Welcome to

ML Industries, Inc.

MLI Overview

We can support your automotive manufacturing needs

We save liveseveryday

Mission

To improve the standard of living for

each and every associate in our

organization.

Vision

To successfully grow our business with

“World Class Customers”, by providing

exceptional value through superior

quality, on-time delivery, and overall

customer satisfaction.

MLI OverviewObjectives

Organization MLI Overview

Mickey T. Dunn President & CEO

Teresa GroundVP - Operations

Jack RichardsonVP – Airbag & New

Business Development

Gary DunhamCFO

Rafael GonzalezDirector of Logistics

& Procurement

Brenda VillarrealCorp. Purchasing

Manager

Roberto JuradoGeneral ManagerSan Pedro I & II

Rocio de la RosaCorp. Projects & Engineering Mgr.

Hector CastilloPlant ManagerMadero Plant

Alfredo GarzaPlant Manager

Diaz Ordaz

Todd SmithDirector of

Development

Chaz McGuireDevelopment

Manager

Salvador BerumenMLI APQP Manager

Susana OcañaUS Finance Manager

Juan Pablo RodriguezMadero Plant

Controller

Matt DunnFinancial Analyst

ML Industries Inc.

Organizational ChartJanuary, 2016

TBDPlant Manager

San Pedro II

Querido GalvanDiaz Ordaz Plant

Accountant

Hiroshi NemotoVP - Sales

Arturo GarciaFinance Director

Roberto RodriguezMadero Plant Accountant

Fernando VillarrealVP - Quality

Business Segment Focus MLI Overview

62.0%

33.0%

2.9% 2.1%

ML Industries, Inc.

Business Segment Analysis

2014

Automotive Airbag

Automotive Trim

Protective Cover

Apparel

ML Industries, Inc.

Business Segment Analysis

2016

49.4%

48.9%

1.7%Automotive Airbag Segment

Automotive Trim Segment

Protective Cover Segment

ML Industries in Automotives

Privately held Company

23 Years Experience in Manufacturing in Mexico

Four Manufacturing Locations in Mexico

Largest Independent Airbag Manufacturer in North

America

All Design, Development, Engineering, Logistics,

Planning, and Costing activities located in Mexico

Automotive OEM Customers

Audi

BMW

Chrysler

Fiat

Ford

General Motors

Honda

Hyundai

Kia

Land Rover

Mazda

Mercedes Benz

Mitsubishi

Nissan

Opel

Porsche

PSA

Rover

Saab

Seat

Skoda

Subaru

Toyota

Vauxhall

Volkswagen

Volvo

DAF

Flexsteel

Freightliner

Holiday Rambler

John Deere

Kenworth

Mack

Navistar

Peterbilt

Scania

Starcraft

Volvo Truck

Light Passenger Vehicles Heavy Trucks & Specialty Vehicles

ML Industries in Safety Restraints

Airbag Manufacturing Technology

Our Products MLI Overview

Automotive Airbag Products

Our Products MLI Overview

Our Products

Automotive Airbag Products

MLI Overview

Organization MLI Overview

ML Industries in Automotive Interiors

Automotive Interiors

Our Products MLI Overview

Interior Manufacturing Technology

Our Products MLI Overview

Our Products MLI Overview

Protective Cover Segment

MLI

ISO 9001:2008

Certified

Quality Systems MLI Overview

MLI

Certified Company - Empresa Certificada

MLI OverviewLogistics

1990

MLI founded by Mickey Dunn

McCaysville, GA

15 Associates

Apparel Market

MLI Overview

MLI Transformation

MLI founded by Mickey Dunn

Facility in McCaysville GA

Knit products 15 associates

MLI Opened it’s First Plant

in Mexico in Diaz Ordaz

Tamaulipas under NAFTA

MLI Overview

Milestone Events

1990 1994 2002 2004 2008 2011 2014 2016

MLI Overview

MLI Transformation

1990 1994 2002 2004 2008 2011 2014 2016

MLI founded by Mickey Dunn

Facility in McCaysville GA

Knit products 15 associates

MLI Opened it’s First Plant

in Mexico in Diaz Ordaz

Tamaulipas under NAFTA

MLI decides to aggressively

pursue Non-Apparel Sewn

Products

MLI started producing

Automotive Products - Seat

Suspensions, Seat Covers,

and Airbags

Apparel

MLI Overview

MLI penetrated the

Automotive Trim

Market with Honda

Civic Seat Cover

Placement

MLI achieved the goal of

Strategically Diversifying its product

base. MLI becomes a strong and

important Supplier to the Global

Automotive Marketplace.

