MELOCHE GROUP

Your integrated supplier of value added mechanical components and assemblies for aerospace & defence

By Hugue Meloche, President & CEO

Agenda

1. Company profile

2. Services

3. Parts gallery

4. Continuous improvement

5. Advanced automation project

6. Contact information

Agenda

1. Profile: Mission

Optimize our capabilities in precision machining, surface treatment, painting and assembly of machined

components, in order to meet and exceed our customers specifications.

Our goal is to become a strategic supplier of choice by providing competitive pricing, state-of-the-art engineering and manufacturing, on-time delivery and a personalized

technical support.

1. Profile: Customers

1. Profile: Locations

2006 2007 2008 2009 2010 (pr.)

Sales 19.0 25.8 28.0 20.0 21.0

Employees 98 110 113 95 100

Millions of $, CDN

1. Profile: Key figures

1. Profile: Certifications

1. Profile: Management

Hugue Meloche, Eng.President & CEO

Normand SauvéVice President & CTO

Marc Bigras, Eng.Vice President & COO

Hugues PelletierVice President & CFO

Martin Thériault, CMA, MBACorporate Controller

Jacques LabrieDirector, Sales &

Preproduction

François PelletierDirector, Supply Chain

Éric ProvencherDirector, Valleyfield

Operations

Martin Isabel, Eng.Director, Quality Assurance & Contiuous Improvement

Vincent Meloche, Eng.Director, Engineering & R&D

Jean-François CarlierDirector, IT & Business

Intelligence

Manuel DubucDirector, Bromont

Operations

• Vertical Integration: Engineering, Precision Machining, Surface treatment, Painting and Assembly

• Specialty: We specialize in low to medium volume, complex machining (3, 4 and 5-axis Milling; Turning)

• Size: Small to medium size structural components and sub assemblies

• Dimensions: Parts machined are up to 60 x 34 x 26 in. in Milling and a diameter of 10 inch. in turning

• Materials: Aluminium, stainless steel, titanium, etc.

2. Services: Overview

Painting

Chromate Conversion Chromic Anodizing Sulfuric Anodizing NDT

CNC machining

Assembly, kitting

Raw material management

Manufacturing engineering

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2. Services: Vertical integration

- Over 25 CNC Machining Centers

- 3, 4 and 5 axis Milling Machines (DMG, Mazak, Makino, Mori Seiki)

- CNC Turning (Daewoo, Mazak)

- Inspection equipments: Programmable and manual CMM machines (Zoeller Starrett, Mitutoyo, Faro)

2. Services: CNC machining

v

2 NEW 5-AXIS MACHINES IN 2010 !

DMG 5 axis, DMU-80U duoblock

- 31.5 po cubic, 240 tools

-CAT50, 12 000rpm

DMG 5 axis, DMU-60U FD duoblock

**New model with turning option 1200 rpm**

- 24 po cubic, 240 tools

- HSK-A63, 12 000RPM

2. Services: CNC machining

Chemical film

Paint

2. Services: In-house special processes

Anodize

v2. Services: Products

• Aero structures:– Structural components– Sub assemblies

• Aero engines– Investment castings machining– Structural components

• Landing Gear• Interiors• Simulator components

3. Parts gallery: Fuel fittings

• Customer: Aerospace OEM• Problem: Cost and lead time for castings

(lead time up to 45 weeks)• Solution: Meloche suggested to manufacture

the same parts from solid • Benefits:

– short lead times – 6 to 8 weeks– competitive pricing– better mechanical properties

Sample parts-Aerospace 13. Parts gallery: Fuel fittings

3. Parts gallery: Structural

3. Parts gallery: Structural

3. Parts gallery: Aircraft engine components

3. Parts gallery: Assemblies

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6

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Aerospace and Defense Presentation

Performance indicators (KPI)

for each member of the

organization

4. Continuous improvement

CUSTOMER FOCUS: Multi-disciplinary Cells dedicated to customer service:

• Account Manager• NC Programmer• Methods agents• Project manager/Engineering

RESULTS:

1. Team spirit2. Communication 3. Collaboration4. Customer knowledge… = Efficiency

4. Continuous improvement: Customer cell

• 10M$ project• Implementation

scheduled for December 2012

• Preparation work in 2010-11

• Objective: Sales of 100M$ in 7 years

Aerospace and Defense Presentation5. Advanced Automation

NO SETUP TIME (reduces cost and lead times). INVENTORY REDUCTION (small batches ordering doesn’t affect price) Increased capacity (3X) and flexibility Unmanned production (cost reduction). Qualified personnel working during the day on development projects Enhanced integration capabilities including the option to integrate any

machinery as well as manually operated cells

Aerospace and Defense Presentation5. Advanced automation: Benefits

MELOCHE GROUP

Your integrated supplier of value added mechanical components and assemblies for aerospace & defence

By Hugue Meloche, President & CEO