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Integria Logistics Oy Ltd New business concept for manufacturing networks Timo Koivumki Vehicle component supplier network development project closing seminar Tampere 7.5.2012

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Integria Logistics Ltd Oy Background Vision and business idea Field of operation and network Offering Establishing support Business case structuring Market potential of Russian automotive industry Contacts

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Background A spin off from Automotive Supplier development project Initiated by an automotive OEM in Russia Suited to serve multilayer manufacturing networks Combines elements of LSP, Trading house and IT company Built on long experience and competence of key persons Market analyzing and business plan development started 2008 Integria Logistics Ltd Oy founded in the end of 2011 Focus in serving Finnish and Scandinavian companies who are targeting becoming suppliers to industry in Russia Member of Odette / NAF since April 2012

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Vision and business idea Opening a new market for Nordic component manufacturing industry and leaving a lasting footprint in Finnish automotive industry Mission Integria is a supply chain management specialist and a system vendor providing customers optimizing of sourcing and procurement as well as localized value added operations thus creating value and competitiveness Vision Integria provides a supply chain management model for developing and streamlining global capital, information and material flows Business idea

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Integria field of operation Viipuri Swedish Procurement Finnish Logistics Russian Sales Swedish Procurement company -Sourcing, purchasing -Network management -Quality assurance Swedish Procurement company -Sourcing, purchasing -Network management -Quality assurance Finnish LSP -SCM -JIT operations -Packing and kitting -Forwarding services -ERP Integration Finnish LSP -SCM -JIT operations -Packing and kitting -Forwarding services -ERP Integration Russian trading agency - Sales & trading - Value-added Manufacturing JIT -Localization -Customs & delivery Russian trading agency - Sales & trading - Value-added Manufacturing JIT -Localization -Customs & delivery Operational excellence, Supply Chain transparency, Field tested processes

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Integria offering Linking suppliers and buyers SCM Optimization Logistics Localization Trading from Russian DUNS Establishing support Production transferring JV setting up Consulting

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Customers OEMS & Tier 1 Localization SCM Optimization Integria Logistics Sourcing & Sales Quality Logistics ERP transparency Supplier E Supplier D SME- Supplier A SME- Supplier C SME- Supplier B Positioning

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We provide Competitive sourcing Nordic countries China & India Lead time shortening Localization Transport management Kitting and sequencing Transparency / ERP integration

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Network IT support

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Procurement -Consolidated sourcing -Process management -Alternative suppliers -Contract management -Financing -Quality assurance Procurement -Consolidated sourcing -Process management -Alternative suppliers -Contract management -Financing -Quality assurance Localization -Efficient sales -Trading agency -Value added service -JIT operations -Sequencing Localization -Efficient sales -Trading agency -Value added service -JIT operations -Sequencing Logistics -Kitting -Sequencing -Safety stock -Forwarding -Customs -Process quality Logistics -Kitting -Sequencing -Safety stock -Forwarding -Customs -Process quality ERP Transparency, Cost management Cars -Seats -Interior panels -Carpets, Insulations -Batteries -Wheels -Metals parts -Electrical components -Bumpers .. Heavy vehicles -Seats -Bunks -Axles -Radiators -Gears -Gearboxes -Hydraulics -Plastic items . Integria service solution

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Localization in Business Park Vyborg Business Park provides production support services Consulting Turnkey full scale projects Outsourced manufacturing Premises are provided by property partner Sublease arrangement via Business Park Vyborg is possible depending on agreement model

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Integrias Support; preparation for OEM delivery Integria has up-to-date understanding of OEM Quality and process requirements Complete audit - insight to the actual situation View of improvement needs PSA (Potential Supplier Assessment), PCPA (Control Plan Audit) Action plan preparation Audit result -> training and other needs of Potential Supplier Integria development and training Automotive special requirements Co-operation with ISO certification project Support and benchmark

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Business case structuring Lead by Integria Standardised project concept Supplier candidates audited and action plan created Project financing secured Project kick off and follow up

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Project team Organization and resources Project team A project manager and concerned staff CEO / Production manager / engineer Basics on QA English language Committed to automotive goals A matter of commitment Most changes needed relate to larger volumes and change in production scale and pattern Need for Process quality and Quality process understanding

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Automotive Industry Certificates ISO/TS 16949 Automotive special standard ISO 14001 Environmental policy MMOG Material Management operations guide Supplier may be accepted without certification Transition period Defined date for audit

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OEM basic requirements Potential supplier; Imperative documents for OEM audit a) Facility DUNS b) Purpose & Plant Location c) Production Capacity d) Production Process Chart e) Plant Equipment Plan f) Layout Plan (Plant & Warehouse) g) Investment Plan h) QSB compliance i) Flow Chart of Quality Control System j) Process Defect Rate k) EDI connection l) CEO Commitment letter confirming plan to setup a new business (in the new country)

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OEM basic requirements Time to become a supplier a) Acceptable product, capacity (2 days from initial inquiry) b) Quotation, pricing (10 days) c) OEM audit (3+ months) d) PPAP approval, trial runs, tooling when necessary (3 6+ months) e) First delivery (6 12 months)

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OEM Ready - Project overview OEM Ready common objective Practical approach 2nd party certification Aiming at starting deliveries Project lead-time Minimum 6 weeks

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Business potential in Russia Immediate need of 600 or more new suppliers in Russia Component market size 7 Billion Euros Approx 50 % within reach for Nordic suppliers Nordic and Russian industry sizes match Nordic supplier base is a competitive sourcing market for Russia in terms of supply chain operation and lead time optimization

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Contacts Timo Koivumki COO, Chairman Integria Logistics Oy Ltd Kimmeltie 3, 3 rd Floor PO Box 41 02101 ESPOO Finland tel: +358 9 4289 00 88 mob: +358 40 524 44 11 timo@integria.fi Mikhail Smirnov Development Manager Integria Logistics Oy Ltd Kimmeltie 3, 3 rd Floor PO Box 41 02101 ESPOO Finland tel: +358 9 4289 00 88 mob: +358 40 678 67 47 mikhail@integria.fi