Quality CNC Machining ISO/TS 16949:2002 Registered. Presentation Revised 8/10/10

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1 Quality CNC Machining ISO/TS 16949:2002 Registered Presentation Revised 8/10/10

2 392,200 Square Feet of Floor Space 7 Manufacturing Facilities Educational Center Warehouse Distribution Central Stores 250+ pieces of Flexible CNC equipment. 450 Employees Non-Union ISO/TS 16949:2002

3 Company History Plants II, III, & Engineered Tooling Acquired New Customers Dana, Bosch, Tower Auto, Cooper Standard, SPX New Customers John Deere, Showa, Delco Remy, Honeywell, Tenneco, Gunite, Navistar, US Mfg Plant VI Acquired New Customers Epcor Foundries Educational Facility established New Customers Danfoss, CTC/BMW, General Aluminum, Eaton, Allison, Cummins Awarded Caterpillar MQ11005 Bronze Supplier Quality Excellence All Dana P473 Knuckles added Plant VIII Acquired from Citation Nick Busche founds Busche ETD relocates to Plant IV New Customers Grede, Millennium Forge Plant V opened & additional warehouse space added New Customers Paulstra, Contech, International Truck & Engine Plant VII Acquired ETD changed to Workholding New Customers Caterpillar, Copeland/Emerson, CYT, Formtech New Customers Impact Forge/Toyota, Delphi New Customers MTI/Whirlpool, Nexteer, JL French/ Volkswagen, Yoder, Magna

4 Busche and Busche Workholding Consolidated Sales Graph $80.0 $57.7 $48.8 $53.5 $47.6 $49.0 $45.3 $40.4 $28.1 $19.3 $16.6 $3.5 $6.5 WORKHOLDING BUSCHE TOTAL

5 OEM Customer Base Direct or Tiered

6 System Suppliers

7 Raw Material Customer & Supplier Base Epcor Waupaca Rochester Metal Products

8 Customer Base / Future Location Busche Tier I Automotive Heavy Duty Truck Agriculture Industrial / Heavy Equipment

9 Consolidated Sales by Market Segment WORKHOLDING MISC 14.7% 5.2% AG / CONST 17.1% 2008 HEAVY TRUCK 12.7% REFRIGERATION 7.0% DIESEL ENGINE 29.6% MISC 4.5% MARINE 6.2% MEDIUM TRUCK 22.3% AUTOMOTIVE 20.4% WORKHOLDING 5.2% AG / CONST 14.3% REFRIGERATION 4.3% WORKHOLDING 9.2% MISC 7.8% MEDIUM TRUCK 4.9% HEAVY TRUCK 10.4% AUTOMOTIVE 17.7% DIESEL ENGINE 18.7% DIESEL ENGINE 23.3% AG / CONST 16.5% AUTOMOTIVE 23.3% HEAVY TRUCK 3.5%

10 Top Customers by Percent of Sales CAT 29% 2008 SERIES1, DANA, 12%, 12% SERIES1, NAVISTAR, 5%, 5% OTHER, 29%, 29% 2009 CAT, 16%, 16% ERIES1, OTHER, 6%, 26% USM 4% SERIES1, MILLENNIU M FORGE, 4%, 4% OTHER, 21%, 21% SERIES1, JOHN DEERE, 16%, 16% SERIES1, GREDE, 5%, 4% 2010 PROJECTED DANA, 32%, 32% USM, 5%, 5% NAVISTAR, 4%, 4% DANFOSS, 4%, 4% IMPACT FORGE, 4%, 4% JOHN DEERE, 17%, 17% COPELAND 5% DANA, 15%, 15% GREDE, IMPACT 4%, 4% FORGE 5% JOHN DEERE, 12%, 12% COPELAND, 9%, 9% NAVISTAR, 6%, 6% BOSCH, CAT, 4%, 8%, 8% 4%

11 Sales by Material GRAY IRON CASTINGS, 10.1%, 10% 2009 PERCENT OF SALES STEEL FORGINGS 27% ALUMINUM CASTINGS, 6.5%, 7% 2008/2009 PIECES SHIPPED DUCTILE IRON CASTINGS, 56.1%, 56% 3,241,000 3,540,000 3,879,000 GRAY IRON CASTINGS, 8%, 8% 2008 PERCENT OF SALES STEEL FORGINGS 28% ALUMINUM CASTINGS, 6%, 6% 317, ,000 1,937, , ,000 DUCTILE IRON CASTINGS, 58%, 58% ,037,188 TOTAL PIECES 2010 EST 7,059,000 TOTAL PIECES ,971,000 TOTAL PIECES 2008

12 Product Overview Transmission & Drive Train Ductile / Gray Iron / Aluminum / Stainless Castings / Forgings / Extrusions

