1

Automating the Conventional

If your warehouse…

Is a multi-shift operation (2-3 shifts per day)

Utilizes four or more lift trucks performing storage moves

Stores and retrieves primarily full pallets weighing 3,000 lbs or less

2

The Opportunity

You may be able to achieve significant operational savings in very short order

• Warehouse labor reductions of 75% or more• Higher quality order fulfillment• Elimination of product and warehouse damage

3

How?

“Automate the Conventional”

4

Proven Technology

* First 3 QuartersSource: MHIA

2003 2004 2005 2006 2007 2008*0

10

20

30

40

50

60

70

80

90

100

40

60 60

7471

86

AGV Market Size(# Systems)

The number of AGV systems deployed has more than doubled in the past 5 years

The US AGV market alone exceeds $90M in sales

Adoption is motivated by escalating business drivers and significant technological improvements

Business drivers– Reduce or eliminate warehouse

labor

– Eliminate product and warehouse damage

– Improve asset utilization

Technology drivers– Maturity in software and controls

– Reliability and safety improvements

– Cost reductions

Automated Guided Vehicles (AGVs) are no longer just a point technology, they have become a broadly adopted warehousing solution

From the plant floor to the warehouse

A World Leader in Imaging and Information Solutions− 50% increase in warehouse material handling volume− 1.3 Year return on investment

A Midwestern Injection Molding Company− Over 100% increase in storage density− Off shift lights-out truck staging for truck loading

Major US Brewer− Over $3M in annual labor savings

Fortune 100 Food Manufacturer− Process improvements with quantifiable return on investment− Multiple facility installations (~100 AGVs)

Canadian Retailer− Verifiable operational efficiency gains− Significant rack damage reduction

5

Proven Results

Achieving ROI of 18 months or less

Lease Plans in Place to Reduce Operational Costs

6

Proven Results

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 300.0

10.0

20.0

30.0

40.0

50.0

60.0

ROI (2 Shift)

ROI (3 Shift)

# m

on

ths

to

re

ac

h R

OI

# fork lift vehicles

Proven Experience

7

3000+ AGV vehicles deployed

About HK Systems

HK Systems is North America’s leading total solutions provider of automated material handling and supply chain execution software

We develop, implement and support integrated solutions for the management of enterprise wide inventory, distribution, logistics and automated material handling systems

HK Systems’ solutions enable its customers to reduce costs, improve revenue and increase market share

We also manufacture a full line of automated guided vehicles, storage and retrieval machines, conveyors, and sortation equipment

8

Founded in 1969

Privately held since 1993

$250M in annual sales

1,000+ employees

325% growth since 1994

HK has Served 60% of the Product Producing Fortune 100

78% of our work comes as return business

Over 2,500 automation projects installed over a wide range of industries