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Contents
   Company Overview

   Certifications

   Programs

   Quality/Supplier Ratings
Company Overview
Company Overview
   Privately Owned

   Tier 3-4 Automotive Leather Supplier

   40,000 hides per week capacity on
    Finishing

   10,000 hides per week capacity on
    Cutting at the Mexico Plant
Company Overview
   Pearl Leather Finishers founded in 1976
   Carmen Ruggiero started his business as a side leather contract finishing operation for the
    garment, shoe and furniture trade, and soon he and his son John had built a thriving company
    that supplied leather for many name brand products.

   The advent of NAFTA changed the industry. To survive, Pearl had to define a new niche. So in
    1995, with Carmen as chief executive office and John as president, Pearl entered the automotive
    seating market as a Tier 3-4 supplier of finished leather to both original equipment and after-
    market seating manufacturers.

   Today Pearl’s 200,000 square foot manufacturing facility for finishing and 60,000 square foot
    cutting plant in Mexico are state-of-the-art plants with 350 employees. With current finishing
    capacity at 40,000 whole hides per week, and cutting capacity of 10,000 hides per week, Pearl has
    become one of the largest suppliers of automotive leather in the world.
Management Experience (Pearl USA)




  Carmen Ruggiero                             John Ruggiero                           Susan Johnson
      (Founder)                                  President                            Vice President
Chief Executive Officer                   Chief Operating Officer                   of Administration
65 years of experience                    34 years of experience                  34 years of experience




    Mitch Insogna           Chuck Frascatore                 Kimberly Holt             Tim Hohler
Maintenance Manager           Plant Manager             Quality System Manager     Production Manager
25 years of experience    30 years of experience         15 years of experience   35 years of experience
Management Experience (Pearl Mexico)




  Carmen Ruggiero                               John Ruggiero                           Susan Johnson
      (Founder)                                    President                            Vice President
Chief Executive Officer                     Chief Operating Officer                   of Administration
60 years of experience                      29 years of experience                  29 years of experience




    Jorge Holguin               Guillermo Mata                  Omar Decena             Adriana de la Ree
    Plant Manager          Production and Materials        Quality and IT Manager   Finance and HR Manager
  15 years with the                Manager                     16 years with              14 years with
       operation          16 years with the operation           the operation             the Operation
Pearl Leather Organization Chart
Operations


                                   Finishing Plant in Johnstown, NY

                                   • 200,000 Sq.Ft. State-of-the-Art Facility
                                   • 125 Employees
                                   • 40,000 Hides per Week Capacity
Cutting Plant In Mexico

• 60,000 Sq.Ft. Facility
• 225 Employees
• 10,000 Hides per Week Capacity
Finishing
      Process
   Consistently proven quality

   Unlimited grain design

   Hundreds of leather grain designs available for immediate review

   Computerized chemical dispensing with unmatched accuracy

   Rigorous testing complies with all automotive standards
Staking / Milling
Finishing
Six Roll Coaters




                     Four Whole Hide Spray Lines
Embossing
        EMBOSSING EQUPMENT
       3 Bergi Roller Superpresses
       2 Koch Roller
       1 Mostardini Roller
       1 Roto Press Roller
       1 Fulco Roller
       5 Koch Hydraulic Plate
       1 Tyca Logo Embosser




        More than 100 Embossing Plates
Grain Rolls                        2 Keisel Soleil
                                                 1 Sandstone
                                                 2 Nudo
Pearl has 8 Whole Hide Embossing Machines with   1 Wanderer
40 Rolls, over 300 embossing plates and works    1 Sierra
with an outside embosser that has over 3,000     1 Verona
plates.                                          1 Sutton
                                                 1 Nomad
1 Salerno                                        1 Buffalo
1 Badlands                                       1 Prado
1 G-Grain                                        1 Warwick
1 Camino                                         2 Milled Pebble
1 Highland                                       1 Rawhide
1 Nuance                                         1 Ecco-Rio
1 Vienna                                         1 Meridian with H.C.
1 Milano                                         1 VW Vienna
3 Monticello                                     1 Fury
1 Capelli                                        1 Soho
1 NF Sonata                                      2 Haircell
1 Mabella                                        1 Royale
1 Milano                                         1 Smooth Roll
New Cutting Operation in Mexico

