COMPANY PROFILE WATCHARA GROUP OF COMPANY.

Year of establishment :1971Business catagories :

Motorcycle and spare parts.Oil.Automobile.Retail electrical appliance store.Motorcycle & electrical appliance leasing.Authorized Yamaha marine sole distributor in Thailand.

Group of company :Watchara Business Center Co.,Ltd.Watchara Sales & Service Co.,Ltd.Watchara Marine Co.,Ltd.Watchara Leasing Co.,Ltd.VCR Leasing Co.,Ltd.

Employment : 250 employees.2012 total revenue : MUSD. 44.

Head office address : 16/38-41 Sudbantad Rd. Pakpriaw, Mueng, Saraburi 18000 THAILAND.

COMPANY PROFILE WATCHARA GROUP OF COMPANY.

COMPANY PROFILE WATCHARA GROUP OF COMPANY.

COMPANY PROFILE WATCHARA GROUP OF COMPANY.

COMPANY PROFILE WATCHARA GROUP OF COMPANY.

COMPANY PROFILE WATCHARA GROUP OF COMPANY.

Watchara spare parts wholesale outlet store.

COMPANY PROFILE WATCHARA GROUP OF COMPANY.

Group of company mission

To serve and delight customer with high quality product and service.

COMPANY PROFILE WATCHARA MARINE CO.,LTD.

Year of establishment :2001Business catagories :

Yamaha motorcycle dealer in Pattaya, Chonburi province.Yamaha marine sole distributor in Thailad.Leasing.Marine & Motor sport sulution center.

Branches :Watchara marine Bangkok.Watchara marine Pattaya, Chonburi.Watchara marine Phuket.Watchara marine Samui, Surathani.Watchara Leasing Pattaya,Chonburi.Watchara Yamaha Square, Pattaya, Chonburi.Watchara Complex, Pattaya, Chonburi

Employment : 90 employees.2012 total revenue : MUSD. 15.

Head office address : 140/94 M.11 Sukhumvit Rd.T.Nongprue, A.Banglamung,Chonburi 20150 THAILAND.

COMPANY PROFILE WATCHARA MARINE CO.,LTD.

Our vision of KTM distributorship in Thailand.

1. To be number one of European motorcycle in Thailand.2. To deliver happiness and fun riding every jurney to our customers.3. Employee is our success.

COMPANY PROFILE Organization

Management Team :Managing Director Mr, Taned Satienpan.General Manager Mr, Surachai Pipatsirisak.Marketing Manager Mr, Tanin Satienpan.Sale Manager Mr, Cheevadej tachavej.Service Manager Mr, Sakda Santad.Accounting Manager Ms, Yupadee Prasomsup.Administration Manager Mrs, Atchana Jeriyakom.

Financial Information :Bank Bank of Ayudhaya public company

limited.Branch Pattaya, Chonburi.

Employment : 42 Employees

COMPANY PROFILE Organization chart

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Watchara Complex

COMPANY PROFILE Building : Meeting room.

COMPANY PROFILE Building : Service

Current Marketing Situation Market Situation

2013 Market Size & Share Estimation. BRAND YEARLY VOLUME SHARE

BMW 300 10.00%

DUCATI 1,500 50.00%

HARLEY DAVIDSON 400 13.33%

KTM 600 20.00%

TRIUMP 200 6.67%

TOTAL 3,000 100.00%

Current Marketing Situation Market Situation

10.00%

50.00%13.33%

20.00%

6.67%

EUROPEAN MOTORCYCLE MARKET SHARE ESTIMATION.

