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2011 Corporate Overview

2011 Corporate Overview. 5. 1. 3. 4. 2. 6. 7. Business Strategy & Annual Production. JD North America. Facility. Quality Control. Company History. Market Positioning. Research & Development. Agenda. 8. Warranty & Service. Company History.

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2011 Corporate Overview

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  1. 2011 Corporate Overview

  2. 5 1 3 4 2 6 7 Business Strategy & Annual Production JD North America Facility Quality Control Company History Market Positioning Research & Development Agenda 8 Warranty & Service

  3. Company History

  4. Main Business Strategy & Annual Production • Multi-stage development strategy regarding internal-combustion engines • Exported to > 30 countries across the world Annual Finish Goods Unit Production

  5. The Largest single-cylinder diesel engine manufacturer in China Title 1st in small diameter single cylinder and multi-cylinder diesel engines Title Leader in small universal gasoline engines Title Market Positioning

  6. Marketing Positioning (con’d) • > 2000 dealers in China and abroad • JD brand has the highest brand quotient in Southeast Asia • CARB certified engines – 2004 • 1st Chinese company with Euro emission certified engines – 2006 • Ranked the 500 largest corporations & 100 largest machinery companies in China

  7. R&D • Technical Center • > $20M invested in JD technical center • National Doctor Graduate Scientific Work Station • Established in 2002 • Help enhance the quality of the research projects

  8. R&D (con’d) • Technology • CAD/CAE/CAM/CAT • computer assistant design, make/test networks • 3D laser technology in all design functions • EPA approved gas analysis gauge • Toshiba NC boring & milling • Mitsubishi electric spark machines • Intellectual Property Rights • Currently owns 116 international patents

  9. R&D (con’d) • Experts • Team of 20 technicians including 4 senior engineers, 6 full engineers, 6 assistant engineers & 4 product testers • Products under development • Low noise generators • Double-cylinder series of generators • Mini 4-stroke gasoline engines

  10. Quality Control • Maintain separate quality standards systems including ISO-9001 in all operating divisions • Goals • Initial production: ≥ 94% • Stored: 100% • Delivered: 99% Each component tested All completed engines tested All finished products tested AGAIN

  11. Facilities • Current facilities • 100 million sq. ft in 27 facilities • Annual production capacity – 4.2 million engines • JD Yancheng Engine Facility to be fully completed in 2012 • 6.6 million sq. ft to be utilized

  12. Facility – Planned Utilization • The multiple cylinder engine section • Product series • 2-3-4 cylinder engines • 50 types widely used in tractors, low-speed trucks, engineering machinery, harvesters, fixed driving equipment & generators

  13. Facility – Planned Utilization • Small diesel • Specializes in design, development, manufacture and sales of single & dual cylinder diesel engines, diesel generators, hand tractors, water pump assemblies • 350,000 small-power single • cylinder engines with over 200 designs • 10,000 small-power, • multi-cylinder engines Current Production • 20,000 diesel generators

  14. Facility – Planned Utilization • Small Tractors • Specializes in development, manufacture and sale • 4 different series ranging from 12-to-45 HP with over 100 combinations • Include water cooled engines, unilateral braking , small turning radii, adjustable treads, pneumatic braking systems & oversized springs

  15. Compressors Horizontal Vertical Twin Tank Pancake Quiet Zone Traditional Aluminum Traditional Facility - Compressors • Create new and innovative products based on two criteria • Enhanced mobility • Reduced noise

  16. Facilities • Small gasoline engines • Develop low-pollution single cylinder internal combustion engines 2 million units/yr • 4-13 HP • Finished Goods: 1 million units/yr including • Parts • 12,000 tons of casting parts/yr • 1.2 million parts/yr 600K – 1 mil Generators 200K – 500K Water pumps & pressure washers 100K – 300K Hand lawn & garden 100K – 250K Lawn & garden

  17. North American Operations • Products available in US market: • Have been designed, manufactured & tested by our company • Meet all quality and emission standards established by our customers & governing bodies • Sold under our own brands & private labels

  18. North America Facilities Chino, CA 85,000 sq. ft Corporate office, warehouse, service center Crystal Lake, IL 51,000 sq. ft. Warehouse, showroom, distribution center

  19. Main Customers

  20. JD NA Sales History & Growth Rate (2005-2009)

  21. Parts & Accessories • Considered a primary division of JD • Customer satisfaction is earned over time not at the time of purchase. • Annual sales > one million • Including blocks, heads, crankshafts, camshafts, gears, flywheels, gear chamber covers for diesel and gasoline engines • 6 branch factories & 4 subsidiary companies, with over 6000 employees

  22. AC Warranty and Services is a Warranty and Service solutions provider for Power Generation and Power Tool Distribution and Retail companies. Comprehensive Customer Care Program

  23. In house call center with Factory trained techs to provide first call service and trouble shooting support Over 1,500 contracted Service Providers with over 10,000 locations covering 20,000 cities across the USA. Parts inventory maintained in the US by Allpower Ability to UPS overnight parts and service manuals to Service Depot’s Concierge service for customers in rural cities Custom search for rural service locations Warranty Depots

  24. United States Warranty Depot Map ~Service Centers also available in Canada, Mexico, Puerto Rico & Virgin Islands.~

  25. Conclusion • Stable prime manufacturer of engines that is vertically integrated • Offer products with quality, reliability and performance, as well as innovation and services • Help you leverage your brands or ours • Detailed training available to insure that your associates are educated and motivated to achieve win-win situation • Domestic parts and service , with a comprehensive customer care network designed to insure customer satisfaction

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