Miscor Presentation 2008 (final)

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Investor Presentation | 2008 OTC: MIGL

Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially. For information concerning these risks, please see MISCOR Group’s publicly available filings with the Securities and Exchange Commission (SEC) at www.sec.gov. MISCOR Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as the results of new information, future events or otherwise. All information should be read in conjunction with the historical financial statements contained in MISCOR Group’s Form S-1, reports on Form 10-Q and Form 8-K and public announcements of financial information. These reports, as well as a financial overview, are available on the Investor Relations page of MISCOR Group’s website, located at www.miscor.com. 2

The MISCOR Story Vision Statement To become a leading provider of integrated mechanical and electrical industrial services and products by delivering unmatched experience, quality and innovation, while creating long-term relationships and tangible value for our employees, customers and shareholders.

Strategic Advantage ƒ

Leading provider of industrial services for blue-chip customers serving the domestic and international markets

ƒ

Track record of organic and acquisition growth

ƒ

82% compounded annual sales growth (two-time Inc. 500 company)

ƒ

Highly experienced management team

ƒ

Leverage opportunity inherent in the fragmented services market 3

Unique Corporate Model

Blue-Chip Customer Base Leverage Existing Crossover Potential

Breadth of Geographic Reach National, Multi-Industrial Services Provider Best-in-Class Management

Skilled Workforce Strategic Acquisition Strategy

4

Management Team John Martell, PE President and Chief Executive Officer

ƒ

20+ years experience in electrical contracting and industrial services

ƒ

A founding shareholder of Trans Tech Electric, Inc., which became a founding member of Quanta Services, Inc., (NYSE: PWR)

ƒ

BS in electrical engineering, Notre Dame; Certificate in Executive Management, Notre Dame

Richard Mullin VP, Chief Financial Officer

Richard Tamborksi EVP, Chief Operating Officer

ƒ

20+ years experience in senior finance positions in public accounting and industry

ƒ

CFO at NASDAQ-listed Starcraft Corporation, former VP of Finance and President of Wells Electronics, Inc.

ƒ

MBA from Notre Dame

ƒ

ƒ

ƒ

Former VP of Operations for Alstrom Transports Train Life Services in the U.S.A. and Canada, a division of Paris, Francebased Alstrom Former VP of Global Sourcing and Logistics for NYSE-listed Wabtec, Corp. BS from Lake Erie College

James Lewis VP, General Counsel

ƒ

13+ years experience in corporate law firm; focus in contract, litigation and product liability law

ƒ

Former adjunct professor of law at Notre Dame

ƒ

JD from Notre Dame 5

Management Team

Bernard DeWees President, Magnetech

J. Cullen Burdette Vice President, HK Engine Components

Anthony Nicholson Vice President, Martell Electric

ƒ

29+ years of industry experience

ƒ

ƒ

20+ years experience in electrical contracting and construction management

ƒ

President of 3-D Service, former VP Operations at ABB Services and Grand Eagle, Inc.

13+ years experience in diesel engine components, manufacturing and repair

ƒ

Former General Manager of Hatch & Kirk

ƒ

Former COO of Ed Nicholson & Assoc.

ƒ

BS in electrical engineering from the University of Maryland

ƒ

MBA from Notre Dame

ƒ

Duke University, Fuqua School of Business, Executive Business Management Program

6

Diversified Services with Crossover Potential

Percent of Total Revenue Contribution (2007)

Construction and Engineering Services (CES)

Repair, Remanufacturing, Manufacturing Services (RRM)

28%

72%

American Motive Power 7

Midwest Work Ethic | Global Reach ƒ Providing global industrial solutions through two segments: ƒ Repair, Remanufacture and Manufacturing Services ƒ Construction and Engineering Services RRM Growth

$50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0

$43,202

$37,916

$34,637

$32,088

ƒ Expanding services through acquisitions and organic growth $24,405

$11,792

$14,820

$3,271

2001

2002

2003

2005

2006

2006 9mo.

2007 9mo.

