FALL 2018

CATALYST

INSIDE THIS ISSUE

CATALYSTFALL 2018

BELIEFS

▶ Quality in everything we do. ▶ Productivity improvement is a continuous process. ▶ On-time delivery because our customers depend on us. ▶ A safe working environment is our commitment to each other. ▶ Environmental responsibility is our commitment to our communities. ▶ People development because our people create our success. ▶ Company growth is the result of providing a superior service. ▶ Value-added service means doing more for our customers.

▶ Our people and their unique individual talents are valued. ▶ Appropriate recognition motivates our people to be successful. ▶ Leaders create value. ▶ Innovation creates continuous improvement. ▶ Profitability ensures the survival of our company. ▶ Positive relationships build loyalty. ▶ Honesty is essential in all transactions. ▶ We create value for our customers. ▶ Wellness and healthy lifestyles are important to our success.

DRIVERS

For all inquiries contact:Kayla Jacox, Marketing Manager

Lincoln Industries / 600 West E Street / Lincoln, NE 68522 kayla.jacox@lincolnindustries.com 402.473.2057 LincolnIndustries.com © 2018 Lincoln Industries

SOURCEONE ACQUISITION

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MEXICO FACILITY HIGHLIGHT

DIE CASTING CAPABILITIES

THE CLIMB

LINCOLN INDUSTRIES ATTENDS WHITE HOUSE EVENT

NEW PEOPLE & TRANSITIONS

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The willingness our people have to take on extra work, to accommodate these changes,

has been incredible

“

Bill Ellerbee / President

PRESIDENT’S COLUMNIt is an exciting time for Lincoln Industries.

In addition to acquiring Southwest Metal Finishing and Inventix Mfg. earlier this year, we recently acquired SourceOne. This acquisition is highlighted in this issue of Catalyst and builds confidence in our ability to better serve customers with broadening capabilities. We knew it would be a significant undertaking to integrate three companies within a single year, but we were up for the challenge.

We have seen growth in all major segments of our business - a testament to the great brands we serve and our strong commitment to our customers. Our enhanced capabilities will strengthen our position with our core customers and enable us to pursue new opportunities by offering more.

Many of our people have accepted new responsibilities and are working diligently to fully integrate our new businesses. The willingness our people have to take on extra work, to accommodate these changes, has been incredible. Additionally, our talented new team members share a common purpose to serve customers with excellence and have extraordinary passion for continual improvement and growth.

It is indeed an exciting time at Lincoln Industries.

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SOURCEONE ACQUISITION

Founded in 1974, SourceOne has served as a longtime, Lincoln, Nebraska business that provides industrial customers with a wide range of services including, custom manufacturing, design services and tooling, powder coating, and specialty machine build services. In October, SourceOne became the newest member of the Lincoln Industries company.

This is Lincoln Industries third acquisition in the past three years. It purchased DS Manufacturing in Pine Island, Minnesota, in April 2015. In May of this year, Lincoln Industries acquired Southwest Metal Finishing and Inventix Mfg., based in Wisconsin, along with its facilities in Texas and Mexico. With these three acquisitions, Lincoln Industries has more than doubled the number of people working at the company.

“The SourceOne acquisition expands Lincoln Industries

capabilities, market reach, and will strengthen relationships with customers,” according to CEO and Chairman Marc LeBaron.

“The combination of our companies will drive substantial technological and operational synergies,” said LeBaron. “While we provide more than 40 finishing processes, and significant manufacturing capabilities, the ability to fabricate products and the integrated cosmetic and high temperature powder coating capabilities are important additions to our offerings,” he said.

SourceOne’s unique services in specialty machine building are an entirely new addition to Lincoln Industries capabilities. Offering full design packages, programming, complete in-house fabrication, sourcing for components, safety reviews and guarding, and ergonomic considerations, SourceOne is at the top of the industry.

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Jaaziel Picazo sees great things ahead for Lincoln Industries’ Mexico facility.

As general manager, Picazo manages the production for the facility. He believes the resources Mexico provides Lincoln Industries offer opportunities for growth. Describing the Mexico facility, Picazo says there are numerous different functional areas. “We currently run aluminum and zinc polishing and have two plating lines with capacity for copper plating. We run zinc straight through, copper for copper buff, and nickel.”

Mexico is currently working to expand their steel polishing capacity. By implementing several new lathes with dust collectors, there will be less time spent cleaning the work area. Additionally, there is a current expansion of copper plating and buffing on aluminum - allowing for greater capacity in both Mexico and Wisconsin.

Picazo says the recent changes have instilled an improvement in the attitudes of the people at the Mexico facility.

“The biggest change is communication and trust,” he said. “There is a new feeling of self-value and we have the opportunity to shine. We have a great team here. The acquisition came at the right time with the right people, on both sides,” he said. “We can make a great union of minds and get something that is beyond the expectations of everyone.”

