EXPORT WEEK 2014

Who is Sumitomo Rubber Industries?

• Sumitomo Rubber Industries (SRI) is a tyre and rubber company based in Kobe, Japan

• 5th largest tyre manufacturing company with 11 tyre factories globally

• Sales companies in 16 countries

• The Sumitomo Rubber Group comprises of 70 companies in the tyres, sporting goods and industrial products categories.

Head Office & CEO

Sumitomo Rubber Industries Ltd

Headquarters building in Kobe, Hyogo Japan

MR. IKUJI IKEDA

President and CEO, Representative Director

Factories

THAILAND FACTORY

(Tyres)

SHIRAKAWA FACTORY

(Tyres)

INDONESIA FACTORY

(Tyres/ Golf Balls)

MIYAZAKI FACTORY

(Tyres/Golf Clubs) NAGOYA FACTORY

(Tyres) IZUMIOTSU FACTORY

(Tyres)

Factories

KAKOGAWA FACTORY

(Industrial Products)

ICHIJIMA FACTORY

(Golf Balls)

CHINA CHANGSHU FACTORY

(Tyres)

CHINA HUNAN FACTORY

(Tyres) MALAYSIAFACTORY

(Rubber Gloves) BRAZIL FACTORY

(Tyres)

Factories

CHINA ZHONGSHAN FACTORY

(Precision Rubber) VIETNAM FACTORY

(Precision Rubber)

Test Facilities

OKAYAMA NAYORO ASAHIKAWA

SOUTH AFRICA FACTORY

(Tyres)

Vision 2020 Aim to become a true global player

• “VISION 2020” - the long-term vision established in 2012 with the aim of

achieving long-term growth for the Sumitomo Rubber Group

• “VISION 2020” aims to “become a true global player by achieving both high profitability and high growth” and to “peruse increased value for all stakeholders and greater happiness for all employees”

• Towards achieving these goals, SRI will take on various new challenges with three Growth Engines as the driving force:

1. The Challenges of New Markets

2. Insatiable Drive for Innovation

3. Entering New Business Fields

Group Product Portfolio • Industrial and Other Products

– Artificial turf

– Offset printing blanket

– Precision rubber parts for I.T. equipment

– Dock fenders

– High damping rubber

– Flooring materials

– Flexible rubber joints

– Marine-pollution preventive screens

– Rubber hoses

– Rubber gloves

– Medical rubber stoppers

Group Product Portfolio • Tyres

– Passenger

– Construction

– Heavy & Light Truck

– Race and Rally Tyres

– Motorcycle Tyres

– Aluminum wheels

• Sports

– Golf Goods (clubs, balls, bags, gloves and shoes)

– Tennis Goods (balls, rackets, bags and shoes)

Manufactured and Sold by: Sumitomo Rubber Industries Ltd

Manufactured and Sold by: Dunlop Sports Co Ltd.

South African Company History • Facilities 1935: First factory opened in Durban

1973: Second factory opened in Ladysmith

2006 - 2012: US$ 64.4m investment in factories

• Company 1998: BTR PLC sells off majority control to Dunlop Africa Ltd

2001: Dunlop Africa Ltd buys out minority shares & delists from JSE. Dunlop Tyres International formed

2006: Apollo Tyres Ltd purchases Dunlop Tyres International (Pty) Ltd

2009: Name change to Apollo Tyres SA (Pty) Ltd

2013: Tyre Exporter of the Year (Africa)

2013: Sumitomo Rubber Industries (Ltd) purchase Apollo Tyres South Africa (Pty) Ltd

2014: Name change to Sumitomo Rubber South Africa (Pty) Ltd

• Brand 1992: Dunlop Accredited Dealer programme is launched

2002: World Land Speed Record set on Dunlop standard production tyres

2008: Dunlop Zone stores launched

2010: Iconic Tyre Brand award (SA)

2010: Tyre Manufacturer of the Year award TDAFA

2013: Number 1 Tyre Brand in South Africa (TGI Icon Brand Survey)

Overview

Company Name: Sumitomo Rubber South Africa (Pty) Ltd

Head Office: Durban, KwaZulu-Natal Province, South Africa

Manufacturing Facility: Ladysmith, KwaZulu-Natal Province, South Africa

CEO: Mr. Riaz Haffejee

Number of employees: Approx. 1,100

Main Business: The production and sale of tyres in the following categories:

- Passenger

- SUV/ 4x4

- Light Truck

Production capacity: 10,000 tyres per day

100% Steel radial plant

Factory size: 83,000m2 (252,600 sq ft) plant

Management Team

RIAZ HAFFEJEE

CHIEF EXECUTIVE OFFICER

CARLO BALDOCCHI

SUPPLY CHAIN KHOOBS SOMUR

TECHNICAL

TAKESUKE IKEUCHII

CORPORATE PLANNING

& SALES

RYUTARO OTA

FINANCE

DOUW VAN DER WALT

HUMAN RESOURCES HAROLD PINTO

PRODUCTION (LADYSMITH)

A. GOVINDRAM

INTERNATIONAL BUSINESS

Ladysmith Factory

LADYSMITH FACTORY

Manufacturing Facility in South Africa

Product Portfolio

* Product sold in certain African markets

*

Brand Export Territories

SUCCESSES IN AFRICA

A) GROWN OUR CUSTOMER BASE FROM ACTIVE 25 CUSTOMERS TO 46 IN 2014 B) GROWN SALES BY 30% OVER LAST YEAR C) CONDUCTED 30 TRAINING WORKSHOP ACROSS AFRICA YTD (TRUCK&BUS MAINTENANCE, COST SAVING

RETAIL PROGRAMS) D) CONVINCING JAPAN TO INVEST R1.1 BILLION IN LADYSMITH FACTORY E) MANY MARKETING AND PROMOTIONAL ACTIVITIES F) OPENED THE DOOR TO MANY NEW COUNTRIES ie:

A) NIGER B) SENEGAL C) DRC D) CAMEROON E) IVORY COAST F) BURUNDI G) MADAGASCAR H) ANGOLA I) GABON

CHALLENGES IN AFRICA

A) PRODUCTS IMPORTED FROM CHINA & THE EAST B) GREY MARKET C) APPLICATIONS IN EACH COUNTRY D) FREIGHT RATES OUT OF SA HIGHER THAN FROM THE EAST/CHINA E) UNDER INVOICING F) SMUGGLING OF PRODUCTS BETWEEN COUNTRIES G) FLUCTUATION & SHORTAGE OF FOREX H) TRADING CREDIT TERMS – CASH FLOW I) LANGUAGE BARRIER J) IMPORTATION CONTROLS K) PERCEPTION L) CORRUPTION M) MARKET RESEARCH

Certifications

Quality Standards

International Accreditation

Dunlop Zone

• 177 dealers, nationally (South Africa), who receive:

– Loyalty programme with no franchise fees

– Preferential pricing & payment terms

– Extensive regional warehousing for speedy distribution of product

– Marketing support, including national advertising

• The programme is extending into Africa with Dunlop Zones in Kenya, Ghana, Tanzania, Ivory Coast

Recent show stands and activations have been designed and supported in Ethiopia and Zimbabwe for Dunlop. Latest showstand was designed for Falken for Kenya Auto Show at end April.

THANK YOU