BMWDUCATIHARLEY DAVIDSONKTMTRIUMP

Current Marketing Situation

SEGMENT C.C. KTM B.M.W. DUCATI TRIUMPH HONDA KAWASAKI YAMAHA

ON ROAD NAKED 200-250 200DUKE 0 0 0 0 ER250 0

390 390 DUKE 0 0 0 0 0 0

500 CB500F

650-799 690DUKE 0 MONSTER795T/796 STREETRIPLE675 0 ER6N650 0

800-1,000 990 SUPRE DUKE R F800R STREET FIGHTER848 THRUXTON800BONNEVILLE800 0 Z1000 0

1200 0 0 MONSTER1100 SPEED TRIPLE1050 0 0 0

ON ROAD FARING Super Bike

250 0 0 0 0 CBR 250 NINJA 250 0

500 0 0 0 0 CBR500 0 0

650 0 0 0 0 0 NINJA650

675-780 0 0 0 TRIUMP DAYTONA675 0 0 FZ8-N 779CC

848 0 0 848EVO 0 0 0 0

1,000 0 S1000RR 0 0 CBR1000 0 0

1,190 RC81190 0 PANIGALE1199 0 0 0

OFF-ROAD MOTOCROSS

50cc 50SX 0 0 0 0 0 0

65cc 0 0 0 0 0 0

85CC 85SX 0 0 0 0 0 0

125CC 0 0 0 0 0 0 0

150CC 0 0 0 0 0 0 0

250CC 250SX-F 0 0 0 0 0 0

350CC 350SX-F 0 0 0 0 0 0

Competitive Situation in Thailand : By Model

Current Marketing Situation

SEGMENT C.C. KTM B.M.W. DUCATI TRIUMPH HONDA KAWASAKI YAMAHA

450 450SX-F 0 0 0 0 0 0

ENDURO

125 125EXC-F 0 0 0 0 0 0

200 0 0 0 0 0 0 0

250 250EXC-F 0 0 0 CRF250L KLX250

350 350EXC-F 0 0 0 0 0 0

450 0 0 0 0 0 0

500 500EXC-F 0 0 0 0 0 0

Limited Edition 250EXC-F SIX DAYS 0 0 0 0 0 0

350 350EXC-F SIX DAYS 0 0 0 0 0 0

690 ENDURO R 690 F650GS/X COUNTY650 0 0 0 0 0

SUPERMOTO 250 0 0 0 0 0 D-TRACKER250 0

450 450SMR 0 0 0 0 0 0

650 0 0 0 0 0 VERSYS650 0

690 690SMC R 0 0 0 0 0 0

796 0 0 HYPER MOTARD796 0 0 0 0

990 990SM T/990SM R 0 HYPERMOTARD1100 0 0 VERSYS1000 0

ADVENTURE 500 0 0 0 0 CB500X 0 0

800 0 0 0 TIGER 800ABS 0 0 0

990 990ADVENTURE 0 0 0 0 0 0

1,1500 1190ADVENTURE 0 0 TEGER1150 0 0 0

1,200 0 R1200GS ADVR1200GS MULTISTRADA1200 TIGER EXPLORER ABS 0 0 SUPER TENERE1199CC

Competitive Situation in Thailand : By Model

Current Marketing Situation Competitive Situation : Pricing Comparison

SEGMENT C.C. KTM B.M.W. DUCATI TRIUMPH HONDA KAWASAKI YAMAHA BENELLI

ON ROAD NAKED

200-250 200DUKE 0 0 0 0 0 0

Retail Price(Bht) 230,000 0 0 0 0 0 0

390 390 DUKE NEW 0 0 0 0 0 0 0

Retail Price(Bht) 0 0 0 0 0 0 0 0

500 0 0 0 0 CB500F NEW 0 0 0

Retail Price(Bht) 0 0 0 0 199,000 0 0 0

600-850 690DUKE 0 MONSTER795T/796 STREETRIPLE675 0 ER6N650 0 TNT600 599CC NEW

Retail Price(Bht) 638,000 0 399,990 690,000 0 254,000 0 269,000

899 0 0 0 0 0 0 0 TNT899 898CC NEW

Retail Price(Bht) 0 0 0 0 0 0 0 549,000

ON ROAD FARING Super Bike

250 0 0 0 0 CBR 250 NINJA 250 0 0

Retail Price(Bht) 0 0 0 0 110,000 158,500 0 0

500 0 0 0 0 CBR500 0 0 0

Retail Price(Bht) 0 0 0 0 204,000 0 0 0

650 0 0 0 0 0 NINJA650 0 0

Retail Price(Bht) 0 0 0 0 0 269,000 0 0

675-780 0 0 0 TRIUMP DAYTONA675 0 0 FZ8-N 779CC 0

Retail Price(Bht) 0 0 0 770,000 0 0 480,000 0

Current Marketing Situation Distribution Situation

Brand Bangkok Up country Total Ratio

B.M.W 1 2 3 10.34

Ducati 1 4 5 17.24

Harley 1 2 3 10.34

KTM 2 10 12 41.37

Triump 1 4 5 17.24

29 100.00

Dealers of European brand

Current Marketing Situation

Region Province Existing Dealers Targeting Dealers 2013’ Total

Central Bangkok 1 2 3

Ratchaburi 0 1 1

Saraburi 1 0 1

East Chonburi 1 0 1

Rayong 0 1 1

North Chiangmai 1 0 1

Pitsanulok 0 1 1

North-East Nakhornratchasima 1 0 1

Khonkan 1 0 1

Udonthani 1 0 1

Surin 1 0 1

Ubonratchathani 1 0 1

Amnajareon 1 0 1

South Phuket 1 0 1

Surathani 0 1 1

Songkla 1 0 1

Total 12 6 18

Distribution Situation : KTM Dealers

Current Marketing Situation

Key factors Strategy

1. Set up dealers network. - 12 Kunka ‘s dealers will move to be dealers of new distributor.- Plan to expand more 6 dealers in the end of year 2013 to cover almost 18 dealers in Thailand.

