2015 UK NETWORK CONFERENCE

Caterpillar UK Ltd, Leicester

09/12/2015

UK Network Conference _ Agenda (1/2)

08.45-09.15

Reception (Tea and coffee)

09.15-09.25

Conference Welcome Tony Howarth

09.25-09.40

Group Strategic overview and Cedric Chacon (UK OVL & WRP Director)

UK Overland roadmap

09.40-10.30

UK OVL review/update Tony Howarth and Simon Verdon

Corporate KPI’s

Status/event updates

10.30-10.45

Break (Tea & Coffee will be available)

10.45-11.45

Site tour All

UK Network conference _ Agenda (2/2)

11.45-12.25

Partner overview (SLA/Audits/KPI’s) Mathieu Llorens and Sue Precious

12.25-12.40

Caterpillar and relationship with Gefco Rob Andrew

12.45-13.30

Lunch

13.30-15.00

Machine time All

15.00-15.45

Spotlight on Gefco UK Glenn Sharman – Dartford, Sheffield and Manchester

Lee Fox – Baginton

Charles Kellyman – OEM contracts and PSA update

15.45-16.20

Partner commitments All partners

16.20-16.30

Closing Messages Cedric Chacon & Tony Howarth

GROWTH STRATEGY

GEFCO’S INTERNATIONAL FOOTPRINT

09 / 12 / 15 > UK NETWORK CONFERENCE

5

GEFCO FOOTPRINT

GEFCO PARTNERS

41 SUBSIDIARIES

70 COUNTRY PARTNERS

300 DESTINATIONS

SERVED

11,500 EMPLOYEES

IN THE WORLD 71 NATIONALITIES

2015 international development

6

GEFCO FOOTPRINT

GEFCO PARTNERS

NEW SUBSIDIARIES

09 / 12 / 15 > UK NETWORK CONFERENCE

GEFCO’s focus on the

strategic activities

7

Conceives

Integrates

Operates (when necessary)

Conceives

GEFCO addresses the entire supply chain of its automotive and industrial customers

> VEHICLE LOGISTICS

– Vehicle transportation and distribution worldwide; value-added services such

as Post-Production Operations and Pre-Delivery Inspections

ROAD TRANSPORT

Expertise in the management of inbound transport flows; groupage, full and part load transport,

customised express delivery 24/7

AIR, OCEAN AND RAIL TRANSPORT

Comprehensive door-to-door air, ocean and rail freight solutions; supporting manufacturers in their

global sourcing strategies

WAREHOUSING AND REUSABLE PACKAGING

Customised warehouse logistics solutions; management of washable and reusable container flows

CUSTOMS

A Customs broker since 1971

LLP-4PL

Design of comprehensive supply chain solutions for international manufacturers, including managing

their various logistics providers

09 / 12 / 15 > UK NETWORK CONFERENCE

Road transport: KEY FIGURES

8

28 MILLION

TONNES OF FREIGHT

TRANSPORTED ANNUALLY

2.000 SEMI-TRAILERS

FILLED DAILY

141 DEPOTS LINKED BY 1.000 INTERNATIONAL LINES

37.000 DELIVERIES PER DAY (GROUPAGE

AND FULL/PART LOADS)

24 HOURS A DAY 7 DAYS A WEEK DELIVERY BETWEEN 48 AND 72 HOURS DELIVERY

09 / 12 / 15 > UK NETWORK CONFERENCE

UK MACRO ECONOMIC CONTEXT

GDP: + 2.3% in Q3 2015 (-0.1 pt) Inflation: -0.1% in Sept. (-0.1 pt) Unemployment 5.3% in sept. (-0.1 pt)

Further drop of the diesel price, to reach

in October the lowest price since

December 2009

Exch. Rate £/€ has come back to his highest

level, € 1.42, which represents+12% Vs

October 2014 (€ 1.27).

