certified to current EPA and ARB requirements. If currently certified engines are not suitable to repower the equipment, request a replacement engine. The replacement engine requestor must provide Kohler Co. with the serial number and configuration details of the original, failed engine. The OEM, Dealer or Distributor must ensure and confirm that the original engine is destroyed. The OEM, Dealer or Distributor may return the original engine to Kohler Co. if he is unable to perform these tasks. Kohler Co. will provide the replacement engine upon receiving confirmation that the original engine has been destroyed. What is Prohibited Replacement engines may NOT be used in new equipment. Replacement engines may NOT repower equipment subject to later emission standards than the replacement engine configuration. The original engine may NOT be repaired, rebuilt or otherwise placed into service although components may be salvaged from the original, failed engine. 4/22/2014 11

Replacement engine policy Replacement Engine Requestor Name: ______________________________ Original Failed Engine Replacement Engine Configuration/Model Id. Configuration/Model Id. Serial Number Serial Number I certify that the replacement engine was requested and installed according to applicable requirements. A currently certified engine was not suitable for the repower because of __ Performance __ Packaging/Fit __ Other:___________________ The original, failed engine has been destroyed. Printed Name:_________________ Signature:__________________ Date:___________ 4/22/2014 12

Product  KDI power pac – Superior option • Timing – Kohler option • Timing – Mechanical only » Hydraulic driven applications only • Request specifications now • Lead time 90 days after spec is written 4/22/2014 13

Kohler Diesel KD440 Available now  Air Cleaner  Enhanced air filter with integrated pre-filter element  Integrated clogging sensor  Larger cartridge with increase capacity  New one-way valve for dust discharge  Injection Pump  Re-designed heavy duty fuel pump  Fuel  Heavy duty fuel tank  Water draining valve that separates water and impurities from fuel  Recoil rewind starter pulley  Rubber sealing added to recoil  starter pulley  Reduced noise emissions  Heavy Duty Robustness  Reliability  Easy of Serviceability  Service interval 500 hours  Frontal air access  KD350 will be revised October, 14

KD440 Performance New KD440 Bore mm 86 Stroke mm 76 Displacement cc 441 Max Power @ 3,200 rpm kW/HP 7 / 6.8 Max Torque @ 2,200 rpm Nm 22 Length mm 335 Width mm 403 Height mm 487 Oil change intervals h 250 Oil capacity l 1,6 + 45 Hours Air cleaner intervals h 500 - 1.0 Db (A) Noise LW (A) dB (A) 102 Startability sec 2 - 3 5

JCB Dealers  JCB  We just received approval from the OEM that it is Ok for us to approach their dealers.  Kohler needs to complete the program that you would carry out (training, requirements, and etc.)  We will be in touch soon with the program information. 4/22/2014 16

How do we Increase Distributor Diesel sales? We are on the same team, what can we do to grow?  Purpose of Growth targets to provide Kohler support and focus – Plan for distributors 3712 units, last year finished at 3119 – New prospects – Status on existing targets – How do we identify business for this year  Updates – TPEM web ex April 17th  Sales tools needed  Need feedback – What obstacles do you face • Example - displacing Yanmar and Hatz on air-cooled singles  Regional OEM field calls with Marketing 4/22/2014 17