KML Automotive Business

K eep M oving L ong

AUTO PARTS

Contents Company Profile

Auto Parts

Value Chain

Production Facilities

Corporate Culture

Company Profile 01 宣传片

Promo

Promoción

KML incubated in Dortmund, Germany

Automated cleaning,gre-asing,sealing assembly line

KML brand register

KML Canada

Operation HQ in GZ,Logistics center in SH

ISO 9001 accredited

E-business strategy

VI system

1980 1989

1992

1993 1996

1999 2000

2001

2003

2005 2008

2010 2011

2012

2013

2014 1-1 Development

Established Technical Centre

KML Luoyang,

KML USA

TS16949 accredited, Indonesia Office

Established the Global Center

Auto parts department

KML Xinchang Factory

KML Latin American office

KML Europe office in France & Belgium

1-2 Brands & Segment

KML MOTION INDUSTRY

PRB

KML

KML BEARING

AUTO PARTS

TRUCK PARTS

HYBRIDE

KML France

KML India

KML USA

KML Columbia

KML Canada

1-3 Branches

KML HK

KML Indonesia

KML Belgium

1-4 Management Principle

Auto Parts 02

2-1 Plants

Xin Chang

CJB Jintan Tianchi

Zhongde

Xinchang KML Own Factory produces automotive wheel bearings and water pump bearings.

Jintan Tianchi KML Joint Venture produces miniature bearings.

Zhongde KML Joint Venture products medium-size ball bearings for various applications.

CJB KML Joint Venture produces a wide range of bearings for automotive and motorcycle.

2-2 Product Range

69%

28%

3%

Products Range

Automotives Motorcycle Others

Automotive Motorcycle Others

Domestic 13.8% 5.6% 0.6%

Oversea 55.2% 22.4% 2.4%

Total 69% 28% 3%

2015-3-20

Auto Transmission System Bearing

Air Conditioner Bearing

Transfer Case Bearing

Auto Axle Bearing

Auto Front

Wheel Bearing

Auto Drive Axle Bearing

Auto Differential

Bearing

Auto Rear Wheel Bearing

Alternator and Starter

2-3 Auto Parts

2-4 Main Products

Timing Belt

Water Pump

Clutch Bearing

Transmission Bearing

Water Pump Bearing

Wheel Bearing Unit

Repair Kit

Clutch Release Bearing

Value Chain 03

Industry Alliance

• Solely Owned Factories

• Strategic Suppliers

Trading Team

• E-business Platform

• Traditional Mode

Global Distribution

• Branches

• Agencies

3-1 Sales Distribution

25%

36%

31%

8%

Sales% SouthAmerica

NorthAmerica

Europe, Asiaand Africa

LatinAmerica

KML Global Situation

Distributors & Dealers

Office & Logistic Ctr

Joint- Venture Factory

Authorized Manufacturer

New Region Development

252 11 4 50 Asia & Europe

3-2 Global Distribution

3-3 Main Customers

16

3-4 R & D Capability Developed Application software for design and analysis:

KMCAD: 2D ; Pro/e: 3D; Design software: MSC, ROMAX. Process analysis software: DEFORM ongoing cooperate with domestic colleges to develop dedicated design software for developing hub bearing. To design the key components with Msc.Fatigue, Msc.Nastran. Effectively prevent products defect in design from flowing to customer.

3D figure by Pro-E Bending fatigue life analysis of inner ring

Stress analysis of inner ring Romax

KML has provincial level bearing R&D Center and national certificated laboratory, to deal with product research, design and develop includes research and develop of bearing producing process; research of bearing material and the friction lubricating technique, research of production application and failure analysis, bearing test and inspection. Talents force:

235 technicians have college degree, 120 have engineer title, More than 90 technicians directly take part in products designing and developing(of which 50 in R&D center)

Achievements:

50 patented technology

Work out 4 national standard

3-4 R & D Capability

3-4 R & D Capability Other than our own talents, KML collaborates actively with institutions and academies for technical innovation :

• Luoyang Bearing Research Institute • Henan University of Science and Technology • Chongqing University • Shanghai Tongji with Czech Auto Design Institute • Hangzhou Bearing Research Center • Huazhong University of Science and Technology • Chongqing University of Technology • Chongqing Technology and Business University • Chongqing Diwujiu Institute • Chongqing Automobile Research Institute • Nanjing University of Aeronautics and Astronautics • Hire experts to do technical adviser from the famous foreign enterprises

• Each year, KML allocated 15 % of its profit into R&D

R&D

Other

3-5 Process Lines

KML possesses the world class technique in bearing designing and manufacturing. E.g. Automatic CNC, Grinding Cutting Production Line, EFD High-Frequency Hardening Equipment.