£1.006 £1.008£0.994

£0.932£0.927 £0.910

£0.850

£0.950

£1.050

May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15

Diesel Price (£/l)

UK macro economic context 10

UK New car market

11

New car market stabilises in October after record 43 months of growth

Nb of Unit Market share YTD

2014 2015 trend 2014 2015 trend

215087 223774 8,9% 8,6%

257 321 262 579 10,7% 10,1%

Automotive manufacturing in the UK

12

Over 1.5 million vehicles and 2.5 million engines are produced in the UK each year.

GEFCO UK IN 2015

14

700

EXPRESS DELIVERIES

60,000

2 WHEELERS

62,000

LTL / FTL

236,000

GROUPAGE SHIPMENTS

External Sales – End November 2015

750 local

accounts

4PL

16 / 12 / 2015 > OVERLAND & WRP

19.2%

14.6%

22.2%

26.2%

17.8%

2015 IN FIGURES

DELIVERING FOR OUR STAKEHOLDERS

WHAT OUR CUSTOMERS THINK OF US

15

“We receive

excellent service from our GEFCO customer service

contacts.”

“GEFCO

provides a very good service.”

“The service

provided by GEFCO Manchester has been very good,

they do what they say they are going

to do.”

“GEFCO portray a good image, the drivers that

collect our goods through to the Customer Service Team and my local reps

are all very professional. ”

“I can't fault the customer

service received from GEFCO. My contacts are

very polite and helpful. Quick to find out any information I require.”

“I’m very happy with the

service received from my contacts and can't fault the

transport of my goods which arrive in good condition at

my warehouse.”

“GEFCO offers a good service, if there is an issue there is a quick response and

resolution, overall I am very happy.”

“GEFCO as a business are very responsive to their customers and

there have been excellent improvements

made throughout the last year.”

91% of customers surveyed*

would recommend GEFCO to

others!

*Based on feedback given in the 2014 GEFCO Customer Satisfaction Survey.

09 / 12 / 15 > UK NETWORK CONFERENCE

Our UK Gefboxsystem solution

16

The GefBoxSystem solution highlights added value operations

GEFCO’s ability to combine logistics experience within the sector

Specialist knowledge within the logistics industry

Integrated Information Systems

Continuous flow analysis and forecasting

129 CUSTOMERS

11.000 UNITS HANDLED

DAILY Customers using the GefBoxSystem include:

09 / 12 / 15 > UK NETWORK CONFERENCE

Our key customers

17

AUTOMOTIVE & 2WHEELER INDUSTRIAL & AEROSPACE

FMCG HIGH & HEAVY

09 / 12 / 15 > UK NETWORK CONFERENCE

INDUSTRY ASSOCIATIONS

18

INDUSTRY ASSOCIATIONS

09 / 12 / 15 > UK NETWORK CONFERENCE

FOCUS FOR 2016

19

09 / 12 / 15 > UK NETWORK CONFERENCE

• Reliable

• Quality driven

• Compliant

SERVICE

• Timely manner

• Detailed

• Customer Focus

COMMUNICATION • Supporting

business needs

• Achieving results

COMMITMENT

2015 UK NETWORK

CONFERENCE

UK OVL REVIEW/UPDATE Corporate KPI’s

Status/event updates

Topic %-Ratio Compliance Date

Consignments with Final Status 98 % 01.09.2014

Online POD Ratio 95 % 01.09.2014

CORPORATE KPI – TARGET RATIOS

Corporate KPI –YTD 2015

GEFCO DEPOTS:

PARTNERS:

