RMDG Aerospace

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RMDG Aerospace

• Preliminary Results Presentation
• March 2007

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Senior Management Team

• Steve Cooper
• CEO
• Previously President of IMIs Fluid Power
  Division
• 450m sales
• 22 manufacturing locations worldwide
• 6500 people
• Mike Welburn
• Group Sales Director
• Previously Director of Global OEM Strategy for
  IMIs Fluid Power Division

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Results Overview-Highlights

• Record results
• Operating profit up 59.6 to 1,044k
• Strong underlying growth
• 120k investment in restructuring/rationalisation
  at RMDG
• Acquisition of Maxpower Automotive announced
  today
• Continue to look for further opportunities to
  expand

before rationalisation, goodwill amortisation
and FRS 20 charges
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Results Overview
5
Business Review

• Malvern Tubular Components
• Redman Fittings
• RMDG Aerospace
• Maxpower Automotive

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Supporting major OEMs worldwide

• Largest of the businesses
• UK, USA, Asia
• Key end market is power generation
• Generator sets
• Diesel engines
• Radiators
• Sales up 16
• Further extension of component purchases from
  lower cost countries
• Improving customer value

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Low Cost Country Sourcing

• Office established in Nanjing for 18 months
• Good progress to date
• 4 Full time employees
• Network of sub contractors for-
• Tube
• Bellows
• End fittings

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Innovation

• Revolutionary end fitting system
• World wide patents
• Able to join multi-layer pipework
• Strong demand from water companies
• Brown field site developments
• Potential land contamination
• Water quality
• Sales up 61
• Outlook encouraging
• Additional markets/opportunities identified

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• Acquired June 2006
• Productivity up 15
• Team working on identifying and sourcing
  components from low cost countries
• 120k investment in rationalisation/reorganisation
  
• Delivery performance improving to world class
  levels
• Plans to make business a significant contributor
  to profits 07/08 well on track

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New Shop floor layout
Before
After
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(No Transcript)
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Acquisition of Maxpower Automotive

• Announced today
• Cash consideration 1.55m
• For year ending March 2006
• PBT 69.7k
• Sales 5.3m
• Gross assets 2.8m
• Net assets 428k

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Maxpower

• Tube manipulation and fabrication
• Off highway, niche Automotive
• Steel, plastic and hybrid tube forming

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Maxpower

• The type of business we know and understand well
• Blue chip OEM customers base
• Perkins
• Shibaura
• Land Rover
• JCB
• Dura
• Siemens VDO
• Techniques and methods used at MTC will be used
  to drive the business forward

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New Group Structure
.
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Tricorn Group Plc-Strategy

• Operational Performance
• Continue to drive for world class operational
  performance within individual businesses
• Develop local management expertise
• Intimate customer relationships
• Lean manufacture
• On time delivery
• Quality
• Margin improvement
• Overhead streamlining
• Year on year productivity improvements
• Component and semi finished sourcing from low
  cost countries
• Growth
• Continue to grow through acquisitions and
  organically
• Maintain clear focus on pipe solutions
• Increase customer penetration as product
  portfolio expand and develops
• Acquire new customers

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Markets
Power Gen
Aerospace
Off High
Niche Auto
Water
Other
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Customers

• Blue chip Original Equipment manufacturers
• Caterpillar
• Perkins
• F G Wilson
• Rolls-Royce
• Cummins
• JCB
• Shorts Bombardier
• Land Rover
• GPS
• Bearward

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Tricorn Group Summary

• Strong and experienced management team
• Proven track record established
• Clear, focussed strategy
• Scope for significant expansion
• Outlook for the Group very positive with all key
  market sectors strong and drive for reduced costs
  continuing to be successful