CREATIVE ENGINEERING SERVICE

Automotive solutions & technologies

Technology Partner

Daewoo International Corp.Automotive & Component Division

1. Company at a glance

History Established as Daewoo Corporation (1967) Reestablished for special trading & investment (2000) Become a member company of POSCO Group (2010)

Major Business

International Trading Project Organizing Natural Resource Development Manufacturing : Textile, Cement, Steel Processing etc.

Global Network Total : 100

- Asia 51, Middle East 9, Africa 8, Europe 9 CIS 7, America 16

Employee Total : 16,290 (1,887 In Korea, 14,403 Overseas)

Sales (2011) Sales USD 16.8 Bil

※ POSCO Group acquired total 68.2 % of DWI share and became the major shareholder in Sep. 2010. POSCO is supplying steel to world-wide OE makers including VW Group, Fiat, Chrysler, Ford, BMW, Benz, Toyota, Nissan, Honda, Suzuki, Hyundai&Kia etc.

History

Established Automotive & Component Division (1984) Start OEM biz to North America (1987) Start OEM biz to Japan (1995) Established SQA team (2002) First Company to provide automotive engineering design,

stamping dies and Jig fixtures to China geely automobile Acquired ISO/TS 16949:2002 certification (2006)

Business model

OEM business : CBU & Automotive Components RE business : Tire, Battery, Wheel Engineering : Styling, Design, Machinery & Equipment Investment / New business in transportation vehicle area.

2. Automotive & Component Division at a glance

3. Division Background in Auto Industry(1967~2000)

Motor CarsCar Components

Manufacturing

Ship Buildings

DAEWOO CORP.(Automotive & Components Div.)

Electronics

Securities

ConstructionsThere are still many cooperative manufacturers in our background

Koryo

Daewoo Precision Kyungnam

Metal

AutomotiveComponent

TextileHeavy Industries

※ Daewoo Int’l has been in strategic alliance with GMK(former GM Daewoo) and supplying passenger car by CBU & CKD to CIS countries

* Affiliated Company & Branch office where the resident staff from automotive division work

5. Global Network Organization Overview

Europe*DWID aff. Company in Frankfurt Milano aff. company London Madrid Istanbul Warszawa Prague*Bucuresti

Russia & CIS*Moscow Tashkent Almaty Kiev

Africa*Lagos(Nigeria) Johannesburg Nairobi Yaoundé Kinshasa

M/E Asia Algeria*Tehran Dammam*Dubai Cairo Tripoli

S.America Buenos Aires*Sao Paulo Lima Bogota Santiago Pos-Daewoo BSPC

N.America*N.J aff. Company*Detroit Los Angeles Houston*Toronto Calgary DWIM aff. Company

Japan*DWIJ aff. Company in Tokyo Osaka *Nagoya

Asia DWIS aff. company Myanmar aff. Company*Vietnam aff. Company*Malaysia aff. Company India aff. Company Mumbai Manila Hanoi Bangkok*Jakarta Dhaka*Sydney Lahore

China*Shanghai aff. Company Shanghai Lansheng Guangzhou aff. Company Beijing aff. Company Dalian*Qingdao Wuhan Taiwan Hong Kong*Chongqing

Subsidiaries

16

Trading Co.

14

Branch Office

54

Resource PJT

16

TOTAL

100

Daewoo International operates an extensive 100 global networks.

6. Major Customers by region

LEARCORPORATION

7. Items we are supplying to customers as tier 1 & tier 2..

• Tie rod, Ball joint etc• Steering gear• Intermediate Shaft• Control Arm• Spring• Brake disc & Drum• Master Cylinder• Knuckle

Chassis• Cyl’ Head & Block • Crank/Cam Shaft• T/mission assembly • Hub, Flange, Shaft • Rubber Mounting• Shaft, Gear• Bearing Cap• Damper pulley• Casting, Forging parts

Engine/TM

• Engineering & Mold & Die

• Motor• Junction box• Relay and switch• Alternator/Strarter• HEV inductor

Electric Parts

HVAC System• Al & Steel Wheel• Tire• Battery• Wiper system

Others

In & Exterior

• Blower Motor• HVAC module

CBU/CKD and others

• Casting & Forging etc• Stamping parts

• Flex plate

• Recliner, Track• DC Motor• Lamp• Mirror• Spoiler & Grill• Quartered glass• Door latch & System• Key lock system

• CKD / CBU• CD Tube

Commercial Vehicle parts Construction Vehicle parts

GlobalNetwork

Business Experience

CompetitiveSuppliers

Specialized Management

8. Core competence

Overall 100 networksRegional Specialist Operation

Over 20 yrs.In various types of business

ISO/TS 16949 CertifiedTotal management roleSQA operationJIAT for Validation, CES for Engineering

Over 300 domestic and overseas suppliersExclusive partnership with 110 suppliers

Role & responsibility2

Company & Division introduction1

Total Organizer and Risk Umbrella

Multi-Sourcing via Global NetworkLogistics : JIT Service / WarehousingFinancing for Suppliers & CustomersOrganizing of JV, TAAMulti Field Coverage

- Component - Tech Institute - Engineering - Material(Posco)

1. Total Management

Stable & ReliableSupply Chain Management

CustomerSatisfaction

- SQA Activity

- Engineering & Test performance

- ISO/TS 16949 Certified

ED

I

SCM

SM

S

ERP

Supplier

Supplier

Supplier

Customerneeds

Customerneeds

Customerneeds

System

Unique Role & ResponsibilitySQA(APQP / R@R / PPAP) Engineering SupportTest Lab Support OEM Consulting

1a. Sourcing & Development

Source EvaluationProduction / Engineering CapabilityPotential Supplier Assessment

