A Presentation ofA Presentation of Kyoto Japan Tire Group Kyoto Japan Tire Group

Kyoto Japan Tire Group’s Long-Term Objectives are:

1. Build “Kyoto Japan” as a “Global Tire BrandGlobal Tire Brand’’ by the year 2015 and reach USD 100 Million annual SalesUSD 100 Million annual Sales;

2. Enhance the marketing team to cover sales in all potential world marketssales in all potential world markets;

3. Develop an advanced R & DR & D department in collaboration with a leading technical institution to acquire proprietary technology & Know-How proprietary technology & Know-How in tire manufacturing; and to develop new tire patterns for advanced countries;

5. Pre-finance and procure tire raw materials Pre-finance and procure tire raw materials (Rubber & Steel) at market low’s; to enhance profitability and to minimize global fluctuations in prices;

6. Look out for M & A Opportunities in China M & A Opportunities in China to secure minor shareholdings in major Chinese tire factories to guarantee long-term supply;

7. Study opportunities to set-up new Manufacturing Facilities in Joint-Venture Manufacturing Facilities in Joint-Venture with leading local families/groups in potential market of Brazil.

Long-Term Objectives of Kyoto Japan Tire GroupLong-Term Objectives of Kyoto Japan Tire Group

8. Set-Up Regional Distribution Centres Regional Distribution Centres in strategic markets in collaboration with major importers for own Imports, Storage and Distribution.

1.1. Organizational StructureOrganizational Structure

2.2. Product RangeProduct Range

3.3. Production & ManufacturingProduction & Manufacturing

4.4. Customers & MarketingCustomers & Marketing

5.5. SummarySummary

Kyoto Japan Tire GroupKyoto Japan Tire Group

The Group Structure is presented schematically in the next section.

Kyoto Japan Tire Holdings Ltd. Kyoto Japan Tire Holdings Ltd. Comprises the following fully owned and/or Joint-Venture companies:

Kyoto Japan Tire Corporation Ltd. - TokyoKyoto Japan Tire Corporation Ltd. - TokyoThe company was registered in 1991 in Tokyo and acts as the registered Head Office of the group. The company looks after the registration of the brand ‘Kyoto Japan’ ‘Kyoto Japan’ tires in key markets; issues Manufacturing Licenses for production in China as well as issuing Distributorship Agreements for potential clients and markets.

Xingtai Kyoto Tire Co. Ltd. – Hebei ProvinceXingtai Kyoto Tire Co. Ltd. – Hebei ProvinceIn 2006, the group made an investment; as a subsidiary of its Japanese company; in Hebei Province in China to set-up a manufacturing facility for production of Bias OTR tires.

The plant has been shut-down for renovation for restart production based on new production techniques

KyotoKyoto Japan Tire (Suisse) S.A - Geneva Japan Tire (Suisse) S.A - GenevaA 100% Swiss company was set up in Geneva in 2008 with a paid capital of Chf 2 Million to act as the principal Sales company of the group.

Kyoto Japan Tire Corp. (Switzerland) S.A – Beijing BranchKyoto Japan Tire Corp. (Switzerland) S.A – Beijing BranchThe Beijing office was set-up in 2000 for control of Procurement, Production, Logistics and Exports out of China. The Geneva branch initially operated under same company, Geneva Branch, from 2003 to 2008.

Kyoto Japan Tire Pneus do Brasil Ltda. – BrazilKyoto Japan Tire Pneus do Brasil Ltda. – BrazilThe company has been set up in Sao Paulo based on 100% ownership for local distribution & manufacture of Kyoto Japan tires in Brazil.

Kyoto Japan Tire (Latin America) Ltd. – BVIKyoto Japan Tire (Latin America) Ltd. – BVIThe company was set-up in 2010 as a joint-venture (51%) with two prominent families in Chile & in Venezuela for imports and distribution of tires in Latin America.

TMS Tire Group Ltd. – Hong KongTMS Tire Group Ltd. – Hong KongFully owned subsidiary company of the group based in Qingdao for Trading of various brands of tire to world markets.

TMS has been set up as an independent Tire Trading Company to supply various brands of TBR, LTR, PCR, UHP, SUV, 4x4, TBB, LTB, OTR tires to selected markets of the world.

TMS Tire Group Ltd.TMS Tire Group Ltd.

Swisstire, Vexxus, PG Radial & M&M are Budget brands of the group designated for trading of Budget TBR & PCR Tires and for sales on the internet.