3-6 Inspection Equipment

Friction torque testing machine Bench durability test machine Grease leakage(Temperature rise) test machine

Anti dust test machine Muddy water test machine Fatigue test

3-7 Inspection Equipment

Bending test machine

Muddy water testing machine

Dynamic testing machine

High temperature test machine

Projector Radial clearance measuring

instrument Profile measurement

Vibration measuring instrument

Roller standard measuring instrument

Rotary precision testing instrument

3-8 Inspection Equipment

3-9 Inspection Equipment

High precision configuration measuring, Roundness measuring and Length

measuring instrument, Flaw detector.

3-10 Inspection Equipment German VDA6.3 Quality system has been introduced to enable 26 quality control points.

3-11 Quality Assurance

26

Quality system：

↗ISO/TS 16949 / GJB9001A-2001/ISO 9001

↗ APQP, SPC, MSA, FMEA, PPAP Tools

Implement and Application；

↗GM system（QSB）, SAIC system , Ford

system（Q1）, Volkswagen system

Toyota vehicle system and other special

requirements；

↗Main implementation of VDA6.3 standard；

↗Implement the responsibility system for

project quality goals.

Shanghai Port

HK Port

3-12 Logistics

Global Logistics Centers 8000 P/N per month 1400 pallets per month Regional Logistics Centers in USA, France, Canada and

Columbia(Under construction).

3-13 Services

Website

Telephone

Email

PRODUCT

INQUIRY

SOLUTION

OPTIMIZATION

AFTER-SALES

SERVICES

TECHNICAL

SUPPORT

www.kml-autoparts.com

86-20-3992-2589

[email protected]

Multilingual: Chinese, English, Spanish

Data & download: E-catalogue in Chinese, English, French, Spanish and Russian.

PDF catalogue, Automotive catalogue G2010

www.kml-autoparts.com

3-14 Website

Production Facilities 04

4-1 Production Facilities Speed Forging and Annealing

Japan HPF—100S high speed forging

Product features:

Automatic production，steel bar forged out of the

inner and outer rings one time，improve the

utilization rate of raw materials；

Automatic temperature control，no overheat

phenomenon；

High precision products；

Protective atmosphere annealing，technological

parameters of PID automatic control，avoid

decarbonization phenomenon，homogeneous

microstructure;

Dramatically reduce energy consumption, save

the cost of production.

Continuous furnace with protective atmosphere

4-2 Production Facilities

Automatic turning line

Product features

Cold rolling of advanced international

technology；

Higher material utilization rate, perfect

shape, good metal streamline, reliable

online error proofing methods；

Automatic turning technology, precision

CNC machining technology, efficient

production capacity.

Japan imported automatic rolling equipment

Manufacturing capacity - turning

4-3 Production Facilities

Product features ：

Heat treatment technology to improve

the anti fatigue life of bearing greatly

polluted environment；

International advanced high frequency

quenching process and equipment，

to ensure that the thermal deformation

and internal quality of products;

Online control of process parameters.

Automatic continuous quenching and tempering production line

High frequency quenching production Line

Manufacturing capacity - Heat treatment

4-4 Production Facilities Processing ability: Grinding

Processing features:

Automatic production lines

guarantee processing precision and

production efficiency;

Reliable on-line detection and

mistake proofing methods to ensure

product quality ;

Advanced Japanese FANUC

control technology 、 and THK

guide rail and screw shaft 、

Germany GMN motorized spindle to

ensure the reliability of equipments.

Automatic grinding and super-finishing production line

Automatic grinding and super-finishing line

4-5 Production Facilities

Automatic assembly lines

Automatic assembly lines

Processing features

Clean assembly environment and

cleaning technology to ensure products

cleanliness；

Automatic production equipments and

complete on-line detection and mistakes-

proofing technology to realize the pursuit

of zero defected products.

Processing ability: assembly

Corporate Culture 05

5-1 Conduct Mode

Green

Appliances

Green

Emission

Biologic

Workplace

Saving

Electricity

Cyclic

Utilization

Green

Manufacturing

Green

Factory

Green

Logistiic Saving

Water

We are committed to providing our employees with a workplace

where they can pour in their capabilities to build their careers

and be rewarded from their contributions.

5-2 Team Creed