Reliable and Integrated Partner in Automotive Industry

COMBINING

WEST EUROPEAN COMPETENCE

AND

CENTRAL EUROPEAN PRICING

FOR THE SAKE OF OUR CUSTOMERS

… to provide advanced and reliable solutions - meeting customer expectations.

Our Mission is …

• … to respect our external and internal commitments.

• … to ensure our entire equipment works and we rigorously improve processes.

• … to integrate our organisation together with clear directions and responsibilities.

• … to enhance our competencies in all functions.

2

Our common future will be built on our contribution of 40 years intense business experience in international automotive industry

CIMOS personally

• CIMOS acts as major supplier for the European automotive industry

• CIMOS works as highly experienced automotive supplier in machined casted components and

mechanical metal parts/systems

• CIMOS became the reliable partner for majority of premium OEMs:

Audi, BMW, Ford, PSA, Renault, Toyota, Volkswagen, …

and 1st Tier suppliers:

BorgWarner Turbo Systems, Bosch Mahle Turbo Systems, Honeywell Turbo Technologies, …

• CIMOS can be found being present in every third car in Europe

• CIMOS built up a long industrial tradition

• CIMOS competes among the 500 largest companies in Central Europe

• CIMOS grew to one of the largest Slovenian industrial enterprises with

more than 250 million euros annual revenues, producing 33 million units of automotive

components per year and delivering them to more than 130 locations daily

3

… developing the business to become the leading European provider of mechanical components and modules for the automotive industry

From the start

4

START

of activity in automotive industry

and car assembling

ESTABLISHMENT

of the company Cimos.

SETTING UP

R&D department.

BREAKTHROUGH

among world automotive manufacturers

INTENSIVE

internal growth.

ACQUISITIONS

Litostroj Power Energy Division

Labinprogres Agricultural Division

INVESTMENTS

in production equipment (four divisions).

RESTRUCTURING

programme started.

DIVESTMENT

of Energy and Agricultural Division

and integration of Machine Building Div.

into Automotive.

FOCUS

on realignment of the entire business

1959

1972

1984

1989

1996 - 1999

2001 - 2003

2006 - 2010

2013

2014

2015 - 2016

PRIVATIZATION

successfully concluded2017

CIMOS locations are giving you the benefit of highly cost effective labour and low logistic costs all over Europe

The production is running in 12 plants

5

Labin

Buzet, Roč

VuzenicaMaribor

Senožeče

Koper

Novi Travnik

Gradačac

KikindaLjubljana

Fe alloys foundries

Machining, stamping, welding, assembling

Al alloys foundries

Forging

SLOVENIA

CROATIA

BOSNIA & HERZEGOVINA SERBIA

HEADQUARTERS

Cimos Group Headcount (September, 2017): 3.550

ISO/TS 16949 Quality Management System in all plantsIATF 16949 Quality Management System in all plants in Slovenia and Croatia region; it will be implemented soon also in other two regions

A wide range of technologies and deep process knowledge providing highest quality and efficiency for the sake of our customers

Technologies

6

Stamping Machining

Forging

Welding Assembling

Heat treatmentAluminium casting Grey iron casting

CIMOS products being present in a variety of modules and systems of modern vehicles – cleverly designed and professionally manufactured

Production programme

7

Turbo systems

(56,4% of total Sales 2016*)

Powertrain

(26,1% of total Sales 2016*)

Kinematics

(12,5% of total Sales 2016*)

Note: *Total Sales 2016: €267,7m5,0% of total Sales represent Tools, R&D and other non automotive parts

Turbo Systems

• We have been working intensely on development of components for new generation turbochargers which, to deliver high charge-air pressures, require new knowledge mostly in the area of more complex materials and production processes for their preparation.

• These components drastically reduce fuel consumption and engine emissions.

Comments and observations Market Shares*

8

CIMOS is one of the largest European manufacturers of Turbo components.

Note: (Source: IHS Automotive Turbocharger & Supercharger Report 2015)*The production of engines in 2016 with turbocompressors, incl. biturbo = 20m units **2016 production of Turbocompressors with Variable geometry elements = 8m units *** In 2016 2.1m units of inserts were needed

Backplates: 1.1m units5.5%

Nozzles (Variable Geometry Elements**): 4.1m units51.3%

Inserts ***1.8m units85.7%

Center housings: 3.0m units15.0%

Compressor housings: 3.4m units17.0%

More than 14m units of Turbo parts produced per yearfor the biggest turbo producers in the world.

CIMOS boasts with decades of experience in engineering and manufacturing of Powertrain parts with a broad range of products

Powertrain

• Knowledge and skills gained in the pastsuccessfully completed projects;

• In-depth understanding of the industry trendsand customer requirements and expectations;

• Proficiency in all phases of the process that willlead to new products from the concept to massproduction;

• Evaluation of potential risks and suggestions forworking out new solutions to avoid risk exposure;

• Constructing a product with focus on:

minimum resources to manufacture theproduct,

achieving cost efficiency,

leaving no room for problems to arise inrelation to the production,

define the process and deliver high quality.

