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Creating 21st Century Auto Body Solutions

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Advanced High-Strength Steel (AHSS) Tube Applications: Revolution Laser-Welded Tubes ... Eliminates 11 Parts, Saving $25,000,000 to $40,000,000 Annually ... – PowerPoint PPT presentation

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Title: Creating 21st Century Auto Body Solutions


1
Creating 21st Century Auto Body Solutions
Investor Presentation June 2005
2
SAFE HARBOR STATEMENT
  • Certain statements made by Noble International,
    Ltd. (Noble) in this presentation and other
    periodic oral and written statements, including
    filings with the Securities and Exchange
    Commission, are forward-looking statements
    within the meaning of the Private Securities
    Litigation Reform Act of 1995. These
    forward-looking statements, as well as statements
    which address operating performance, events or
    developments that we believe or expect to occur
    in the future, including those that discuss
    strategies, goals, outlook or other
    non-historical matters, or which relate to future
    sales or earnings expectations, cost savings,
    awarded sales, volume growth, earnings or a
    general belief in our expectations of future
    operating results, are forward-looking
    statements. The forward-looking statements are
    made on the basis of managements assumptions and
    estimations. As a result, there can be no
    guarantee or assurance that these assumptions and
    expectations will in fact occur. The
    forward-looking statements are subject to risks
    and uncertainties that may cause actual results
    to materially differ from those contained in the
    statements. Some, but not all of the risks,
    include our ability to obtain future sales our
    ability to successfully integrate acquisitions
    changes in worldwide economic and political
    conditions, including adverse effects from
    terrorism or related hostilities including
    increased costs, reduced production or other
    factors costs related to legal and
    administrative matters our ability to realize
    cost savings expected to offset price
    concessions inefficiencies related to production
    and product launches that are greater than
    anticipated changes in technology and
    technological risks increased fuel costs work
    stoppages and strikes at our facilities and that
    of our customers the presence of downturns in
    customer markets where the Companys goods and
    services are sold financial and business
    downturns of our customers or vendors and other
    factors, uncertainties, challenges, and risks
    detailed in Nobles public filings with the
    Securities and Exchange Commission. Noble does
    not intend or undertake any obligation to update
    any forward looking statements. For more
    information see www.nobleintl.com.

3
Noble International 21st Century Auto Body
SolutionsTM
Noble Internationals laser-welded tailored
blanks and laser-welded tubular products brings
automotive body design into the 21st Century. Our
laser-welded flat blanks and tubular products
reduce steel usage and weight while increasing
strength and lowering total cost. Our quality,
technology and broad product line make us the
leader in laser-welded structural components.
  • Noble has provided laser-welded technology
    solutions to the automotive industry for 13
    years.
  • We lead the industry in developing new
    applications with several industry firsts, such
    as the first laser-welded bodyside blank with an
    exposed surface.
  • Noble is the first North American supplier of
    laser-welded tubular products.
  • Advantages of laser welding over conventional
    assembly methods include greater safety, reduced
    weight, fewer parts, less steel usage, higher
    quality and lower total cost.
  • Multiple Locations in North America and
    Australia
  • Warren, Michigan
  • Shelbyville, Kentucky
  • Brantford, Ontario
  • Geelong, Australia (relocating to Adelaide)
  • Silao, Mexico

4
Noble is North Americas Largest Laser Welder
2005E Market Share by Welder Revenue
Management estimates of flat blanks, excluding
tubular products
5
OUR CLIENTS
Automotive Companies

6
The Perfect StormDriving Growth
  • Steel Prices
  • Fuel Prices
  • CAFE Requirements
  • Safety Requirements
  • Auto Competition
  • Quality Performance
  • Our Customers Need Us More Than
    Ever


7
Revolution Laser-Welded Tubes
Advanced High-Strength Steel (AHSS) Tube
Applications
  • Ideal for Hydroforming AHSS
  • Laser seam-welding ensures optimal weld quality
    for AHSS tubes
  • Press-formed to
  • Minimize work hardening
  • Maximize percent expansion during Hydroforming
    (up to 50 increase) compared to conventional
    rolled and electric resistance welded AHSS tube.
  • Incorporate features (holes, notches, etc) that
    can improve shape flexibility.
  • Frame Rails
  • Crush Tips
  • Engine Cradles
  • Front End Structures
  • Roof Rails
  • Rockers
  • Bumpers
  • Breaker Beams
  • Trailing Arms
  • Cross Members
  • Roof Bows
  • IP Beams

8
Revolution - Multi-Diameter Pillar Tube
Patent Pending
  • Tubular Pillar Tubes Are Best Solution to More
    Stringent Rollover and Side-Impact Standards
  • Nobles Proprietary Product Opens a Large Market
    and Leaves the Competition Behind