YTD - 2015 COVENTRY DARTFORD MANCHESTER SHEFFIELD Total GEFCO Depot

Closed 309 167 102 58 636

Delivered - Confirmed 27210 13533 10073 8462 59278

Unfinal Status 1711 438 167 105 2421

All jobs 29230 14138 10342 8625 62335

% updated 94% 97% 98% 99% 96%

POD available 24788 13202 9211 8115 55316

POD not available 2184 324 856 345 3709

% POD available 92% 98% 91% 96% 94%

YTD - 2015 ARAMEX DAVID HATHAWAY FITZ MAURICE M & H LOGISTICS STEVE PORTER VALLANCE WARLEY CARRIERS UK

Closed 1 7 6 9 0 2 0 25

Delivered - Confirmed 2653 7340 2595 5355 5093 2590 1912 27538

Unfinal Status 94 444 47 97 451 95 20 1248

All jobs 2748 7791 2648 5461 5544 2687 1932 28811

% updated 97% 94% 98% 98% 92% 96% 99% 96%

POD available 2159 7082 2449 5248 4991 2352 1457 25738

POD not available 494 258 146 107 102 238 455 1800

% POD available 81% 96% 94% 98% 98% 91% 76% 93%

Corporate KPI overall – YTD October 2015

Final status update quite consistent all year

POD availability was consistent between March and June

Best month was in August

Corporate KPI Partners – YTD 2015

A little erratic from January to July and then some healthy consistency

despite some gaps with EDI in the case of some partners with regards to

POD availability

UK OVL review/update

• In order for Gefco to be a market leader and a global player they need to continue to be innovative.

• The corporate have introduced more KPI’s so they can closely monitor the improvements necessary and to be able to provide key customer with important data that is robust

Those KPI’s include:

EVENT STATUS UPDATING

SCANNING

LEADTIMES

EDI TRACK&TRACE

26

Shipper Consignee Depot of

departure Depot of delivery X-dock

Order received Order Collected Delivered Trunked

Not delivered Unloaded

Out for Delivery

CONTROL TOWER

Physical flow

Statuses seen by the Customer & Network

Handed over

Trunked

Depot of Collection

POD Available Needs a Booking

Has a Booking

RST PRE

RST DIL

MLV CFM

RST NCG

ARR COM

EXP CFM

EXP CFM PCH CFM COM CFM LIV CFM

REN ...

LIV 00

Unloaded

RST NCG

ARR COM

Handed over

IT updates - 2016

• New Cadis back office due Jan 2016

• PDA driving Training module

• New Partner IT Infrastructure project

• Partner Collection Manifest by EDI

• Improved Partner KPI’s & Reporting

• Improved EDI Status updates

Partner Reminder Report

2015 UK NETWORK

CONFERENCE

PARTNER OVERVIEW

Partner Overview

30

UK OVERLAND MANAGEMENT TEAM Review Process:-

SLA and Operating process document

Audits

KPI’s including Spare parts

Partner Review

Service Level Agreement

SLA document which incorporated legal and commercial aspects was signed off by each partner early 2015 – latest version is V4 January2015

Operating processes (SOP) document after much change V1 January 2015 was introduced

Operating processes (SOP) document was updated and V2 July 2015 issued following review of audit process

Gefco Corporate wish to align all SLA’s and have used the one we used as a basis

Review process

Scheduled review meetings have taken place with most partners and further review meetings will be scheduled during 2016

Repeated non conformances, serious breakdown in process and customer complaints received in writing are logged and form part of the review

KPI’s have been collated and presented back to each partner on a monthly basis

Operational Audit process circulated in June and led to changes in the operating process review.

Audits have been completed at 3 partner sites since June with mixed results all of which have action plans which will be monitored for improvement.

