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Roadnet® Telematics 1.

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1 Roadnet® Telematics 1

2 Value Proposition Cost Savings and Revenue Growth Through:
Fleet Health and Maintenance Risk and Safety Management Productivity Compliance Roadnet Telematics focuses on 4 key areas Fleet Health and Maintenance – Items include accurate mileage record keeping, monitoring idling and voltage checks which assist in better lease management, less preventative maintenance, and green initiatives (Short-Term ROI) Risk Management & Safety – Items include seatbelt use, speed, harsh braking and rapid acceleration all which aid in the reduction of vehicle damage, personal injury, general liability and workers comp. (Long-Term ROI) Productivity – a natural output of risk and fleet is an increase in productivity. Partly from GPS and monitoring driver stops as well as being able to keep the vehicle on the road longer and eliminating emergency roadside calls. Compliance/Regulation – the monitoring of HOS hours via electronic logs as well as the accurate recording of mileage by state for completing the IFTA fuel tax returns. It’s like a tree where you go after the low hanging fruit first. The leaves represent items that make up the branch or behavior – all of which can be regulated, improved upon and changed by collecting the key items in the trunk of the tree. Roadnet Telematics 2

3 The Value of Telematics
Fleet Health Better lease management Reducing preventative maintenance costs Increasing green initiative awareness Risk and Safety Management Decreasing cost of claims Understanding how vehicles are driven Compliance with safety procedures Better driver risk profiling Understanding and monitoring fleet health is an important component of being able to gain savings from you fleet in many ways – negotiating better leases, reducing maintenance costs by moving from time-based to conditional-based maintenance programs. Not to mention the benefits we all see from implementing green initiatives – of which one of the major benefits is reducing the cost of fuel by reducing idling. An area that we haven’t focused on before, but is becoming a critical part of transportation is understanding and reducing risk and safety. By monitoring just a few items, it’s possible to reduce the cost of claims – whether it’s general liability, auto liability or workmen’s comp. Most company’s cost of claims is 8% or greater of revenue – it is possible to be a best in class company with only 2% In best in class companies claims are as low as 2% of revenue Roadnet Telematics 3

4 The Value of Telematics
Productivity Increase vehicle in-service days Decrease costs based on out of service Compliance Eliminate manually compiling fuel tax data Reduce administrative time Productivity is a benefit of focusing on risk and safety. By adding fleet focus in the mix, it allows you to increate time on the road by eliminating time the vehicle is out of service. Typically 1% of a fleet is out of service each day because of scheduled or unscheduled maintenance. This translates that for every 10 vehicles there is 1 extra parked in the yard in order to keep the business going on a day to day basis. Why not reduce the need for additional vehicles? Compliance is gaining, not waning. It’s important to comply with current regulations but to also be prepared for changes. IFTA or the international fuel tax agreement requires companies to collect manually or electronically the number of miles driven in each state as well as the fuel purchased in each state. Most companies manually compile this information today. Eliminate 5 minutes per day per vehicle keying in mileage sheets – administrative costs are about $400 per year per vehicle IFTA compliance costs about $400/ vehicle each year Roadnet Telematics 4

5 Roadnet Telematics Technology Interacting with Drivers
Total solution that includes Go4 Device Checkmate server-side hosted software Wireless data transmission Monitor: Engine Diagnostics Driver Behavior Management Fuel Management It’s a solution that allows technology to interact with drivers in order to change behaviors which ultimately improve profits by reducing costs and driving efficiency into the business. The Roadnet Telematics solution is made up of three key pieces: The GO4 telematics device that is installed in the vehicle, Checkmate software that is hosted along with storage of your data and wireless data. The combination of these items allow for: Engine Diagnostics such as Fault codes – “bad” information, and Status information “good” information Driver Behavior Management including Idling, Speeding, Unplanned stops, Driver congregation Fuel Management monitoring MPG and fill ups – done often enough, too many? Roadnet Telematics 5

6 GO4 - Telematics Device Easy Installation with EZ harness – 1 part for most makes Patented GPS logging 3-axis accelerometer 30,000 event log record memory, 100 minute accident memory Supports auto and truck engine data (J1708/J1939, OBD, CANBUS) Daily battery health and location heartbeat 8 true/false sensor connections Serial option for third party connections Supports Driver ID and Immobilization In-vehicle buzzer driver alert (ex: seatbelt, speed, idling, RPMs) Fully Software Supported: Over The Air Updates, Gateway Software Development Kit supports integration The Go4 telematics device is a device that have several unique features. The fist being patented GPS logging which makes this one of the most accurate devices on the market. The GPS is accurate to within 2%--hardwired odometers are off by as much as 4% and Engine Control Modules (ECMs) as much as 25-40%! The device also has an accelerometer that allows measurement of G-force events so now it’s possible to measure when a driver backs into a dock too hard. Daily heartbeat checks monitor battery health, up to 8 sensor connections can be monitored, trips can be matched to drivers that use multiple vehicles, a “kill” switch or immobilization option is available and it has a buzzer that can be used for driver behavior modification in real-time. Roadnet Telematics 6

