LMV Automotive Systems Evolution Challenges Successes Andy Hrasky General Manager

Automotive OEM Bullseye Strategy = LMV KCAP MAGNA IOWA LMV FFX

Original State (built in 2012) – 217,483 sq ft

Ford Transit End Items = 104 Vehicle Volume = 142,272 Robots = 234 Program Life = 10 years Jobs = 350 Capital = $51 million

2014 Expansion – 250,425 sq ft Total Expanded Facility – 467,708 sq ft Nov 2012 217K sq ft Expansion 2014 250K sq ft W E N S

GM Chevy Malibu End Items = 15 Vehicle Volume = 257,600 Robots = 195 Program Life = 10 years (5 years X 2) Jobs = 250 Capital = $34 million

LMV Automotive Systems About Products Underbody Module Assembly Front & Rear Rails Side Steps Front Steps Cross-members Energy Management Systems Customers Capabilities Spot Welding Mig Welding Drawn Arc Welding Projection Welding CMM / White Light Scanning Technology Development Automated Assy Changeover from ERP System Multiple Model Assembly Lines Nondestructive Spot Weld Testing - Ultrasound Inspection with Tessonics UT Machine Macro Analysis inspection of Arc Welds – Paxit Imaging and Measuring Software Automated Production Reporting, Material Replenishment Monitoring, Virtual Kanban Location Stats Plant Size: 470,000 sq ft Employees: 700 Main: LMV Automotive Systems 3251 Heartland Drive Liberty, Missouri 64068 Phone: 816-479-5640 Map

LMV Automotive Systems Adapting for the Future 9/17/2018 Disclosure or duplication without consent is prohibited

Why the need for LMV Technical Training Center The Current Issues for Missouri (US??) Manufacturing As manufacturing facilities continue to expand, they will require more skilled labor Struggle to find skilled workers to support manufacturing operations No pipeline of skilled labor New hires have skill-gaps LMV currently hires skilled contract workers from outside the state of Missouri and outside the county to support daily manufacturing needs due to the lack of skill labor with in the region LMV Technical Training Center Will create a workforce with industry valued skills Increase the economic competitiveness of the region’s manufacturing and technology industries Provide critical link between education, economic development and workforce needs 9/17/2018 Disclosure or duplication without consent is prohibited

LMV Technical Training Center World Class Apprenticeship Competency-Based Industry Standards Fanuc Certification Journeyman Credentials Lincoln Electric Welding Certifications Results Tool Technicians Maintenance Technicians Weld Technicians Weld Cell Operators Improved Quality Improved Production Level Educated, Motivated Workforce = World-Class Manufacturing 9/17/2018 Disclosure or duplication without consent is prohibited

Required Training to Support LMV Operations Fanuc Robotics (advance spot tool and arc tool) Fanuc iRVision 2D and 3DL PLC Programing and Troubleshooting Welding (RSW/RPW, DRAWN ARC) Centerline Resistance Welding Welding Physics Pneumatics Training Hydraulics Training Motor/Controls Electrical/Electronics CNC Mill, Lathes, Grinders GD&T, SPC’s and Datums Blue Print Reading Electrical Print Reading Tooling and Die 9/17/2018 Disclosure or duplication without consent is prohibited

Training Center Renovation Utility Room turned Maintenance Work Area turned Innovation and Training Center 9/17/2018 Disclosure or duplication without consent is prohibited

Disclosure or duplication without consent is prohibited Phase I Renovation 9/17/2018 Disclosure or duplication without consent is prohibited

Completion and Opening 9/17/2018 Disclosure or duplication without consent is prohibited

Equipment Budget (USD) 2 – Arc Mate Robots 27,650 1 – SW ROBOT 210 36,320 1 – FANUC 3D iRVision Pkg. 14,665 1 – Trans Gun 15,000 1 – Tip Dresser 2,000 1 – Projection Ped Welder 15,000 1- Projection Nut Feeder 15,000 2 – Bosch Weld Controler 800 6,500 1 – Lincoln R350 MIG Weld Pkg. 5,652 1 – Tregaskiss – Thru arm torches 711 1 – Reamers 4,000 1- ATI Tool Changer 11,000 2 – RUD 18,000 2 – Part Scribe 44,217 4 – MCP 18,003 4 – Station Box 32,584 3 – HMI 11,585 2 – Gate Box 1,296 1 – Palm Button 2,800 1 – 480Volt PDP 200Amp 300 2 – 120Volt PDP 1,967 1 – Armor Start 4,000 1 – Fencing 15,000 Total $352,400 *LMV was awarded $500,000 from the state of Missouri’s New Jobs Training Program to support renovations and training equipment. 9/17/2018 Disclosure or duplication without consent is prohibited

Disclosure or duplication without consent is prohibited Training Center Goals To develop highly qualified skilled trades people Enhanced practical level of training Allow high school students in the future to enter into the program through internships (strong partnership with Northland CAPS) Partner with local community colleges to develop manufacturing programs Community colleges to teach onsite the theoretical courses Develop partnership with Missouri Universities for internship for Mechanical Engineers Specializing in Welding With the dramatic increase of manufacturers in the Kansas City/ Liberty Missouri region, the local community college infrastructure was not prepared for the training requirement need to support the new influx of manufacturing. 9/17/2018 Disclosure or duplication without consent is prohibited

Disclosure or duplication without consent is prohibited LMV Automotive Systems Andy Hrasky General Manager andy.hrasky@magna.com 319.631.0689 9/17/2018 Disclosure or duplication without consent is prohibited