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Florida Association for Pupil Transportation 61 st Annual Summer Conference Ponte Vedra Beach, FL Manufacturers Update July 9 th, 2008.

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Presentation on theme: "Florida Association for Pupil Transportation 61 st Annual Summer Conference Ponte Vedra Beach, FL Manufacturers Update July 9 th, 2008."— Presentation transcript:

1 Florida Association for Pupil Transportation 61 st Annual Summer Conference Ponte Vedra Beach, FL Manufacturers Update July 9 th, 2008

2 Presentation Overview New Ownership: Cerberus Capital Management New at Blue Bird Florida State Bid Information

3 Henlys reverses into US via Blue Bird takeover By Alistair Osborne HENLYS, the bus builder, became the latest British company to roar into America's school bus market yesterday with a bold $665m (£415m) cash deal to buy Blue Bird Corporation, the biggest school bus manufacturer in North America. As Henlys is valued at £310m and is raising money for the deal, it was classified as a reverse takeover, and the shares suspended at 570p. Henlys is paying $428m cash and repaying Blue Bird's $237m debts. The financing will include Volvo, which holds 10pc of Henlys shares, subscribing for up to $255m (£160m) of convertible loan notes. Volvo can convert them over 10 years and could end up with a 30pc stake in Thursday 2 September 1999

4 Blue Bird Announces Financial Restructuring FORT VALLEY, GA (Oct. 18, 2004) – Blue Bird Corporation announced today the completion of a financial restructuring of its parent company, Henlys Group plc, and its subsidiary companies including Blue Bird Corporation. The restructuring establishes Blue Bird Corporation as the sole operating subsidiary of a newly formed US based holding company principally owned by Volvo Group and members of Henlys’ banking syndicate. The restructuring took the form of a debt for equity swap which effectively reduced the previous Henlys group debt level by approximately US$303 million while transferring 100% ownership of Blue Bird Corporation and responsibility for a term loan and working capital facility to a newly formed holding company named Peach County Holdings Inc. ("Peach). Following the restructuring, the common of Peach is owned 42.5 percent by Volvo Group and 42.5 percent by members of the Henlys" banking syndicate, with the balance held by Blue Bird management and the trustee of Henlys Group pension scheme. As part of the restructuring, Volvo Bussar AB also acquired 100% ownership of Prevost Car Inc., previously held through a 50/50 joint venture between Henlys and Volvo Bussar AB. Following the restructuring, Peach has sufficient headroom under its new facilities to meet its anticipated working capital requirements.

5 Blue Bird Agrees to Acquisition FORT VALLEY, GA (Aug. 25, 2006) - Blue Bird Corporation announced the signing of a definitive agreement to be acquired by an affiliate of Cerberus Capital Management, L.P. Terms of the transaction were not disclosed. "The acquisition is a significant step forward ensuring Blue Bird will remain one of the world's leading school and commercial bus manufacturers," said Jeffry Bust, Blue Bird's president and CEO. "The acquisition also provides financial stability for our distributors, suppliers and employees." Blue Bird was also preparing to unveil it's latest Vision Type C school bus at the upcoming 32nd Annual NAPT Convention and Trade Show, to be held Nov. 3 through 7 in Kansas City. The proposed transaction was expected to close in late September. Kroll Zolfo Cooper, LLC served as the exclusive financial advisor to Blue Bird in connection with the transaction. Earlier this year, Blue Bird emerged from a 32-hour bankruptcy, which is considered the fastest company reorganization in U.S. history. Bust attributed the quick turnaround to high sales volumes of its Vision model school bus. Company investors were encouraged by the numbers, which far exceeded original forecasts, and increased the school bus OEM's credit line just months after the bankruptcy proceedings.

6 Established in 1992, Cerberus Capital Management, L.P. is one of the world's leading private investment firms Cerberus investment portfolio includes interests in the following industries: - Automotive- Real Estate - Aerospace & Defense- Retail - Financial Services- Technology - Healthcare- Travel and Leisure


8 Recently invested in other bus manufacturers: NABI Optima Blue Bird and sister organizations form a $1B company Cerberus will provide the capital structure Blue Bird needs for continued growth and increased profitability

9 One of the Largest Central GA Employers Builds Chassis & Bodies for: –Type D All American Forward Engine –Type D All American Rear Engine –Type C Vision –Type A Micro Bird (Body only) 869,176 sq. ft of manufacturing space Blue Bird Fort Valley

10 Builds Type C Vision Bodies 280,000 sq. ft of manufacturing space Blue Bird North Georgia

11 Blue Bird North Georgia: IW Best Plants Profile 2007 Lean in for a Smooth Ride. "Doing it right the first time" transforms bus maker Blue Bird North Georgia. Tuesday, January 01, 2008 By David Blanchard Blue Bird North Georgia, Lafayette, Ga. Employees: 406, non-union Total Square Footage: 295,000 Primary Product/market: conventional school buses Start-up: 1982 Achievements: IW 2005, 2006 Best Plants Finalist; ISO certified in 2007; 82.9% reduction in in-plant defect rates over past three years; 100% on-time delivery rate

12 In-floor Vehicle Guidance System Opened a new Blue Bird Parts Distribution Center in Delaware, OH Facility is co-located with the NABI, Inc. Parts Distribution Center Leveraging purchase synergy of three companies Total: 94,000 Sq. Ft.