7 Checkmate Software Hosted application Streamlined user interface
Excel® - base reporting engine Multiple map views Real-time updates The Checkmate software application is a completely hosted application with a streamlined user-interface that can be learned in minutes. Data is conveniently broken up into workspaces. Excel is used as the reporting engine – which means that anyone can create custom reports, not just the report guru in the back office. Bing maps provide multiple mapping views – street-level, satellite and hybrid views. And of course, all information is updated in real-time as the day unfolds as well as historical data being available on the server at any time. Roadnet Telematics 7

8 Checkmate Software Features
Custom security clearance levels Create custom alerts and notification events Engine faults Driver behavior Reporting engine including custom reporting Drill down for precise event reconstruction Customer and custom zone creation Custom grouping capabilities Driver congregation reporting Fuel tax mileage calculation Other features of the software include the ability to quickly set up different privileges for different employee types, create custom notifications when a rule has been broken whether it is driver behavior – speeding over 70MPH or when an engine fault occurs. Custom reports are only minutes away using the Excel-based reporting engine. Download a report, format it, add formulas save and your custom report is available every time the application is run. Events can be reconstructed using different levels of preciseness – whether it’s event by event or second by second data that’s needed we have it. Zones can be created on the fly to monitor movement is various zones such as speeding in the yard or unauthorized lunch stops. The driver congregation features also quickly point out where your drivers are meeting mid-day. Lastly, fuel tax reporting is simplified with accurate fuel tax reports – eliminating hours spent each day manually putting information together. Roadnet Telematics 8

9 Precise Reconstruction of Events
Let’s drill down into an event reconstruction. In this view you can see that an exception occurred – specifically three harsh braking events in a row. Remember that a harsh braking event is slowing 7MPH or more in 1 second. The top shows us these events in street view and the bottom in hybrid view to show more color for the surroundings. Now it looks like a driver put the brakes on pretty hard to make a quick right into a customer. Let’s drill down a little more to see exactly what happened. Aerial map view assists put incidents in perspective Roadnet Telematics 9

10 Precise Reconstruction of Events
If we drill down futher into the event by event reconstruction which creates a detailed log of what happened when at 10:33:44 the driver was going 48mph. 3 seconds later their was a decrease of 15mph, one second later a decrease of 9 mph and one second later another decrease by 8 mph. It would seem that this might be a gradual slowing, but indeed slowing 7mph in a second is a pretty significant event, enough to pull you up out of your seat. If we continue to look down this information you can see when stops start and finish, how long the stop occurred for and even when the ignition turned on and off. Systems correctly captures date, time, location, driving behavior, seat belt usage – data that powers reports and event notices Roadnet Telematics 10

11 Preventative Maintenance Reminders
Keeping track of scheduled maintenance can now be easy as well. Create reminders based upon engine hours, true mileage based upon GPS or calendar events. Reminders will be sent for each item that is set within the system. Roadnet Telematics

12 IFTA Automate accurate recording of miles driven per vehicle per State
Fuel tax recording can be one of the most tedious administrative tasks that happens in the back office today – collecting paper from drivers to collate and calculate just how many miles are run in each state can cost a minimum of $400 per vehicle per year. Roadnet Telematics puts IFTA mileage at your fingertips is just seconds. Combine this information with your fuel purchases for IFTA filing and significantly decrease the time necessary to file. Plus you’ll be able to back out fuel spent in reefers or while in your yard for added savings. Automate accurate recording of miles driven per vehicle per State Combine the mileage data with your fuel procurement system to prepare IFTA filings Roadnet Telematics 12

13 Technology Interacting With Drivers
Roadnet Telematics It’s about…. Technology Interacting With Drivers In-vehicle alerts enable the device to be used as a tool that works with drivers to assist them to achieve their safety and ‘green’ objectives Telematics isn’t just about a box or data – it’s about technology that interacts with drivers in order to change behavior in real-time and reinforce company policies. The Go4 Devices contains a buzzer that can be used to assist both companies and drivers in achieving their goals – whether it’s to be green or safe by reducing speed, idle time, or jack rabbit starts. Roadnet Telematics