    The operation started in Juarez in 1995 to supply cut
     components for Ford and General Motors to Lear sewing
     plants in the city. Thought the last fifteen years we have
     supplied leather for Ford, GM and Subaru to Magna, Lear,
     JCI, Takata and Moriden. The operation is experienced on
     both; roller press and digital cutting, perforation, embossing
     with a Mostardini press and Tyco embossing.
    The operation currently has 225 employees and has an
     installed cutting capacity of 10,000 hides per week
    The operation has been QS 9000 Certified since 1998 and
     TS 16949 since 2005
Cutting Processes
    (Roller Presses)
                We have in place the processes and
                 technology to meet the required
                 quality standards by the Automotive
                 leather and to run the operation
                 efficiently
Digitized Cutting
   State-of-the-art, digitized Gerber cutting system

   Most precise and accurate cut offering 100% repeatability

   Support for development runs




                                                 Two Gerber Digital Cutting Machines
State-of-the-Art
    Research &
   Development
    Reinvest over 1 million dollars annually in R & D

    Provide innovative design and manufacturing expertise

    Ensures our leather continually exceeds demanding standards

    Demonstrated commitment to excellence
Testing Facilities



    Automotive testing laboratories
    Experienced and skilled lab technicians
    State-of-the-art lab equipment
    Full Lab Scope for Ford, GM, Chrysler, and Hyundai Specifications
Community Involvement
   Support local school and education facilities
   Fund local community sports teams
   Provide supplies to the local charity organization
Community Involvement
   On Christmas we collect founds between us and other persons
    outside the plant to buy some presents to the children of our
    operators
   We are part of a community that organize actives such as
    planting threes or cleaning streets and parks through the city.
Awards




Supplier Hall of Fame Award
           2002
Commitment to the Environment




   Devoted to environmental protection and preservation
   Maintain waste reduction and
    environmental control systems
   Certified ISO 14001
Embossing
   A virtually unlimited number of embossed patterns
Embossing
   Embossed Logos
Perforation
   Traditional or custom perforation
   Created with a state-of-the-art digital machine
Perforation (continued)
Special Effects
   Variation and Creativity
   Custom Special Effects are welcome
Laser Engraving
   Unlimited Design Creativity
   Using Cutting-Edge Laser Equipment
Embroidered
   Custom Logo and Design Embroidery
Automotive Programs
Automotive Programs
Ford Mustang (Base, GT, Shelby)- Current   Lincoln MKZ-
Ford Five Hundred- Current                 Mercury Montego
Ford Edge- Current                         Mercury Mariner
Ford Flex- Current                         Mercury Mountaineer
Ford Escape- Current                       Mercury Milan- 2009
Ford Fusion- Current                       Hyundai Sonata- Current
Ford Explorer- Current                     Hyundai Santa Fe-
                                           Current
Ford Explorer Sport Trac- Current
                                           Ford Freestyle
Ford F150- Current
Ford Econoline- Current
Lincoln MKX- Current
Lincoln MKS- Current
Lincoln MKT- Current
Certifications
Certifications
Certification                                       Date
TS 16949    Automotive Standards (Pearl USA)        Dec 2003

ISO 17025 Laboratory Certification (Pearl USA)      May 2001

ISO 14001 Environmental Certification (Pearl USA)   July 2003

TS 16949    Automotive Standards (Pearl Mexico)     Oct 2005
ISO/TS 16949 (USA)
ISO/TS 16949 (USA)
ISO/TS 14001 (USA)
ISO/TS 14001 (USA)
ISO/TS 16949 (Mexico)
The Operation is Certified since 1998
Quality Data
Quality Data
Quality Data   (Continued)
Quality Data                                                                                                     (Continued)



Supplier Rating Magna Sabinas (Feb, 2012)                                                                                                                                                        (Escape U377, Econoline VN127)

