Huakai-PKC Group Joint Venture Presentation

PKC GROUP Rationale: The Joint Venture Offers New Customer Opportunities and Economies of Scale in Sourcing The China market is dominated by local private and central government connected in-house manufacturers These manufacturers always serve only one significant truck OEM. The joint venture targets to get second major truck OEM customer • Euro 4 change and PKC's technology give the joint venture an opportunity to expand to more complex products e.g. truck engines. The joint venture has been preliminary accepted as JMC engines supplier Cost synergies exist in components • The joint venture benefits from economies of scale in supplier base, especially in international components • The joint venture's in-house wire, plastic- and metal parts have cross selling opportunities to PKC Huakai has strong track record in generating growth, the management continues in the joint venture • Annual growth 2008-2014 amounts to 24% • Gu Weikai, the current majority share holder and vice president, will continue managing the joint venture FOTON Дотам Лимли March 30, 2015 CO 6

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