MEXICO FACILITY PLAYS IMPORTANT ROLE IN FUTURE SUCCESS

With a strong focus on the customer’s needs, they take the assembly process to the next level to create semi or full automation machine to improve your business.

As a SourceOne customer, Lincoln Industries and SourceOne have a long relationship, starting over 20 years ago.

“We know their people well and believe we share the same values. As a supplier to us, we have always trusted SourceOne with some of our most critical work and over the years SourceOne has developed many programs for us,” said LeBaron.

“Lincoln Industries is an outstanding company and has established itself as a leader within its industry,” said prior owner of SourceOne, Elmer Wessel. “One of my biggest concerns with the acquisition was the wellbeing of our people at SourceOne. Knowing Lincoln Industries has acquired our company totally eliminates any of those concerns.”

The company will continue to operate under the SourceOne name and all 70 people at SourceOne will be retained.

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INTEGRATED SUPPLY CHAINCREATES COMPETITIVE ADVANTAGE

Integrated die casting capabilities. Lincoln Industries’ customers have asked for them. Now they have them.

“Our customers have often requested that we provide die casting,” said Lincoln Industries Vice President of Strategic Accounts & Procurement Clint Boothe. “With our acquisition of Inventix Mfg in Menomonee Falls, Wisconsin, Lincoln Industries is equipped with strong die casting capabilities in the business with the ability to plate on zinc and aluminum die cast parts.”

“To produce the highest quality die cast parts, the plater and die caster must have a strong relationship,” he said. “Supply chains that are not fully integrated are very difficult to manage and often struggle to meet cosmetic and quality requirements. Now that we are fully integrated, we can offer our customers a single source for their manufactured parts.”

Lincoln Industries-Wisconsin is a best-in-class manufacturer of flash-free, zinc die casting components,

providing parts within a wide variety of part specifications, including weight ranges from 0.002 ounces to seven pounds, shot weights up to 10 pounds, and dimensional tolerances within ± 0.0005 inches. At the greatest complexity, Lincoln Industries is able to provide exceptional precision enabling a high-quality execution for their customers.

According to Operations Manager Ryan Klagmann, this contributes to the Menomonee Falls facility’s long history of success.

“We’re very diverse in our die casting, both in terms of equipment and expertise,” he said. “We can do functional high-precision and highly cosmetic parts that may weigh only a few grams, to a part that may weigh up to eight pounds. Our design and tooling are second to none. We don’t get the easy jobs. We get the difficult jobs and develop a way to not only make it work, but to excel.”

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“The business was founded by my father, Franz,” said Klagmann. “As a tool maker from Germany, he came to this country with an attitude that if you were honest, respected the customer, and provided a superior product, you would succeed. In 2004, we sold the business to Southwest Metal Finishing. With the acquisition by Lincoln Industries we are excited to provide die casting to an expanded customer base.”

Klagmann said the company’s diverse capabilities and cross functional team provide a competitive advantage.

“One of our greatest advantages is our depth of experience. Many of our people served their apprenticeship here and have grown with our business,” he said. “When a customer comes with a problem, each member of the team has experience across multiple areas, so we are able to incorporate that expertise to come up with the right solution

for the customer.”

Business Development Director Paul Stack believes the customers benefit most when Lincoln Industries is involved in the design of the part.

“Our engineering capabilities are strong. When we are involved in the design, it not only produces a higher quality part overall, but it also makes it more efficient to manufacture and cast the part,” he said. “We also design and build our own tooling which allows us to control the manufacturing process even more.”

Wisconsin’s in-house design and tool builders achieve tolerances that transcend industry standards creating solutions for a wide range of applications for all major industries.

See capabilities below.

CAPABILITIES SUBSTRATE MATERIALS FEATURES & BENEFITS

Tool Design, Build, Repair Zinc/Aluminum Assist in development of product, mold flow simulation, tooling built in house

Multi-Slide and Hot Zinc Die Casting Zamak 2, 3, 5, ZA-8 Single or multi-cavity die casting aluminum and die casting machines from 80-500 tons

C Cold Chamber Aluminum Die Casting Aluminum 380 Single or multi-cavity aluminum die casting in conventional machines from 500-800 tons

Secondary Operations/Machinery Zinc/Aluminum Shot blast, tumble/deburr, hand degate, manual tap, CNC tapping, drilling, machining

Pictured left to right: Don Prekop, Deric Stamm, Zach Schuler, Dan Armbruster, Thomas Buechs, Patrick Vokoun, Bernard Matheis

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THE CLIMB

After 15 years, Lincoln Industries still finds ways to make its annual climb of a Colorado mountain notable.

“All climbs are a unique experience, but this year was made especially memorable by including new team members from our recently acquired companies,” said Health, Safety, and Performance Manager Greg Howe. “It was great to spend time face-to-face interacting with talented people from all of our locations. It was like a big family reunion, but in many cases, we were meeting for the first time,” he said.