                                                                                                                                                  Issued Date:March 3, 2012
                                                                                                                                                  Supplier Name:PEARL LEATHER
                                                                                                                                                  Contacts:Miguel Carrasco
                                PPM´S SUPPLIER PERFORMANCE DETAIL FEBRUARY                                                                        * Minimum Overall Performance Rating Must Be 80%
                                                                                                                                                  * Minimum PPM´s Rating Must Be 600


                                                         SEATING SYSTEMS OF SABINAS                                                  MONTH            FEBRUARY

                                                                     WEIGHT FACTORS                                              REQUIRED SCORE    ACTUAL POINTS

                                QUALITY - 40%
                                PPM- Parts Per Million ( within goal ) rolling average                                                40                 40
                                Sort activity                                                                                         20                 20
                                No customer compliants including field returns                                                        20                 20
                                No 100% contaiment in house or at costumer facilities                                                 20                 10
                                                                                                                                      100
                                                                                                                QUALITY SCORE                            90

                                DELIVERY- 40%
                                Shipped vs Release (Qty/Description)                                                                  50                 50
                                Shipped documentation accurancy (labels, documentation)                                               50                 50
                                                                                                                                      100
                                                                                                            DELIVERY SCORE                               100




                                RESPONSIVENESS - 10%
                                1.- 8D Written Response in time
                                a. Initial Response withing 24 hrs (interim action, contaiment & clean point)                         20                 20
                                b. Root cause and Corrective action within 3 bus. Days                                                20                 20
                                c. Imlementation of permanent corrective actions                                                      25                 25



                                2.- Completeness of paperwork
                                a. All sections of 8D completed                                                                        5                  5
                                b. FMEA & Control Plans, updated with new changes                                                     10                 10
                                c. Test result , verification results ,data, provided as applicable                                    5                  5




                                3.- Technical Support
                                a. Quality, Materials & Engeniring Support (includes on-site visits)                                   5                  5
                                b. Communication: fast response to any reported issue                                                  5                  5
                                c. Courteous, Professional service                                                                     5                  5
                                                                                                                                      100
                                                                                                      RESPONSIVENESS SCORE                               100




                                PART APPROVAL - 10%
                                Full PPAP package approval ( received on time)                                                        50                 50
                                Approve PSW prior to receiption of parts                                                              40                 40
                                Waiver / Desviation issued on time when applicable                                                    10                 10
                                                                                                                                      100
                                                                                                                    PPAP SCORE                           100

                                TOTAL SCORE                                                                                           100                 96
Quality Data                                                                                                      (Continued)



Supplier Ratings Magna Acuña (Feb 2012)                                                                                      (Edge U387, Lincoln MKX U388 Base, Ford Flex D471)
Acuna Supplier Overall Performance Summary - 2012
Supplier Name: PEARL LEATHER FINISHER
                                                                                SPR Status:

                  SEATING SYSTEMS OF ACUNA                                                    JANUARY   FEBRUARY   MARCH   ABRIL   MAY     JUNE     JULY    AUGUST   SEPTEMBER   OCTOBER   NOVEMBER   DECEMBER

                                                                                 REQUIRED     ACTUAL    ACTUAL     ACTUAL ACTUAL ACTUAL   ACTUAL   ACTUAL   ACTUAL   ACTUAL      ACTUAL    ACTUAL     ACTUAL
                            WEIGHT FACTORS
                                                                                   SCORE      POINTS    POINTS     POINTS POINTS POINTS   POINTS   POINTS   POINTS   POINTS      POINTS    POINTS     POINTS
QUALITY - 50%


PPM - Parts Per Million                                                               100       100       100
                                                           QUALITY SCORE              100      100%      100%        0%     0%     0%      0%       0%       0%         0%         0%        0%         0%


DELIVERY - 25%

Shipped to releases and documentation                                                  40       40         40

Bar Code labels, Packaging and Correct Engineering Level                               10       10         10

Shipping documentation accuracy (EDI, ASN, packing slips, etc)                         25       25         25

