Quimmco Presentation 2011 1 Corporate Presentation
Quimmco Presentation 2011 2 Grupo Quimmco Overview
Quimmco Presentation 2011 3 Grupo Quimmco - Overview Industrial consortium headquartered in Monterrey, Mexico. Manufacturing businesses in the metalmechanic, chemicals and construction industries 2010 Consolidated Sales: US$700 million Chemicals 4.5% Construction 1% Production facilities located mainly in Northern Mexico Strong export history 4,155 employees Metalmechanics 94.5%
Quimmco Presentation 2011 4 Vision & Mission Vision: Become a world-class supplier of choice to auto, truck, and off-highway equipment OEMs as well as prominent Corporations Mission: Profitable growth by offering high quality products at competitive prices and through superior customer service
Quimmco Presentation 2011 5 Divisional Corporate Structure and Coordination QUIMMCO, S.A. DE C.V. (Parent) 50% 50% 51% METALMECHANICS DIVISION Sistemas Automotrices de Mexico (Truck axles & brakes) Manufacturera de Cigüeñales de Mexico (Crankshaft machining) Forja de Monterrey (Forged I-beams & crankshafts) CNH de Mexico (Tractors & Construction equipment) CNH Serv. Comerciales (Sofom - Tractor financing) Sudisa (Trailer axles) 65% Blackhawk de Mexico (Gray & ductile iron castings) Quimmco Centro Tecnologico (Molds & fixtures, cutting tools and machining) Quimmco USA (Export Sales for Metalmechanic Division) CHEMICAL DIVISION Industrias Oleoquímicas (Polyurethane raw materials) Quimica Pumex (Polyurethane resins and polyols) Aislantes Celulares (Polyurethane foams) Spraymex (Sprayed polyurethane and mouldings) CONSTRUCTION DIVISION Torreon Promotor Inmobiliario (Affordable housing) Promotora de Bienes de Capital (Office furniture) Grupo Industrial Tres Ríos (Prefabricated concrete materials)
Quimmco Presentation 2011 6 Joint Ventures - Metalmechanics CNH de México Joint Venture of Quimmco and CNH Global One of the top manufacturers of agricultural tractors in Mexico Exclusive distribution of CNH Global agricultural and construction equipment Extensive dealer network & leading brands Strong market share Sisamex Joint Venture of Quimmco and Meritor One of the top manufacturers of axles, brakes, and related components for medium- and heavy-duty trucks in Mexico Strong export history Exclusive supplier to ArvinMeritor customers located in Mexico Leading market share
Quimmco Presentation 2011 7 Wholly Owned Businesses - Metalmechanics Precision Machining Manufacturera de Cigüeñales de México, S.A. de C.V. ( Macimex ) Dedicated to the precision-machining of casted and forged crankshafts One of the largest crankshaft machining companies in the world. GM Supplier of the Year 2003 Strong platform for future growth Forgings Forja de Monterrey, S.A. de C.V. ( Forja ) Forging plant dedicated to the production of front-axle i- beams for heavy-duty trucks and crankshafts for large diesel and gasoline engines One of the largest and most modern suppliers of forgings in the North American market Strong export history and solid platform for future growth Castings Blackhawk de México, S.A. de C.V. ( Blackhawk ) Foundry of gray and ductile iron for the production of castings to supply OEM and Tier 1 customers Modern, efficient and highly flexible production facility Plant Engineering Award 2008 and Metalcaster of the Year 2009 designated by American Foundry Society Strategic location Tooling Quimmco Centro Tecnológico, S.A. de C.V. ( QCT ) Three business units: Molds & dies for the foundry and forging industries Manufacturing and re-sharpening of special cutting tools Machining services Complements other Quimmco businesses
Quimmco Presentation 2011 8 Product Portfolio - Metalmechanics Metalmechanics Division: Heavy-duty truck axles, brakes, drivelines & other components Trailer axles and related components Agricultural tractors, construction equipment, implements & related components Forged front axle i-beams, crankshafts & other components Precision machined crankshafts Gray & ductile iron castings Molds, fixtures, cutting tools & machining services
