firan technology group corporation a leader in...

P a r t n e r s i n P e r f o r m a n c e

Operational ExcellenceTSX:FTG

Firan Technology Group Corporation

A Leader in Aerospace and Defense Electronics

2012

Operational Excellence


FTG Corporation

Markets

Aerospace and Defense

Products

Cockpit Products Printed Circuit Boards



FTG Today

Sales

Plant

�TSX:FTG

�$53M Sales

�350 Employees

�17,803,201

Common Shares

�1,775,000 Conv.

Preferred Shares



Globalization Strategy

FTG Aerospace

Direct investment in low cost region

�18,000 square foot facility

�Grand opening October 2011

FTG Aerospace

Direct investment in low cost region

�18,000 square foot facility

�Grand opening October 2011

FTG Circuits

Offer low cost region solutions:

Sales agreement(s) Cross investments

FTG Circuits

Offer low cost region solutions:

Sales agreement(s) Cross investments



FTG Value Proposition

Wide Product Offering

Support customers’ complete needs

Technology Leadership

Support latest technologies

Quality Leadership

Aerospace and military certifications

Robust quality systems

Reliability Leadership

Understand reliability drivers

Deliver high reliability products

Wide Product Offering

Support customers’ complete needs

Technology Leadership

Support latest technologies

Quality Leadership

Aerospace and military certifications

Robust quality systems

Reliability Leadership

Understand reliability drivers

Deliver high reliability products


Best-in-class quality and delivery

Outstanding service

Financial Strength

Long term survivor

Invest in new technologies

Geographic Coverage

Local presence

Offset capabilities

Low cost region solutions

Military export controlled product solutions


Best-in-class quality and delivery

Outstanding service

Financial Strength

Long term survivor

Invest in new technologies

Geographic Coverage

Local presence

Offset capabilities

Low cost region solutions

Military export controlled product solutions



FTG Aerospace - Toronto

35,000 square foot facility

Toronto, Canada

Moved to expanded facility September, 2007

Certifications include:

SAE AS7788

MIL-DTL-7788G

ISO 9001/2008

AS9100C



FTG Aerospace - Toronto

In house capabilities:Customer ServiceEngineeringMachiningPaintingAssemblyLaser etchingEnvironmental testingInspection



FTG Aerospace Tianjin


Located in Tianjin Grand opening October 2011

Certifications:

AS9100C planned for 2012

Equipment:

Integrated ERP system

Environmentally controlled paint booths

Light balancing dark rooms

Laser etching system

ESD compliant assembly area

QC area and test equipment



Assigned Sales and Customer Service representatives

Maintains continuity with account

Ensures accurate, timely responses to all customer enquiries

Full engineering support through product development

Reduces product development time and cost

Ensures optimal manufacturability of the design

AOG and QTA service

Safety Stock Allows flexibility to support expedited delivery without expedite charges

FTG Aerospace - Services



FTG Aerospace - Customers



FTG Aerospace - Customer Growth

Time

Legacy

Customers

Sole Cockpit

Panel Supplier

Cockpit panels

& power supplyWon first electro-

Mechanical ass’y Won 429 content

Leverage CircuitsWon Firecom Program

Military Assemblies

787 Cockpit

New customer/program wins are accelerating

Grew Technology

Global Vision Program

Ground based

Military display

Won trackball

assemblies

Won C Series

content



FTG Aerospace Programs

Commercial Programs Military Programs

Boeing 737

Bell 429

Bombardier CRJ Bombardier Q Series

ChallengerDiamond

C2A Blackhawk UH60

C130E2C

Chinook CH47

V22

Apache

Bombardier CSeries



FTG Aerospace - Panels

FTG Panel Products

Backlit panels

Integrated switches

Assemblies

Smart Panels

Dead front annunciators



FTG Aerospace - Keyboards

FTG Keyboard Products

Keyboards

Bezels

Integrated Electronics

Electronic, Environmental and Illumination testing



FTG Aerospace - Lighting Power Supply

FTG Power Supply

Designed for cockpit lighting applications

Up to 40 outputs

5 and 28 V outputs

Programmable dimming curves

Maintenance port

LPS

0-5VDC

0-5VDC

0-5VDC

0-5VDC

0-28VDC

0-28VDC

0-28VDC

28VDC

MaintenancePort



FTG Aerospace – Assemblies

FTG Assemblies

Fully integrated box assemblies

Custom designed electronics

Embedded software

Variety of interfaces

Testing as required



FTG Aerospace - Assemblies

Assembly (1) Front Panel Assembly, (2) Mounting Plate Assembly(3) Box enclosure(4) MCU, GIO, and DLD Circuit Card Assembly