FIFO                                                                                   5         5         5

Premium Freight                                                                        20       20         20
                                                          DELIVERY SCORE              100      100%      100%        0%     0%     0%      0%       0%       0%         0%         0%        0%         0%
SERVICE- 10%
A. Proactive comunication                                                              30       30         30
B. Return phone calls                                                                  20       20         20
C. Follow up critical situation                                                        50       50         50


                                                            SERVICE SCORE             100      100%      100%        0%     0%     0%      0%       0%       0%         0%         0%        0%         0%
RESPONSIVENESS - 10%
1. Corrective Action

a. Initial response within 24 hrs (interim action, containment & clean point)
                                                                                       50       50         50
b. Root cause identified within 5 bus. days & PCA defined within 10 business
days                                                                                   25       25         25

c. Implementation of permanent corrective actions (closure by 30 days)
                                                                                       25       25         25
                                                RESPONSIVENESS SCORE                  100      100%      100%        0%     0%     0%      0%       0%       0%         0%         0%        0%         0%


PART APPROVAL - PPAP - 5%

Approved PSW, or TASP received by Supplier Quality prior to receipt of parts           50       50         50


PPAP package received by Supplier Quality                                              50       50         50
                                                                 PPAP SCORE           100      100%      100%        0%     0%     0%      0%       0%       0%         0%         0%        0%         0%
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Gm presentation