14 The LPI System Clean-Low Emission Simple Design Cost Effective Superior Performance Safe Supported Accepted

15 LPI Delivers Propane to the Intake Port as a Liquid Benefit: Vaporization occurs at the intake port, cooling the air/fuel charge and increasing air/fuel density providing power better than the gasoline engine equivalent. Vaporization creates a cooling effect reducing valve and upper cylinder temperatures and prolonging engine life. LPI control is integrated into the OEM computer Benefit: Proprietary programming optimizes fuel economy, performance and low emissions Injector spray pattern is optimized as designed by the engine OEM. OEM developed diagnostics remain intact with the LPI system. Allows use of GM Tech II tool for diagnostics.

16 Safe The LPI Fuel Tank 60 Gallon capacity Carbon Steel 2X the Required Thickness for ASME Certification 312 PSI Working Pressure Burst Pressure = 5X Working Pressure 16 Mounting Points not 4 Located Inside Crash Cage CMVSS Crash Test Angled Side and Rear Impact 4,000 lbs at 40 mph 220 PSI Tank Pressure No leakage or Pressure drop

17 LPI… the Lowest Cost of Entry to Alternative Fuels LPI CNG Hybrid $10,336 $27,000 $124,000 $35k - $70K $1.5M - $2.0M $100k (Diesel) Vehicle Fuel System Onsite Fueling Propane is a safe fuel Built in safety properties Non-toxic Low flammability range Closed system No spillage or pooling

18 Engine LPI 8.1L Propane DieselFuel Savings Fuel Miles per Gallon Miles per Year20,000 Gallons per Year3,0302,247 Price per Gallon$1.70$4.25 (Propane price inc. $.50 credit) Annual Fuel Cost$5,152$9,551$4,399 7 Year Fuel Cost$36,061$66,854$30, Year Fuel Cost$51,520$95,510$43,990 Produced primarily (90%) within the US – reduces dependence on foreign oil


20 Summary: Fit for School Bus Market Provides a safe, attractive and viable fuel choice amidst rising diesel fuel prices Lowers operating and maintenance costs Utilizes a domestically produced fuel Meets all School Bus FMVSS & CMVSS, including CMVSS Fuel System Integrity for Liquefied Petroleum Gas Meets EPA Emission Requirements for the 2010 production year Builds off an established propane distribution network of 15,000 public/private retail outlets in the US and Canada for easy infrastructure solutions Dont have to sacrifice performance for alternative fuels

21 2008 Blue Bird Vision School Bus Sleek New Hood Redesigned Dash New E-Z Adjust Steering Column High Torque Capabilities with the Allison 2500 PTS

22 Tilt/Telescoping Steering Wheel All Fuel Tanks Between Frame Rails New Driver Dash Area

23 Safety View Vision Panel, with Fresnal Lens, 13 ½ inches by 7 ½ inches

24 Available in: - AAFE (ISB) - AARE (ISB & ISC) - Vision (ISB) Available in: - AAFE - AARE - Vision Available in: - Vision (Propane)

25 Florida Department of Education School Bus Contract Blue Bird is the price leader in Type A, C and D buses 5 Year, Bumper to Bumper warranty is standard Caterpillar Engines include a 6 Year/200,000 Mile ESC Plus Warranty Propane engine offered at an upcharge of $10,366 Straight Floor option includes the price of air ride rear suspension. Bitzer transit compressor available for Type C air conditioning. Cummins ISB buses include electric fuel pump. Dash air conditioning available as an add-on or standalone system. Liquidated damages for warranty reimbursement, minimum labor rate of $60.00 per hour for warranty performed by the district.

26 Bus Manufacturer ThomasICBlue Bird Base Price$81,579$82,426$79, PTS Credit-$3,620-$4,121-$4,538 Region 3 Delivery$993$2,100$1,130 Total$78,952$80,405$75,788 BLUE BIRD HAS A 77 PASSENGER TYPE C SCHOOL BUS!! 77 Passenger Type C bus available with a 2500 PTS credit option Blue Bird saves $3,164 over Thomas! Blue Bird saves $4,617 over IC!

27 Contact Financial Services today to take advantage of our Lease Advantage Program!


29 Florida Transportation Systems and Blue Bird thank you for your continued support!

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