As the days grow ever shorter and snow and cold are once again a reality, we are usually too busy with preparations for the holidays to sit down and think about the year that just passed. Presents want to be thought of and bought; get-togethers need to be planned and prepared; and, at the office, the last tasks for the year have to be closed off and finished.

One of my year-end tasks is to write this article for the Christmas Newsletter. It pulls me out of the mid-December rush and gives me an opportunity to reflect on our achievements in this, ODG’s 50th anniversary year.

The year started ripe with expectations. In last year’s newsletter I expressed my hope that the poor Argo sales in December 2011 were just a blip and not a trend, and that the Malaysian opportunity would finally become a reality in 2012. We all worked very hard to successfully prelaunch the new XTI (known as “Titan” at the time) in March into Malaysia but our distributor struggled to turn the opportunity into the expected success. Luckily, it seems that the folks there are just a bit more relaxed than us, and that more follow-on orders will happen in 2013.

The 50th anniversary was a success that required planning, organization, and execution over the three days of celebration. Everyone involved did an outstanding job and we were able to showcase the plants to over 750 people from the community. I was particularly impressed by the professionalism and pride you showed as you explained your job to our curious visitors.

In the fall, after the official launch of the XTI in the Vehicle Division, representatives of two potential customers visited the Gear Division for a supplier evaluation. One group came back with an amazing 97.6% rating (apparently other gear shops typically are rated in the 70-80% range), while the other was full of accolades. I was happy to see that you were able to maintain the momentum in the Gear Division for the rest

of the year.

This year with its beautiful weather - remember it started with a “3-day winter” in January – turned out to become one of the driest years on record in North America. The continent wide drought was anything but kind to the amphibious Argo market. For the entire year, we fell short by 260 vehicles in sales over last year, and 100 units from September on, forcing me to approve some short-term layoffs in November. I feel terrible about this because it is my responsibility to make sure that all 230 families in the larger ODG-Family have enough for the holidays. I hope that the share-the-gain payout and the raise will make it possible.

Looking forward to the New Year, I expect that vehicle sales will continue to be slow until March, in line with economic forecasts, and then improve slightly for the rest of the year. Gear sales will depend how fast we can bring new opportunities on line.

We all need to be on the lookout for opportunities. Opportunities to do things better, faster and cheaper. Opportunities to quote, design and sell new products. Opportunities to reinvent what you do for a better 2013.

For now, I wish you Happy Holidays, a very merry Christmas, and a wonderful start to the New Year!

December 2012 Published for the Employees and Friends of Ontario Drive & Gear Limited Volume 19

Reflecting on 2012... Michael Eckardt

Inside this issue:Ho! Ho! Ho! from the Plant 1 Manufacturing Group .................... 2Gear Division Update .................. 2Argo Sales & Marketing 2012 in Review ........................................ 4Merry Christmas from Space/Robotics ..................................... 5Sharing Some Christmas Cheer .. 6Safety Smarts ............................. 7New Babies ................................ 8Marriages ................................... 8Retirees ...................................... 8Who’s Who ................................. 8Anniversaries .............................. 8Healthy Holidays ......................... 8

Page 2 Visit our websites at www.odg.com and www.argoutv.com Volume 19

Ho! Ho! Ho! from the Plant 1 Manufacturing Group This year was a challenge to say the least. We launched a new model, originally called the Titan now XTI.

To everyone in the production group, I thank-you for your support and the dedication you have shown.

You have all made significant contributions to ODG.

I wish you and your family a very Merry Christmas and let’s all have a prosperous 2013.

Alan WoodPlant Manager

ProductionSince the introduction of the XTI in August we have been working diligently to fill all the orders and get as many people trained on how to build them as possible.

With the Argo sales being a little slow this gave us the opportunity to get everyone from the Argo line involved and some training for everyone on the new XTI line.

This training gives us additional flexibility and capacity going forward should sales increase.

I would like to take this opportunity to thank everyone in production for pitching in. Many extra hours were put in. Staying late, working Saturdays and even a Sunday were necessary to ensure all target dates were met.

Kevin SchmidtProduction Manager

Press ShopThe Press/Drill department has been staying busy with lots of new parts and accessories being added for the XTI. This creates lots of extra work and fixtures. Thanks to the tool room and maintenance department for the extra effort they have done to support the ramping up of these new products.