  • 1.
  • 2. Contents  Company Overview  Certifications  Programs  Quality/Supplier Ratings
  • 4. Company Overview  Privately Owned  Tier 3-4 Automotive Leather Supplier  40,000 hides per week capacity on Finishing  10,000 hides per week capacity on Cutting at the Mexico Plant
  • 5. Company Overview  Pearl Leather Finishers founded in 1976  Carmen Ruggiero started his business as a side leather contract finishing operation for the garment, shoe and furniture trade, and soon he and his son John had built a thriving company that supplied leather for many name brand products.  The advent of NAFTA changed the industry. To survive, Pearl had to define a new niche. So in 1995, with Carmen as chief executive office and John as president, Pearl entered the automotive seating market as a Tier 3-4 supplier of finished leather to both original equipment and after- market seating manufacturers.  Today Pearl’s 200,000 square foot manufacturing facility for finishing and 60,000 square foot cutting plant in Mexico are state-of-the-art plants with 350 employees. With current finishing capacity at 40,000 whole hides per week, and cutting capacity of 10,000 hides per week, Pearl has become one of the largest suppliers of automotive leather in the world.
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  • 8. Management Experience (Pearl USA) Carmen Ruggiero John Ruggiero Susan Johnson (Founder) President Vice President Chief Executive Officer Chief Operating Officer of Administration 65 years of experience 34 years of experience 34 years of experience Mitch Insogna Chuck Frascatore Kimberly Holt Tim Hohler Maintenance Manager Plant Manager Quality System Manager Production Manager 25 years of experience 30 years of experience 15 years of experience 35 years of experience
  • 9. Management Experience (Pearl Mexico) Carmen Ruggiero John Ruggiero Susan Johnson (Founder) President Vice President Chief Executive Officer Chief Operating Officer of Administration 60 years of experience 29 years of experience 29 years of experience Jorge Holguin Guillermo Mata Omar Decena Adriana de la Ree Plant Manager Production and Materials Quality and IT Manager Finance and HR Manager 15 years with the Manager 16 years with 14 years with operation 16 years with the operation the operation the Operation
  • 11. Operations Finishing Plant in Johnstown, NY • 200,000 Sq.Ft. State-of-the-Art Facility • 125 Employees • 40,000 Hides per Week Capacity Cutting Plant In Mexico • 60,000 Sq.Ft. Facility • 225 Employees • 10,000 Hides per Week Capacity
  • 12. Finishing Process  Consistently proven quality  Unlimited grain design  Hundreds of leather grain designs available for immediate review  Computerized chemical dispensing with unmatched accuracy  Rigorous testing complies with all automotive standards
  • 14. Finishing Six Roll Coaters Four Whole Hide Spray Lines
  • 15. Embossing EMBOSSING EQUPMENT 3 Bergi Roller Superpresses 2 Koch Roller 1 Mostardini Roller 1 Roto Press Roller 1 Fulco Roller 5 Koch Hydraulic Plate 1 Tyca Logo Embosser More than 100 Embossing Plates
  • 16. Grain Rolls 2 Keisel Soleil 1 Sandstone 2 Nudo Pearl has 8 Whole Hide Embossing Machines with 1 Wanderer 40 Rolls, over 300 embossing plates and works 1 Sierra with an outside embosser that has over 3,000 1 Verona plates. 1 Sutton 1 Nomad 1 Salerno 1 Buffalo 1 Badlands 1 Prado 1 G-Grain 1 Warwick 1 Camino 2 Milled Pebble 1 Highland 1 Rawhide 1 Nuance 1 Ecco-Rio 1 Vienna 1 Meridian with H.C. 1 Milano 1 VW Vienna 3 Monticello 1 Fury 1 Capelli 1 Soho 1 NF Sonata 2 Haircell 1 Mabella 1 Royale 1 Milano 1 Smooth Roll
  • 17. New Cutting Operation in Mexico  The operation started in Juarez in 1995 to supply cut components for Ford and General Motors to Lear sewing plants in the city. Thought the last fifteen years we have supplied leather for Ford, GM and Subaru to Magna, Lear, JCI, Takata and Moriden. The operation is experienced on both; roller press and digital cutting, perforation, embossing with a Mostardini press and Tyco embossing.  The operation currently has 225 employees and has an installed cutting capacity of 10,000 hides per week  The operation has been QS 9000 Certified since 1998 and TS 16949 since 2005
  • 18. Cutting Processes (Roller Presses)  We have in place the processes and technology to meet the required quality standards by the Automotive leather and to run the operation efficiently
  • 19. Digitized Cutting  State-of-the-art, digitized Gerber cutting system  Most precise and accurate cut offering 100% repeatability  Support for development runs Two Gerber Digital Cutting Machines
  • 20. State-of-the-Art Research & Development  Reinvest over 1 million dollars annually in R & D  Provide innovative design and manufacturing expertise  Ensures our leather continually exceeds demanding standards  Demonstrated commitment to excellence
  • 21. Testing Facilities  Automotive testing laboratories  Experienced and skilled lab technicians  State-of-the-art lab equipment  Full Lab Scope for Ford, GM, Chrysler, and Hyundai Specifications
  • 22. Community Involvement  Support local school and education facilities  Fund local community sports teams  Provide supplies to the local charity organization
