ISSUE. Successful Audit. Teknia Group acquired a new production plant in North America FLASH NEWS REPORT.

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1 May - June 2016 T Teknia Group acquired a new production plant in North America The acquisition symbolizes a third step towards the implementation in NAFTA. eknia has recently acquired the Company Orchid Mt. Juliet, LLC occupying 11,000 m 2 that is located in Mount Juliet, Wilson County, Tennessee, and 30km away from Nashville. Teknia will keep the local staff of 130 employees and continue with the stamping activity of the plant. The asset of this plant, apart from its location, customers and strategic products, is the capability of producing stamping tools internally. It is worth to highlight that the annual turnover in 2016 will reach 35 million US dollars through renowned OEMs and TIER1s such as General Motors, Ford and JCI Seating (future Adient). This acquisition is a result of a constant effort made by the Commercial Office in Novi, Michigan as well as the whole Group, which has been fully involved with the aim of strengthening our presence in NAFTA region through our first production plant in the US. With this acquisition, the number of plants comes to 19, out of which two Mexican plants are already operating in the NAFTA market. This acquisition symbolizes a third step towards our successful implementation in NAFTA in the recent years. Thanks to the constant effort made by all, Teknia strives to follow the pattern set in Europe and Brazil to become one of the leading suppliers in the North American market, which is taken as a reference in the automotive industry. FLASH NEWS REPORT IN THIS ISSUE Basque suppliers days at Ford, DUNTON UK Page 2 Teknia Group appointments and incorporations Long- term Notes Program Release Page 3 Valeo SQA Training Session in Cold Stamping Page 4 Successful Audit by VW for Teknia Technologies Page 5

2 I Basque Suppliers Days at Ford, Dunton UK Teknia introduces the Group and the innovative ideas in the field of engine and powertrain. t is a pleasure to inform you about another event in which Teknia participated on 11th May Each year ACICAE (The Basque Automotive Cluster) organizes several events throughout the year helping its members to promote and facilitates the first contact with new customers. On this occasion, Teknia had a chance to introduce the Group and the innovative ideas in the field of engine and powertrain to the FORD Purchasing and Engineering representatives in their local facilities in Dunton Technical Centre, Basildon (Essex). The event attended Mr. Aritz Ruiz (Teknia Elorrio Sales Manager) and Mr. Martín Errasti (Machining Division Commercial Director) on behalf of Teknia Automotive, whereas Teknia Technologies was represented by Mr. David Martínez (Chief Technology Officer). The outcome of this event was very positive and our sales representatives has already got in touch with Ford Purchasing representatives to see if Teknia can satisfy their current needs 2

3 Teknia Group appointments and incorporations S ince there have been several organisational changes in Teknia Group, we would like to refresh your memory and update you on the new incorporations in May Name Gonzalo Fernández New position Co - Managing Director of Teknia Technologies and Administrative / Finance Director of Teknia Azuqueca As of May 2016 Name Ignacio Becerril New position Group IT Manager As of May 2016 Name Enrique Sánchez García New position Group Controller As of May 2016 T Long- term Notes Program Release During the next twelve months, the consecutive bond issuances will be allowed. eknia Manufacturing Group has initiated the release of the Longterm Notes Program admitted on the Alternative Fixed-income Market (MARF, the Spanish acronym for Mercado Alternativo de Renta Fija ) for a total amount of 40 million. This will allow the consecutive bond issuances during the next twelve months, which will offer yields at fixed or variable rates and maturity between 4 and 7 years 3

4 E Valeo SQA Training Session in Cold Stamping Teknia Manresa enabled the practical session for Valeo with the aim of strengthening the relations on the commercial and quality. ach year, the recently hired professionals from Valeo Supplier Quality Assurance (SQA) assigned to Cutting, Stamping & Spring Division take a theoretical training course on stamping in order to acquire a basic knowledge of this technology. Valeo is collaborating with its best-prepared suppliers to combine the theoretical part of the course with the practical session in the facilities of the suppliers. With the aim of strengthening the relations on the commercial and quality level searching for service improvement and fostering the good relationship dating from 2011, Teknia Manresa enabled the practical session for Valeo professionals to take place in the plant on May 2016, 24 th and 25 th. Thanks to the positive attitude of the whole team of Teknia Manresa during these two days, the SQA Valeo team was highly satisfied with the session; what is more, they suggested launching another edition next year. Just to mention that from the beginning of 2016 up to date the evolution of the collaboration between Valeo Europe and Teknia Manresa has been very positive, increasing the bookings several projects 4

5 V Successful Audit by VW for Teknia Technologies The OEM delegates to Teknia all the activities starting from the design stage from the interior surrounding up to the complete industrialization of the product. olkswagen has successfully audited Teknia Technologies for the design and development of the cooling and washer tanks (D&D Center - Reservoirs and Tanks), as well as for the pedal sets (R&D Unit - ). Speaking about enhancement for the business development, Teknia Technologies and therefor the whole Group will now benefit from two centers dedicated to design, development, and validation certified by one of the main car makers. This results in an advantage that other OEMs will consider our capabilities not only for the industrialization of the products and its final production by Teknia, but also for the design and development of the products. To sum up, thanks to the integration of our capabilities to design and develop these kind of products we got a step ahead of our competitors. Last but not least, Teknia Technologies strategy is to continue with the process of certifying the rest of D&D Centers and R&D Units as development centers of our products 5

6 TEKNIA GROUP SALES +49 (0) ENGINEERING +49 (0) HEADQUARTERS Bilbao/ Madrid COMERCIAL AND TECHNICAL OFFICES Stuttgart Germany Michigan USA Seoul South Korea Shenzhen China PRODUCTION SITES MACHINING METALLIC PLASTIC TEKNIA Technologies Mexico Brazil Mexico Serbia USA Brazil Czech Republic Mexico Morocco Serbia USA SOCIAL MEDIA FOLLOW NOW

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