I would like to wish everyone a MERRY CHRISTMAS and a HAPPY NEW YEAR.

Neill Ramsey

Welding

Welding has had a very busy year. The launch of the XTI and all its welded components has been very challenging.

Everyone has done a commendable job ensuring both the Argo line and XTI line were delivered quality parts, on time.

Nhimany Sisombath

Paint DepartmentFall of 2012 has been a season of new challenges in the paint department. We have had a lot of new parts come through the paint department for the XTI, Malaysia and parts for Plant 2. My team has done a great job of finding new ways to hang and paint these parts.

Thanks Richard, Janice and Mike for all your great ideas and hard work these last few months.

Have a Merry Christmas and Happy New Year from Team Paint.

Darryl Gingerich

Vacuum RoomEven though it has been a yoyo year for production, everything has been running smoothly. The curtain is going up to hopefully prevent the smoke from going into the factory when we are forming XTI/Centaur lower bodies. Here’s hoping for a very busy 2013.

Everyone have a safe and very Merry Christmas and Happy New Year from your friendly formers...

Tim Sachan

Argo LineWell another year has come and gone. Needless to say it has been a year of ups and downs. One of the ups is that we have one of the best production teams that always meets their deadlines with the best quality that the company has ever seen. Another one of the ups was the introduction of the XTI. The one and only unfortunate down has been layoffs due to lack of sales. Upon saying this, it does seem that business is picking up a little. Let’s hope that it continues to climb and we have an excellent 2013. Keep up the great work.

Wishing you and your family a happy and festive holiday.

Marv Head

Volume 19 Visit our websites at www.odg.com and www.argoutv.com Page 3

Tooling & Maintenance

It has been another eventful year here. We said goodbye to Dan Moriarty, who went on to an enjoyable retirement traveling the country in his motor home. We welcome John Howling who comes to us with years of skill behind him. Ray Richards joined us as well to complete our team.

Through the effort of the tooling and maintenance department we were able to keep the plant running smoothly.

Big thanks to all the guys.

MERRY CHRISTMAS

Steve Wilhelm

Production Control / Manufacturing Engineering

Everyone really felt the pressure of processing the large number of PC’s for 2012. Not everything went smoothly. We really appreciated the extra effort by every department in helping with their implementation. Many of you went above and beyond your normal duties to assist. I think the main lesson we learned, involved communication. We will sincerely try to improve in this area.

We wish you and your families a Merry Christmas and a safe and Happy New Year!

Brian K., Sheila S., Tom Pfaff and Amir R.

Centaur/XTI LineIn the months passed since the last newsletter, the XTI line became very busy, first with Malaysia then filling the dealer demand. We recently built six Centaurs for Romania as well, meeting a very firm time line with the help of Marv Cook, Marv Head and a handful of his crew. My many thanks to them. We are currently revamping the line for better flow, and so shipping knows the location of all parts. To everyone, have a safe and Happy Holiday.

Robert Cook

Shipping/Receiving2012 has posed many challenges for my shipping/receiving department with regards to the new model release of the XTI. In house storage space shortage & the logistical aspect of loading the new models in trucks & containers for destinations around the planet have proved trying for all those involved. I would like to take this opportunity to thank all of my

employees in both the shipping/receiving departments for their continued hard work & dedication to provide fast & efficient service to our dealer/distributor network around the world. I hope everyone has a safe & happy holiday. You have earned it!!!

Merry Christmas & Happy New Year!!

Chris Leu

Service

Another busy year. We lost a test driver with Mike Tottenham going back to school, and welcome Adam Seawright to the team.

We’ve been keeping busy by helping engineering fit all the new accessories to the XTI model, build a new Centaur platform and also keeping the test vehicles running.

Thanks to my crew for another good year and the rest of you for allowing me to win again the “prize” at the Christmas party.

Marvin Cook

Page 4 Visit our websites at www.odg.com and www.argoutv.com Volume 19

Gear Division Update Joel WrightI would like to thank everyone at the Gear Division for all their extra efforts. 2012 was a great year for all things Gear. We continued to grow, to innovate, and to adapt, all in an effort to build a better future. Well the results have been amazing:

• Industrial sales grew by 28%, breaking through the $20M ceiling. This is great but what makes it more impressive is that we did it while:

□ On-time delivery has greatly improved in the 4th quarter.

□ Reducing the quality defects found at the customer by more than half.