3

1

2

4

Transparent Viewof Box

Front Replaceable

Display



Ground Based Military Displays

FTG has designed a bezel for the MRAP (Mine resistant ambush product)

NBC washdown compatible

Fully sealed unit

Designed for high volume production



FTG Aerospace – Lighting Technology

Lighting Technology

Incandescent

LED

Electro-luminescent

NVIS & non-NVIS



FTG Aerospace – Technology Growth

Panels81%

Keyboards18%

Assemblies1%

Panels41%

Keyboards39%

Assemblies20%

2003 Technology

2011 Technology



85,000 square foot facilityCertifications include:

ISO 9001/2008AS9100CMIL-PRF-55110MIL-PRF-31032NADCAP

FTG Circuits - Toronto



FTG Circuits - Chatsworth

Acquired by FTG in 2004


Certifications include:ISO 9001/2008

AS9100B

MIL-PRF-55110

MIL-P-50884

NADCAP



FTG Circuits – Services

Services

Fast quote response times

Automated Order Tracking

Project Team Participation

Design Reviews

DFM Reviews – on-line

Performance TestingInterconnect Stress Testing (IST)

Highly Accelerated Thermal Stress (HATS)

Customer research partnerships

Standards Committee Involvement

Educational Seminars

The Printed Board Process for Beginners

High Density Interconnect Structures (HDI)

Material Selection

Impedance Control

Buried Planar Capacitance

Surface Finishes

Lead Free Impact on Design for High Reliability Applications



FTG Circuits - Manufacturing

Manufacturing Equipment

Late model equipment throughout

Automated systems

Specialized equipment for wide range of materials

Production redundancy between facilities

Rigorous maintenance system



FTG Circuits – Advanced Equipment

Laser Direct ImagingQty 4

Laser DrillingQty 2

Automated Via Fill

Automated PlanarizingQty 2

CNC MachiningQty 3

Copper Sputtering



FTG Circuits Customer Growth

Legacy

Customers

Time

Grew technology

qualificationsGrew technology

qualifications

Grew Technology

Major PCB supplierVia acquisition

Qualified via

Acquisition

Won Thales,

Tocnet… programs

Won 787 Content

Grew Technology

Qualified at

New site

New customer/program wins are accelerating

Via acquisition

Qualified at

Air Transport

New sites via

Acquisition

Qualified via

Acquisition

Won 787, A350,

A400M programs

Qualified via

Acquisition

Qualified at

New sites

Qualified for

HDI product



Commercial Programs

A 380

787 Dream Liner

Space Programs

International

Space Station

Military Programs

F 22

Apache

Joint Strike fighter

FTG Circuits – Programs

EQ 36 Radar

Falcon II Radio

M1A1 Tank

Boeing 737

Simulator



FTG Circuits - Customers



FTG Circuits – Product Growth

High Reliability

Implemented methodologies to increase PCB reliability

Advanced and Mixed Materials

Advanced TechnologiesMicro viaSequential buildFilled ViasEmbedded components

Flex and Rigid Flex PCBsFTG Circuits Chatsworth qualified





FTG Circuits – Reliability

Design Attributes Impact Reliability

Larger hole sizes increase reliability

Laminate selection has large impact on reliability

Even within single classes of material

Via fill materials have small impact on reliability

Via Fill A, B and C are conductive

Via fill D and E are non-conductive

Mean of Cycles of IST Coupon

13.5

12.0

10.08.

0

1000

900

800

700

Supp

lier E

Supp

lier D

Supp

lier C

Supp

lier B

Supp

lier A

PC 370

HR

Pana

sonic

175

5

1000

900

800

700

Drill Diameter in Mils Via Fill material

Epoxy material

Main Effects Plot (data means) for Cycles of IST Coupon



FTG Circuits – HDI Products

Up to 40 Layers

0.003” lines and spaces

Aspect ratio to 12:1

1-5 lamination cycles

FR4BTPolyimide

All surface finishes

Conductive and non-

conductive via fill

Micro vias and filled micro vias

Stacked and staggered micro vias



FTG Circuits – Flex and Rigid Flex

Adhesiveless flex fabrication

Adhesiveless rigid flex fabrication

Build to IPC 6013 and MIL-P-50884 specifications

2-20 layers

All surface finishes

Connector and passive component assembly



FTG Circuits – Specialty Products

Thermal management products

Heat sink fabrication

Heat sink bonding

Copper and CIC core bonding

Machining

Controlled depth drilling

Specialty drilling and

plating

Copper Sputtering



FTG Circuits – RF Products

Single and doubled sided Teflon

Hybrid laminate construction including Teflon

Post bonded Teflon Conductive and non-conductive bonding films

Rogers3000 series4000 series5000 series6000 series

TaconicArlon

Pre bonded Copper backed Teflon

Pre bonded Aluminum

backed Teflon



FTG Circuits - Materials

TorontoNelco

BT, 4000-13 & (SI)

