INDUSTRY-LEADING COMMERCIAL VEHICLE PRODUCTS

Restructuring the Supplier Network: Public vs. Private

Rick Dauch, President & CEO – Accuride Corporation

Restructuring Experience

1995 - 2007 2008 - 2010 2011 - 2016

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American Axle and Manufacturing

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Purchased Asset from General Motors 1994 – $300M ($0.01/share) GM’s Final Drive & Forging Division Detroit, Buffalo, Tonawanda, Three Rivers, St. Catherines Represented by UAW, CAW & IAM (>10,000 associates)

Embarked on Massive Turnaround Plan 1994-2000 New senior leadership, upgraded management team Major capital investments ($1.5B+) Restore product & process technology leadership

Sold to Blackstone Group in 1997 for $650M ($4.26/share) Fund Mexico expansion, Brazil JV, new forging assets Tier 2 agreements with UAW (Three Rivers, Cheektowaga) 1998: IPO @ $17/share

Global Expansion & Customer Diversification 2004-2008 Key non-GM new business wins New plants: Mexico, Brazil, Poland, China and India UAW strike in 2008

Major success and value creation…… followed by severe union and economic challenges

Revenue: $1.7B (unprofitable); 98% GM, 2% Ford 8 plants among worst 10 in GM’s supply base “Bottleneck” for GM light truck & SUV business

Double capacity, achieve world class quality, OTD Expand into Mexico & Europe, exit Canada Negotiate competitive Tier 1 local agreements

Sales reach >$3BE 2004: AXL >$41/share 2005: Blackstone exits

2009-10: Global Recession, GM & Chrysler Bankruptcy 2009: AXL to $0.29/share

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Acument Global Technologies

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Platinum Equity Acquires Textron Fastening Systems: Aug. 2006 – $630M 2007: Sells Aerospace business to SPS – $300M $1.9B in revenue, <5% EBITDA, $330M debt (>12%) 65% Auto/HD; 35% Electronics, Industrial, Construction 9 BUs, 38 plants, 19 DCs, 15 countries

Global recession crisis hits in 4Q08 Sales drop by 50% NA/EU; 30-40% SA, 10-15% Asia <$30M>/month negative cash flow by Dec ’08 Loss of $50M in U.S. pension funding 2Q’09

Decision: File Chapter 11 or radically restructure business Gores late-night call - team decision to save company Cash Focus: Push AP; “Cash in Advance”; slash inventory NA 3 to 1 BU; restructure mfg. footprint to 10 plants

Smaller, more profitable Acument survives Revenue of $550M/yr., 12-15% EBITDA margins by 2011 Fontana Group buys asset 2014, creating global supplier

Global recession required massive & fast restructuring to save the business

Excess process equipment & capacity Multiple (10+) brands, time zones & cultures Rick Dauch joins as new CEO June 1, 2008 Build >$3B, 15-20% EBITDA business by 2012 for IPO

Major U.S. customers file Ch. 11, halt production EU laws require 21 day notice of risk of insolvency EU: restrictive union environment/laws

French & German units into insolvency protection Consolidate 3 BUs into 1, divest for $450M in 2010 Pay off $330M debt; dividend to Platinum Equity

Acument Restructuring

$2B, ~$100M EBITDA, $330M Debt $550M, $65M EBITDA, $0 Debt

SA Auto

Aero Europe Auto

NA IN/EE

Asia IN/EE

NA Truck

Global IND

Asia Auto

Aero NA

Auto

Divested 2007

Close old plant, open new ‘09-11

Consolidate 2009

Insolvency & Divest 2009-10

Consolidate & Divest 2010

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Firestone Wheels to Accuride through 4 owners over 100 years Firestone Steel wheels founded in 1906 Bain Capital (1986) - Phelps Dodge (1988) - KKR (1997) Acquired Kaiser AL wheel businesses; Mexican JV

Transportation Technologies, Inc. Private Equity roll-up of several suppliers to NA HD Truck Seats, Axles, Industrial/Farm casting, Brake component casting, Stamping & Fabrications

Accuride acquires TTI in 2005; in 2006, executes IPO under KKR leadership $1.4B/yr, $217M EBITDA and $642.7 in total debt