• Employee suggestions were at a record of 53 suggestions resulting in $123,000 in real savings. This averages out to well over $1,000 per employee.

• Health and safety record now at 1,300 days without a lost time injury.

But beyond just the numbers we had

several other significant accomplishments:

• We hosted the American Gear Manufacturers Association and were seen as the “best in class” job shop. We created industry awareness through interviews, articles and company profiles in trade journals such as Gear Solutions, Modern Machine Shop and Canadian Metal Working.

We invested into the future by sponsoring day release apprenticeships and employing several co-op students from the machinist program and mechanical engineering programs. We encouraged several employees to complete their trade licenses and professional designations.

• We attracted several new customers like McCoy and Cushman; we prospected several new business opportunities with the likes of Allison Transmission and L3 Propulsion Systems; and renewed several old relationships with our friends at Raymond, Rotzler and Volvo Construction.

• We applied several new technologies and operational approaches. We developed the high velocity cell; turning raw forgings to gears ready for heat treat, reducing lead times from weeks to hours. We sorted, we straightened, we shined, we standardized and we are sustaining our wins. We anticipate landing our first CNC helical internal helical gear shaper and inventing a new “hard shaping” process.

So where do we go from here. We have a lot of momentum. We will continue to think big and do all the small things right. We will continue to grow, capitalize on market opportunities and develop from within. We may face small challenges with the economy, changing customers, and dealing with change but the “Can Do” attitude will prevail. Our vision is clear. A world class gear powertrain company, centred about technology, systems and people.

Argo Sales & Marketing 2012 in Review Bernhard WagenknechtWe are facing a weak worldwide econo-my, strong indirect competition and rising cost. Despite these challenges and a slow business climate in the last 2 months we are making progress and have continued to develop new business opportunities.

While the demand from hunters and other personal utility users has been in decline, we have made progress in further devel-oping the new ARGO 8x8 XTI in Malaysia, received a 20 vehicle order for the Red Crescent in Iran, increased business in

small countries such as Finland, Romania, Bulgaria and Para-guay and have refined

the US distribution concept.

We have implemented many technical im-provements for HDI and Centaur providing a better extreme solution for the oil & gas, mining, exploration and utilities market worldwide. Sales for commercial appli-cations in Western and Eastern Canada as well as Northern Ontario and Northern Quebec are higher than last year, demon-strating that we are on the right track. Un-fortunately, these new initiatives have not compensated for the weak North American consumer sales despite an increase in advertising on TV, in magazines and new media. We will continue with comprehen-sive media campaigns to attract affluent

rural property owners, outdoorsmen and farmers.

There are many new opportunities for search and rescue solutions in Japan, Ukraine, Indonesia as well as the Middle East. We all are very excited about the new ARGO 8x8 XTI. Our engineering and production team have developed a great vehicle that will be successful in com-mercial markets around the globe. There are more than 30 accessories available al-lowing a customization like never before. These vehicles are already proving them-selves in many remote locations in North America, and our distributors from Russia, Australia and England have placed orders.

continued on page 5

Volume 19 Visit our websites at www.odg.com and www.argoutv.com Page 5

The end of 2012 is rapidly approaching, and possibly the end of civilization if the Mayans are correct. If, in fact, it turns out that corn munching civilizations that died out two millennia ago can’t predict the future, then some exciting things are in store for ODG Space/Robotics!

Our current lunar rover projects are quickly coming to a close. We have outstanding work to be completed on only a single rover. Artemis Sr., our largest rover, should be fully functional and crushing snowdrifts by March, 2013. Two of our other rovers, Juno and Artemis Jr., have successfully completed a pair of deployments in the mountainous desert in Hawaii. Both robots were carrying NASA payloads and were operated in extreme conditions for several weeks without failures. These rovers have since been returned and have been delivered to the Canadian Space Agency.

It is difficult to see the little ones grow up so fast and move out; it seems like only yesterday that the raw material was sitting in the receiving department. However, there is little time for sorrow. In the near future, we will be working on a proposal for the Canadian Space Agency, essentially outlining what a lunar rover program would look like for 2017. If all goes well, this will be the precursor to a flight program that will see an Argo rover leaving tracks on the moon.

