General Presentation

June, 2018

TCH Group overview

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Cogeme India

High precision

components and

sub-assemblies for

turbocharging units

Cogeme Romania

Precision components

and subassemblies

for turbocharging

units

Cogeme Italy

Components for

turbocharging units

Cimos Group

Turbocharger and

powertrain

components

Cogeme Cimos

Turbocharger/Powertrain focus and production excellence

• Sophisticated technological know-how and design capabilities with proven expertise and experience in product design & optimization

Manufacturing footprint

• Strong manufacturing footprint in South-Eastern Europe and the EU

• Highly cost effective labour and low logistic costs all over Europe

• Focus on plant efficiency, cost control and capital expenditure budgeting

Strong Customer Base

Tier 1 automotive suppliersOriginal equipment manufacturers

(OEM)

Cimos overview

• Cimos is a highly acclaimed automotive supplier founded in 1972. It operates as a Tier 1 and/or Tier 2 supplier to main automotive manufacturers. Cimos consists of two divisions – Turbo and Powertrain and currently produces in 10 plants certified with IATF 16949 (ISO/TS) located in Slovenia, Croatia, Bosnia and Hercegovina and Serbia. Its main technologies employed are forging, casting, machining and assembly.

• Cimos was acquired by Palladio Holding in 2017 and become part of TCH Group.

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Business overview

Historical milestones

1972

Cimos founded

by Citroen, Iskra

and Tomos

1984-1989

Establishment of R&D

activities and

Breakthrough on

international market as

an automotive supplier

2001-2010

Intense investments in

production equipment and

acquisitions

2015-2017

Reorganization of the

Group, focusing on

improving group’s

performance

May 2017

Cimos acquired by

Palladio Holding –

TCH Group

1998

Entering

Turbocharger

business

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Cimos Group industrial footprint organization

CIMOS locations are giving you the benefit of highly cost effective labour and low logistic costs all over Europe.

Fe casting

Machining, stamping, welding, assembling

Al casting

Labin

Buzet, Roč

Vuzenica Maribor

Senožeče

KoperHeadquarters Gradačac

Kikinda

Forging

Novi Travnik

Cimos Business overview

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Business lines Production technologies

Main customers

Turbo Powertrain

Compressor

housings

Back plates

Central

housings

Nozzles

(VTG)

Inserts

Brake discs & drums

Accessory

brackets

Flywheels

Engine

brackets

Steering

parts

Forging Heat treatmentAluminum casting Grey iron casting

AssemblingWelding Machining

Cimos Business lines

• Core technology: centrifugal steel casting, hot forging, aluminum high pressure die casting, aluminum low pressure die casting, aluminum gravity die casting, steel casting, grey iron casting, CNC machining, assembly

• Business model: built-to-print & DFM engineered components, Tier 2 position, strategic supplier, mainly single sourcing contracts

• Value chain/production: casting in 4 plants, forging in 1 plant, machining in 6 plants, assembly in 5 plants

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Turbo systems

• Core technology: aluminum high and low pressure die casting,, aluminum gravity die casting, grey iron casting, hot forging, CNC machining

• Business model: mainly engineered products-full service provider, Tier 1 position, strategic/preferred supplier, more than 50% single sourcing contracts

• Value chain/production: casting in 4, forging in 1 and machining in 5 plants

Powertrain

Nozzles (VTG) Inserts Centre housings Compressor housingsBack plates

Accessory brackets

FlywheelsEngine

brackets Brake discsGearbox

partsSteering

parts

Chassisparts

Turbo Systems

• We have been working intensely on development of components for new generation turbochargers which, to deliver high charge-air pressures, require new knowledge mostly in the area of more complex materials and production processes for their preparation.

• These components drastically reduce fuel consumption and engine emissions.

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Comments and observations Core products

CIMOS is one of the largest European manufacturers of Turbo components.

More than 14m units of Turbo parts produced per year

for the biggest turbo producers in the world.

Backplates

1.1m units

Nozzles

(Variable Geometry Elements)

4.1m units

Inserts

1.8m units

Central housings

3.0m units

Compressor housings

3.4m units

Powertrain

• Knowledge and skills gained in the past successfully completed projects;

• In-depth understanding of the industry trends and customerrequirements and expectations;

• Proficiency in all phases of the process that will lead to new productsfrom the concept to mass production;

• Evaluation of potential risks and suggestions for working out newsolutions to avoid risk exposure;

• Constructing a product with focus on:

• minimum resources to manufacture the product,

• achieving cost efficiency,

• leaving no room for problems to arise in relation to the production,

• define the process and deliver high quality.

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Multi-faceted expertise

CIMOS boasts with decades of experience in engineering and manufacturing of Powertrain parts with a broad range of products.

Flywheels

0.7m units

Accessory brackets

0.8m units

Engine brackets

1.5m units

Almost 12m units of Powertrain parts produced

per year for the gasoline, diesel and electric engines.

Brake discs & drums

2.2m units

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Value chain

The company has developed a strong process specialization and competencies on a complex sequence of manufacturing activities.

Value chain: Process specialty

Supply of raw materials for foundries and small assembly components

Raw materials suppliers Tier 2 component suppliers Tier 1 automotive suppliers Original equipment manufacturers (OEM) Distribution

Produce various components for Tier 1

suppliers

Design/Improve products in cooperation with

Tier 1 suppliers

Provide a complete solution to OEMs by

designing, validating, and producing

components to be built into engine or vehicle

Assemble components into vehicles

Prepare for distribution

Dealership for distribution to end user

After-market components

Sand core

shootingFinishing

Washing &

ControlMachiningCasting Leak test & Assy

Process

engineer-ingMelting

Manufacturing process

Delivery

Development of a

product 3D model

based on Customer

requirements

Production of

prototypes

Physical validations of

the prototypes

Melting of raw

materials (aluminum:

ingots of appropriate

AL grade; grey

iron/steel: various

scrap iron materials

and additives

Melt treatment before

pouring

Sand cores are

needed for products

with internal hollow

spaces, e.g. channels

etc.

After casting

solidification, the

core sand is removed

from the casting

Pouring of melt into

permanent dies (for

aluminum) or sand

moulds or sand shells

(grey iron and steel)

Pouring can be

performed under

pressure or by gravity

After the castings

have solidified and

cooled, remains of

sand and metal burrs

are removed by shot

blasting, vibratory

finishing,

robotic/man.

grinding etc.

Castings or forgings

are shaped to the final

geometry by

machining processes:

turning, milling etc.

Usually, several

machining steps are

needed

Machined parts are

washed to remove

metal chips and

remains of

machining coolants

If needed, visual

control is the most

effective on clean

parts

Castings are usually

tested for leakage

(=porosity)

Components are

assembled onto clean

and inspected parts

For traceability parts

can be marked with a

DMC code

Final products are

delivered to Customers

for assembly into their

product (Tier 1 OES),

engine or vehicle (OEM)

Product design

& validation

Definition of the

production process

details: operations,

machinery, tooling,

parameters etc.

Coordination with

Customer to ensure

effective production

Industry value chain and Cimos sector

Cimos‘ references

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