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A Presentation of Kyoto Japan Tire Group

A Presentation of Kyoto Japan Tire Group. Long-Term Objectives of Kyoto Japan Tire Group. Kyoto Japan Tire Group’s Long-Term Objectives are: 1. Build “Kyoto Japan” as a “ Global Tire Brand ’’ by the year 2015 and reach

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A Presentation of Kyoto Japan Tire Group

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  1. A Presentation of Kyoto Japan Tire Group

  2. Long-Term Objectives of Kyoto Japan Tire Group • Kyoto Japan Tire Group’s Long-Term Objectives are:1. Build “Kyoto Japan” as a “Global Tire Brand’’ by the year 2015 and reach • USD 100 Million annual Sales;2. Enhance the marketing team to cover sales in all potential world markets;3. Develop an advanced R & D department in collaboration with a leading • technical institution to acquire proprietary technology & Know-How in tire • manufacturing; and to develop new tire patterns for advanced countries; • 5. Pre-finance and procure tire raw materials (Rubber & Steel) at market low’s; to enhance profitability and to minimize global fluctuations in prices; • Look out for 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 with leading local families/groups in potential market of Brazil.

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

  4. Organizational Structure • Product Range • Production & Manufacturing • Customers & Marketing • Summary

  5. Kyoto Japan Tire Group The Group Structure is presented schematically in the next section. Kyoto Japan Tire Holdings Ltd. Comprises the following fully owned and/or Joint-Venture companies: Kyoto Japan Tire Corporation Ltd. - Tokyo The 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’ 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 Province In 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

  6. Kyoto Japan Tire (Suisse) S.A - Geneva A 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 Branch The 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. – Brazil The 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. – BVI The 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 Kong Fully owned subsidiary company of the group based in Qingdao for Trading of various brands of tire to world markets.

  7. 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. 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.

  8. Kyoto Japan Tire Group Structure

  9. Regional Offices • 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.

  10. International Marketing Zones • 1- Europe & Francophone North Africa • 2- United Kingdom & Ireland • 3- Eastern Europe & Ukraine • 4- Brazil • 5- Latin America (Chile, Argentina, Uruguay, Paraguay, Bolivia, Peru, Ecuador) • 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 Zealand • 14- Domestic China & Outer Mongolia

  11. 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

  12. Kyoto Japan Tire Organization in China

  13. Organizational Structure • Product Range • Production & Manufacturing • Customers & Marketing • Summary

  14. Kyoto Japan Product Range • 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 Standards 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).

  15. Tire Families & Pattern Digest

  16. Organizational Structure • Product Range • Production & Manufacturing • Customers & Marketing • Summary

  17. Beijing Office Shanghai OEM Manufacturing Locations in China Tianjin Xingtai Qingdao Henan

  18. NATURAL RUBBER CHEMICAL AGENTS CARBON BLACK NYLON CORD STEEL BELT RAW MATERIALS DRY PULVERIZER DE-WATERING PRE-WARMING STEEL WIRE CUTTING TENSION MASTICATION COMPOUDING HOT MIXING CALENDERING MASTER BATCH PREPARATION CUTTING QUICK CHECK CALENDERING TREAD EXTRUSION BEAD BUILDING BEAD EXTRUSION HEATING STEEL WIRE COILING TIRE BUILDING GREEN TIRE CHECKING GREEN TIRE SPRAY TRIMMING INSPECTION STORAGE TIRE CURING UNDER PRESSURE & TEMPERATURE Tire Manufacturing Process

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

  20. 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 area And can allow further Production lines to be added in expansion projects

  21. Xingtai Kyoto Tire Factory

  22. Xingtai Kyoto Tire Factory Bill Board on China Highway

  23. Organizational Structure • Product Range • Production & Manufacturing • Customers & Marketing • Summary

  24. Tire 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. Kyoto Japan’s Service Centre in China Goodyear’s Service Centre in China

  25. Organizational Structure • Product Range • Production & Manufacturing • Customers & Marketing • Summary

  26. Kyoto Japan Tire’s Added Values • Brand name of ‘’Kyoto Japan’’ is a well selected Japanese brand which • emphasizes quality & value;aswell 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;

  27. 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’’

  28. ‘‘Symbol of Quality & Performance’’ Kyoto Japan Tire Group Kyoto Japan Tire (Suisse) S.A 1 Carrefour de Rive, 1207 Geneva – Switzerland Tel: +41.21. 826 11 77 Fax: +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.com

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