Contents. Value Proposition. Benefits of working with the Chihuahua s Aerospace Cluster. Available manufacturing capabilities. Cost model estimates

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2 Contents Value Proposition Benefits of working with the Chihuahua s Aerospace Cluster Available manufacturing capabilities Cost model estimates About the Chihuahua s Aerospace Cluster Next Steps

3 Value Proposition At the Chihuahua s Aerospace Cluster, we are looking to team up in providing a costcompetitive and world class manufacturing offer that can support some of the key major aerostructure assemblies such as: Wings Vertical and horizontal stabilizers Rudders Doors Floor boards Fuselage Assemblies for landing gear

4 The region offers the following benefits: Benefits of working with the Chihuahua's Aerospace Cluster Competitive quotations including 200 parts in less than 2 weeks World Class Quality: AS9100 and NADCAP Certified Less than 2 day turnaround to key points in the USA

5 At the Chihuahua s Aerospace Cluster, we have integrated a manufacturing group of suppliers that serve with the following strengths and capabilities: Key Strengths Management of work package industrialization and start-up for new or sustaining programs Positioned as Tier 1, Tier 2+ levels in the Aerospace supply chain Quality Control, Quality Assurance with Certifications: AS9100 and NADCAP Key Capabilities Available Manufacturing Capabilities Machining Sheet Metal CNC Lathe and Turning Center / CNC Milling / Manual Milling / Inspection Routers / Water Jet / Press Brakes / Pressure Forming / Stretch Forming / Hot Joggle / Rolling / Hot Dimple Special Treatments Special Processing Assemblies Heat Treatment Paint Boots Medium and Large Assemblies Let s review the machinery and equipment available for each capability in the following pages:

6 Available Manufacturing Capabilities Machining CNC Lathe - Turning Center (4) 1 CNC Lathe 16"outsidediam,. 48" max length 3 CNC Lathe 2" to 26"outsidediam,. 40" max length CNC Milling (17) 2 3 Axis CNC Milling 20" x 16" x 14" (508 x 406 x 355 mm) 4 3 Axis CNC Milling 52" x 18" x 20" (1321 x 457 x 508 mm) 1 Gantry CNC Milling 144" x 72" x 20" (3658 x 1829 x 508 mm) 7 4 Axis CNC Milling 20" x 20" x Axis CNC Milling 32" x 32" x 50" 1 4 Axis CNC Milling 40" x 20" x 25" (1016 x 508 x 635 mm) 1 5 Axis CNC Milling 30" x 30" x 35

7 Available Manufacturing Capabilities Machining Manual Milling (6) 1 Manual Milling Machine Bed 42" x 9" (1066 x 288 mm) 5 Manual Milling Machine Bed 40" x 12" (1016 x 300 mm) Inspection (7) 1 Faro Arm - Arm range 108" 2743 mm) 1 Faro Arm - Arm range 100" 2540 mm) 1 CMM Bed 60" x 36" x 30" (1524 x 914 mm x 762mm) 1 CMM Bed 132" x 42" x 36" (3353 x 1067 x 914 mm) 1 CMM 1 NDT Penetrant Inspection 1 MPI Line Magnetic Particle Inspection

8 Sheet Metal Available Manufacturing Capabilities Routers (7) 1 3 Axis (Extrusions) Table 144" x 4" each rail. (3657 x 101 mm) 1 3 Axis CNC Router Table 144" x 73" (3657 x 1854 mm) 3 3 Axis CNC Router Table 144" x 48" (3657 x 1219 mm) 2 3 Axis CNC Router Table 146" x 48" (3708 x 1219 mm) Water Jet (1) 1 Water Jet Cutter Table 170" x 80" (4318 x 2032 mm) Press Brakes (10) 1 Brake Form Bed dimension 72" (1828 mm) 1 Brake Form Bed dimension 96" (2438 mm) 1 CNC Press Brake Bed dimension 36 (914 mm) 3 CNC Press Brake Bed dimension 48" (1219 mm) 1 CNC Press Brake Bed dimension 72" (1828 mm) 1 CNC Press Brake Bed dimension 96" (2438 mm) 1 CNC Press Brake Bed dimension 120" (3048 mm) 1 CNC Press Brake Bed dimension 144" (3658 mm)

9 Available Manufacturing Capabilities Sheet Metal Pressure Forming (6) 1 Rubber form Machine Bed size 25" diam x 5" (635 diam x 127 mm) 2 Hydroform Machine Bed size 24" diam x 5" (610 diam x 127 mm) 1 Hydroform Machine Bed size 36" diam x 4" (914 diam x 101 mm) 1 Hydroform Machine Bed size 72" x 30" x 7.5" (1828 x 762 x 190 mm) 1 Hydroform Machine Bed size 96" x 24" x 5" (2438 x 610 x 127 mm) Stretch Forming (1) 1 Stretch Form Length 240" x 5"diam (6096 x 127 mm) Hot Joggle (3) 1 Komatsu 80 tons Bottom plate 37 x 29, Ram opening 22, Rotation rod 4, temperature 0-290F 2 Hot Joggle Press 5000 psi, Temperature 0-250F

10 Available Manufacturing Capabilities Sheet Metal Rolling (5) 2 Rolling Machine size 60" length 6" (1524 length x 160 mm) 1 Rolling Machine size 120" length 6" (3048 length x 160 mm) 1 Rolling Machine size 144" length 34" (3658 length x 863 mm) 1 Rolling Machine size 240" length 6" (6096 length x 160 mm) Hot Dimple (3) 3 Hot Dimple Machine Reach sizes from 8 to 36