This year’s climb featured Mt. Elbert in Colorado – a grueling 14,443 feet to the top with steep inclines and variable terrain. Mt. Elbert is the second tallest mountain in the entire continental United States, second only to Mt. Whitney in California.

Over 150 Lincoln Industries team members participated in the climb. “In terms of distance and elevation, it’s the most difficult mountain we have climbed. We had 51 first time climbers which always makes the climb more fun for everyone,” said Howe.

Rob Goad, a mechanical, design engineer from Lincoln Industries of Minnesota described the climb as a challenging experience. He reflected, “The climb was as tough as I thought it would be. Going up, it’s how good are your lungs, but going down it’s how good your thighs are!”

Like many first-time climbers, Goad credited his climb coach for his success reaching the summit. “My coach was Joanna Peters, and she was with me the entire climb. Joanna kept telling me how good I was doing, and her encouragement made an immense difference,” said Goad.

What impressed Goad most, however, was the camaraderie among Lincoln Industries’ people. For new Lincoln Industries team members their first climb is a great opportunity to experience the care and support embedded within the fabric of the entire organization. “People who are new to our company hear about the climb, but it’s not until they actually experience the teamwork necessary to make it to the top of the mountain that they find out what a special experience it is for everyone,” said Howe.

“Our wellness program is unique and integral to our Lincoln Industries culture,” said Lincoln Industries President Bill Ellerbee. “There is no better way to demonstrate to our new people the importance of achieving difficult goals, teamwork, dedication, and personal relationships between our people. Having new team members participate in this year’s climb was wonderful and we hope even more will participate next year,” said Ellerbee.

Lincoln Industries’ record-breaking climb was barely finished when Wellness Manager Greg Howe began planning next year’s event. “Next year will be even better with more people from our Nebraska, Minnesota, Wisconsin, and Mexico facilities,” he said. “We have a growing wellness program at each of our new locations and are excited to extend our culture of wellness to each team member across our entire organization,” emphasized Howe.

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“There’s a great sense of personal achievement after the climb. That’s only topped by the team atmosphere where everyone there has your back. It’s about the whole team experience. For that reason, I am encouraging everyone at Minnesota, and the other facilities to become a part of this climb. You can really feel how much people care for one another. ”

-Rob Goad | Minnesota

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LINCOLN INDUSTRIES

Lincoln Industries was one of 50 companies selected to represent American manufacturers at President Donald Trump’s Made in America Product Showcase. The event was held on July 23rd at the White House and gave companies an opportunity to share information about their products and celebrate American workers.

“Each state was represented by one company, and we were honored to be the company representing Nebraska,” said Lincoln Industries Chairman and CEO Marc LeBaron. “It was great to be invited and given the opportunity to meet representatives from other manufacturing companies throughout the country. We welcome opportunities to promote job growth and increase manufacturing competitiveness across our nation,” said LeBaron.

Lincoln Industries President Bill Ellerbee attended the event with Marc LeBaron.

“The event allowed Lincoln Industries to showcase the products we produce and the industries we support,” said Ellerbee. “We had the opportunity to meet with several members of Congress, including Vice President Mike Pence and several members of the President’s Cabinet. We used this opportunity to spotlight our culture and our people. This is what has made us who we are today.”

ATTENDS WHITE HOUSE EVENT

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COREY PETERSEN General Manager

Corey Petersen started with Lincoln Industries in 2012 as Operations Manager. Prior to joining Lincoln Industries, Corey led an independent facility in Texas where he was responsible for planning and execution of strategies for manufacturing, marketing, sales, product development, and human resources. His past experience and history of driving results for our organization while building a high-performance culture has led him to his recent promotion as the General Manager of our Minnesota location.

Pine Island, MN

JAKE BRUNS Director of OperationsLincoln, NEJake Bruns began his career at Lincoln Industries in 2004 in the Strategic Accounts department. His most recent role was Operations Manager. Through his time at Lincoln Industries Jake and his team have consistently delivered results that align with our mission and values. Jake’s leadership, work ethic, along with his knowledge of Lincoln Industries’ business through his various held roles makes him uniquely qualified for Director of Operations.

LOUIS BALOGH General ManagerNew Berlin, WILouis Balogh joined the Operations group of Lincoln Industries in 2007 - his most recent role was Director, Maintenance and Plant Engineering. Since the acquisitions in Wisconsin in May, Louis has been leading all operational functions and was recently promoted to General Manager. Louis’ broad expertise in operational capacities along with his success to date driving change and culture at our new facilities makes him the right person to lead this business moving forward.

NEW PEOPLE & TRANSITIONS

A spirit of innovation is rooted deep within the history of Lincoln Industries. Now, as we develop new solutions we

draw inspiration from our customers’ visions, our innovative legacy and the hard working mentality of our people.

That inspiration allows us to continue to excel at moving our world-class customers forward.

I N N O V A T I O N I N S P I R E D . ®