Brek Manufacturing Marwan Hammouri, CEO Growth through Innovation - PowerPoint PPT Presentation

Brek Manufacturing Marwan Hammouri, CEO

Growth through Innovation

Overview Brek Manufacturing Company was founded in 1968 and headquartered in Gardena, California, is a leading manufacturer of large, complex structural components and sub-assemblies for the commercial and military aircraft markets.  The Company was acquired by Taurus Aerospace Group in January 2008  Brek is a high performing supplier with world class machining capability producing a wide range of aluminum structural components such as bulkheads, floors, frames, ribs, spars, and longerons that are incorporated into virtually every aspect of an aircraft, from the fuselage to the wing tip  The Company is an award winning supplier to the world’s most attractive programs, such as the B737, B777, B787, A-380, F-18, F-15, F-35, V-22, CH-47, and UH-60, through a blue chip list of OEM and Tier I customers such as Boeing, Airbus, Northrop Grumman, and Spirit Aerosystems 3 CONFIDENTIAL

Facilities Map 190,000 square foot facility spread out over 5 sites (12 buildings) within close proximity to each other. Plant 1 Manufacturing Operations (1436 West 134 th Street) Plant 2 Assembly Operations (13301/13303 Halldale Ave) Plant 1, 2, 3 Plant 3 Manufacturing Operations – 26,245²ft (1521 West 134 th Street) Administrative Offices Plant 4 & Shipping and Receiving (1513 West 132 nd Street) (Plant 4 (1435 West 178th Street) - 44,000²ft Manufacturing Facility is located 3.2 miles south of Plant 1. Plant 4 Manufacturing facility (44,000²ft) is located 3.2 miles south of Plant 1. 4 CONFIDENTIAL

Quality Approvals Our Quality Control System conforms to the requirements of ISO 9001:2008, and AS9100 Rev C  Airbus  Boeing Commercial Airplane Group  Boeing IDS  FHI  Goodrich  Gulfstream  KHI  Lockheed  MHI  Northrop Grumman Corporation  Spirit Aerosystems  Vought Aircraft Industries 5 CONFIDENTIAL

What we do….. Flap Spars, Ribs, Slats Leading Edge Spar Door Kit Ramp Bulkheads Nose Bulkheads Wing Spars Under Floor Bulkheads Webs, Beams, Trap Panels, Center Wing Box (Center Wing Box) Floor Panels Comprehensive line of products incorporated into every aspect of an aircraft 6 CONFIDENTIAL

Weapons Bay Door Hinge Assembly Jig 7 CONFIDENTIAL

Innovation and Best Practices  Background: I joined Brek in June 2013, In the first 12 months the company future sales were to experience a 60% drop due to the C17 program stop, F18 production cuts of 50% and other contracts that we coming to an end. We experienced a dip in sales and had to adjust operations accordingly, The company sales in 2015 ended at 55% compared to 2013, on the other hand, we had less that 30% drop in EBITDA. Brek estimated sales for 2016 are within 20% of 2013 and we estimate an EBITDA that is much higher than 2013. 8 CONFIDENTIAL

Innovation and Best Practices Many companies take the following approach:  Businesses are inclined to focus on solving their problems rather than fixing the processes. “When do you stop trying to fix a loser and work on growing the winner”.  We have been successful doing what we are doing for as long as we have been in business. “Why change” 9 CONFIDENTIAL

Innovation and Best Practices What did Brek do:  Invest in new technological advanced equipment, software and tools.  Implement ideas and methods to improve productivity utilizing the following:  Multi-Axis High Speed equipment with multi-pallets for lights out operation.  Mobile Laser Inspection tools to check product in the manufacturing cell rather than moving to inspection.  Automatic system generated reports to inform individuals and departments of exceptions and actions required.  Transform experiences to standard processes followed by documentation and training. 10 CONFIDENTIAL