Breg provides premium, high-value sports medicine products and services that advance orthopedic patient care, delivering a 360 customer experience

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1 BREG MEXICO.

2 Breg provides premium, high-value sports medicine products and services that advance orthopedic patient care, delivering a 360 customer experience unmatched in the industry.

3 1 BREG: History.

4 Our history. (BIG BREG) Founded in 1989 offering cold therapy and orthopedic practice solutions. Based in Carlsbad, CA with 100 distributors in 36 countries. For two decades, Breg has transforming orthopedic care with industryleading products. 500 employees in US and MX.

5 2 BREG MEXICO: Background.

6 Background. Needs Reasons to Expand Decision

7 Where are we? In 2001, after considering several locations, Breg expanded operations into Mexicali, Baja California.

8 Why Baja? - Reasons 01 Logistics 02 Cost 03 Human Resources 04 Safety

9 TIPS Human Resources Culture Logistics

10 THANKS! You can find me at

11 February 10 th, 2016

12 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. Introducing NEO Tech N ATEL Engineering Co. E PIC Technologies O ncore Manufacturing 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 12

13 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. NEO Tech History Highlights NATEL Engineering EPIC Technologies OnCore Manufacturing 1975 Sudesh Arora buys NATEL 1986 NATEL wins GD Stinger adds ceramics, HTCC, and other Microelectronics capabilities with series of successful acquisitions and business integrations 2013 expands EMS business with acquisition of Epic Technologies 1988 EPIC is founded in Ohio 2002 EPIC Expands in Mexico 2005 Acquisition of Siemens EMS operations in TN and OH +20 year history with NuVisions, DDI, Veritek and Victron 2007 OnCore founded Unify NA footprint with investments in common IT systems, supply chain management, engineering, processes and equipment Victron acquisition and further expansions in Mexico and China NATEL EMS and OnCore Merge in 2015 to Form NEO Tech 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 13

14 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. NEO Tech Strategy The Small EMS Market Space The Large Prototype & NPI Shops Low Tier EMS Highly flexible Relationships directly with principals BUT Single site or region Homegrown and manual processes Limited supply chain leverage NEO Tech Sweet Spot Complex product experience, challenging supply chains and regulated environments High-Reliability expertise Global Footprint Tier 1 toolsets and processes Flat and highly responsive organization--top to bottom Flexible solutions Large Tier EMS Wide capability range Integrated global infrastructure and tools BUT ODM s >$50 mil to +Billion dollar engagements Rigid processes and business terms for smaller customers NEO Tech is big enough to manage complexity and deliver a customized solution and small enough to care about you and your business as much as you do 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 14

15 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. Maquila Industry in Tijuana / Baja Maquiladora is a manufacturing operation in Mexico, where factories import material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing and then export the assembled, processed and/or manufactured products, sometimes back to the raw materials' country of origin. Maquila Industry had more than 50 years operating in Tijuana, and from multiple sectors the one mainly develop in the last decades is the Electronic sector, on the 90 s was consider Color TV Manufacturer Capital of the world. 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 15

16 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. Maquila Industry in Tijuana / Baja The electronics industry provided the region with expertise, discipline and a platform for other type of industries as Medical, Aerospace and Automotive And processes as electronic assembly obviously, Molding, Stamping, Metal Assembly and other industrial processes 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 16

17 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. Medical Maquila Industry Baja / Tijuana Baja is considered the biggest medical device manufacturing cluster outside of USA with more than 60 brands and more than 50K employees In Tijuana more than 40 facilities dedicated to medical device manufacturing and more than 40K employees 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 17

18 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. Why Mexico Baja Tijuana Maquila program: -Benefits of Maquila program for operations on Mexico, Baja, Tijuana Knowledge: -FDA, CF 820 and ISO knowledge spread after many years of operations on the area Location: -San Diego California Neighbor and main entrance to US market (Medical Develop Area) -CTPAT Programs in place and operational, low time to move products into US -Supply chain operates with less inventories (less cost) than other places on the world -Infrastructure in place and improving for operations in the area Operational cost: -Based on labor content of products better cost 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 18

19 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. Most important advantages Knowledge and experience to manufacture Medical Products with human resource growth to support it at Professional and Technical level needed for the industry Technology is reachable, the difference is the expertise to administrate it by the human resource Not less important, Mexican hospitality and culture 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 19

20 Export of products, software and technologies included in this document are subject to the export restrictions of the International Traffic in Arms Regulation (ITAR), and/or the Export Administration Regulations (EAR). Diversion contrary to U.S. export laws is prohibited. THANK YOU Rene Paredes NEO Tech Cell Tijuana BC Mexico 12-Feb-16 STRICTLY CONFIDENTIAL We Make Amazing Things Happen. 20

21 Q&A

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