Brief on Yangtze Optical Fibre and Cable Co. Ltd.

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1 Brief on Yangtze Optical Fibre and Cable Co. Ltd. 2009

2 Foundation of YOFC Changjiang Communications 25 China Telecom 37.5% Draka Comteq 37.5 Established in May 1988 and released production in June Owns the capacity to produce preform, fibre and cable and is the largest fibre and cable JV in China.

3 Structure of share China MPT 25% Wuhan Credit and Investment Co. 25% Wuhan Yangtze Communication Industry Group 25 China Telecom (Chin Huaxin PT Economic Development Center 37.5% Netherlands Philips 50% Netherlands Draka Comteq since 1996

4 The professional optical fibre and cable manufacturing and R&D corporation with the complet array of products, advanced technologies, and larger production scale in China

5 ompany of the world class The 2nd largest fibre manufacturer in the world The 5th largest cable manufacturer in the world The largest fibre and cable manufacturer in China Possesses the technologies and the products of the world class Ranked No. 1 in terms of sales for 17 consecutive years in China The largest supplier for all top telecom operators in China

6 High quality human resources Education Position Doctor & Sales (64) Post-doctor (9) Administration (37) Master (77) Engineer (232) Junior college & others (674) Total staff:1000 Bachelor (240) Production (577) Production value per person: RMB 2 mil/usd300,000.00, ranking No. 1 in the same sector in China

7 Advanced management system ORACLE ERP: sales, plan, materials, production, transport, finance Overall management systems: ISO9001/14001/17799 Production assistant system OHSAS18000 Automatic warehouse: the only one in the same sector in China Knowledge management system

8 Overall promises to customers Quality assurance Customized products On-time delivery Global delivery Production and logistics platform of world class Optimized costs All-around service

9 Large-scale production capacity Preform: 700 ton 70% of the preform consumption in China Fibre:20 mil km Cable: 0.3 mil sheath-km, equaling 8 mil fibre-km

10 Large production capacity the most advanced manufacturing equipment to ensure the high quality of products

11 Products family Products Fibre Specialty fibre Cable G.652B fibre FullBand G.652D fibre EasyBand bending insensitive fibre LAPOSH G.655 fibre Conventional MM fibre HiBand MM fibre MaxBand 150/300/550 MM fibre Fibre ribbon Tight buffered fibre

12 Products family Fibre Large core MM fibre Products Specialty fibre Polarization maintenance fibre Reduced cladding SM fibre Radiant hard fibre Cable High temperature fibre DCF/DCM

13 Products family Products Fibre Specialty fibre Cable Loose tube stranded cable Unitube cable Slotted core ribbon cable Termite/rat-proof cable flame-retardant cable ADSS Nonmetallic cable Sewer cable Surface inlaid cable Miniature figure 8 cable Indoor cable

14 Chinese Sales and Service Beijing North-East North-West South-West Shanxi Wuhan Shandong Jiangsu East China South China

15 Global Sales and Service YOFC Headquarters (Wuhan China) More than 50 countries, such as USA, Germany, Italy, Australia, the Netherlands, Sweden, Japan, S. Korea, India, Thailand, Syria, Pakistan, Turkey, Iran, UAE, Brazil, South Africa, Nigeria, etc.

16 Major fibre customers Almost all the domestic cable manufacturers and some telecom equipment manufacturers

17 Optical fibre customers All the cable manufacturers in China Some telecom equipment manufacturers in China Specialty fibre customers such as aviation in China Cable manufacturers in more than 20 countries

18 Major cable customers Customers of all circles who demand cable

19 Optical cable customers telecom operators The customers in the other industries Special cable customers

20 Achievements In 2008, YOFC reached a milestone of sales Produced and sold over 17 million f-km of fibres Produced and sold cable 250 thousand sheath-km of cables By the end of 2008 YOFC has totally produced and sold Over 70 million f-km of fibres Of which 13 million f-km of fibres have been exported The only preform supplier of China

21 Market share in China YOFC 40% YOFC 24% Optical fibre Optical cable Data market report

22 he development of YOFC S market share in China 45% 40% 35% 30% When the fibre and cable market dropped to the bottom in 2002, YOFC s market share increased greatly. 25% 20% 15% 10% 5% 0% Domestic optical fibre market

23 Investment YC 5.55%) NKW (20%) ZFOC (10%) CFSL (9.64%) Wuhan YOFC (51%) AoX (42%) YOFC (75%)

24 ontinual technical innovation and cooperation Netherlands DFT German Heraeus Large size preform technology development Technical cooperation National 863 Project Fruits Industrialization Base Coating technique development USA DSM YOFC postdoctorate working station Huazhong University of Science & Technology Wuhan University of Science and Engineering

25 Core technology and IPR Over 100 granted patents Over 40 invention patents Several granted patents in USA YOFC owns many core technology such as PCVD

26 Impressive honor In 2005, Study on Non-zero Dispersion Shifted Single-mode Fibre Made by PCVD and Industrialized Production was awarded the second prize of national science and technology advancement. This is the highest honor won in the same sector in China and YOFC is only and the first optical fibre and cable manufacturer that has won such honor.

27 Strategic objective and mission Strategic objective: Become the most influential fibre and cable manufacturer in the world and maintain the leading position in the global fibre and cable sector. Task: Promote the wide application of fibre in China and in the world and let everyone enjoy the freedom and happiness brought by fibre.

28 Bright prospects In the 20-years development course taking Customers Satisfication as its task, YOFC has established strategic partnership with customers and realized the co-development and the win-win situation. Facing the continually increasing demand in the worldwide optical communications market, YOFC is standing at the forefront of China s optical fibre and cable industry and is preparing for a new round of growth.

29 Thanks

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