13 Product Overview Caterpillar Bearing Caps

14 Product Overview Steering & Suspension

15 Product Overview Engine & Industrial

16 Product Overview Large Machining Capabilities

17 Product Overview Assembled Components

18 Product Overview Assembled Components

19 Product Overview Manifold Assembies

20 Production Machining Modular / Flexible Production Cells

21 QUALITY CMM (16 UNITS)

22 Central Store MRO Control Tool Control: Tool Boss Kan-Ban System via MRP Tool Usage Reports Tool Sharpening: Carbide Tools 24 Hour Operation

23 Workforce Development Educational Center Educational Courses including: Precision Measurement Mastering CNC Lathes Master CNC Mills 239 employees have completed all three. Other Courses: Tooling & Inserts Fixture Education MRO Procurement Environmental Health & Safety (OSHA) Flow Diagrams, FMEA s, & Control Charts CMM Programming

24 New Hire Training Development PREDICTIVE INDEX (REVEALS PERSONALITY CHARACTERISTICS SPECIFIC TO JOB REQUIREMENTS. COMPLETING THE P.I. IS A PREREQUISITE OF ALL APPLICANTS TO JUSTIFY AN INTERVIEW.) (80% OF APPLICANTS WILL NOT QUALIFY FOR BUSCHE ENVIRONMENT).

25 New Hire Training Development No-Fault Quality - As stated in the Busche Employee Handbook: Occurrences of any of the following violations, because of their seriousness, may result in immediate dismissal without warning: Any Quality issue and/or request for a sort by any customer due to your failure to follow the processes as stated on our process sheets, which results in a non-conforming part to be received by our customer. Packing a defective part for shipment, or causing an in house sort or rejection. Failure to use gauging 100% or failure to follow all procedures on all PPAP s and initial launches of new products as required. Failure to comply with QUALITY processes and procedures as explained to you by your manager/trainer and or posted process sheets; failure to follow instructions.

26 Workholding Modern Machine Shop Advertisement 37,578 Sq. Ft. Facility Located on Sixteen Acres

27 Certifications QUALITY MANAGEMENT SYSTEM ISO/TS 16949:2002 Expires: 07/29/2012

28 Caterpillar Silver Award MQ11005 Certified Busche Internal PPM ppm all customers 2010 current 49ppm Delivery: % all customers 2010 current delivery 100% REQUIREMENTS / RECOGNITION Systems & Processes TS16949:2002 Regestered / Compliant Metrics BRONZE ISO 9001:2000 registered w/ plan to achieve TS registered / compliance SILVER ISO 9001:2000 registered w/ plan to achieve TS registered / compliance MQ11005 Standard Elements Mandatory Mandatory Special/Key Characteristics (Cpk) > 1.10 > 1.33 Parts Per Million (PPM) % of Dollar ($) Rejected 0.3% 0.15% % of PPAPs Completed On Time 90% 95% 6 Sigma Deployment Deployed Completed Supplier Capacity Planning Supplier Delivery Performance Production / Parts Services Engineering Deviations 2-Year horizon for part numbers selected for monitoring 3-Year horizon for part numbers selected for monitoring 95% / 80% 96% / 85% No supplier-caused deviations from supplier nonconformance in the most recent 6-months No supplier-caused deviations from supplier nonconformance in the most recent 6-months

29 C.H.I.P.S. Lean Sigma

30 6 SIGMA

31 Casting Supplier Selection Selecting a Casting Supplier Partner for Long Term ISO Certified Fast quote return Busche s standard quote returns are 48 hours

32 Current Casting Suppliers Waupaca 1,265,395 Castings Purchased Dalton Foundry 1,600 Castings Purchased DMI 439,500 Castings Purchased Hiler Industries 142,000 Castings Purchased Great Lakes 5,088 Castings Purchased Grede LLC 49,238 Castings Purchased Kirsh Foundry 2,000 Castings Purchased Metal Technologies 39,163 Castings Purchased Neenah Foundry 3,340 Castings Purchased OSCO 447,375 Castings Purchased Compass 17,700 Castings Purchased

33 MACHINE SHOP SURVEY 21,140 machine shop establishments in the United States 24.1% of shops are in Upper Midwest (Illinois, Michigan, Indiana, Ohio, Wisconsin) 84% have 1-19 employees 14.5% have employees 1.5% have 100 or more employees 2007 Economic Census

34 Quality CNC Machining ISO/TS 16949:2002 Registered ADMINISTRATIVE OFFICE P.O. Box 77 Albion, IN PHONE: FAX: Milling ¾ Turning ¾ Broaching ¾ Grinding ¾ Tooling ¾ Work Holding ¾ EDM ¾ Spline ¾ Finishing ¾ Assembly ¾ Bar Stock ¾ Tubing

545 N Bowen Ave Bremen, IN Phone (800) bremencastings.com MACHINING MACHINE SHOP & ASSEMBLY OPERATIONS

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