Meloche Group

Corporate Presentation

1. Company profile"

2. Core business"

3. Meloche’s strategy"4. Vertical integration example"5. Contact information"

Agenda Agenda

1. Company profile

1. Company profile: Mission

Provide complex metal components and assemblies to aerospace and defence OEMs and

Tier-1 suppliers, by constantly optimizing our integrated services in CNC machining, surface treatment, painting, assembly and engineering.

1. Company profile: Vision

Become one of the leading Tier-2 suppliers in the aerospace and

defence industry through constant innovation and world-class

performance

1. Company profile: Customers

4 manufacturing plants near Montreal, Quebec, Canada

1. Valleyfield plant #1: 36 000 sq.ft." CNC Machining, Engineering 2. Valleyfield plant #2: 14 000 sq.ft." Surface treatment and assembly

3. Valleyfield plant #3: 22 000 sq.ft."Inventory management and future expansion

4. Bromont plant: 15 000 sq.ft."

1. Company profile: Multi-site business

1. Company profile: Key numbers

1. Company profile: Quality Certifications

1. Company profile: Customer Certifications

Meloche family and key employees

8 billion $ equity fund

1 billion $ equity fund

500 million $ equity fund

Majority shareholder

1. Company profile: Ownership

Hugue Meloche, Eng.!President & CEO

Normand Sauvé!Vice President & CTO

Marc Bigras, Eng.!Vice President & COO

Martin Thériault, CMA, MBA!Vice President & CFO

Jacques Labrie!Director, Sales & Preproduction

François Pelletier!Manager, Supply Chain

Éric Provencher!Director, Valleyfield

Operations

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

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

Jean-François Carlier!Director, IT & Business

Intelligence

Manuel Dubuc!Director, Bromont

Operations

Anne-Renée Meloche!Vice President Human Ressources

Average age of management: 42

1. Company profile: Management

4433599 Canada inc. Réjean Meloche, Co-Chairman Normand Saubé, Co-Chaiman

Hugue Meloche, President & CEO Vincent Meloche

Anne-Renée Meloche Éric Provencher

Marc Bigras

Board of directors Réjean Meloche, Co-Chairman

Pierre Grand’Maison, Co-Chairman Hugue Meloche, President & CEO

Martin Fournier, Fonds de Solidarité FTQ Jacques St-Laurent, President & CEO Montréal International

Sylvain Bédard, President & CEO Avianor Normand Sauvé, director

Family Council Réjean Meloche Hugue Meloche

Anne-Renée Meloche. Vincent Meloche Muriel Meloche

Compensation Comittee Jacques St-Laurent, President

Pierre Grand’Maison Sylvain Bédard Hugue Meloche

Audit Committee Martin Fournier, President

Réjean Meloche Pierre Grand’Maison

Sylvain Bédard

Hugue Meloche President & CEO, Meloche Group

1. Company profile: Corporate governance

2. Core business

2. Core business: Vertically-integrated machining

"   Over 25 CNC Machining Centers "   4 and 5 axis Milling Machines (DMG, Mazak, Mori Seiki, Makino,) "   CNC Turning (Mazak, Daewoo) "   Inspection equipments: CMM machines (Zeiss, Mitutoyo) "   Dimensions: Less than 30 inches

2. Core business: CNC machining

Chromate conversion Primer Top coat Powder coat

Chromic Anodizing Sulphuric Anodizing

2. Core business: Special processes

"   Re-engineering "   Design assistance for cost savings "   Concurrent engineering on new

programs

2. Core business: Engineering

" Customer: Aerospace OEM " Problem: Cost and lead time for castings (lead time up to 45 weeks) " Solution: Meloche re-engineered to manufacture the same parts from solid " Benefits:

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

2. Core business: Casting-to-solid expertise

Aircraft Structural Components:"- Structural components - Sub assemblies

Fluid Systems Components:"- Fuel fittings - Casting to solid expertise

Aircraft Engine Components"- Oil nozzles - Fan blade components

Interiors & Cockpit systems Components"

Ground Systems Components: (Simulator, defence, tooling)

2. Core business: Parts family

2. Core business: Aircraft structural components

2. Core business: Aircraft structural components

2. Core business: Aircraft mechanical assemblies

2. Core business: Helicopter structural components

2. Core business: Fuel systems components

2. Core business: Aircraft engine oil nozzles

Machined slugs (inconel, titanium, A286)

Flow-line production

"   Machined slugs used for airfoils manufacturing " Waspalloy sleeve for variable-pitch airfoils