Global Recession and HD Truck Cyclicality Sales collapse to <$550M by 2009 Over-levered business model leads to Chapter 11 in 2009

New Leadership team hired in 2011-12 Restructuring non-competitive , unsustainable ACW is required Loss of customer support, cyclicality = challenging environment

Long history, great wheels business nearly destroyed by over-levered M&A deal

80% ST wheel market share to HD OEMs; Ford/GM 6 operating sites in U.S., Canada & Mexico 3 ERP systems

18 operating sites, 7 unions, 8 ERP systems

Accuride Corporation

12 operating sites in 9 states with 4 unions 5 ERP systems

Lack of investment creates underperforming assets IPO and Bond conversion in 2010-11

Embarks on “Fix & Grow” strategy Public company limelight highlights every challenge

Gunite Conditions Pre-Investment

Gunite was a capital-starved business; abysmal working conditions, poor product quality & delivery

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Accuride Vision & Values Our Vision: Accuride will be the premier supplier of wheel-end system solutions to the global

commercial vehicle industry “GROW” (2015 – 2020)

Profitable Global Growth

“FIX” (2011-2014) Significant Cultural, Operational

& Financial Improvements

Our Values: • Ethical & Respectful • Customer Centric • Technology & Quality Leaders • Cost Competitive • Safe, Progressive & Inclusive • Environmentally Conscious • Fiscally Conservative

Published: January 12, 2015 Revised: February 17, 2016 accuridecorp.com 8

Accuride Restructuring

Non-core assets divested to provide funds for “Fix & Grow” of core business

Steel Wheel

BIW Gunite EU Wheel

Seats Axles AL

Wheel Stamp & Fab

Farm

CORE NON-CORE

Consolidate/CAPEX 3 plants/unions to 1 90% new process equipment Rebuilt casting capability

CAPEX & Acquisition 2x AL wheels capacity Capacity expanded in MX European acquisition

Common Lean & ERP Systems

CAPEX & Future Divestiture

Divestiture 2010-13

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Gunite’s Improved Performance

On Time Delivery: < 40% Quality: >10% scrap; > 12,000 ppm; Spills ($8M) Lead Times: 6-7 weeks and often past due to AM Loss of standard position at Navistar & Paccar 3 locations – multiple Unions and ERP systems Placed on customer “No Bid” lists

On Time Delivery: 99% Quality: <2.5% scrap; <50 ppm; ZERO spills Lead Times: 1-10 days 1 manufacturing location, Union, common ERP Significant new business with AM & fleets AME award winner in ‘15

Performance Prior to Investment Performance After Investment

Gunite Adjusted EBITDA (2011-2015)

Competitive position restored, Gunite capitalizing on organic growth opportunities

Gunite Revenue (2011-2015)

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Lessons Learned Not all PE firms are created equal – know your “partners”……..before becoming their partner! “Slash & Sell” vs. “Build & Turn” mentality………“Advisory” (financing, strategic) or “Hands-On” (operating role) Typically minimal true operating/industry experience; very strong financial skillset & focus where “Cash is King” Typically 24-48 month “window” to buy, fix, grow and sell the asset

“Due” your diligence up front on the asset and the PE firm – Can you really fix the business? Leadership team and union…..is there the capability & willingness to make the necessary change? Customer support/contractual terms, competitor strength, industry stability & cyclicality Balance sheet and FCF availability to handle CAPEX, restructuring, R&D costs

Restructuring in Private > Restructuring in Public – “do the heavy lifting in the dark” Quarterly pressure often leads to a “make the numbers” mentality and poor long term decisions (lack of investment) Restructuring charges, Cash, CAPEX required to fix “broken businesses” Some things cannot be saved or fixed – close or sell are the only options – determine and act quickly! European restructuring costs are punitive; insolvency process is difficult, lengthy & costly Non-business mindset union leadership (US & Europe) Permanently damaged customer relationships (quality & delivery issues, forced price increases)

Management has leverage twice – before each deal (initial purchase, sale process) Align vision (management/ownership), agree to a plan and key metrics within 90 days Negotiate up front on commitments & resources required to fix the business (people, time, money) Negotiate equity and compensation packages that are “fair” & “ironclad”

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Restructuring the Supplier Network: Public vs. Private Rick Dauch, President & CEO – Accuride Corporation