Kyoto Japan Tire Group StructureKyoto Japan Tire Group Structure

The Company has 5 Regional Sales Offices:

• Tokyo • Beijing • Geneva • St.Gills (France) • Latin America (Kyoto Japan Tire (Latin America) Ltd.

The following Joint-Ventures are currently under negotiation:

• J.V in Brazil• J.V in Saudi Arabia

Kyoto Japan Tires are currently sold to over 40 countries of the world.

Regional OfficesRegional Offices

International Marketing ZonesInternational Marketing Zones

1- Europe & Francophone North Africa2- United Kingdom & Ireland3- Eastern Europe & Ukraine

4- Brazil5- Latin America (Chile, Argentina, Uruguay, Paraguay, Bolivia, Peru, Ecuador) 6. Central America (Venezuela, Colombia, Panama, Costa Rica, El Salvador, Dominican Republic, etc.)7- Mexico

8- Southern Africa (South Africa, Zimbabwe, Zambia, Mozambique)9- West, Central & East Africa

10- Middle East, Persian Gulf, Turkey & Azerbaijan11- India, Bangladesh & Sri-Lanka

12 - Russia & CIS

13- S.E.Asia, Australia & New Zealand14- Domestic China & Outer Mongolia

China Divisional Structure China Divisional Structure

• Procurement of Raw materials and Quality Control;• Quality Control & Product Supervision during manufacture;• Technical Centre for Know-How supply to International Projects;

• International Sales & Marketing;• Domestic China Sales & Marketing (in RMB);

• Logistics & Shipping;• L/C & Documentation;• Finance & Administration;

• Xingtai factory Management

Kyoto Japan Tire Organization in ChinaKyoto Japan Tire Organization in China

1.1. Organizational StructureOrganizational Structure

2.2. Product RangeProduct Range

3.3. Production & ManufacturingProduction & Manufacturing

4.4. Customers & MarketingCustomers & Marketing

5.5. SummarySummary

Kyoto Japan’s products cover 11 families of products as follows:

• PCR : Passenger Car Radial Tires• UHP : Ultra High Performance PCR Tires• WTR : Winter Passenger Car Radial Tires• LTR : Light Truck and Van Radial Tires• SUV : 4x4, Sports & Utility Vehicles Radial Tires• TBR : Truck and Bus Radial Tires• TBB : Truck and Bus Bias (Nylon) Tires• LTB : Light Truck & Van Bias (Nylon) Tires• AGR : Agricultural Tires• OTR : Off-the-Road Bias Tires• Tubes : Butyl Inner Tubes• Batteries

Kyoto Japan Product RangeKyoto Japan Product Range

Kyoto Japan tires have passed and have been certified by DOT, ECE, TUV, 3C, ISO9001, PAI, SASO, Inmetro (Brazil) & Russian Standards.

Kyoto Japan is also the member of TIA (Tire Industry Association in USA).

StandardsStandards

Tire Families & Pattern DigestTire Families & Pattern Digest

1.1. Organizational StructureOrganizational Structure

2.2. Product RangeProduct Range

3.3. Production & ManufacturingProduction & Manufacturing

4.4. Customers & MarketingCustomers & Marketing

5.5. SummarySummary

Beijing Office

Shanghai

Xingtai

Qingdao

OEM Manufacturing Locations in ChinaOEM Manufacturing Locations in China

Henan

Tianjin

GREEN TIRE CHECKING

CUTTING

CALENDERINGTREAD

EXTRUSIONBEAD

BUILDINGBEAD

EXTRUSIONHEATING STEEL

WIRE

TIRE CURING UNDER PRESSURE & TEMPERATURE TRIMMING INSPECTION STORAGE

GREEN TIRE SPRAY

TENSION

MASTER BATCH PREPARATION

QUICK CHECK

HOT MIXING

COMPOUDING CALENDERING

NATURAL RUBBERCHEMICAL AGENTS NYLON CORD

STEEL WIRE

RAW MATERIALS

CUTTINGDRY PULVERIZER

DE-WATERING

PRE-WARMING

STEEL BELTCARBON BLACK

COILING

TIRE BUILDING

MASTICATION

Tire Manufacturing ProcessTire Manufacturing Process

Moulds & ToolingMoulds & Tooling

Kyoto Japan Tire Group has invested over USD 4 Million in 2-Piece and Segmented Moulds for production of TBR, LTR & PCR tires.

Xingtai Kyoto Tire Co. Ltd.Xingtai Kyoto Tire Co. Ltd.