CES Growth

RRM Growth $25,000

$60,000

$21,634

$51,734

$50,000

$20,000

$43,202 $34,637

$40,000

$17,552

$15,000

$11,659

$24,405

$30,000 $20,000 $10,000

2004

$11,792

$10,000

$14,820

$4,492

$5,000

$3,271

$675

$0

$0

2001

2002

2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

8

Repair, Remanufacture and Manufacturing Services (RRM) Provide maintenance and repair services on industrial electric motors, lifting magnets, engineering of power assemblies, engine parts and other components related to large diesel engines. Industrial Services

End Markets: Rail, Utility, Maritime, Offshore Drilling

Value Proposition ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Core competencies include both electrical and mechanical repair Largest non-OEM manufacturer of power assemblies for EMD diesel engines Multi-location capability with locations throughout the Midwest Complete industrial repair services On-site repair capabilities Predictive and preventative maintenance programs Tier 0 Certification with the EPA for power assemblies Repair services for growing Wind power industry, hydroelectric, others Control complete supply chain for the manufacturing process with in-house factory Redesigned various features to improve on the original product design Highly trained workforce

Sales $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0

$37,228 $38,528 $25,389

$11,792

$29,721

$15,323

$3,271 2001

2002

2003

2004

2005

2006

2007

Diesel Engine

Sales $13,206

$14,000 $12,000

$9,672

$10,000 $8,000

$6,321

$6,000 $4,000 $2,000 $0 2005

2006

2007

9

RRM – Growth Strategy ƒ

Acquisitions: pursue targeted acquisitions to expand geographic reach, customer base

ƒ

Organic: expand repair services, grow geographically with customers

ƒ

Position as “service provider of choice” for all industrial maintenance, diesel engine repair/maintenance needs

ƒ

Leverage existing magnet customer base as a platform for cross-selling services

ƒ

Continue to take advantage of outsourcing trends, documented ROI benefits Service Areas

ƒ

Cross-sell services across internal business divisions

ƒ

Pursue additional EPA certifications –

only non-OEM with Tier 0 Certification 10

Global Wind Market Opportunity ƒ

Wind power is now the world's fastest growing source of energy

ƒ

For the last ten years worldwide wind turbine sales have grown approximately 29% annually

ƒ

Expected to expand for the next twenty years at double-digit rates

ƒ

The global market for all turbines predicted to jump from $83.6 billion in 2007 to about $106 billion in 2012

ƒ

American Wind Energy Association the National Renewable Energy Laboratory believe 20% of the nation's electricity can come from renewable wind energy within the next twenty years resulting in cumulative wind turbine sales of over $250 billion

11

Global Wind Market Opportunity

12

U.S. Wind Market Opportunity ƒ

The market for wind power in the U. S. has been erratic and largely dependent on the availability of the federal production tax credit (PTC)

ƒ

In 2001, the industry installed about 1,800 MW of new windpower capacity

ƒ

In 2007, coupled with the huge spike in petroleum prices, new installed wind capacity rose to more than 5,200 MW, shattering all previous U.S. records

ƒ

U.S. has led the world in new wind-power capacity installed for each of the last three years 13

U.S. Wind Market Opportunity

14

Magnetech Industrial Services Business Model Provide maintenance and repair services to industry, including: ƒ Industrial electric motors ƒ Lifting magnets ƒ Engineering services ƒ Wind power services

Services ƒ ƒ ƒ ƒ

AC and DC motor repair Manufacturing, remanufacturing and repair of electrical lifting magnets Turbine generator repair Support services – Field services – Magnetrac Asset Management – Reliability-centered maintenance – Predictive and preventative maintenance – Education and training

15

3-D System (Acquired Nov. 2007) Business Model Specialize in the repair, remanufacture and maintenance for a variety of commercial and industrial equipment, including a unique expertise in wind generation repair, to extend service life, increase performance and reliability, while minimizing downtime.

Services ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Electric motors and generators Steam, combustion and hydroelectric turbines Repair services for renewable wind generation facilities Class I light rail generators, motors, etc. Navy and marine duty motors Nuclear reactor coolant pump motors Drives, drive systems, printed circuit boards Power systems Plant site services New equipment

Renewable Wind Generation Repair Services

16

HK Engine Components Business Model Provides manufacturing, remanufacturing, repair and engineering of power assemblies, engine parts and other components related to large diesel engines for multiple industries, including: ƒ Rail ƒ Maritime ƒ Offshore drilling

Services ƒ ƒ ƒ ƒ

Manufacture and remanufacture power assemblies for 710, 645 and 547 EMD diesel engines Only non-OEM with Tier 0 Certification from the Environmental Protection Agency (EPA) for power assemblies Component parts for engines 1/3 of the production exported to customers outside North America

Power Assembly

17

American Motive Power (Acquired Jan. 2008) Business Model Provider of a wide range of services to the railroad industry, including the reconditioning, remanufacturing and manufacturing of locomotives. The 240,000-square-foot, East Coast-based facility has the capacity to service up to 20 locomotives simultaneously, as well as offering wreak repair to quickly put assets back into service.