2. KTM ‘s culture creation. - To held dealer ‘s top management meeting to deliver KTM vision to all of them.- To invite KTM top management to join the meeting .- To celebrate a new KTM distributorship in Thailand.

3. Dealers supporting program. - Sales training.- Mechanics training.- Service training.- Technical update ,technical instrument and technical bulletins support.- Marketing activity support.- Sale promotion support.- Selling kit support.- Financial support to promote off-road model.- Management training course.- P.O.S & Service Software support.- Dealer.net training.- Apply facetime app of I-Pad to quick service deliverly.

4. Dealers relationship creating . - To invite dealers to join marketing meeting to share marketing concept.- Distributor top management visit dealers regularly.- Distributor ‘s service manager visit dealers regularly. - KTM AG service’s team visit dealers quarterly.- To advice POS software program web base application.- Quick service support.

Dealers network development plan

INVESTMENT PLAN TIME LINE 2013/1

Topic Detail Qty Place Budget(Million Baht)

1 2 3 4 5 6 7 8 9 10

11

12

Head office To renovate Watchara Complex. 1 Pattaya 2.500

Showroom Flagship store 24mX16m 1 Bangkok 8.000

Bike Lift 5 0.250

Standard tools 5 .800

Special tools 2 1.000

Diagnostic tools 2 .400

Service vehicle Pick up truck 1.6 CC 1 Pattaya .500

Service vehicle Van 1 Bangkok .900

Marketing vehicle Van 1 Bangkok 1.000

Sale vehicle Pick up truck 2.7CC LPG 1 Bangkok .800

Management vehicle Sedan 2.00 CC 2 Bangkok 2.400

TIME LINE 2013/2

Topic Detail Qty Place Budget(Million Baht)

1 2 3 4 5 6 7 8 9 10

11

12

IT hardware

Wi-Fi network system, Server, wiring. 1 Bangkok .150

Desktop computer with 32”LED monitor(Service) 3 Bangkok .090

Desktop computer with 20” LCD monitor 8 .180

Note book computer(executive) management 2 .060

Note book computer(manager) 6 .120

Note book computer( Sale force) 2 .030

IT softwear( Webbase) P.O.S , Accounting and Service. 2 .160

Electrical appliances40”LCD monitor(Showroom) 2 .030

D.V.D disc reader 2 .003

INVESTMENT PLAN

TIME LINE 2013/3

Topic Detail Qty Place Budget(Million Baht)

1 2 3 4 5 6 7 8 9 10

11

12

Presentation tools

Samsung tablet 10.1 connect to 40”LCD. monitor.(Showroom) 2 Bangkok .030

Samsung tablet 10.1 connect to 40”LCD. monitor.(Showroom) 1 Pattya .015

Samsung tablet 10.1 (Sale force) 2 .040

Samsung tablet 10.1 (Marketingactivity) 1 .020

New I-Pad 32G 1 .026

INVESTMENT PLAN

C.K.D. PRODUCTION IN THAILAND

Topic Detail 1 2 3 4 5 6 7 8 9 10

11

12

Independent assemblyplant facility : Short cut to launching KTM 200Duke,390 Duke & 690Duke motorcycle in Thailand with competitive price.

To contact the management of independent assembly plant to discuss assembly cost, assembly facility, assembly line improvement , warehouse facility, assembly quality. Formerly, these plant used to assembly Kawasaki motorcycle. Now they assembly C.K.D from China.

Evaluation of imported duty cost.

Sending all C.K.D. parts ‘ selling price to Watchara for studying and evaluating.

Possibilities study result informing. Informing KTM the result of evaluation.

If feasible to invest these initials project.

KTM technical staff go to visit technical staff and management of the assembly plant in Thailand to discuss technical tropic before making final decision.

Trial C.K.D. assembly. Sending 200Duke C.K.D. part to assembly in order to evaluate manufacturing cost to assure competitive price as plan.

TIME LINE 2013

C.K.D. PRODUCTION IN THAILAND

Topic Detail 1 2 3 4 5 6 7 8 9 10

11

12

Investment of the 1st phase.

KTM and Watchara held a meeting to discuss about investment proportion.

Launching Thai assembly version. Deliver C.K.D parts to Thailand.

Production

Launching

TIME LINE 2013