Based on independent used trailer pricing over a 7 and 10 year period and using the cumulative dollar difference between similar make and model year trailers and refrigeration units to calculate a per trailer total dollar difference. Please see Q1 2015 residual value analysis report for more information.

RESALE VS. RESIDUAL

Resale values represent a concrete price that is actually paid for a refrigerated trailer in the used market. The residual value of a trailer is the value the trailer is expected to retain over a period of time. The residual value is used by trailer dealers, banks and finance companies to establish leasing programs and manage their risks. For customers, high residual values translate to lower lease payments and higher returns when reselling.

LONG TERM OWNERSHIP COSTS

Resale value is only a part of what makes up the higher overall life cycle value of a Thermo King unit. Fuel efficiency, extended life engineering and components, reduced maintenance and repair costs, and secondary market user preferences drive the total resale value premium. Initial purchasers of Thermo King units benefit from lower lease payments and a trailer worth more money in years to come.

EXPECTATIONS FOR THE FUTURE

Thermo King’s PrecedentTM models are engineered to continue to deliver the superior resale value that customers have come
to expect from Thermo King. The Precedent trailer S-Series units deliver over 20% fuel savings versus prior models, and each component is engineered for extended life with lower maintenance costs. The Precedent S-Series redefines resale values by offering the only true evergreen unit not requiring a DPF for CARB compliance after 7 years. The Precedent S-Series sets the new standard in high resale value and low total cost of ownership.