(NB:- KPI data must be received by latest 5th working day of the following month

Groupage Operations audit’s template 2015 VERSION

PARTNER :

Date of the

audit

Date of the

previous audit

AUDITOR(S) : Self audit :

External audit :

THEMES

ACTIVITES

TOTAL

POINTS

POINTS

OBTAINED

NA & NV

POINTS

PERCENTAGE

OF POINTS

OBTAINED

Target 85 %

1 - Plan the collection 1100 0 0 0.0% 85%

2 - Validate the collection 1300 0 0 0.0% 85%

3 - Plan the shipment 2500 0 0 0.0% 85%

4 - Receive the goods 1300 0 0 0.0% 85%

5 - Plan the delivery 2800 0 0 0.0% 85%

6 - Validate the delivery 2600 0 0 0.0% 85%

7 - Customer services 2100 0 0 0.0% 85%

8 - 2 Wheelers 4,500 0 0 0.0% 85%

9 - Spare Parts 5,300 0 0 0.0% 85%

10 - High Value Freight 200 0 0 0.0% 85%

11 - Health & Safety 1,300 0 0 0.0% 85%

RESULT 25,000 0 0 0.0% 85%

POSITIVE POINTS:

POINTS TO IMPROVE:

GENERAL COMMENTS:

UK Network Conference – Audits

Spare Parts

Management 2W Handling Event Code Management

Anomaly report

Communication with GEFCO

3 Partner Audits carried out in 2015

Apps box management • Regular bookings • Special consignee instructions • Cradles

General day to day customer service teams

Improvement in anomaly reporting

Bond Checks - highlighting freight remaining in the warehouse and reasons why.

2015 UK NETWORK

CONFERENCE

PARTNER KPI’s

Partners KPI – YTD 2015

Target achieved

2015 UK NETWORK

CONFERENCE

SPARE PARTS KPI’s

PSA SPARE PARTS DISTRIBUTION KPI – YTD OCT 2015

98.89%

99.66%

99.44%

99.68%

98.82%

99.60%

99.74% 99.76% 99.73% 99.66%

99.71%

97.50%

98.00%

98.50%

99.00%

99.50%

100.00%

PSA Lead-Time performance per Month Somme de % on time

Somme de % Target

2 per. Mov. Avg. (Somme de % on time)

PSA SPARE PARTS DISTRIBUTION KPI – SEPTEMBER 2015

99.8%

98.8%

99.1%

100.0%

99.7% 99.7%

100.0%

99.7%

98.9%

100.0% 100.0% 100.0%

97.50%

98.00%

98.50%

99.00%

99.50%

100.00%

Lead-Time Performance per Depot

Somme de % on time

Somme de % Target

Linear (Somme de % Target)

PSA SPARE PARTS DISTRIBUTION KPI – OCTOBER 2015

100.0%

99.8%

98.5%

99.6%

99.8%

100.0% 100.0%

99.7%

100.0% 100.0% 100.0% 100.0%

97.50%

98.00%

98.50%

99.00%

99.50%

100.00%

Lead-Time Performance per Depot

Somme de % on time

Somme de % Target

Linear (Somme de % Target)

Welcome to

Leicester

Cat Product Range

Articulated Trucks Backhoe Loaders Compactors Forest Machines Hydraulic Excavators Material Handlers Motor Graders

Pipelayers Paving Equipment Off-Highway Trucks Track-Type Tractors Track Loaders Scrapers Skid Steer Loaders

Wheel Excavators Wheel Loaders Wheel Dozers Underground Mining

Electric Power Engines Generator Sets Turbines

Cat Corporate Statistics

- World’s largest manufacturer of construction and mining equipment,

diesel and natural gas engines and industrial gas turbines

- Principal lines of business: Machinery, Engines, Logistics, Financial Products, Remanufacturing, Rail

- Over 120,000 employees, 500 locations in 50 countries, more

than 500 products sold in every country

- Sales and revenues of $55 billion in 2014 (est)