Services ƒ ƒ ƒ ƒ ƒ ƒ

Locomotive reconditioning and rebuilding Engine rebuilding, with an emphasis on EMD 645 and 710 power assemblies Wreak repair services Technological enhancements 104-foot paint shop with air scaffolding system Truck repair (locomotive undercarriages)

18

Construction and Engineering Services Provide a wide range of electrical contracting and HVAC services, mainly to industrial and institutional customers, as well as commercial builders/contractors

Value Proposition ƒ ƒ ƒ ƒ ƒ ƒ

A market leader in locations served Recent entry into industrial HVAC market through Ideal Consolidated acquisition Highly trained workforce High level of design/build competency Specialists in fast-track construction methods Key relationships with all major general contractors serving our regional footprint

Electrical Contracting

Sales $25,000

$21,634

$20,000 $14,207

$15,000 $10,254

$10,000 $3,508

$5,000 $0

$174 2003

2004

2005

2006

2007

19

CES – Growth Strategy ƒ

Acquisitions: pursue targets that expand geographic reach, customer base

ƒ

Organic: expand existing customer repair services

ƒ

Expand footprint throughout Midwest; grow with key general contractors

ƒ

Replicate national expansion led by management members in the 1990’s Current Service Hubs

ƒ

Align with suppliers to leverage partnership opportunities in current and target markets

Target Service Hubs

Market Opportunity

20

Martell Electric Business Model Provide a wide range of electrical contracting services, mainly to industrial and institutional customers, as well as commercial builders and contractors

Services ƒ ƒ ƒ ƒ ƒ ƒ

Design/Build and Plan/Specification Methods Commercial, industrial and institutional construction Telecommunications Traffic 24/7 service department Three locations in Northern Indiana

Hilton Regional Laundry Facility, Portage, Ind. 34.5 KV High Voltage Switchgear Upgrade

21

Magnetech Power Services

Business Model Maintenance and repair services to industry, including: ƒ Engineering ƒ Power system studies ƒ Transformer services ƒ Circuit breakers ƒ Locomotive controls

Services ƒ ƒ ƒ ƒ ƒ ƒ

Design/build mechanical solutions Circuit breaker reconditioning 24/7 service Total circuit breaker management programs Onsite repair capabilities Predictive and preventative maintenance programs

22

Ideal Consolidated (Acquired Oct. 2007)

Business Model Provide a wide range of mechanical contracting services, mainly to industrial and institutional customers, as well as commercial builders and contractors

Services ƒ ƒ ƒ ƒ

Design/Build, Design Assist and Plan/Specification Methods Commercial, industrial and institutional construction Service department Predictive and preventative maintenance

University of Notre Dame Football Stadium

23

MISCOR Growth Story – Organic & Acquisitions Total Growth Total Acquisition

Total Organic

$100.0 $80.0 $60.0

82% CAGR

$40.0 $20.0 $2000

2001

2002

2003

2004

2005

2006

2007

Acquisition Timeline Organic

Ideal Consolidated

Acquisition

South Bend

2000

Huntington

Boardman

Mobile

Martell S.B .

Hammond

Indy

Merrillville

2001

2002

2003

M artell Elk.

2004

HKEC: Weston

Martell Valpo.

HKEC: Haggerstow

Sarland

2005

2006

3-D Service Cincinnati 3-D Service Massillon

2007

AMP Canada AMP USA

2008

24

Growth Summary Employees

21

Includes 3-D Service

385

84 American Motive Power

68 17 86

MIGL TOTAL

Square Ft.