9
Revolution - Hydroformed Roof Rail Tubes
Roof Rails
ULSAB
ULSAB-AVC
  • Laser-Welded Tubes Offer Substantial Cost
    Advantages Over Conventional Tubes
  • Lower-Cost Tubes Should Expand the Market

10
Revolution - Noble Can Save Automakers Hundreds
of Millions per Year
11
  • Value Equation - Exposed Laser Welded Bodyside

Minimize Capital Investment
Improve Structural Integrity
Reduce Engineering Prototype Time
Improve Material Utilization
Reduce Weight
Improve NVH
Increase Floor Space
Eliminate Reinforcements
Improve Fit Finish
Minimize Assembly Saves 27 Per Vehicle
Conventional Method
Laser Welded Blank Method
12
Noble Technology Can Save North American OEMs
1.6 Billion Per Year
  • Detroit Three 1.2 Billion
  • New Domestics 0.4 Billion
  • Total 1.6 Billion
  • Savings Average 100 Per Vehicle
  • Nearly 50 of Body-in-White Parts Are Eliminated

13
Value-Added Market Potential
  • 2.4 Billion
  • Potential Content - 154 Per Vehicle

14
Drive the Market
  • Value Equation Selling
  • Created Value Equations for all existing and new
    applications
  • Located Noble Sales Engineers Onsite with
    Customers Engineers
  • Strategic Marketing Focused at Multiple Levels of
    Customer Organizations
  • Higher-Level Management Demonstrates Support for
    LWBs and Drives Working-Level Decisions
  • Working-Level Sales Generate Actual
    Implementation of More LWB Applications
  • Automakers Awarded 55 Million in Work to Launch
    in 2005 2006 (Annualized Revenue)
  • Over 40 Million Annualized Business Remaining
    for 2006

15
The Revolution - Driving New Applications
  • New Products Developed to Drive Growth and
    Outdistance the Competition
  • Window Frame
  • Tubular Crush Tip
  • Tubular Roof Rail
  • Tubular Pillars
  • Curvilinear Liftgate
  • Skid Plate
  • Four- and Five-Piece Bodysides
  • Laser-Welded Seat Frames
  • More to Come

16
The Revolution - Driving Growth
  • Noble Is One of Four Body Suppliers Doing
    Advanced Design Work on Upcoming Light Truck
    Platform
  • Noble Presented 30 Different Laser Welding
    Applications to Design Team 21 On Priority List
  • Total Material Savings in Steel Usage Ranges from
    99 to 106 lbs, Saving an Estimated 15,000,000
    Annually
  • Eliminates 11 Parts, Saving 25,000,000 to
    40,000,000 Annually
  • Reduces Weight by 39 lbs to 60 lbs Per Vehicle
  • Nobles Potential Value-Added Revenue 18
    Million Per Year

17
Driving New TechnologiesMaking It Happen
  • New Process Development Underway to Lower Our
    Production and Capital Costs
  • Nobles Next-Generation Welding Systems Being
    Introduced
  • New Welding Systems Increase Throughput
    Dramatically and Raise Quality
  • Flexible Systems Weld More Products Per Line
  • Adding Automation to Reduce Labor and Cycle Time

18
Summary
  • Noble Is Driving the Market by Selling the Value
    of 21st Century Auto Body Solutions
  • Noble Can Save Automakers Hundreds of Millions of
    Dollars Each Year
  • Automakers Are Paying Attention
  • Our Environment Favors More Growth
  • Nobles Focus and Product Line Are Unmatched

19
2004 Record Results Year Ended December 31
continuing operations
(millions)
2003
2004
EPS - Diluted
1.09
1.44



20
Continued Growth 1st Quarter 2005 Continuing
Operations
1Q 2004
1Q 2005
EPS - Diluted
0.36
0.41



21
Strong Balance Sheet Liquidity
  • Acquired two core business operations (Silao,
    Mexico in January 2005 and LWI in January 2004)
    for 19 Million in cash
  • Issued 40 Million in 4, 3-year Convertible
    Subordinated Notes-convertible at 32 per share

22
Continuing Earnings Growth
  • 2005 Projected Diluted EPS of 1.55 to 1.60 on
    Sales of 340 - 350 Million
  • EBITDA for 2005 Estimated at 34 Million to 36
    Million
  • Capital Expenditures for 2005 Projected at 10
    Million to 12 Million
  • Note All projections are based on estimated
    2005 North American light vehicle production of
    15.9 million units. Average diluted share count
    for 2005 estimated at 10.7 million.
  • Up to 6 Million Additional Capital May Be
    Invested Depending on Structure of Joint Venture
    Agreements Currently Under Negotiation
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