Title: Creating 21st Century Auto Body Solutions
1Creating 21st Century Auto Body Solutions
Investor Presentation June 2005
2SAFE 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.
3Noble 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
4Noble is North Americas Largest Laser Welder
2005E Market Share by Welder Revenue
Management estimates of flat blanks, excluding
tubular products
5OUR CLIENTS
Automotive Companies
6The Perfect StormDriving Growth
- Steel Prices
- Fuel Prices
- CAFE Requirements
- Safety Requirements
- Auto Competition
- Quality Performance
- Our Customers Need Us More Than
Ever
7Revolution 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
8Revolution - 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
9Revolution - 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
10Revolution - 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
12Noble 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
13Value-Added Market Potential
- 2.4 Billion
- Potential Content - 154 Per Vehicle
14Drive 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
15The 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
16The 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
17Driving 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
18Summary
- 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
192004 Record Results Year Ended December 31
continuing operations
(millions)
2003
2004
EPS - Diluted
1.09
1.44
20Continued Growth 1st Quarter 2005 Continuing
Operations
1Q 2004
1Q 2005
EPS - Diluted
0.36
0.41
21Strong 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
22Continuing 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