Pilot presentation 071812

PILOT Application

Who is LSI?

• LSI helps manufacturers make their products faster, cheaper, and better, safer, and more efficiently by automating their processes or assembly lines by using modern industrial electronics and computers

• LSI offers complete services to manufacturers including engineering, design, fabrication, programming, construction and installation management, and commissioning services

Who is LSI?

We turn something like this: Into something like this:

Who is LSI?

• LSI is by far the largest control system integrator within 200 miles of Memphis (you have to travel to Nashville, St. Louis, or Dallas to find comparable size and capability).

• LSI has the controls capability of a 1300 engineer engineering firm (most have ~10% Controls engineers)

Who is LSI? Branch Locations

• Bartlett, TN (Headquarters)• Jackson, TN • Rossville, GA• Golden, CO• Decatur, AL• Guangzhou, China ** helped build

Fedex hub

LSI is an established system integrator founded in 1985 and now employs over 130 people located in 6 offices around the U.S and in China.

LSI and Memphis and Midsouth Expansions

LSI has played a critical role (we are the prime contractor for our scope of work) in building plants or expanding capabilities in plants in Memphis since 2008, and many of these were PILOT projects:

o Riviana Foods (new) – LSI customer [PILOT]o KTG (expansion) – LSI customer [PILOT]o Mitsubishi Electric (new) [PILOT]o Nucor Steel (expansion) – LSI customer [PILOT]o Electrolux (new) – Future LSI customer [PILOT]o American Snuff (move and expansion) [PILOT]o Candle Lamp (expansion) – LSI customero Lucite (Mitsubishi Rayon expansion) – LSI Customer [PILOT]o City Brewing Company (re-opening of Coors plant) – LSI Customer

[PILOT]o Cargill (expansion) – LSI Customer [PILOT]

Plants in the Memphis area, but outside of Memphis:o Schulz (Tunica) – LSI customero Green Tech Automotive (Hernando) – LSI customero Soladigm (Olive Branch) – LSI customer

LSI has grown in sales…

Based on the average growth rate achieved from 2004 to 2011, LSI will surpass the $100MM mark in 7 years

2004 2005 2006 2007 2008 2009 2010 2011 2012

Sales 5565500 9293000 10439000 10918000 14717000 20616000 16362000 21850000 27000000

$2,500,000.00

$7,500,000.00

$12,500,000.00

$17,500,000.00

$22,500,000.00

$27,500,000.00

Sales by Year

Sal

es i

n D

oll

ars

And in the number of employees…

2005 2006 2007 2008 2009 2010 2011 2012

Employees 54 56 63 63 76 86 102 127

10

30

50

70

90

110

130

Employees by Year

Em

plo

yees

Hiring has kept pace with sales!

What is fueling our growth?

• Re-shoring of manufacturing operations from places like China and Mexico is driving demand for automation to make manufacturing in the US more globally competitive

• Engineering staffs at our clients’ sites have been reduced by the economic downturns in 2001-2003 and 2008-2010

• We are excellent at what we do

Local and Global Strength

LSI has received a commitment within the last month for a large project with an international company with operations in North America, South America, Europe, and Asia. LSI will be performing process control and automation projects globally for this new client.

Project management functions will be served out of Colorado and Memphis, and engineering functions will be done at a minimum of 3 locations – Colorado, Memphis, and Guangzhou.

LSI will be compensated in the $8MM-$12MM range for this effort over the next 12-18 months. Very few integrators have the staff, breadth, and depth of application and management talent to execute a project of this magnitude in this timeline across the globe.

Local Customers

Local Customers

Local Customers

LSI’s first customer in 1985, and they are still a customer!

Local Customers

Local Customers

Local Customers

Local Customers

Local Customers

Global Customers

LSI’s National and Global Customers

LSI asks for participation in the PILOT program

LSI respectfully asks for approval of its participation in the PILOT program.

We appreciate your time and attention!!

Questions?