4,000

325,784

70,576

250,000 6,000 41,004

Locations

1

Organic Starts

Operating Acquisitions

N/A

N/A

3 2000, ‘04, ‘07

7 ‘01, ’02(3), ’06, ’07(2)

N/A

2 ‘05(2)

1

N/A

1 2008

1

1 2004

N/A

3

2 ‘03, ’05

1 2004

9

3

41

15,360

1

N/A

1 2007

702

712,724

19

6

12

25

Growth Driver: End-Market Diversification Rail $144 billion

Marine $4 billion

Transit $65 billion Construction $24 billion

Utilities $554 billion Petrochemical $101 billion

Energy/ Renewable Power $204 billion

Steel $574 billion 26

Leveraging Complementary Business Units ƒ Divisional Cross-Selling – – – –

Diversified business segments offer customers a wide range of industrial-based services “One-stop-shop” for Blue Chip customers Increased penetration reduces cost for customers, drives MISCOR profitability Case Study: Australia Rail Group

ƒ Aggregating Specialized Talent – – – – – –

Training programs for customers = cost savings, loyalty Shrinking talent pool of industrial services workforce creates competitive advantage Average employee has 15+ years experience Attracting talent through aggressive growth Training and education programs Case Studies: Magnetrac Asset Management, Beta Steel

27

Sizing the Market Potential Electrial Contracting Market

ƒ

ƒ

Fragmented, legacy-based industries create numerous acquisition and expansion opportunities

Total U.S. Market $76 Billion

Balance of U.S. $20B

Midwest $56B

Midwest location, combined with a global reach, provides a strategic advantage for increasing market share

Diesel Engine Power Assembly Market

Motor & Magnet

Total World Market $370 Million

Total U.S. Market $8 Billion

U.S.A., $3.5 Eastern U.S.A., $4.5

U.S.A. $223M

World $137.0M

28

Evolution of a National Leader Long-Term Plan

2005 – 2007 Accelerated Growth

2000 – 2004 Company Formation

2000 – MISCOR Founded

ƒAddition of Martell Electric ƒ6 acquisitions, 12 new locations

ƒSeasoned core management ƒProven track record ƒFocused service offerings ƒTarget blue-chip customers

ƒBuild management ƒLeverage industry trends ƒExpand service offerings ƒGrow customer base ƒInc. 500

ƒIPO •Industry recognition •Continued acquisitions •Strengthen management team

•$500 million diversified services provider •National exchange listing •Leverage public company currency •“Service provider of choice” •Live the strategic vision •Strengthen management team

•Building national image •Execute strategic vision •Acquisitions and organic growth •Bring Company story to the Street

•Achieve national reputation •Continue organic and acquisition growth •Build a following on the Street

•Team in place •Leverage industry trends •Expand service offerings •Strong customer base

•Team in place •Leverage industry trends •Expand service offerings •Strong customer base

Profitability & Increasing Revenue Growth

2008 – Beyond: Our Future

29

Favorable Industry Tailwinds ƒ

Outsourcing non-core industrial services can create significant cost savings

ƒ

Internal utilization of skilled employees will never be at 100%: The mounting costs of training skilled employees, maintaining a satisfactory safety record and complying with rapidly changing government regulations are driving outsourcing

ƒ

Breadth of Geographic Coverage Remains Critical: National and multi-site industrial companies prefer to simplify vendor management, work with larger providers with broad geographic coverage

ƒ

Aging U.S. Industrial Base: As equipment and motors continue to age, companies turn to preventative, predictive and remanufactured goods as a valuable cost-saving tool

ƒ

Industry Succession Plans: Fragmented legacy-based industry lacks succession planning, resulting in attractive acquisition targets with unrealized potential In response to these trends, we have made strategic business acquisitions to consolidate fragmented service providers in the Midwest, resulting in significant revenue growth and geographic expansion

30

Financial Overview

Gross Profit

Sales $6,000

$35,000 $30,000

$5,000

$25,000

$4,000

$20,000

$3,000

$15,000

$2,000

$10,000

$1,000

$5,000

$0

$0 3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q06

3Q08

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q07

1Q08

2Q08

3Q08

EBITDA

Operating Income $2,000

$1,200

$1,800

$1,000

$1,600 $1,400

$800

$1,200 $1,000

$600

$800

$400

$600 $400

$200

$200 $0

$0 3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

3Q06

4Q06

1Q07

2Q07

3Q07

31

Investment Catalysts ƒ Leading industrial services and manufacturing company in growing niche markets ƒ Established, nationwide blue-chip customer base ƒ Highly-trained workforce with niche expertise amid limited pool of talent ƒ Industry Tailwinds: The aging “industrial backbone” needs maintenance; repairs are a fraction of the replacement cost ƒ Highly experienced management team with proven track record ƒ Diversified end-market exposure ƒ Balance of organic and acquisition growth ƒ Fragmented legacy-based industry creates attractive acquisition targets with untapped potential 32

Investor Presentation | 2008

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