Global Economic

Meltdown, MLI embraces

LEAN Manufacturing

Milestone Events

Automotive

MLI continues Growth

Strategy with Key

Customers and opens

4th plant in Mexico,

San Pedro 2, and

expands strategic

Madero Plant for

growth needs.

Our Plants Locations MLI Overview

Madero Location

Manufacturing 125,656 ft2

Office & Others 34,257 ft2

Total Facility 159,913 ft2

Total Land Area 12.35 Acres

MLI Overview

Qtr 2, 2016

Madero Expansion

Completed

40,000 sq ft of Mfg

Floorspace Added

San Pedro 1 Location MLI Overview

San Pedro 2 Location

Manufacturing 40,000 ft2

Office & Others 6,603 ft2

Total Facility 46,603 ft2

Total Land Area 21,359 mt2

MLI Overview

Manufacturing 29,000 ft2

Office & Others 4500 ft2

Total Facility 33,500 ft2

Total Land Area 33,500 ft2

MLI OverviewDiaz Ordaz Location

MLI Associates by Location

Location Associates

Madero 2,881

Diaz Ordaz 300

San Pedro 1 2,185

San Pedro 2 174

United States 9

Grand Total 5,549

MLI Overview

Torreon Area Population

Urba n Are a Popula tion Ma le Fe ma le Age Av.

Torre ón 529,512 257,176 272,336 24

Góme z Pa la c io 273,315 134,647 138,668 23

Le rdo 112,435 55,546 56,889 22

Ma ta moros 92,029 45,817 46,212 22

Sa n Pe dro de la s Colonia s 88,343 43,928 44,415 23

Fra nc isc o I. Ma de ro 46,452 23,096 23,356 23

Cue nc a mé de Ce nic e ros 32,805 16,277 16,528 21

Ma pimí 22,367 11,089 11,278 20

Tla hua lilo de Za ra goza 19,918 9,809 10,109 23

Vie sc a 18,969 9,509 9,460 22

Rode o 12,497 6,091 6,406 20

Na za s 12,467 6,157 6,310 22

Ge ne ra l S imón Bolíva r 10,644 5,247 5,397 20

Sa n Jua n de Gua da lupe 6,548 3,217 3,331 19

Sa n Luis de l Corde ro 2,070 1,020 1,050 22

Sa n Pe dro de l Ga llo 1,876 924 952 23

Tota l 1,282,247 629550 652697 22

Torreon Metro Area Total Population

MLI Overview

Torreon Universities

• 18 Post Secondary Universities

• 30 Private Primary and Secondary Schools

MLI Overview

How does MLI drive

Continuous Improvement?

Our Management System MLI Overview

jmr 1/07/2011

Lean Journey

Autonomous Mfg Teams

Autonomous Teams

Ethical Behavior

Policy By Deployment

5 WHY Analysis

Poka Yoke

Yoketan

FTQ Process

PFMEA Go See & Fix

APQP New Product Development

Takt Time/Operator Balance

Visual Factory

Single Piece Flow

Value Stream Mapping

Leveling/Kan Ban Signals/Flow

SMED

Standard Work

Kaizen/Jidoka Activities

Preferred Workplace

FOUNDATION

Supply & Delivery Routes

MPS/LEAN House

1. Associate

Involvement

2. Quality Systems 3. Continuous Flow

Supplier Quality Process

Daily Team Maintenance

Layered Audits

Participation/ Recognition

Culture of

Teamwork

Safety & Environmental

Responsibility

Associate Training/

Skills Development5S

Satisfactory - 2

Good - 3

Benchmark - 4

Plant Implementation Level

Unsatisfactory/Not Started - 1

San Pedro Plant

SELF - DIAGNOSIS

THE ROAD

AHEAD

withML Industries

MLI Overview