May 18, 2017 Dan MacMillan. Copyright THK RHYTHM AUTOMOTIVE All rights reserved.

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1 May 18, 2017 Dan MacMillan 0

2 THK St. Catharines History Ceremonial Ground Breaking Plant 1, October Thompson Products in Cleveland announces that their first Canadian plant will be in St. Catharines Ontario The first valves are produced The demand for Thompson Product valves drives the first major expansion. Floor space is nearly doubled Plant 2 is built across the street from the original plant with a tunnel to connect them Thompson Products merges with Ramo Woolridge to form TRW TRW St. Catharines begins a 5 year expansion 1984 The Forge begins trials on the first Upper Control Arm St. Catharines makes its last valve. The Upper Control Arm is a major success and becomes the primary focus for Plant TRW is bought by Northrup Gruman. The Automotive Division set up as a new company. Later TRW automotive merges with Lucas Varity Plant 1 begins forging control arms with micro alloy material incorporating controlled cooling 2012 Plant 1 begins forging control arm made out of aluminum 2015 THK purchases TRW Linkage and Suspension 1

3 Who we have become.

4 Global -THK RHYTHM THK Facility THK RHYTHM Facility Mexico THK RHYTHM MEXICANA, S.A.de C.V. (TRMX) Silao Europe TRW AUTOMOTIVE GMBH Production Base: Krefeld-Gellep, Germany Sales & Engineering: Dusseldorf, Germany TRW-DAS A.S. Dacice, Czech Republic THK RHYTHM Office TRW Facility TRW Sales & Engineering China THK RHYTHM GUANGZHOU CO., LTD. (TRGC) THK RHYTHM CHANGZHOU CO., LTD. (TRCC) North America THK RHYTHM NORTH AMERICA (TRNA) Production Base: Sparta, TN Sales Office: Novi, MI THK MANUFACTURING OF AMERICA(TMA) Production Base: Hebron, OH TRW AUTOMOTIVE Production Base: Portland, MI Sales & Engineering: Portland, MI TRW CANADA LTD. Production Bases: Tillsonburg, ON; St. Catharines, ON Sales & Engineering: St. Catharines, ON India THK INDIA PRIVATE LIMITED Office: Bangalore Japan THK RHYTHM Hamamatsu Kyushu Malaysia THK RHYTHM MALAYSIA Sdn. Bhd. (TRMS) Penang Thailand THK RHYTHM (THAILAND) CO., LTD (TRTC) Eastern Seaboard 3

5 How many are we.. Plant Personnel 277 Salaried Staff

6 Plant 1 276,000 square feet 5 Manufacturing Processes: Light and Heavy Forging Shot Blasting Cold Forming Heat Treat Products: Control Arms Steering Linkages Ball Joint Housings and studs

7 Plant 1 Heavy Forge Heat Treat 6

8 Plant 1 Cold Forming Light Forge 7

9 Forged Products Suspension Link Lower Control Arm Upper Control Arm Flanged Ball Joint Aluminum Link Steering Tie Rod Ball Joint Housing 8 Steering Link & Track Bar

10 Plant 2 Head Office 169,000 square feet Manufacturing Processes: E-Coating Machining Assembly Products: Steering Linkages Rack and Pinion Linkages Control Arms Toe Links 9

11 Plant 2 Machining 10

12 Plant 2 Assembly 11

13 Typical Ball Joints and Linkages R&P Inner Cross Axis Follower Forged Flanged Compression OTR R&P Outer Cross Steer Designs 12

14 Materials and Durability Test Lab Environmental Testing Full Simulation Capabilities Key Life Testing (KLT) Environmental Integrity Testing (EIT) Long Term Corrosion (LTC) AK14-LH GMW Glycol Testing Submersion Testing Ozone Aging High pressure Spray Testing Mechanical Testing Fatigue Torque Under Load and Various Torque Tests Axial / radial Endplay Micro vibration Fatigue Testing Block / Step Cycle Fatigue Testing Spike Shop Ball Joint Wear Dust Seal Fatigue Autobahn Fatigue Wear Seal Air Leak Test Ultimate Strength Tension Compression Vertical Functional Testing Pull Out Push out Cam Out Seal Flex and Air Test Material Analysis Metallography Hardness Testing Brinell Rockwell Vickers Knoop Shore File Tensile Testing Fracture Analysis Failure Analysis Coating Adhesion Coating Weight Determination Coating Thickness Heat Treating Carbon Determination Vacuum Emission Spectroscopy Moisture Analysis Electro-coat Analysis Impact Testing Salt Spray Testing / Corrosion Non-Destructive Testing Eddy Current Testing MPI Dye Penetrant Testing UV Examination Research and Development Data Acquisition / Analysis Real Time Simulation RPC Development Load Life Curves Fatigue Life Prediction Strain Gauging

15 Why customers like us.

16 Main Strength - Vertical Integration Tooling Engineering and Design Forging Test and Validation Machine and Assembly 15

17 Improvement teams!!!! Local partners!!! 16

18 Main Customers (L&S Business) 17

19 Where are we going 18

20 Industry Challenges Technology changes Steel forging demand declining Aluminum increasing High cost country Automization of the Plant Floor drives capital spend CAFÉ Regulations Global Emission Standards Leading to weight reduction in all components Part traceability Minimize field recalls 19

21 Opportunities for Partnership Utilities containment of costs Investment Programs exposure to and assistance in participation Innovation Niagara College Advanced Manufacturing Complex Market Penetration Transportation and automotive markets 20

22 Questions. Contact : dan.macmillan@trca.thk.com 21

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