Quimmco Presentation 2011 9 Complementary businesses - Chemicals Polyols: Química Pumex, S.A. de C.V. ( Pumex ) Dedicated to the production of polyols and rigid polyurethane foams for application in the construction, refrigeration and appliance industries The largest integrated independent producer of rigid polyurethane foams in Mexico Strong export history Polyurethane Foam: Aislantes Celulares, S.A. de C.V. ( ACSA ) Dedicated to the production of polyurethane foams Systems house specialized in the formulation, distribution, and marketing of rigid polyurethane foams Application equipment Focused in the domestic market Construction Materials: Spray Mex, S.A. de C.V. ( SprayMex ) Dedicated to the production and sale of products for the construction industry The product, Durestone, is made from polyurethane. It is a substitute to traditional and more expensive construction natural materials Great sales potential Polyester Polyols: Industrias Oleoquímicas, S.A. de C.V. ( IOSA ) Dedicated to the production of intermediate products for diverse industries Products include polyester resins, acrylic resins, adhesives, elastomers, and complementary polyesters used in sprayed rigid polyurethane foams
Quimmco Presentation 2011 10 Complementary businesses - Construction Office Furniture: Promotora de Bienes de Capital, S.A. de C.V. ( PBC ) Dedicated to the design, manufacture, and sale of office furniture and furniture systems. Production plant in Escobedo, Nuevo Leon Sells its products with the brand WKS through its own sales network to the office and institutional markets Affordable Housing: Torreón Promotor Inmobiliario, S.A. de C.V. ( TPI ) Develops and builds affordable housing projects in the Northern States of Mexico Taking advantage of significant demand in Mexico for this type of housing Concrete Materials: Grupo Industrial Tres Ríos, S.A. de C.V. ( GITR ) Dedicated to the manufacturing and sale of prefabricated concrete materials and structures Target market are industrial plants and buildings Serving the growing market of maquiladoras and industrial plants establishing or expanding operations in Mexico
Quimmco Presentation 2011 11 Product Portfolio Chemicals / Construction Chemical Division: Polyols and polyurethane raw materials Sprayed and poured rigid polyurethane foams Application equipment Construction Division: Office furniture Affordable housing & Prefabricated concrete materials
Quimmco Presentation 2011 12 Well established and long lasting relationships with world-class customers Axle Alliance Chrysler CNH Global Daimler Trucks Dana General Motors Hendrickson International John Deere Kenworth Mercury Marine Meritor Renault Trucks Scania Teksid Freightliner Mack Trucks Volvo
Quimmco Presentation 2011 13 Consistent Financial Performance FISCAL YEAR 2010 Preliminary Consolidated Results Net Sales EBITDA Assets US$700 million US$60 million (8.6% of sales) US$664 million Personnel 4,155
Quimmco Presentation 2011 14 Strategic Rationale - Metalmechanic Division The company has made significant investments in the sector due to its strong growth potential. The company believes that Mexico has a natural competitive advantage due to its: Readily available qualified workforce Strategic location within NAFTA Advanced and developing automotive industrial infrastructure Key Production Platform
Quimmco Presentation 2011 15 Corporate Strategy The strategic focus of the company is defined by the following key elements: Facilitate Organic Growth Continue investing in current businesses to leverage & improve strong market positions Enhance Operating Efficiency Continue improvement of manufacturing processes and practices to maximize efficiencies and reduce costs Identify new business opportunities Leverage expertise in current production processes to enter new markets and businesses with improved growth prospects and higher margins Target: Profitable, controlled & sustained growth
Quimmco Presentation 2011 16 Investing for Growth Cumulative Capital Expenditures (US$ Million) Average US$42 MM per year
Quimmco Presentation 2011 17 Social Responsibility Grupo Quimmco views social responsibility as an integral part of its activities. The company is fully committed to the well being of people and preservation of the environment. Reduce energy consumption Protect the environment Improve quality of life Sustainable Development Grupo Quimmco subsidiaries are in full compliance with clean industry standards