14 Driving Habits Avoid quick starts and aggressive driving
A smooth, steady speed saves gasoline and reduces wear and tear on the engine, tires, transmission and brakes. Aggressive driving and quick starts increase fuel consumption by as much as 39%. Only 2 ½ minutes are saved for every hour driving aggressively Slow and steady wins the race – and it also wins when you’re talking about fuel usage and engine wear and tear. The engine, transmission and brakes take the brunt of the wear increasing the maintenance needed and decreasing intervals between preventative maintenance. Rapid starts and aggressive driving can increase fuel consumption by as much as 39%! And believe it or not, only 2.5 minutes are saved for every hour of aggressive driving! Quick starts and aggressive driving Roadnet Telematics

15 Driver Behavior Modifications
In-vehicle buzzer immediately let’s the driver know when they have exceeded an aggressive RPM threshold Speed doesn’t increases slowly as RPMs over-rev Change behaviors by allowing the in-vehicle buzzer let the driver know immediately when they have exceeded an aggressive RPM threshold – jack rabbit starts aren’t necessarily about speed – high RPMs precede the speed! Roadnet Telematics 15

16 Driver Behavior Modifications
Shut Off The Engine At Stops Engine idling is the lowest hanging fruit for fleets Fleets that are non – PTO or exclude PTO should aspire to have idle time that is less than 10% of route time Fleets can get as low as 3% 10 seconds of idling uses more fuel that shutting off and turning back on an engine Engine idling is the lowest hanging fruit and quite often pays for any telematics solution in day one. We consistently see that fleets idle far more than that think they do. It can be from climate or just bad driver behavior – leaving vehicles completely unattended while servicing customers – while the keys are in the ignition and the vehicle is running. Good fleets have idle time that is less than 10% of total route time – best in class can get to as low as 3%. Dad always told us that we should leave the car running because it used less fuel – the truth is that just 10 seconds of idling uses MORE fuel that shutting the engine on or off. Roadnet Telematics

17 Driver Behavior Modifications
Idling alert works for all makes, models and years of vehicle Set it for 3, 5, ? minutes custom tailored to your business Overcomes driver habit to “Neutralize” other engine inhibiting options The idling alert works no matter what the make, model or year of your vehicle – configure it for 1 – 3 – or even 20 minutes – what ever works for your company. It’s more effective than governors – remember governors still allow the driver to idle – it just shuts down the engine for them later! Roadnet Telematics

18 Driver Behavior Modifications
Slow down! Fuel economy decreases about 1.5% for each mph over 50 Driving 55 mph vs. 65 mph increases fuel economy by about 15% Excess speed is one of the largest contributors to personal injury claims Speeding isn’t just dangerous, it costs you money, a lot of money. For every mile an hour you go over fuel economy decreases by about 1.5%. If your drivers drove at 55 MPH instead of 65 MPH, fuel economy could be increased by about 15%. Let’s not forget that speed is one of the largest contributors to personal injury claims. Roadnet Telematics

19 Driver Behavior Modifications
Speed Warning Buzzer lets driver know approaching the upper speed limit At limit Buzzer triggers and stays on until driver slows The speed warning buzzer will let the driver know in a gentle manner when they are approaching top speed – it will set off a series of beeps. When the top speed is reached a loud buzzer top speed is reached a loud buzzer – 92 decibels will remain on until the driver reduces their speed. Real-time interactive behavior modification. Roadnet Telematics

20 Driver Behavior Modifications
Preventative Maintenance is everything A misfiring spark plug can reduce fuel efficiency by as much as 30% Well maintained vehicles saves money, reduces harmful emissions and enables proper scheduling of assets/reducing roadside assistance Preventative maintenance when done on the right schedule is cost effective and actually increases the number of days your vehicle is on the road. Something as simple as a misfiring spark plug can reduce fuel efficiency by 39%! If you can maintain your vehicle as it needs it – no more and no less you can save money and time making your vehicles more productive. The typical vehicle is out of service 12 – 15 days per year. What if it was only off the road for 8 days a year? You could increase your productivity substantially without having to buy another truck or hire another driver. Done correctly, you can reduce the number of road calls or emergency calls per year by completing preventative maintenance on the correct schedule and done for items where the vehicle has “raised its hand”. Roadnet Telematics