11 Special Treatments Available Manufacturing Capabilities Heat Treatment (17) 1 Heat Treatment Furnace Cage box 30" cu. In (762 cu mm) 1 Heat Treatment Furnace Cage box 36" cu. In (914 cu mm) 1 Heat Treatment Furnace Cage box 84" x 48" (2133 x 1219 mm) 1 Heat Treatment Furnace Cage box 96" x 55" x 48" (2438 x 1397 x 1219 mm) 1 Ageing Oven Cage 42" x 18"x 20" (1066 x 457 x 508 mm) 1 Ageing Oven Cage 44" x 39" x 56" (1118 x 991 x 1422 mm) 1 Ageing Oven Cage 45" x 27" x 36" (1143 x 686 x 914 mm) 1 Ageing Oven Cage 48" x 58" x 20" (1219 x 1473 x 508 mm) 1 Ageing Oven Cage 81" x 50" x 7" (2057 x 1270 x 178 mm) 1 Ageing Oven Cage 105" x 53" x 67" (2652 x 1346 x 1702 mm)1 1 Freezer Volume 280 cu.ft. (8534 cu. cm.) 2 Freezer Volume 7 cu.ft. (213 cu. cm.) 1 Freezer Volume 2.5 cu.ft. (76 cu. cm.) 2 Freezer Cage 50" x 48" x 23" (1270 x 1219 x 584 mm) 1 Walk-in Freezer Cage 168" x 132" x 127" (4267 x 3353 x 3226 mm)

12 Special Processing Paint Booths Single Paint Booths (4) Double Paint Booths (4) Paint Booth for large assemblies ft. x ft. x ft. Aluminum Processing Chemical Conversion Coating Anodize chromic, sulfuric, and boric-sulfuric NDT FPI, MPI Anodize / Chemical Conversion Tanks 12 ft long x 7 ft deep x 3 ft wide Upcoming Processes 2017 Passivate Zink Nickel Zinc Plating Shot Peening Available Manufacturing Capabilities

13 Assemblies Available Manufacturing Capabilities Manual Drilling, Riveting, Assembly, Sealing, Painting, Polishing, Laser Tracking Temperature Controlled room for Composite Floor Boards Assemblies Polishing Room & Special processes Room (Sealant Mix)

14 Available Manufacturing Capabilities Raw Material Distribution Strategic Supplier Aluminum SHEET Cut to length, angle cuts, protective coating, oversize material Aluminum PLATE Precision cut, straight and near nested shapes, first operation machining, skin facing, milling, pockets holes, etc. 100% Quality Rating for all Contracts Over 50 Quality Approvals from Major and Minor OEM and Prime Subcontractors

15 Available Manufacturing Capabilities Current services offered to companies in Chihuahua LTA with Firm pricing for 12 or 24 months Safety stock created based on their customers forecast Material consolidation at their Fort Worth, TX facility Material processing time 1 weeks for Sheets 2 weeks for plate Shipping lead time 1 day transit time to the US MX border 1 day to clear customs 1 day transit time from El Paso to Chihuahua City Just in time delivery Automatic Shipping notification Automatic invoice and documentation notifications Strategic Supplier

16 Cost Model Estimates At the Chihuahua s Aerospace Cluster, we have determined a cost-competitive baseline, integrated in the following way: Average cost for manufacturing* $36 USD / hr Average estimated cost by raw material $ 4.89 / sq ft Cost composition* Raw Material Manufacturing Special Process 21% 45% 34% Note: * Price Model based on average cost for fabrication technologies.

17 Composites About the Chihuahua s Aerospace Cluster Top Processes & Capabilities performed for OEMs in the region High precision Aerostructures Harnesses Aircraft Interiors machining Aeroparts and Sheet Metal Engines Slides and Rafts Thermal and chemical metal treatment

18 About the Chihuahua s Aerospace Cluster At the Chihuahua s Aerospace Cluster, we work under the Triple Helix model in which there is alignment between all the efforts of the government and academia with the vision outlined by the industry. 6 out of the 8 OEM s operating in Mexico and more than 40 specialized and certified suppliers Industry Leading generator of skilled human capital: Engineers & Technicians per year High School Technicians per year

19 About the Chihuahua s Aerospace Cluster Chihuahua is one of the most important Aerospace Clusters in Mexico with the following indicators: Aerospace Cluster with 6 OEMs aerospace certified suppliers >5,000,000 Sq Ft of industrial floor > $1,000M USD in local and foreign investment + + > $1.5B USD annual exports >17,000 Direct labor force >$150M USD in payroll and >$450M USD in indirect jobs (economic spillover)

20 About the Chihuahua s Aerospace Cluster At the Chihuahua s Aerospace Cluster, we currently serve the following OEMs with costcompetitive and world class products

21 Chihuahua s Aerospace Cluster Av. William Shakespeare No. 157 Complejo Industrial Chihuahua Tel. +52 (614) Ext (614)

22 Thank you! René Alejandro Espinosa Terrazas President Mónica Vega Ocaranza Cluster Manager Index Chihuahua Asociación de Maquiladoras y Exportadoras de Chihuahua, A.C. Av. Oscar Wilde No Complejo Industrial Chihuahua Tel. +52 (614) Ext (614)

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