Kyoto Japan’s own manufacturing facility: Xingtai Kyoto Tire Co. Ltd. ; is specialized in manufacturing Bias OTR Tires for the construction and Building industries.

Sizes produced include : 23.5-25, 20.5-25, 17.5-25, 16.00-25, 18.00-25 & 14.00-24 in OTR tires. This plant shall also produce Bias Agricultural Tires,

The land is 84,600 M2 in areaAnd can allow further Production lines to be added in expansion projects

Xingtai Kyoto Tire FactoryXingtai Kyoto Tire Factory

Bill Board on China Highway

Xingtai Kyoto Tire FactoryXingtai Kyoto Tire Factory

1.1. Organizational StructureOrganizational Structure

2.2. Product RangeProduct Range

3.3. Production & ManufacturingProduction & Manufacturing

4.4. Customers & MarketingCustomers & Marketing

5.5. SummarySummary

Kyoto Japan’s Service Centre in China Goodyear’s Service Centre in China

Tire Service Centres in ChinaTire Service Centres in China

One of the major strategies adopted by foreign brands to acquire market share in China is to establish ‘’Tire Service Centres’’ in various provinces.

This strategy creates confidence and enhances customer loyalty while being a sound brand-building and marketing exercise.

Kyoto Japan Tire has set up 3 Service Centers so far as can be seen adjacent to Goodyear in Chengdu.

1.1. Organizational StructureOrganizational Structure

2.2. Product RangeProduct Range

3.3. Production & ManufacturingProduction & Manufacturing

4.4. Customers & MarketingCustomers & Marketing

5.5. SummarySummary

Kyoto Japan Tire’s Added Values Kyoto Japan Tire’s Added Values

• Brand name of ‘’Kyoto Japan’’ ’Kyoto Japan’’ is a well selected Japanese brand which emphasizes quality & value;as well as portraying a correct image for marketing;

• Product range of Kyoto Japan tires covers major product categories in PCR, UHP, SUV, WTR, LTR, LTB, TBR, TBB, and OTR;

• Kyoto Japan is very flexible and responds quickly to market demands and customer enquiries for development of new patterns, moulds etc.

• Kyoto Japan’s multi-national staffs speak local languages and provide personal and friendly marketing and sales services to their clients;

• Kyoto Japan truly supports its distributors in their respective allocated markets, well appreciated by clients;

• Kyoto Japan provides After-Sales-Service support and Warranty;

• Kyoto Japan provides Product Liability Insurance for its tires which is absolutely essential in USA, Canada and in Europe. Chinese brands do not have such policies;

• Kyoto Japan has a network of own companies, joint-venture companies, liaison marketing offices and overseas sales personnel which provide an efficient service to various distributors.

• Kyoto Japan uses a Geneva based Swiss company for handling all its banking and documentation, which provides added efficiency and satisfaction to most distributors and clients.

• Kyoto Japan attends leading international tire exhibitions in different markets and has created a market recognition beyond its size.

• Kyoto Japan tires are well-known for their quality, durability and reliability and they are marketed under the slogan of

‘‘‘‘Symbol of Quality & Performance’’Symbol of Quality & Performance’’

Kyoto Japan Tire Corporation (Switzerland) S.A Beijing Representative Office

Company Name Kyoto Japan Tire Corporation (Switzerland) S.A Beijing Representative Office

Address806, Building A, Langqin International, No. 168, Guangwai Dajie, Xicheng District, Beijing - China

Zip Code 100055

Tel: (+86.10) 830 65 862

Fax: (+86.10) 830 65 882

Email (Sales) sales@kyotojap.com

Email (Administration) admin@kyotojap.com

Email (Head Office) geneva@kyotojap.com

Website www.kyotojap.com

公司名称 日本京都轮胎（瑞士） 公司北京代表处

地址 中国北京西城区广外大街 168号朗琴国际 A座 806

邮编 100055

电话 (+86.10) 830 65 862

传真 (+86.10) 830 65 882

Kyoto Japan Tire Group

Kyoto Japan Tire (Suisse) S.A1 Carrefour de Rive,

1207 Geneva – SwitzerlandTel: +41.21. 826 11 77Fax: +41.21. 826 11 76

Emails: kyotojapantire@bluewin.ch

Kyoto Japan Tire Corporation Ltd. Maison Hirakawa, 5-2 Hirakawa-cho 2-chome, Chiyoda-ku,

Tokyo - Japan

www.kyotojap.comwww.kyotojap.com

‘‘‘‘Symbol of Quality & Performance’’Symbol of Quality & Performance’’