Magal Engineering Limited

Headley Road East

Woodley

Reading RG5 4SN

United Kingdom

www.magal.co.uk

Magal Engineering Group

Magal Engineering Group Structure

Gamil Magal (CEO) David Woolford (COO)

Kevin Lowen (CFO) Adrian Paul (Finance, M&A)

Andy Tonks (Group Sales & Business Development)

Automotive

Division

Location Products

Thermostat

Plastic

Housing

Oil Diverter

Pedals

Handbrake

Gear Shifter

Hinges

Latches

Jacks

Winches

Cables

Steering

Conrods

UK (x3)

France (x3)

Germany (x1)

India (x1)

Turkey (x1)

USA (x1)

China (x1)

Non-

Automotive

Division

Location Products

Elements

Central

Heating

Temperature

Control

Industrial

UK

France

India

Industrial

Facades

Location Products

Industrial

Window

Systems

Cladding

Door

Systems

Curtain

Walling

UK

Implementation

of

Magal Lean

Manufacturing

Principles

Magal Engineering Company History

Acquisition of Adwest Engineering Ltd 2002

Acquisition of;

Metallifacture Ltd; Adwest Cables Ltd; Western Thomson

Controls Ltd; Dauphinoise Thomson SAS (France);

Bowden SAS (France); Western Thomson India

Formation of the Magal Engineering Group.

2003

2004

FTW and Portland Pressings acquired and amalgamated into

Western Thomson Plastics Ltd

2005 Acquisition of AP Driveline Technology Ltd

2006

Construction of new production facility in Chennai, India

commences

Central R&D facility complete and fully operational

Launch of Customer Focused Sales Organisation

Acquisition of QH Clutch manufacturing business

Magal Engineering becomes strategic supplier to Daimler,

Ford and Renault

2007

Production begins at Magal Engg. Tech, Chennai

Worldwide recession hits automotive industry 2008

2009 Strong restructuring;

Formation of strategic alliance with Midway Products US

Acquisition of moulding company Saviplast – Saint Savine, France

2010/11 Launch of single company at Reading UK – Magal AWT Ltd. (Adwest

Western Thomson). Start up of significant new programs

Launch of Magal Otomotiv Turkey JV Cavo

Implementation

of

Magal Lean

Manufacturing

Principles

2012 Launch of new company in China; Partnership with Tongrun

Magal Engineering Company History

2008 Sales

781 People | 7 Countries | Global Facilities 11 | £72m (2013 Sales Forecast)

(As of January 2013)

Magal Group Global Locations

Facilities | 1

US + CANADA

Facilities | 3

UK

Facilities | 5

Europe

Facilities | 2

Asia

Magal Engineering Group Capabilities

Cooling Management Modules Push/pull control cables,

light, heavy duty, & Security cables. Park Brake Assemblies Conrods

Pedal Box Assemblies Gear Shift Assemblies Complex Steel Pressings

Hinges

Puncture Management

Magal Group Turnover Projected – 2017

• Recession 2008/9 hits Automotive industry. AP Driveline lost from group

• Strategic new business wins increase sales in UK from 2013

• Magal Cavo sales increase as Ford Otosan ramps up new Transit production

Magal Group Sales by Customer

2014 Sales £86m

Magal Group Sales by Division

2014 Sales £86m

Steering 6% Jacks 16%

Parking brakes 16%

Cables 9%

Thermostat & Powertrain Mouldings 30%

Con-Rods 5%

Other 4%

Pedal Boxes 2%

Wheel Winch 12%

Consolidated Group Product Sales

Electronic DC Motor Conventional Thermostat Housing

Development Innovation

New Projects to Production

• Summary of Magal Engineering Group new business

awards

– Sales Growth £27.6m p.a.

– Growth 40%

7 Projects with Ford

6 Projects with JLR

1 Project with London Taxi Steerings

2 Projects with Daimler, GPM, Saleri

2 Projects with BMW

– Investment £9.4m

• Growing business with Ford & JLR

• Further customers in Europe

• New customer with BMW

• Expansion in India, China and Turkey

• Sales to North America and Brazil

Suppliers to Magal Group

• Summary of Magal Engineering Group spend

– Material and Service Expenditure £28.5m

– Additional JV Expenditure (Turkey, India) £8.5m

– Material and Service Spend UK Plants £14.3m

– Current Spend with UK Suppliers £9.5m

• Main Commodities purchased

– Plastic Resins

– Steel Coil

– Wire

– Machined Components

– Rubber Moulding

– Castings

– Cold Formed / Fastenings

– Forgings

– Bearings

– Transport

– Packaging

– Press and Mould Tooling

– Special Purpose Machines

– Machine Consumables

New Projects – Industrial Facades

• Magal Facades produces & assembles

window systems, cladding and curtain

walling for the construction industry

• 2013 Sales turnover £1m (labour only)

• 2014 Sales forecast £2m (labour only)

• Bidding for complete manufacturing &

installation projects

• Working with high end developments &

materials

• Lean Manufacturing Principles

• Right First Time / Just in Time Philosophy