• Fast and highly reliable job.

Multi-faceted expertise Market Shares*

9

Flywheels: 0.7m units3.6%

Accessory brackets: 0.8m units1.5%

Engine brackets: 1.5m units2.6%

Almost 12m units of Powertrain parts produced per year for the gasoline, diesel and electric engines.

Brake discs & drums: 2.2m units3.0%

Note: * In Europe (EU27 & Russia) 19m cars were produced in 2016. (Source: OICA – World Motor Vehicle Production, March 2017)

CIMOS products contribute to higher safety level in the automotive industry

Kinematics

By developing a new generation of brake systems and other Kinematics‘ components aligned with the most recent safety and environmental standards we contribute

Market Shares*

By developing a new generation of brake systems and other Kinematics‘ components aligned with the most recent safety and environmental standards we contribute to the following:

• higher safety level in road traffic,

• higher comfort for the driver and passengers,

• lower vehicle weight.

• Development and production of comprehensive solutions for hood hinges enhancing pedestrian safety. Effective solutions for door hinges.

• Innovative pedal box solutions, focused on performance and weight reduction by implementation of new design concepts using light materials.

• Parking brake levers, from advanced complex solutions focused on performance and weight reduction to simpler, cost-effective solutions.

10

Note: * In Europe (EU27 & Russia) 19m cars were produced in 2016. (Source: OICA – World Motor Vehicle Production, March 2017)

Hinges: 2.5m units3.3%

Parking brakes: 1.3m units7.2%

Pedal boxes: 2.1m units11.2%

More than 6,5m units of Kinematics parts produced per year for the world leaders in the automotive industry.

R&D capabilities

11

Material characteristics

Hardness

Microstructure

Thermo-mechanical properties

Static & fatigue

Cimos material database

Prototyping /Niche production

FEM simulations /Numerical analysis

Static simulations

Dynamic simulations

Thermo-mechanical analysis

Crash & Fatigue analysis

Crack prediction

Aluminium casting

Grey cast iron

Machining

Sheet metal forming

Assembling

Testing /Physical validation

Static & Climatic environment

Burst testing

In-car testing

Dynamometer testing

Fatigue testing

Endurance testing

Innovative product design and alternative materials for customized products.

Lightweight design.

Covering all development stages.

Detailed FEA know how

Product design

Lightweight design

Manufacturable, quality built-in

VE

Innovation

Our strenghts

Lightweight

Intensive use of FEM & topology optimisation

30% less material achievable on most components

Manufacturable, quality built-in

Process simulations

Risk management – tolerances, material defects

Validation plan

VA-VE and inovation

Integration of new functions

Reduction of sub-elements

Simplification of toolings and manufacturing processes

Application to

Product Engineering

12

CIMOS is providing attractive solutions for passive and active safety of modern competitive vehicles

Our safety solutions

Hinges

13

Development and production of comprehensive solutions for hinges enhancing pedestrian safety

Innovative solutions, focused on performance and weight reduction by implementation of new design concepts using new materials

Complex advanced solutions focusing on performance and weight reduction as well as cost-effective products

Pedal boxes Parking brakes

We contribute to ecologic automotive trends by decreasing vehicle mass and reducing fuel consumption as well as engine emissions

Our solutions for carbon footprint reduction

• Filter brackets

Filter bracket

• We contribute to ecologic automotive trends by decreasing vehicle mass and reducing fuel consumption as well as engine emissions

Flywheels

14

New or integration of existing functionalities on high pressure die casted parts.

Efficient mass optimisation, even more than 50% less material used for same function compared to old designs.

Lightweight solid mass flywheel for modern 3 cylinder engine

CIMOS customer portfolio includes majority of premium OEMs and Tier 1 suppliers

15

40%

9%

HTT

AUDI

BMW 7%

BMTS

6%BWTS

4%PSA

2%

Others

1%

FORD

1%

AVTOVAZ

11%10%

NOVOLINEMAGNA

9%

Note: * Sales per customer in 2016

For us, our 40 years in the business isboth our history and a platform on whichto build our future in line with our vision.We pride ourselves on being quick todeliver customised requests – ourachievements give us new impetus toexpand into new territories. Versatilityand self-confidence coupled with ahealthy measure of curiosity that drivesresearch, complete the mosaic of reasonsthat instils confidence in Cimos…

…since 1972

Cimos d.d.Cesta Marežganskega upora 2SI - 6000 KoperT: +386 5 66 58 100F: +386 5 66 58 250

info@cimos.euwww.cimos.eu