Meloche Bromont facility

Waspalloy sleeve

2. Core business: Bromont center of excellence

2. Core business: Aircraft interiors components

2. Core business: Flight simulator components

2. Core business: Defense assemblies (US Army)

2. Core business: Defense structural components

3. Meloche’s strategy

1.  Invest heavily in technology, to increase productivity and achieve global competitiveness

2.  Improve continuously to achieve world-class performance

3.  Invest in front office, to have the ability to manage aggressive internal and external growth: 100M$ in 5 years

4.  Customer proximity: Open manufacturing plants in countries where our existing customers are located

5.  Collaborate in R&D projects with OEM and aerospace R&D organizations

3. Meloche’s strategy: 5 strategic drivers

3. Meloche’s strategy: Technological vision

1. Invest heavily in technology for our Canadian facilities, to increase productivity

- 10M$ investment project - Implementation scheduled for end of 2015

Objectives: - Reduce labor cost - Increase capacity

3. Meloche’s strategy: Technology investments

Benefits" "   NO SETUP TIME (reduces cost and lead times). "   INVENTORY REDUCTION (small batches ordering doesn’t affect

price) "   Increased capacity "   Flexibility "   Lights-out operating mode (cost reduction). "   Qualified personnel working day-shift on development projects

3. Meloche’s strategy: Technology investments

3. Meloche’s strategy: Future layout

Automation-ready! "(1)  DMG 5 axis, DMU-80U!

(1) DMG 5 axis, DMU-60U FD

""   240 cutting tools "   « Done-in-one » mill-turn "   laser assistance "   probing "   RFID tool identification

3. Meloche’s strategy: Recent investments

Mori Seiki NMV3000 5-axis

"   1 M$ investment "   114 pallet pool (114

setups) "   240 cutting tools "   « Done-in-one » mill-turn

3. Meloche’s strategy: Recent investments

Buying machines is easy… making them communicate

with each other is where the fun (and value) begins!

3. Meloche’s strategy: IT integration

Validation & Non-destructive

test

Future IT map for automation

Probing Laser tool

measurement

Dimensional Inspection

Customer Specification and standard

Standard tool and fixture Procedure

Best practice guide

Machine Monitoring

(OEE) Cutting tool assembly

On-machine tool validation

(RFID)

Sales requirement

Delivery

CAM

Machine simulation

Manufacturing Engineering

PLM / ERP Information management / Production management

Part technical information

Dynamic Planning module

2008 – 2009 – 2010 – 2011 – 2012 – 2013 – 2014 – 2015 – 2016 - ...

2008: Virtual machining environment

2009: Probing development

2011: On-machine tool validation (RFID)

2010: Laser tool measurement

2012: Development and implementation of a new ERP/PLM platform

2013: Implementation of new 5-axis machines for our parts family strategy

2014: Development and implementation of a dynamic planning system

2015: Implementation of a machine monitoring system to measure Overall Equipment Effectiveness (OEE)

2015: Implementation of a Flexible Manufacturing System (FMS) at our Valleyfield plant.

3. Meloche’s strategy: IT development timeline

2. Improve continuously to achieve world-class performance

Web-based KPI Management

3. Meloche’s strategy: Continuous improvement

Visual management

3. Meloche’s strategy: Continuous improvement

Customer cell project Multi-disciplinary Cells dedicated to customer service: "   Account Manager "   NC Programmer "   Methods agents "   Project manager/Engineering

RESULTS:

1. Team spirit 2. Communication 3. Collaboration 4. Customer knowledge… = Efficiency

3. Meloche’s strategy: Continuous improvement

Actual continuous improvement programs

Future continuous improvement programs

3. Meloche’s strategy: Continuous improvement

3. Increase our revenues to 100M$

The more our sales grow, the more we can allow dedicated ressources to: " assist our customers in long-term

development programs " perform R&D activities " identify and perform strategic

acquisitions

3. Meloche’s strategy: Increase revenues

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4. Open manufacturing plants in countries where :

"   our existing customers are located

"   the supply chain is in development

"   local government has identified aerospace as a strategic sector

3. Meloche’s strategy: Customer proximity

5. Collaborate in R&D projects with OEM and aerospace

R&D organizations

Closed-door machining

Automation of machining (PUMA project) Launching partner with P&WC

3. Meloche’s strategy: R&D collaboration

4. Vertical integration example

4. Vertical integration example: Aircraft engine oil nozzles

4. Vertical integration example: Vertically-integrated process

Machining

Laser marking Tumbling

Inspection

Pressure test Surface treatment

Flow target test

Cleanliness test

Packaging

Benefits of parts family strategy "   Long-term visibity à ability to invest with the optimal technology "   Vertical integration à reduced lead time and better cost control "   Ability to maximize equipment utilization à lowering cost "   Supplier becomes expert in the products "   Ability to assist at engineering phase to lower manufacturing cost "   More volume = cost reduction

4. Vertical integration example: Benefits

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4. Vertical integration example: Optimizing machine investments

5. Contact information

Hugue Meloche, President & CEO hmeloche@melocheinc.com

450-371-4646 ext. 104

Marc Bigras, Vice President & COO mbigras@melocheinc.com

450-371-4646 ext. 155

Normand Sauvé, Vice President & CTO nsauve@melocheinc.com

450-371-4646 ext. 118

Jacques Labrie, Sales & Preproduction director jlabrie@melocheinc.com

450-371-4646 ext. 149

5. Contact information

491 Blvd des Érables,"Salaberry-de-Valleyfield,"

Québec, Canada J6T 6G3"T / 450.371.4646 F / 450.371.4957"

Thank you!