Panasonic

1755, 1755V

Megtron, Megtron 4 & Megtron 6

Isola

FR 410, FR 406, FR 408

IS620, IS640

370 HR

Arlon

Polyimide & Thermount

25N/45N/84N/85N

Rogers

3000, 4000, 5000 and 6000 series

Metal backed PTFE

Taconic

Ceramic filled PTFE

Thermal management materials

ChatsworthNelco

4000-13 & (SI)

Panasonic

1755, 1755V

Megtron and Megtron 4

Isola

FR 410

370 HR

Arlon

Polyimide & Thermount

25N/45N/84N/85N

Rogers

3000, 4000, 5000 and 6000 series

Metal backed PTFE

Taconic

Ceramic filled PTFE

Dupont

Pyralux flex laminates

Heat Sinks

CIC and core boards



FTG Circuits- Products

Toronto24” X 30” PanelMicrovias

Single, staggered, stacked

Buried CapacitanceBuried ResistorsEmbedded InductorsDifferential ImpedanceHeavy Copper BoardsBlind /Buried Via’sFilled / Planarized Via’sHeat Sink BondingSurface Finishes

White TinImmersion Nickel/GoldImmersion SilverOSPHASLDeep Tank Soft GoldENEPIG

Custom Milling/Machining

Chatsworth18” x 24” PanelMicrovias

Single, staggered, stacked

Buried CapacitanceBuried ResistorsEmbedded InductorsDifferential ImpedanceHeavy Copper BoardsBlind / Buried Via’sFilled / Planarized Via’sHeat Sink BondingSurface Finishes

Electroplated Nickel/Palladium/ GoldWhite TinImmersion Nickel/GoldImmersion SilverOSPHASLDeep Tank Soft Gold

Custom Milling/Machining



FTG Circuits – Technology Growth

2 Layers3%

16+ Layers5%

4-8 Layers46%

10-14 Layers46%

2 Layers15%

4-8 Layers33%

10-14 Layers38%

16+ Layers14%

2003 Layer Count

2011 Layer Count




FTG Circuits – Technology Growth

FR498%

Polyimide1%

Exotic1%

FR458%

BT3%

Polyimide13%

RF13%

2003 Material Segmentation

2011 Material Segmentation

RigidFlex7%

Hybrid 3%

Core 3%




Ontario Government Support

Areas of investment include:

process improvement – HDI, micro vias, soldermask…product improvement – RF, HDI, new materialssystems development – ERP, shop floor toolsgreen technologies – water reduction, other utility savings

Ontario Government commits funding to FTG Circuits Toronto $5.1M, five year, interest-free loan to support:

R&D

Equipment

FTG commits to:

invest $17M over 5 years

maintain and expand Ontario based workforce



Build the Best Team

FTG CircuitsChatsworth

FTG CircuitsToronto

FTG Aerospace Toronto

Finance Technology Quality Sales

FTG Aerospace Tianjin



Technical Team

FTG has undertaken a multiyear program to add technical skills across the company:

Chief Technology Officer

Director, Technical Support

New engineering management at all FTG Sites

7 new engineers/technicians in Circuits – Toronto

5 new engineers/technicians in Circuits – Chatsworth

5 new engineers/designers in Aerospace

Hiring engineering graduates has been a huge success for FTG



Process Controls

FTG has statistical process controls (SPC) in all facilities

Automated tools are used to track performance and maintain controls

FTG employees are trained to achieve 6 Sigma green belt certification



Lean Manufacturing

FTG employs lean manufacturing principles throughout its operations

FTG Aerospace’s new facility set up using lean manufacturing tools and techniques for efficient manufacturing flow

Value stream mapping

Point of use inventory/parts supermarkets

FTG is a two time recipient of the Lean Initiative of the year award at Rockwell Collins



Customer Scorecards

Delivery Ratings Quality/DPPM Ratings

Green = Above 95% Green = Less than 2,500

Yellow = 90% to 95% Yellow = 2501 to 10,000

Red = Below 90% Red = More than 10,000

CUSTOMER SCORECARD

Zena Cutler

Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Honeywell Delivery 62.7% 100.0% 98.6% 100.0% 95.8% 79.0%