21 Driver Behavior Modifications
Check Engine “light” lets fleet managers centrally manage vehicles and plan maintenance Sampling vehicle health using ‘Green Thresholds’ for fuel rich or lean enables better predictive maintenance Sampling Battery Volts and Amps in hybrids allows daily electrical health. The virtual check engine light – or the monitoring of active engine fault codes allows service managers and technicians to proactively monitor what is happening in each particular vehicle – who’s healthy and who’s sick. Monitoring specific engine status codes or something as simple as battery voltage can prevent unproductive days off the road. Roadnet Telematics

22 Telematics Results Roadnet Telematics 22

23 Results: Claims Cost Reduction
GPS and in-vehicle speed alert Human Resources Actively Reinforcing Policy CLAIMS INCIDENTS vehicles tracked Let’s look at the insurance side of things and how Telematics can make an impact. This data is from a customer that enforced only two rules: 1. Wear your seatbelt and 2. Don’t speed. These rules coupled with changed to the corporate policy book have resulting in savings of $26M since This pest control company easily fired 10% of the drivers each year or 600 of 6000 drivers. This resulted in them spending about $3M per year in new driver training – about $5000 per driver. It’s simple, just tracking two items, the biggest drivers in accidents – speed and seatbelt usage can drive down costs significantly. But you have to reinforce it with policy changes. In their case if you speed or forget to wear your seatbelt 3 times in a rolling 12 month period, you are relived of your job. Results: After focusing internally in risk areas including after hours use policy, work comp claims investigation, speed, and aggressive driving behaviors, an average annual $1,277 cost is realized Roadnet Telematics 23

24 Results: Engine Idling Reduction
Idling is truly low-hanging fruit. Companies may be aware of their total fuel spend, but not really how it’s being used. Pilots to date indicated that drivers idle excessively, period. Even if you don’t think that idling is a problem, it is. Drivers constantly want to have a cab that is comfortable – cool in the summer, warm in the winter so consequently they leave their vehicles idling. Reinforcing good driver behavior with the buzzer is critical to decreasing excess fuel spend relative to idling. Even with governors, changing behavior is critical – governors will turn off at a pre-determined time, but the vehicle is still running for excess minutes and in some cases unattended. Change the behavior and have drivers be proactive rather than do nothing and let the governor work – every time they come back to the vehicle the buzzer will remind them to shut down early. Five minutes per vehicle per stop can really add up over time. 5 minutes x 15 stops = 75 minutes per day = 1.25 hours per day = 1.25 gallons of diesel x $4 = $5 per day in idling cost X 10 vehicles = $50 X 220 working days = $11,000 per year. Results: Idle times went from 1 hr 20 min of idling per vehicle per day to less than 10 min saving one gallon of fuel per day Roadnet Telematics

25 Results: Speeding Reduction
Speeding is another large contributor of risk and fuel expense. Don’t forget that for every mile per hour above 50 MPH, fuel consumption increases by 1.5%. Over time, with driver behavior modifications, it is completely possible to regulate speed. As they approach top speed a gentle buzz. At top speed, a 92db buzzer goes off. This graph clearly shows the pre- and post-behavior with regards to speeding. In-vehicle Speed Alert Deployed Results: Drivers averaging almost 25 minutes / vehicle per day above the speed limit Now averaging less than 3 minutes Assists in annual MVR results Roadnet Telematics

26 Results: Improved Personal Safety
SPEED INCIDENT > 75MPH SEATBELT OFF WHILE DRIVING Risk Management is a key piece of telematics. You can monitor drivers on a daily, weekly, monthly or yearly basis to see who is the least or most riskiest drivers. The most risky, you pull a MVR – Motor Vehicle Report. If they’re driving your vehicles in a risky manner, you can bet they’re driving their own personal vehicles in a risky manner. Furthermore, your insurance coverage may not allow you to allow them to drive for you. Both of these graphs represent a company that monitored speed and seatbelt usage without letting drivers know – you can see the levels on the left of non-compliance. After driver behavior modifications, speeding incidents plunged and seatbelt usage was up. Roadnet Telematics 26

27 Focus on Fuel and Vehicle Health
Reading the Fuel Level enables: Fuel Purchased Volume Date/time of fuel up Helps calculate MPG when combined with miles driven Monitoring fuel levels can have several positive effects for your company. It can answer a couple of simple questions – when, at what level (1/4 tank, ½ tank) are you fueling and how often? If you are wet fueling and someone comes to your distribution center 3 times per week, they’re charging you for three visits – perhaps you only need to have them wet fuel only two times per week. If you’re fueling up too frequently you may be paying for fuel earlier than you need to, your vehicle productivity is decreasing – it’s fueling not on the road being productive. Lastly is company policy being followed? Are drivers allowing for the tank to run close to dry and then refueling or fueling every day so they can chat with buddies at the pump each morning. Maybe it’s time that you start to really monitor your Fuel Ecosystem: Fuel purchased relative to fuel used relative to number of miles run relative to MPG Roadnet Telematics 27