Another interesting project we have begun is the design and prototyping of a high-speed amphibious vehicle for use the Canadian Military. We have tentatively named our latest concept vehicle “Honey Badger”, and if the project receives approval, this vehicle will be flying through the forest, gliding over the glen, wading into the water, and terrorizing the tundra by the end of 2013.

Merry Christmas from Space/Robotics Peter Visscher

We are making progress in Latin America working closely with our customers to supply more durable vehicles for the min-ing market.

New extreme terrain tracks and a modular flatbed featuring standardized and custom cargo boxes will support our customers to get the job done in the worst terrain condi-tions.

In addition, we are upgrading our vehicle line up with more durable components

as well as integration of sprayers, fire & rescue solutions, cranes and drills. There will be a strong effort to better support our current network in the USA and create new initiatives with Tier 1 and 2 dealers focus-ing on the industrial rental market despite a slow mining and exploration market.

Yes, we will continue to face tough times and we must improve product quality, ver-satility and be flexible to the demands of our worldwide customer base. If we do not meet and exceed expectations, our

customers will just buy another vehicle from one of more than 50 indirect com-petitors, many offering better products providing more value for less. There is a new world out there, and we at ARGO have a great opportunity to demonstrate our ca-pabilities around the globe.

Thank you ARGO team and we are looking forward to a great 2013.

continued from page 4

Page 6 Visit our websites at www.odg.com and www.argoutv.com Volume 19

Christmas 2012Sharing Some Christmas cheer!

Volume 19 Visit our websites at www.odg.com and www.argoutv.com Page 7

Safety Smarts Elaine Chalmers On behalf of the members of the JHSC in the Vehicle and Gear Divisions at Ontario Drive & Gear Limited, we wish everyone a happy holiday and a happy, healthy, prosperous 2013. Thank you for working safely in 2012.

New BabiesCongratulations!Bob & Rebecca Reiter, baby girl - Emma Jacquelyn, August 30, 2012Brian Monk & Julie-Ann Pearcey, baby girl - Livia Julianna, November 29, 2012

MarriagesCongratulations!Alan & Pat Wood, July 21, 2012David & Jennifer Sharratt, July 21, 2012Owen & Marcey Martin, September 28, 2012Tyson & Jennifer Londry, October 27, 2012

RetireesDan Moriarty , October 19, 2012John Mueller, December 31, 2012

Published for the Employees and Friends of Ontario Drive & Gear Limited

220 Bergey Court, New Hamburg, ON N3A 2J5Phone: 519-662-2840 Fax: 519-662-2421Email: maris@odg.com Copyright 2012

Providing news to our employees about business, current events, and human interest stories. Please contact Mari if you have ideas, comments or suggestions for future issues.

8

Who’s WhoNew Employees:Greg Kraemer, John Howling, Brad Riepert, Jameson Detlor, Jake Lichti, Bernhard Wagenknecht, Michael Schweitzer, Dan Troyer, Michael Balan, Adam Seawright, Michael Gartland. Co-op students: Devon Martin, Keegan Hawkings, Conly Geissler, Tuan Tran, Adam Lywood, Ian Travell, Buneet Chandhok

AnniversariesCatherine McGonigle 25 yearsRobert Cook 25 yearsMiroslaw Serwaczak 25 yearsRandy Richards 20 yearsPaul Fangrad 10 yearsDhananjay Chitale 10 yearsEdward Das 10 yearsKerry Livingston 10 years

December seems to be a time for an abundance of eating and a lack of exercise. The holidays are a time for celebration and family. It may not be a time to lose weight but it doesn’t have to be a time to lose your health. Here are a few ways to attempt to keep your health over the holidays.• Shop well for yourself. It is more important than ever to have healthy snacks handy. The more convenient they are, the more likely

you are to eat them.• Schedule your exercise. It is a hectic time of the year but try and get some form of activity in, at least three days a week.• It’s okay to say no. We consume alot of

extra food at this time of year. Think twice and decide if you really want it.

• Do you make baked goods for giving (and taste much of what you bake)? Instead make non-food gifts or prepare ingredients for baked goods and put them in jars - let your recipient bake it up. That way, they can eat them when they want and you won’t be tempted in the kitchen.• Stay hydrated. Keep a water bottle with you at all times.• Make an extra effort to eat foods that boost

your immune system. Fruit and vegetables, especially citrus fruits like oranges, grapefruit and kiwi are all good choices.

Stay healthy and enjoy the holidays!

Healthy Holidays...