Kawata s Business Strategy

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1 Kawata s Business Strategy Kawata Mfg. Co., Ltd. President Toshimasa Ota

2 KAWATA s Core Strengths The following are three core strengths that Kawata has accumulated over the past 60 years through our business experience in the plastic processing industry. Strong development force in the powder and pellet processing apparatus and systems Strong tie-up and know-how with overseas companies Strong sales and production power overseas.

3 Powder and pellet processing apparatus and System Development Developed the Extrusion Molding machine and also the auxiliary Equipment. Developed the High-speed mixer (SUPER MIXER). Developed the Floating mixer (SUPER FLOATER) first in the world. Licensed the Resin drying system for CD to CONAIR INC., U.S.A. Developed the Microwave dryer (DRYTOP) to the plastic molding industry first in the world. Developed the Waste PET products Recycling System. Developed the Modified RIM (Reactive Injection Molding) machine for Microcellular Foaming. Developed the Waste Plastic Recycling System. Developed MCF-Extrusion System.

4 Technical tie-up with Overseas Enterprise Technical cooperation with CONAIR INC. of the U.S. regarding the automatic colorant measurement unit (AUTO COLOR). Technical cooperation with KRAUSS MAFFEI regarding the granulator r for recycling diverse plastic waste (SUPER CRASH MIXER). Technical cooperation with SOMOS CO., LTD. Of Germany regarding the dehumidifying dryer (CHALLENGER). Cooperated with AXIOMATICS of the U.S. and obtained the exclusive manufacturing and sales rights for the automatic continuous water measurement unit in Japan. Obtained exclusive sales rights for extrusion molding control system stem from INOEX, Germany. Obtained exclusive sales rights for granulators from RAPID, Sweden. en.

5 Enterprise deployment Overseas Established Conair Kawata, as a sales office, in U.S. Established Kawata Pacific Ptd.. Ltd., as a sales base, in Singapore Opened Kawata-Enge Mfg.Sdn.Ltd.,., as a factory, in Malaysia Established Kawata (Shanghai) Co., Ltd., as a sales base, in Shanghai China Established Kawata Philippines Representative Office, as a sales s base, in Philippines Established Kawata (Thailand) Co., Ltd., as a a sales base, in Bangkok, B Thailand Opened Kawata Machinery Manufacturing (Shanghai) Co., Ltd., as a factory, in Shanghai, China Established Kawata International Co., Ltd., as a sale base, in Taiwan, T China Established Kawata (Shanghai) Co., Ltd. Shenzehen office in Shenzehen, China. Established Kawata (Shanghai) Co., Ltd. Tianjin office in Tianjin,China. Established Kawata Machinery (HK) Ltd. in Hong Kong, China Opened Suzhou Office in China Established Kawata Mfg. Co., Ltd. Representative Office, as a sales base in Germany

6 Plan for New Business Development Expand Kawata Maximum utilization of Kawata s core strengths for synergistic effect.

7 3 Strategic Business Units Plastic molding process industry Plastic recycling industry Pharmaceutical & Food processing industries

8 SBU Plastic Molding Process Industry Japan Market <Current Situation> Japanese market is matured. Automobiles IT Food & Medical package Large Molding Products(Beer Container) <Strategy> Utilizing the production base overseas, develop the products with minimum cost and promote to increase market share.

9 SBU Plastic Molding Process Industry Overseas Market <Current Situation> The market of many Asian countries are still growing. <Strategy> Sell to Japanese and local first-class customers (products of the factories in Shanghai and Malaysia).

10 SUB Development of Sales in the Plastic Recycling Industry <Current Situation> Plastic recycling has become indispensable and is also regulated by law. For example, we are not allowed to send back any waste to China once exported from there. Consequently, this garbage has to be recycled in Japan. <KAWATA s Core Strengths> The sales of Grash Mixer for plastic recycling started since KAWATA has been investing in Kochi Vinyl Co., the recycling company whom manufactures PVC (Poly-Vinyl Chloride) sheet for agriculture. Kawata also established in 2001 a new recycling system for various types of plastic waste at the Ecology Center, in Saitama, in the outskirts of Tokyo. <Strategy> Developing the waste plastic recycling system by reduction of granulation.

11 SBU Development of Sales in the Pharmaceutical & Food Processing Industries <Current Situation> As the ages of the Japanese society are to rise, people are more conscious of health issues. The demand of cutting down the cost of facilities is also strong under the deflation we are experiencing at present. <KAWATA s Core Strengths> Super Mixer has been used in the Food and Pharmaceutical Industries for a long time. Kawata has three offices and a factory in China. <Strategy> Sales of Chinese Products to Japanese Market (Price strategy). Sales of Japanese Products to Chinese Market (Brand strategy).

12 I would like to ask you on behalf of Kawata Mfg., Ltd. for your continued support in the future. The information and data etc., on this presentation is correct at the time of publishing, and may be subject to change. Due to the nature of some of the information ion in this report, that it is a forecast of the future based on the judgment of the managers of Kawata Mfg.,, Ltd., it may differ to the outcome. Thank you for your consideration.

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