Evolving EWI’s Business Model Phil Weisenbach COO 614.688.5096 [email_address]

Mission: Advance our customers’ manufacturing competitiveness through innovation in joining and allied technologies EWI is the leading engineering and technology organization in North America dedicated to the research and development of materials joining and welding. We provide expert materials joining assistance, contract research, consulting services and training to hundreds of members in the aerospace, automotive, government, energy and chemical, heavy manufacturing, medical and electronics industries.

Mission:

Advance our customers’ manufacturing competitiveness through innovation in joining and allied technologies

EWI is the leading engineering and technology organization in North America dedicated to the research and development of materials joining and welding. We provide expert materials joining assistance, contract research, consulting services and training to hundreds of members in the aerospace, automotive, government, energy and chemical, heavy manufacturing, medical and electronics industries.

Core Business Membership-based business Customer-sponsored projects Applied R&D Solve a customer’s problem Implement the solution through technology transfer

Membership-based business

Customer-sponsored projects

Applied R&D

Solve a customer’s problem

Implement the solution through technology transfer

Example 1: Implementing Technologies Owned by Other Companies Typical approach Large number of small companies selling to a single market or to a small customer base Limited resources to access other markets Grow slowly In some cases, limited by owner’s lack of vision and need for control

Typical approach

Large number of small companies selling to a single market or to a small customer base

Limited resources to access other markets

Grow slowly

In some cases, limited by owner’s lack of vision and need for control

Implementing Technologies Owned by Other Companies (continued) EWI’s approach Use our membership network to identify small companies, good technologies, limited market access EWI and small companies make formal agreement for working together EWI identifies applications for the technology in new markets EWI takes the lead on selling the technology to its customer base EWI benefits through project work and ongoing revenue stream Small companies get access to new markets and grow without adding resources for marketing and sales Owner maintains control of the company

EWI’s approach

Use our membership network to identify small companies, good technologies, limited market access

EWI and small companies make formal agreement for working together

EWI identifies applications for the technology in new markets

EWI takes the lead on selling the technology to its customer base

EWI benefits through project work and ongoing revenue stream

Small companies get access to new markets and grow without adding resources for marketing and sales

Owner maintains control of the company

Example 2: Providing Access to High-End Computational Software Typical approach to using complex, high-end computational software Purchase license for high-end software and use as needed – Ph.D. engineer required Pay outside resource such as EWI to do the work

Typical approach to using complex, high-end computational software

Purchase license for high-end software and use as needed – Ph.D. engineer required

Pay outside resource such as EWI to do the work

Providing Access to High-End Software (continued) EWI’s approach Allow customer to pay for use of software on an as-needed basis Simple user interface allows for minimal training and more effective usage by just about anyone Negotiated an innovative licensing approach with software provider – disruptive Much more efficient use of resources EWI WeldPredictor ™

EWI’s approach

Allow customer to pay for use of software on an as-needed basis

Simple user interface allows for minimal training and more effective usage by just about anyone

Negotiated an innovative licensing approach with software provider – disruptive

Much more efficient use of resources

EWI WeldPredictor ™

Example 3: Identifying and Launching New Technology-Based Products Typical approach EWI is paid to develop/implement new technology into customer’s product Customer owns the technology and all the associated revenue streams EWI benefits through project work

Typical approach

EWI is paid to develop/implement new technology into customer’s product

Customer owns the technology and all the associated revenue streams

EWI benefits through project work

Identifying and Launching New Technology-Based Products (continued) EWI approach – Holland Rail Repair Example Each party puts its own “money” into the solution EWI provides technical solution within 1 year Holland responsible for marketing, selling, and providing service Benefits Holland has better solution, increased market share EWI gets compensated with a percentage of the gross sales – ongoing revenue stream

EWI approach – Holland Rail Repair Example

Each party puts its own “money” into the solution

EWI provides technical solution within 1 year

Holland responsible for marketing, selling, and providing service

Benefits

Holland has better solution, increased market share

EWI gets compensated with a percentage of the gross sales – ongoing revenue stream

Keys to Identifying Partners Core values align Emphasis on technology Partner is market leader EWI has solution close at hand We can be patient

Core values align

Emphasis on technology

Partner is market leader

EWI has solution close at hand

We can be patient

Questions Phil Weisenbach COO 614.688.5096 [email_address]