Quimmco Presentation 2011 18 Grupo Quimmco In Summary The long term market outlook is strong Trends point to continuous assembly migration into Mexico Mexico is strategic and low cost sourcing location Grupo Quimmco is well-positioned Complementary portfolio of businesses Strong investment in modern production and process technologies Executing plans to deliver performance With the right personnel in place World class management practices
Quimmco Presentation 2011 19 Grupo Quimmco Companies Brief Profiles
Quimmco Presentation 2011 20 AGRICULTURAL AND CONSTRUCTION MACHINERY CNH de México, S.A. de C.V. ( CNH )
Quimmco Presentation 2011 21 Overview World class manufacturer of agricultural and construction machinery Products include agricultural machinery: tractors and machinery for harvesting, forage and seeding equipment; construction equipment: excavators, trenchers, wheel loaders and related equipment New Holland and Case are strongly positioned brands in the domestic market Extensive dealer network with more than 210 agricultural and 120 construction machinery points of sale throughout Mexico Financial services company (CNH Serv. Comerciales) offering financing to consumers ISO 9001:2001 and Ocima certifications
Quimmco Presentation 2011 22 Markets Served Agricultural Machinery 70% Main Products: Tractors Hay & Forage Equipment Seeding and Application Equipment Construction Equipment 12% Main Products: Articulated Trucks Excavators Track Loaders Compaction Equipment Loader / Backhoes Forklifts Telehandlers Wheel Loaders Service & Parts 18%
Quimmco Presentation 2011 23 Awards & Certificates 2007:2010 ISO 9001:2000 certificate 2007:2010 Ocima Tractor certificate
Quimmco Presentation 2011 24 Geographic Location CNH de México Ave. 5 de Febrero 2117 Fracc. Ind. Benito Juarez Querétaro, Qro. Tel. (442) 211 9100 Fax. (442) 211 9103
Quimmco Presentation 2011 25 AXLES, BRAKES & ASSEMBLIES Sistemas Automotrices de México, S.A. de C.V. ( Sisamex )
Quimmco Presentation 2011 26 Overview World class manufacturer of components for commercial vehicles Products include axles, brakes, and related components and assemblies for medium- and heavy-duty trucks One of the most efficient and reliable manufacturers of commercial vehicle components in North America Front steer and drive axles. Single and tandem rear drive axles. Brakes, drivelines and other components ISO 9001 and ISO/TS 16949 certification Assembly, machining and other finishing capabilities
Quimmco Presentation 2011 27 Markets Served Trucks 70% Main Products: Axles Brakes Drivelines Single Drive Axle Buses 5% Main Products: Axles Brakes Drivelines Other Applications 25% Main Products: Housings Carrier mountings Diff cases Gear sets Yokes Meritor Tandem Axle Meritor Q Plus Cam Brake
Quimmco Presentation 2011 28 Main Customers
Quimmco Presentation 2011 29 Awards & Certificates 2007:2008 50 Most Innovative Companies Award 2007/2008 PACCAR Quality Award 50 PPM s Clean Industry Certificate
Quimmco Presentation 2011 30 Geographic Location Sisamex C. Monterrey-Colombia Km. 6 General Escobedo, N. L. México 66050 Tel. (81) 8369 1250 Fax (81) 8369 1216
Quimmco Presentation 2011 31 FORGINGS Forja de Monterrey, S.A. de C.V.
Quimmco Presentation 2011 32 Overview Modern heavy forging plant. 2 fully automated lines. TMP Presses Line 1 features a 12,500 T Press specialized in the production of i-beams for heavy-duty trucks and diesel engine crankshafts. Capacity of 300,000 units per year Line 2 features a 8,000 T Press dedicated mainly to the production of gasoline crankshafts. Capacity of 700,000 units per year Finishing operations including heat treatment, machining, mass centering, tooling design and fabrication & surface treatment ISO 9001 certified since 2004 ISO/TS 16949 certified since 2008
Quimmco Presentation 2011 33 Markets Served Heavy Truck 60% Main Products: I-beams Crankshafts Suspension arms Knuckles Ring Gears Passenger vehicles 40% Main Products: Cranskhafts
Quimmco Presentation 2011 34 Main Customers
Quimmco Presentation 2011 35 Awards & Certificates Mexican Association of Technological Development 3rd Place Technological Innovation 2006 Mexican EPA Clean Industry Certificate
