1. Volker Schmitz, Ph.D. President, Schmalz Inc.

2. March 19th, 20132 PRESENTATION OUTLINE Speaker Background Company Overview (5) Factors driving successful implementations & adoptions Economic Drivers influencing lift assist device use (3) case studies highlighting actual results

3. 17 years experience in Factory Automation SPEAKER BACKGROUND March 19th, 20133 PROFESSIONAL: 25 years experience in Manufacturing in the Americas & Europe EDUCATION: Master’s Degree in Economics from Johns Hopkins University Harvard Business School – General Manager Program Ph.D. in Business (Global Contract Pricing)

4. March 19th, 2013 World of Vacuum Technology4 COMPANY OVERVIEW Established:1910 Ownership:Privately held - 3rd Generation Market importance:World's leading supplier of vacuum technology for automation and material handling tasks Sales Growth:double digits every year (except 2009) Employees:800 worldwide, including 13% trainees Subsidiaries abroad:15 countries Intl. Sales partners:45 countries Innovation indicators:180 + International Patents 8% of annual revenues spent on R & D Distinctions: ENERGY POSITIVE (own Wind, Solar, Hydro, wood chips from own forests & bio fuels) ISO 9001:2000 (since 1994) ISO 14001

5. March 19th, 2013 World of Vacuum Technology5 (4) Business Units using VACUUM Overhead Lift Assist Devices & Cranes CNC Machine hold down clamping Only company who is active in both fields Automation Components EOAT Robot Tools

6. March 19th, 2013 6 Case order picking of a 70 lbs oversized box Great Ergonomic Form, but its still a Ignore at your own Peril Worker Comp Claim waiting to happen

7. 7 REMINDER STATISTICS Sources: National Safety Council’s Injury Fact Report (2011 Edition) This figure does not include medical, administrative, damage to vehicles, fire loss and employers’ uninsured costs. Ref. Occupational Information Network and Occupational Employment Statistics data; BLS 2009 55 Million Working Days Lost (29% due to MSD’s) $82 Billion Cost in Wages and lost Productivity Largest factor are musculoskeletal disorders (MSD’s) Over 32 million workers = 25% of US workforce exposed to body twisting or bending for more than half their time at work

8. 8 COST DRIVERS Labor Costs up 500% in last 100 years & trend continues 30 Million Worker shortage coming by 2030 Aging Workforce (2020: 25% of workers will be over 55) 40% in W. Europe Warehouse labor turnover among the highest ANSWER: Need to make jobs less physical increase productivity existing staff retention accommodate aging staff expand eligible labor pool to pick from

9. March 19th, 2013 9 WHAT ARE WE TALKING ABOUT: Overhead Lift Assist Devices

10. 5 FACTORS for implementation & adoption Include Operator training GOAL : 80% adoption rate, 80% risk reduction & 50% productivity gains Supplier Warranty & Guarantee Customer talking to Factory Involve Operators (80/20) Run off at Factory

11. March 19th, 2013 11 Vacuum Tube Lifter used as a Logistics Lift Assist Device (example: airport baggage ramp handling study) – 50% + reduction in injury / workers comp claims after 1 year – Vacuum Tube Lifter capable of handling 90% + of all baggage processed – Practical result: 72% useage by the staff for all baggage processed Source: independent study of Munster airport baggage handling staff (2010) Case Study #1: Effective at risk & cost reduction

12. March 19th, 201312 Percent % Case Study #1: (cont.)

13. March 19th, 201313 Vacuum Tube Lifter used as a Logistics Lift Assist Device in a large Internet retailer DC facility (overseas) (3) Systems handling larger sized boxes for outbound shipping – 55% Productivity (thru put) increase – 50% reduction of personnel (re-assigned) – inc retention & satiesfaction Case Study #2: Higher productivity at low investment cost Note: Representative Picture only

14. March 19th, 201314 Custom style lifter (with powered rotation) (2) Systems handling jet engine composite outer housing sections 4 employees 1 Av. 2 damaged housings / M (cost $ 800,000 total cost/M) Now $ 0 after 12 months Better retention & work environment feedback Case Study #3: Higher Quality Standards

15. Thank you for attending this session. If you have any questions, input or feedback please feel free to contact me. Dr. Volker Schmitz President Schmalz Inc. 5200 Atlantic Ave. Raleigh, NC 27616 Tel: (919) 713-0880 Cell: (516) 768-5079 volker.schmitz@schmalz.us www.schmalz.com March 19th, 201315