  • 23. Community Involvement  On Christmas we collect founds between us and other persons outside the plant to buy some presents to the children of our operators  We are part of a community that organize actives such as planting threes or cleaning streets and parks through the city.
  • 24. Awards Supplier Hall of Fame Award 2002
  • 25. Commitment to the Environment  Devoted to environmental protection and preservation  Maintain waste reduction and environmental control systems  Certified ISO 14001
  • 26. Embossing  A virtually unlimited number of embossed patterns
  • 27. Embossing  Embossed Logos
  • 28. Perforation  Traditional or custom perforation  Created with a state-of-the-art digital machine
  • 30. Special Effects  Variation and Creativity  Custom Special Effects are welcome
  • 31. Laser Engraving  Unlimited Design Creativity  Using Cutting-Edge Laser Equipment
  • 32. Embroidered  Custom Logo and Design Embroidery
  • 34. Automotive Programs Ford Mustang (Base, GT, Shelby)- Current Lincoln MKZ- Ford Five Hundred- Current Mercury Montego Ford Edge- Current Mercury Mariner Ford Flex- Current Mercury Mountaineer Ford Escape- Current Mercury Milan- 2009 Ford Fusion- Current Hyundai Sonata- Current Ford Explorer- Current Hyundai Santa Fe- Current Ford Explorer Sport Trac- Current Ford Freestyle Ford F150- Current Ford Econoline- Current Lincoln MKX- Current Lincoln MKS- Current Lincoln MKT- Current
  • 36. Certifications Certification Date TS 16949 Automotive Standards (Pearl USA) Dec 2003 ISO 17025 Laboratory Certification (Pearl USA) May 2001 ISO 14001 Environmental Certification (Pearl USA) July 2003 TS 16949 Automotive Standards (Pearl Mexico) Oct 2005
  • 41. ISO/TS 16949 (Mexico) The Operation is Certified since 1998
  • 44. Quality Data (Continued)
  • 45. Quality Data (Continued) Supplier Rating Magna Sabinas (Feb, 2012) (Escape U377, Econoline VN127) Issued Date:March 3, 2012 Supplier Name:PEARL LEATHER Contacts:Miguel Carrasco PPM´S SUPPLIER PERFORMANCE DETAIL FEBRUARY * Minimum Overall Performance Rating Must Be 80% * Minimum PPM´s Rating Must Be 600 SEATING SYSTEMS OF SABINAS MONTH FEBRUARY WEIGHT FACTORS REQUIRED SCORE ACTUAL POINTS QUALITY - 40% PPM- Parts Per Million ( within goal ) rolling average 40 40 Sort activity 20 20 No customer compliants including field returns 20 20 No 100% contaiment in house or at costumer facilities 20 10 100 QUALITY SCORE 90 DELIVERY- 40% Shipped vs Release (Qty/Description) 50 50 Shipped documentation accurancy (labels, documentation) 50 50 100 DELIVERY SCORE 100 RESPONSIVENESS - 10% 1.- 8D Written Response in time a. Initial Response withing 24 hrs (interim action, contaiment & clean point) 20 20 b. Root cause and Corrective action within 3 bus. Days 20 20 c. Imlementation of permanent corrective actions 25 25 2.- Completeness of paperwork a. All sections of 8D completed 5 5 b. FMEA & Control Plans, updated with new changes 10 10 c. Test result , verification results ,data, provided as applicable 5 5 3.- Technical Support a. Quality, Materials & Engeniring Support (includes on-site visits) 5 5 b. Communication: fast response to any reported issue 5 5 c. Courteous, Professional service 5 5 100 RESPONSIVENESS SCORE 100 PART APPROVAL - 10% Full PPAP package approval ( received on time) 50 50 Approve PSW prior to receiption of parts 40 40 Waiver / Desviation issued on time when applicable 10 10 100 PPAP SCORE 100 TOTAL SCORE 100 96
  • 46. Quality Data (Continued) Supplier Ratings Magna Acuña (Feb 2012) (Edge U387, Lincoln MKX U388 Base, Ford Flex D471) Acuna Supplier Overall Performance Summary - 2012 Supplier Name: PEARL LEATHER FINISHER SPR Status: SEATING SYSTEMS OF ACUNA JANUARY FEBRUARY MARCH ABRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER REQUIRED ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL WEIGHT FACTORS SCORE POINTS POINTS POINTS POINTS POINTS POINTS POINTS POINTS POINTS POINTS POINTS POINTS QUALITY - 50% PPM - Parts Per Million 100 100 100 QUALITY SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% DELIVERY - 25% Shipped to releases and documentation 40 40 40 Bar Code labels, Packaging and Correct Engineering Level 10 10 10 Shipping documentation accuracy (EDI, ASN, packing slips, etc) 25 25 25 FIFO 5 5 5 Premium Freight 20 20 20 DELIVERY SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% SERVICE- 10% A. Proactive comunication 30 30 30 B. Return phone calls 20 20 20 C. Follow up critical situation 50 50 50 SERVICE SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% RESPONSIVENESS - 10% 1. Corrective Action a. Initial response within 24 hrs (interim action, containment & clean point) 50 50 50 b. Root cause identified within 5 bus. days & PCA defined within 10 business days 25 25 25 c. Implementation of permanent corrective actions (closure by 30 days) 25 25 25 RESPONSIVENESS SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% PART APPROVAL - PPAP - 5% Approved PSW, or TASP received by Supplier Quality prior to receipt of parts 50 50 50 PPAP package received by Supplier Quality 50 50 50 PPAP SCORE 100 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%