28 Focus on Battery Health
Battery Health Monitor After fuel, jumpstarts and battery health represent one of the highest costs in operating a vehicle Battery heartbeat is recorded hourly through day and night Transmitted every 6 hours when parked Sat Jan 17 10:30PM Below 11/5V First Alert Sun Jan 18 Below 10V Next Alert Mon Jan 19 3:30PM Below 8V Will Need Jumpstart Tues Jan 20 8:10AM Gets Batteries are always something that needs attention and care. If you have an unhealthy battery it can lead to unexpected road calls at an expense of $150 and taking the vehicle out of service – an expense of $1000 per day. Are you changing your batteries too late or too early? Roadnet Telematics can proactively let you know when a battery is in need of attention because of voltage drains. While the vehicle is running AND not running, we proactively check the voltage to monitor the levels. If the battery voltage level reaches a pre-determined level, an alert is sent out to let those who need to know that there is a problem and it is approaching a level where the vehicle will need a jump start. Jumpstarts and battery health represent the second most expensive costs in operating a vehicle – why not proactively monitor it? Roadnet Telematics 28

29 Active Faults and Thresholds
Roadnet Telematics will monitor on a daily basis the active codes that come from an engine – both the good such as engine status – number of miles, total hours, total fuel used and the bad – ABS sensor, Fuel Pump, Injector Cylinders to let you know that something is not working as designed within the engine. Once code isn’t a problem, it’s when a code shows repeatedly that the vehicle should be taken off the road proactively before there is a breakdown on the road. Roadnet Telematics 29

30 Saving with Telematics
Fuel Decrease miles driven Reduce fuel consumed from idling and speeding Hours Reduce windshield time Increase customer time Reduce office time Safety Reduce workers comp Reduce driving accidents/damage claims Fleet Utilization Reduce the number of spare vehicles needed Keep fleet on the road Roadnet Telematics lets you laser focus on key areas such as fuel, hours, safety and fleet utilization – all so you can free up time to focus on other areas. Fuel decreases can be a result from decreasing fuel consumption and miles driven. Hours can be more closely monitored to understand just how much time is spend in the office or at unauthorized points versus driving and customer time. Monitoring safety and creating work policies can make a tremendous impact on insurance claims – from workers comp – was it actually work related to driving damage and claims. Lastly proper fleet utilization can decrease the number of spare vehicles needed at a cost of $80k - $100K each. It can also keep your fleet on the road and productive for more days per year. Roadnet Telematics 30

31 Case Studies – Insurance Claims
Objective: Reduce risk claims from 8% of revenue to < 2% Solution: Closely monitor driving behaviours: Speeding after hours use seat belt use engine idling harsh braking Results: $10 million+ annual savings from claims reduction $3 million+ annual fuel savings from 15 million mile reduction $100 million+ annual increase in revenue without increasing fleet size Roadnet Telematics 31

32 Case Study – Fuel Expense
Objective: To reduce fuel expense by reducing miles driven and engine idling Solution: Integrate with routing package Monitor and eliminate personal trips Implement anti-idling rule (5 minutes) Results: 11% Mileage reduction – equipment at 8 mpg 40 miles reduced weekly Roadnet Telematics 32

33 Case Study – Customer Time
Objective: To improve sales revenue through positive tools for field sales personnel Solution: Monitor key performance areas morning departure time total driving time (% of time during the day) total customer time weekly office time afternoon return to home time Results: 20% growth in gross revenue, 4% growth in sales bonuses paid Customer satisfaction index > 80% Roadnet Telematics 33

34 Time to Benefit Matrix Low Hanging Fruit Difficult But Profitable
(High ROI – Fast Time-to-Benefit) Difficult But Profitable (High ROI – Slow Time-to-Benefit) Routing & Scheduling Software Strategic Transportation Planning Telematics Sales Automation Software / Hardware Warehousing Software Handhelds / Execution Software Acquiring a New Company Quick Fix (Low ROI – Fast Time-to-Benefit) Painfully Slow (Low ROI – Slow Time-to-Benefit) Purchase / Lease Trucks Warehouse Equipment Discount Products Host System Upgrades Additional Computer Hardware Upgrade Trucks (Tires, Exhaust) New Warehouse New Host System Return on Investment Time

35 Thank you

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