Financial StatusSupplier Database

QuotationFeasibility StudyGlobal Logistics Information

ComparisonNegotiation

Cost Saving SupportSourcing Support through DWIC Global network

Financing

At Sight Payment Investment Planning

Ex-Work to Global Destination – Best Route

Optimum PackagingOptimum Shipping Plan

Customs ClearanceCargo Tracing

Contingency Management – Trouble shooting

SortingFlexible Routing / Team Trucking / Air Freight

Warehousing

Safety StockEDI

JIT DeliveryFIFO

SCM System on Line

Real Time Tracking Optimum Inventory Control

1b. Logistics

1c. On-Site Support

Fast Response within 24 hours

Effective & Timely Communication on All Issues

Support Engineers

Manage Contingency Plans for Quality IssuesTechnical & Engineering Coordination

Program Management & SQE (DWI’s Korea)

Release Adjust & Right Production Plan (Short / Long term)Support Technical & Engineering Issues EOP & volume forecasting

In Advance Paymentthrough DWI

General Payment Term

2. Financial Support to Manufacturers

In-Transit N.A. Warehouse Customer

4 weeks In-Transit

4 weeks Inventory

5~9 weeks Payment Term (MNS-2)

Total 13~17 weeks(4 months) payment term

Improve Suppliers’ Financial Structure

10 daysFromB/L Date

3a. On Site Service & Warehouse in America

America

Romulus , MIAuburn Hills, MIMississauga, ONMorrison, TNCherryville, NCFairfield, OHIowa City, IAElk Grove Village, ILEl Paso, TXLittle Rock, ARRancho Dominguez, CAColima, Mexico

Detroit OfficeNewYork OfficeCalgary OfficeToronto OfficeLos Angeles OfficeMexico City OfficeSao Paulo Office

Branch Office Warehouse

Customer Support

JIT Delivery

Europe

3b. On Site Service & Warehouse in Europe

Dresden, GERMannheim, GERHanover, GERHamburg, GERLe Mans, FRANaklo, SLONovo mesto, SLOKoper, SLOMB, CZEConstanta, ROMBelfast, GBRBilbao, SPALusado, PORAntwerp, BELPaty, HUNSenec, SVKLeixoes, PORNapoly, ITA

Frankfurt OfficeMilan OfficeLondon OfficeMadrid OfficePrague OfficeWarsaw OfficeIstanbul OfficeBucharest Office

Branch Office Warehouse

Customer Support

JIT Delivery

1

23

BRANCH OFFICE

1. Tokyo2. Osaka3. Nagoya

WAREHOUSE

Daewoo International Japan Corp.• Tokyo• Osaka• Nagoya

3c. On Site Service & Warehouse in Japan

JIAT (Jeonbuk Institute of Automotive Technology)

4. JIAT – Reliability and Test Laboratory

• R & D • Design & Analysis• New Technology development

• Utilize equipment

• Training • Collaboration PJT

• Information network • New Tech Introduction

• System devel-opment

• Test Evaluation • Construct Network• Certification Work Assistance

Vibration & Reliability test

Reverse EngineeringRapid Product development

Collaboration ProjectProduct to be smaller &lighter

v Durability and Endurance Testv Reliability and Performancev NVH (Noise and Vibration Harshness)

• Test Evaluation Service

Assistance• Rapid Product Production

Assistance• Test Evaluation Technology

Research & Development• Evaluation scheduling & Cost

Saving

5. CES - Creative Engineering Service

Program Management, Simulation Engineering (SE) and Analysis

Business Partners

Strategic Alliances

Strategic Planning & Biz Development

Product engineering Service

Global Sourcing and Logistics

CAE/PDM

ENGINE

GEAR BOX

• Strategic Planning• Business Development• Human Resources

• Product Planning• Benchmarking• Engineering Design• Program Management

• Supplier Development• Tool Development

• DECI• INFORMIA

• GARGASO

• GARGASO

ISO/TS 16949 ISO 9001

6. Certificates

Appendix : Biz. Example 1

DWAW/House

Daewoo International Corp.

“D” Co.

Product : Seat Mechanism

End-Buyer : GM, FORD

Korea

FinancingLogisticsWarehouseOn-Site Service

North America

Sourcing & Supplier Quality Management

Supplier A Supplier B Supplier C Supplier D

SDE/SQE/SQA COMMERICAL

Appendix : Biz. Example 2

- Item : Blow motor / Fan

- Volume : U$ 50mil/yr

Korea-Daewoo Int’l

☞ Trilateral Business (China – Korea – Mexico)

Program ManagementSQA (PPAP Guidance, Containment, Process Audit)Logistics (From Vietnam to Customers)

Appendix : Biz. Example 3

Europe & CIS USA & Mexico

Brazil

India & Thailand

Donjin vietnam

Asia

Appendix : Biz. Example 4

☞ Car Sales : CBU & KD

Middle East

& Africa

Russia& CIS

China

Korea

Appendix : Biz. Example 5

☞ Engineering Sales : Engineering, Die, Jig & Fixture, P/Shop

Russia

China

Malaysia

Japan

• Item : C100/105 Diesel C/Head Casting

• Volume : average 10mil EUR/YR.

• Quantity : average 138 k PCS/YR.

• Program life ; 3 years (SOP : 2006.05)

DWIC SQA as Agent of Supplier

DWIC work role

☞ On site Quality Management for GMDAEWOO & NEMAK Gyor

Regular Contact for Quality & Technical IssuesResolving Delivery issuesOrganizing meeting at GM-DATQuick Support On Site

Appendix : Biz. Example 6

www.snam.com.sa