Lionheart Industrial Group Operating Philosophy

The foundational pillars of the Lionheart Edge Operating System (LEOS^LM) Focus on Customers and Markets, Improve Performance, and Empower Our Teams.

Our goal is to build long-term value within our business units by collaborating with customers and employees. Through our leadership and guidance, companies yield higher revenues and margins. Lionheart Industrial Group applies these unique capabilities to its businesses.

• Customer-centric: Voice of the customer
• N²O^LM: New New to OverDrive
• Leveraging Differential Advantage
• Defined Go-To-Market Strategy

What sets us apart from other types of corporate owners is the fact that we work with our companies to optimize organic growth and make strategic acquisitions. We achieve this by driving new markets and under-served segments, new customers, and new products and services. We call this N²O^LM "New New to OverDrive".

To Exceed industry growth rates, the best way is to continually be on the frontier of "the new" and deliver customers the best value proposition.

In many smaller middle-market companies, owners wear several hats to help their companies thrive. Lionheart offers strategic planning and operational experience while working with owners through a transition period to ensure a smooth transition in all aspects of the business. At Lionheart, we focus on continuous improvement through PRO Teams, streamlining costs, robust supply chain management and providing leadership with strategic business plan development and execution. In our relentless pursuit of perfection, Lionheart utilizes a core set of critical skills that we bring to an organization to improve its operating performance:

• Quality first
• Safety programs and processes
• PRO Teams: Process Review and Optimization
• Supply chain and logistics
• Data-driven decisions enabled by real-time IT systems

While Lionheart Industrial Group prefers to focus acquisitions of companies that have a proven management team, we can also work with sellers to effect an exit strategy and leadership transition for a business owner. We believe in empowering the employees and assisting them in unlocking their potential to grow their careers as well as the company. We celebrate cultural champions and encourage training and access to Lionheart companies to help improve employees' experience and knowledge base. To enhance these organic initiatives, we also look for acquisitions and strategic alliances to expand the scope and range of capabilities our organizations can deliver to customers. These are some of the values we seek and reinforce in our management teams:

• Acquisition and Retention of High-Quality Long-Term Talent
• Talent Development Through Continuous Learning
• Responsibility and Accountability
• Open and Honest Communication