Toronto Quality 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 1 Historical Honeywell fixed in supplier portal

DPPM 0 0 0 0 0 0 2

Honeywell Delivery 100.0% N/A 100.0% 100.0% 100.0% N/A 3

Boyne City Quality 100.00% 100.00% 100.00% 100.00% 100.00% N/A 4

DPPM 0 0 0 0 0 N/A 5

Honeywell Delivery 100.0% 100.0% 99.9% 99.9% 95.8% 96.8% 6

CCAPG Quality 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 7

DPPM 0 0 0 0 0 0 8

Honeywell Delivery 100.0% 100.0% 100.0% 100.0% 99.7% 96.9% 9

Olathe Quality 100.00% 100.00% 100.00% 100.00% 99.97% 100.00%

DPPM 0 0 0 0 304 0

Honeywell Delivery 100.0% 100.0% 100.0% 100.0% N/A 100.0%

Phoenix Quality 100.00% 100.00% 100.00% 100.00% N/A 100.00%

DPPM 0 0 0 0 N/A 0 1 HW (TO) results are late on 23pcs ,s/b late on 8pcs 1037093-1 &1037096-2 4pc of each.

Celestica Delivery 86.7% 100.0% 95.7% 100.0% 87.1% 97.0% 2 15pc late on 1035343-1 ,we shipped L/I 19due 10/24 instead of L/I 0016 due 9/26

Minnesota Quality 100.00% 100.00% 100.00% 100.00% 100.00% 99.80% 3 Early on 29pcs of 1037585-1 . We owed 45 for 9/12 (shipped 29 on 9/8) moved the bal of 16 to 9/23 .

C0639 DPPM 0 0 0 0 0 2020 buyer changed his system b4 the 29 were received as a result show early on the 29 ,.

Celestica Delivery 100.0% 100.0% 95.2% 100.0% 96.0% 100.0% 4 on time on the 16pcs. I've asked for adjustment on 44pcs.

Spain Quality 99.44% 99.94% 99.47% 100.00% 99.79% 99.96% 5 H/W CCAPG results are early on 17pcs,2106620-1,we shipped 50. I've asked for

C0749 DPPM 5614 647 6285 0 2114 411 6 adjustment

Celestica Delivery 75.0% 94.9% 88.5% 100.0% 100.0% 100.0% 7 H/W Olathe results are late on 45pcs, 009-08255-0000 this is accurate.

Malaysia Quality 99.81% 99.47% 99.86% 99.72% 99.95% 99.10% 8

C0929 DPPM 1860 5345 1401 2774 445 902 9

Suntron Delivery 84.6% 89.8% 100.0% 96.3% 97.4% 99.5%

Corp. Quality 99.88% 99.21% 100.00% 100.00% 100.00% 100.00%

C0561 DPPM 1170 7896 0 0 0 0

Customer Customer Scorecard Issues

Open Items

Closed ItemsFTG monitors customer scorecards to ensure performance expectations are achieved and maintained

FTG senior management reviews scorecards in a standard format across all sites each month

Corrective actions are taken as required to address any issues regarding quality or delivery

Targets are reviewed regularly to ensure consistency with customer expectations



Financial Review





Revenue Highlights$M

2002

20

40

60

80

80-90% of revenues derived in USD

100

2004 2005 2006 2007 2008 2009 2010

2002

20112003



$0

$5

$10

$15

$M

2003 2004 2005 2006 2007 2008 2009 2010 2011

Balance Sheet Highlights

Working Capital

Debt

FTG continues to invest for the future

Working Capital is Strong�Secure Accounts Receivables�Controlled Inventories

Debt down 75% from peak �Net debt is interest free



FTG Investments$000

$45 Million Invested in the Last 7 Years

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2005 2006 2007 2008 2009 2010 2011

Capital R&D Acquisition



FTG Contact Information

FTG Aerospace - Toronto10 Commander BlvdToronto, OntarioM1S 3T2(416)[email protected]

FTG Circuits - Toronto250 Finchdene SquareToronto, OntarioM1X 1A5(416)[email protected]

FTG Circuits – Chatsworth20750 Marilla StChatsworth, California91311(818)[email protected]

FTG Aerospace – Tianjin225 Jinger RoadAviation Industry Zone Building 2 Block 1-BTianjin Airport Economic AreaTianjin, P.R. [email protected]

firan technology group corporation a leader in...

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