Quimmco Presentation 2011 36 Geographic Location Forja de Monterrey Carr. Monterrey-Colombia Km. 6 General Escobedo, N. L. México 66050 Tel. (81) 8305 0000 Fax (81) 8305 0035
Quimmco Presentation 2011 37 PRECISION MACHINING Manufacturera de Cigüeñales de México, S.A. de C.V. ( Macimex )
Quimmco Presentation 2011 38 Overview One of the largest crankshaft machining companies in the world Dedicated to precision machining of casted and forged crankshafts for auto, agricultural and recreational vehicles Fully automated machining lines with best in class equipment Capacity to machine 2.1 million crankshafts per year Direct and indirect exports account for more than 80% of sales ISO 9001 and ISO/TS 16949 certification
Quimmco Presentation 2011 39 Markets Served Automotive 85% Main Products: Gasoline engine Crankshafts Agricultural Equipment 10% Main Products: Diesel engine Crankshafts Other 5% Main Products: Crankshafts for Boats & Other applications
Quimmco Presentation 2011 40 Current and Past Customers A Company for
Quimmco Presentation 2011 41 Awards & Certificates General Motors 2003 Worldwide Supplier of the Year
Quimmco Presentation 2011 42 Technical, Engineering and Supply Chain Capabilities
Quimmco Presentation 2011 43 Geographic Location Manufacturera de Cigüeñales de México Carr. La Marquesa Tenango Km. 38.5 Tenango del Valle, Edo. Mex. México 52300 Tel. (722) 276 6500 Fax (722) 276 6504
Quimmco Presentation 2011 44 TOOLING & MACHINING Quimmco Centro Tecnológico, S.A. de C.V.
Quimmco Presentation 2011 45 Overview Quimmco Centro Tecnológico ( QCT ) has three business units: Molds & dies for the foundry and forging industries Manufacturing and re-sharpening of special cutting tools Machining services Recent investments to increase capacity Best in class equipment Design and manufacturing engineering capabilities ISO 9001 and ISO/TS 16949 certification
Quimmco Presentation 2011 46 Markets Served Heavy-Duty Truck & Auto 90% Main Products: Foundry Tooling Forging Tooling Machining Fixtures Special Drills Special Cutters Hob & Broach Regrinding Ductile Iron Machining Aluminum Machining Other Applications 10%
Quimmco Presentation 2011 47 Main Customers
Quimmco Presentation 2011 48 Geographic Location Quimmco Centro Tecnológico Blvd. Vito Alessio Robles 4383 Fracc. Ind. Valle de Saltillo Saltillo, Coahuila México 25217 Tel. (844) 438 6000
Quimmco Presentation 2011 49 CASTINGS Blackhawk de México, S.A. de C.V.
Quimmco Presentation 2011 50 Overview Foundry specialized on gray and ductile iron castings 20,000 metric tons annual capacity. Operating at 13,000 MT with a headcount of 200 Product range from 2 kgs (5 lbs) to 100 kgs (220 lbs) Current mix is 85% ductile and 15% gray iron ISO 9001 certified since 2004 ISO/TS 16949 certified since 2009 Currently 15% of the production is supplied fully machined
Quimmco Presentation 2011 51 Markets Served Heavy Truck 80% Main Products: Diff Cases Diff Carriers Slip Yokes Wheel Hubs Farm Equipment 15% Main Products: Hydraulic components Flywheels Wheel Hubs Steering Arms Retainers Other 5% Main Products: Cable Drum Brake Cylinder
Quimmco Presentation 2011 52 Main Customers Argentina S.A. Italia S.p.a México
Quimmco Presentation 2011 53 Blackhawk Milestones 2006: Value Added Operation Starts offering value added operations (painting, machining, heat treatment and full assemblies) 2007: Lean Manufacturing People involvement & empowerment through Kaizen events Plant Productivity 2008: Flexibility & Exports Key Capital Investments (Press Pour, Holding Furnace, CNC Finishing, Mold handling - Didion) High flexibility for lot sizes and metal grades Started exports to Europe and South America Quality System upgrade from ISO 9001 to ISO/TS 16946 2009: Innovation ISO/TS Certification American Foundry Society Plant Engineering Award 2009 (First time to non US Foundry) Low cost tooling / pattern implementation
Quimmco Presentation 2011 54 Awards & Certificates American Foundry Society Modern Casting Magazine Plant Engineering Award 2008 Metalcaster of the Year 2009
Quimmco Presentation 2011 55 Geographic Location Blackhawk de México Carretera Villa de García Km. 2.5 1-A Santa Catarina, Nuevo León México 66350 Tel. (81) 8151 0300 Fax (81) 8151 0305
Quimmco Presentation 2011 56 POLYURETHANE FOAM Química Pumex, S.A. de C.V.
