awea supply chain work shop sept 11, 12 2011

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !

Ductile Iron Foundry!For the Wind Energy and Other Markets!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

Opportunity!

•! Long-term growth in the U.S. wind turbine market expected to be robust.!

•! Large-scale castings one of the weakest links in the domestic supply chain.!

•! Of the American foundries who are in market, none have in-house machining capabilities. Must outsource. Increases logistics costs.!

•! Much interest amongst U.S. wind turbine manufacturers in seeing this domestic capability developed.!

2!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

Market!

3!

CAGR = 12.7%!

CAGR = 11.1%!

CAGR = 7.8%!

Robust growth in the U.S. wind energy market expected.!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

Market"Translated Into Tons of Castings!

4!

Current U.S. foundries cannot meet domestic casting demand.!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

Project!

•! Develop U.S.-based foundry with in-house precision machining capabilities.!

•! Focus on wind turbine market initially, diversify into other markets over time.!

•! Partnered with well-established industry companies to gain technical expertise and market insight.!

•! Leverage latest automation in the operation to boost efficiency.!

•! Build operation from the ground up with “lean manufacturing” in mind – minimize costs, maximize agility.!

5!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

Target"Markets!

6!

Tier 1 – Primary Market Focus!•!Wind Energy – Turbine Hubs, Frames, Bearing Housings, Shafts!

Tier 2 – Other Markets Currently Served by Partner!•! Transportation – Large Engine Blocks, Train Bogies!•! Industrial – Machine Tool Bases, Tables, and Frames!

Tier 3 – Other Markets for Large-Scale Iron Castings!•!Mining and Mineral Processing – Gears. Mill Heads, Bearing Bases!•!Hydroelectric – Sluice Gates, Turbine Head Covers, Gate Barrels!•!Nuclear – Fuel Rod Storage Cases, Reactor Valves!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

WHY IOWA!

7!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

IOWA - Logistics!

8!

•! RAIL / BARGE – Rail spur directly adjacent to Nadicom property line!

•! Iowa Interstate Railroad, Ltd. – one of few regional railroads that connects with the entire Class 1 railroad system at multiple locations, operates 7 days/week!

•! Intermodal facilities at Blue Island, IL and Council Bluffs, IA!

•! Access to Mississippi and Illinois River terminals – rail-to-barge service!

•! TRUCK – Four (4) miles from Interstate !

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!

State of the Wind sector!

•! PTC EXPIRATION – Historically U.S. wind turbine demand shows strong growth when PTC in effect, drops sharply when PTC expires. Lack of Federal renewable energy policy creates uncertainty which inhibits growth in the market – Public support for renewable energy and increased adoptance of state renewable energy standards is bouying the industry in the short term, long term outlook remains positive!

•! 48 C renewal – As part of the stimulus package, companies received these advanced energy manufacturing investment tax credits. How ever a good number of them haven’t been used. Call representatives urging them to support a renewal of 48C without having to appropriate new monies, but re-appropriating old monies!

•! LACK OF TRANSMISSION – Most abundant wind resources in middle of U.S. where grid infrastructure the most lacking – Transmission projects gaining traction, taller towers making lower-wind regions near population-dense regions more attractive for wind farms, offshore looms as huge opportunity in long term!

9!

© 2011 NADICOM LLC | Confidential and Proprietary | Nadicom is a trademark of the North American Ductile Iron Company !Q2 2011!10!

QUESTIONS!