- Cat Reman & Components Division: Since 1970, over 2.2M units and

recycled more than 150M pounds of material in 2010

Caterpillar in the UK

Number of employees

CATERPILLAR IN

T H E U K

Caterpillar

CATERPILLAR IN

T H E U K

Leicester

Caterpillar

CATERPILLAR IN

T H E U K

Stockton

Caterpillar Logistics

Caterpillar

CATERPILLAR IN

T H E U K

Peterlee

Caterpillar Remanufacturing

Caterpillar

Over 12,000 employees

CATERPILLAR IN

T H E U K

Caterpillar Leicester Layout

253 acres

60,000 sq

metres

1,200

employees

Investment ~

$10m annually

80% of

production for

Export

253 acres

Approx. 1,000

employees

60,000 sq

metres

85% of

production for

Export

Desford

CAT Logistics

Paint Plant

Assembly

Hall

Offices Finning

Demo

Area Visitor Centre

Location

Sports & Social

Caterpillar BCP Products

CATERPILLAR

BUILDING CONSTRUCTION PRODUCTS

Caterpillar Leicester Products

CATERPILLAR IN

LEICESTER

ASRS - GS Aisles

ASRS - BU Aisles

Stores

MDC

Maint

PDI MHE

MHE

MHE

Rework BHL

BHL

SWL New

CWL

Brown

Bag

Postage

Table

Maint

Toilet

BHL

T&A

Factory Layout

Entrance

2015 UK NETWORK

CONFERENCE

SPOTLIGHT ON GEFCO UK

UK Network Conference _ Spotlight on Gefco UK

Baginton – Key challenges for 2015

Restructure – staff

Customers

2 Wheels

2016 Focus

Baginton Restructure

Baginton Customers

2 Wheels

BMW 3 Year contract extension

Positive Feedback from BMW/Dealers on Survey conducted.

- Calls, Visits, Action plans, Your support!

Tender process for ‘PDI BMW Motorbikes for 2016’

Loss of KTM

2 Wheels – Triumph Survey

51 Dealers

Delivery Performance

Communication

Recommend Gefco/Partners

2 Wheels 2016 – Peak

2016 Focus for Gefco Baginton

Groupage/ 2 Wheels

Customer Service

New Customers & Retention/Development of current.

- 2 x Business Development Managers

- Healthy Pipeline

Operational Excellence

Other Opportunities – BMW PDI

GEFCO Dartford

Dartford in 2015.

The team has two new arrivals in 2015.

Kash Husain, Forwarding supervisor & Francois Azema, VIE

We have recently singed a new agreement with “Unitruck” as our sole provider of C&D fleet & Drivers .

The new entrance & exit barriers project has now been completed.

A brand new CCTV security system has been installed.

The Depot has received top marks in internal compliance areas such as H&S, ISO & AEO.

Success for 2015.

Dartford has successfully regained the “The Body Shop” European Line Haul business for the UK.

Dartford also was instrumental in regaining France, Portuguese & Spanish store delivery business through their role as lead account manager for the contract.

GEFCO Manchester

New Management Team now in Place.

Daniel Millham - Warehouse & Transport Manager

Andy Wolstenholme – Customer Services Manager

4 new team members – 30% of the FTE headcount.

Re modelling plan required for Manchester.

Complete redecoration program underway - 75% complete.

H&S and security improvement plan ongoing.

Successes in Manchester:

Warehouse project for Yazaki in assistance of JLR Halewood.

Collaboration with our Russian colleagues on “Gestamp” Project.

Excellent commercial performance for 2015.

GEFCO Sheffield

A solid year for Gefco Sheffield.

Sheffield performing well against financial budget expectations.

Sheffield has gained new customer in PORTWEST and developing an excellent relationship with additional new flows expected in 2016.

New Partnership started with Canute in January 2015 covering the North East C&D area and performing well.

Refurbishment underway with a revamped Fire & security systems in line with AEO & H&S guidelines.