Quimmco Presentation 2011 57 Overview Química Pumex is the largest integrated independent producer of rigid polyurethane foams in Mexico Manufactures and markets rigid polyurethane foams for the following applications: Sprayed foam for housing and piping insulation, pipe sealant, coating and cleaning Poured foam for refrigeration appliances & equipment Mouldings, buoys Polyurethane advantages: strong, lightweight, durable, resistant to abrasion & corrosion ISO 9001 certification
Quimmco Presentation 2011 58 Markets Served Sprayed Foam 35% Main Products: Housing Insulation Piping Insulation Chicken & Pork Farms Poured Foam 35% Main Products: Refrigeration equipment Appliances Mouldings 15% Other Applications 15%
Quimmco Presentation 2011 59 Main Customers
Quimmco Presentation 2011 60 Geographic Location Química Pumex Libramiento Noroeste Km 12.8 García, Nuevo León México 66000 Tel. (81) 8369 0300 Fax (81) 8369 0345
Quimmco Presentation 2011 61 OFFICE FURNITURE Promotora de Bienes de Capital, S.A. de C.V. WKS
Quimmco Presentation 2011 62 Overview Promotora de Bienes de Captital is a 100% Mexican company dedicated to the design, manufacture, and sale of office furniture and fine doors The company has its production facility in Escobedo, Nuevo León. Modern production equipment and design capabilities Sells its products with the WKS brand mainly to institutional clients Recently has won several important contracts with prominent customers such as Grupo Financiero Banorte, Teleperformance, and Federal & State Governments Recognized quality and export history
Quimmco Presentation 2011 63 Markets Served Institutional Office 80% Main Products: Doors Desks Chairs Tables Reception furniture Work stations Complementary accesories Design accesories Complete office space solutions Other markets 20%
Quimmco Presentation 2011 64 Main Customers
Quimmco Presentation 2011 65 Geographic Location Promotora de Bienes de Capital Av. Roble 701 Planta Baja Col. Valle del Campestre Garza García, Nuevo León México 66265 Tel. (81) 8368 7560 Fax (81) 8368 7562
Quimmco Contacts Presentation 2011 66 Sistemas Automotrices de Mexico www.sisamex.com.mx + 52 (81) 8369 1250 + 52 (81) 8369 1216 Macimex www.macimex.com + 52 (722) 276 6500 Tenango + 52 (844) 866 0900 Ramos Arizpe + 52 (722) 276 6509 Quimica Pumex Spray Mex www.pumex.com + 52 (81) 8369 0370 + 52 (81) 8369 0345 Sudisa www.sudisa.com.mx + 52 (333) 668 5512 + 52 (333) 668 5517 Blackhawk de Mexico www.blackhawk.com.mx + 52 (81) 8151 0300 + 52 (81) 8340 4684 Aislantes Celulares www.aislantescelulares.com + 52 (81) 8351 0862 + 52 (81) 8351 9649 Forja de Monterrey Quimmco Centro Tecnologico www.forja-mty.com.mx + 52 (81) 8305 0000 www.qct.com.mx + 52 (844) 438 6005 + 52 (81) 8305 0035 + 52 (844) 438 6007 Industrias Oleoquímicas www.pumex.com + 52 (81) 8369 0370 + 52 (81) 8369 0345 www.quimmco.com Address Av. Roble No. 701, 11 th floor Col. Valle del Campestre San Pedro Garza García, N.L., México 66265 +52 (81) 8368 7500 +52 (81) 8356 5744 info@quimmco.com CNH de México www.cnhmexico.com.mx + 52 (422) 211 9101 + 52 (422) 211 9103 Quimmco USA www.quimmco.com + (954) 458 5451 + (954) 458 5452 Promotora de Bienes de Capital www.workspaces.com.mx + 52 (81) 8154 8710 + 52 (81) 8154 8715 Torreon Promotor Inmobiliario www.quimmco.com + 52 (81) 8397 7960 + 52 (81) 8397 7920 Grupo Industrial Tres Ríos www.quimmco.com + 52 (81) 8369 4200 + 52 (81) 8369 4202