2015 GEFCO UK OEM UPDATE

DATE: 09/12/2015

66

> Schedule for super dealer

> by semestre

PSDC Implementation and roll out

Pre PSDC 400

Dealers

Planned PSCD’s 30

Currently established 8

Major focus on cost reduction whilst maintaining a high level of service

OEM UPDATE – PSA super dealer roll out

67

GM UK OPERATIONS UPDATE 2015

Highlights

Ellesmere Port

GEFCO UK secured a contract win for the management of the Central Carrier Control in Ellesmere Port

Contract commencement – May 1st 2015

Team of 8 responsible for the all material flows into the Ellesmere Port production plant

Including empty rack returns

Currently in negotiation regarding increasing the scope of work

Materials Contract

GEFCO UK has secured another 12 month extension to the material contact taking us into 2016

8th consecutive year operating on behalf of General Motor

Some challenges ahead going into 2016

Management

Appointed a new CCC Manager for Ellesmere Port 12th October

68

OEM Opportunities

BMW DMDC

Sameday delivery service to specific dealers within a set radius

Up to 4 deliveries per dealer

45 min from order to load

Delivery within 2 hours

TOYOTA

Collection of outbound material from UK distribution warehouse

Cross dock and consolidation of traffic at our UK depots

Collect returns and empty packaging from centres for return to Lutterworth

Hold stock at four strategic locations: Glasgow, Manchester, Dartford and

Bristol

Pick and dispatch centre orders

Deliver to centres in the local area on the same day as dispatch

69

HONDA

UK Collections & returns

EU Collections & returns

Container collections & returns - UK Ports

Combined service of Transport & Planning within a single region

FORD

Currently going through market test

GEFCO preparing RFQ

Maintaining high service level overall

Strategy under review for 2016

OEM Opportunities

2015 UK NETWORK

CONFERENCE

SPOTLIGHT ON UK PARTNERS

4 GEFCO Depots

7 Partners

UK Overland Network

UK Network Conference _ Partner commitments

Key commitments/ideas for development/improvement

VALLANCE TRANSPORT:

STRONG OPERATIONAL CONTRACT

CLOSE COMMUNICATIONS AT ALL LEVELS

UPDATING OF JOB STATUS ASAP

PROVIDE POD’S ASAP (ELEC. SIGNATURE CAPTURE)

FRESH PRICING AND F/S RE-ALIGNMENT

FORWARD PLANNING WITH CONFIDENCE

UK Network Conference _ Partner commitments

Key commitments/ideas for development/improvement

David Hathaway Transport

Invest in New Moffatt for 2 Wheel Distribution

Consolidated 2W deliveries ,% pay back to Gefco ,Win Win for both parties

Regain lost/ Gain new 2W business

Less un-manifested freight would improve depot efficiency

Full Postcodes from Gefco would benefit all

UK Network Conference _ Partner commitments

Key commitments/ideas for development/improvement

FITZMAURICE CARRIERS LTD.

Maintain high KPI percentage.

Commit to ongoing staff training.

Continue to improve how freight is handled following a successful cradle solution this year, with current target KMS bike stands.

Help to improve cradle movement data.

Develop inbound/outbound volumes.

UK Network Conference _ Partner commitments

Key commitments/ideas for development/improvement

ARAMEX

• On going roll out of driver scanners - live visibility of job updates

• Implementation of FSC/Automated Reporting

• SAP Roll out – allowing increase of warehouse scanning improving traceability

• Gefco Partner Network

UK Network Conference _ Partner commitments

Key commitments/ideas for development/improvement

STEVE PORTER TRANSPORT

SUBJECT :- IT Enhancements

Previous situation:

• EDI - differences between actual freight and planned freight

• Job status updates – where is the freight?

Consequences:

• Lack of visibility at the centre

• Reliance on manual updates, telephone calls and month end reports

UK Network Conference _ Partner commitments

Key commitments/ideas for development/improvement

STEVE PORTER TRANSPORT

SUBJECT :- IT Enhancements

Solution:

• Daily EDI reconciliation

• Facilitate Gefco status codes within SPT traffic system

Benefits:

• Accuracy of information

• Speed and visibility with live updates

• Reduction in errors and cost

• Service enhancement for customer

Questions Answers

thank you