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Midea Kitchen Appliances Division

Midea Kitchen Appliances Division. Vacuum Cleaner Company Introduction. Midea Group Structure. Board of Directors. Executive Committee. Legal. Auditing Dept. IT. Admin & HR. Technology& Quality Dept. Finance. Strategy & Planning. Refrigeration Division. Residential AC Division.

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Midea Kitchen Appliances Division

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  1. Midea Kitchen Appliances Division Vacuum Cleaner Company Introduction

  2. Midea Group Structure Board of Directors Executive Committee Legal Auditing Dept IT Admin & HR Technology& Quality Dept. Finance Strategy & Planning Refrigeration Division Residential AC Division Dishwasher Division Kitchen Appliances Division Environmental Appliances Water Heating Co. Lighting Appliance Co Commercial AC Division Small Domestic Appliance Co. Motors Appliance Co International (MID) Laundry Division Compressor Appliance Co

  3. Kitchen Appliances Division Structure Kitchen Appliances Division Financial Management Dept. Operations and Human Resources Dept. Overseas Sales & Marketing Company Domestic Sales & Marketing Company Microwave Oven Company Cooking Appliances Company Vacuum Cleaner Company R & D Center Industrial Design Dept. Supply Chain Management Dept. Quality Management Dept. Midea Kitchen and Electrical Appliances Division

  4. Organization Structure Vacuum Cleaner Company Molding Factory Manufacturing Factory R&D Department Quality Management Dept. Supply Chain Management Dept. Financial Management Dept. Overseas Sales & Marketing Company Domestic Sales & Marketing Company HR and Operation Department

  5. Development History 2012 Merged into Kitchen Appliances Division 2010 VC was sold more than 6 million units. 2008 Established partnership with Bissell 2007 Established Partnership with Dyson 2005 Joint venture with Midea Group, named Midea Chunhua Electric Appliance Co., Ltd. 2000 Horned “China’s Best Known VC Brand” 1981 Establishment the 1st VC Company

  6. Sales Growth Vacuum Cleaner Business growth 2006 to 2013

  7. Global Network

  8. Vacuum Cleaner Company Company Company Overview Current Base Midea VC Company, as a subsidiary corporation of Kitchen Appliances Division of Midea Group, has grown into an outstanding VC manufacturer. Sticking to “open, harmonious, pragmatic and innovative” enterprise spirit, Midea VC Company has been pursued by large number of talents with its “Passion, Professional and Participate” talent concept. Boasting an integrated system of product development, manufacturing and quality control, the company now owns annual capacity of 8 million VCs and 10 million motors with more than 250 technical and professional managerial staff fully engaged. At present, Midea VC Company has launched its new manufacturing base project in Caohu, Suzhou with the annual capacity of 20 million VCs. With the extraordinary market developing strength and resource advantages of Midea Brand, Midea VC Company has been dedicated to enhance its medium-and-long-term core competence, and to be the leading vacuum cleaner supplier in the world within 3 years. New Base

  9. Vacuum Cleaner Production facilities New Production Base

  10. New Base Expectation New Base Expectation - Total Investment: 600 million RMB - Devoted to be No. 1 manufacturing base for Vacuum Cleaner - Have the lead in design and products

  11. New Base Expectation Caohu New Base– Milestone of Midea VC Company, is expected to be completed before Sep., 2014. It covers 110,000square meter with the building area of 84,000 square meter, which includes plant, administration building, R&D building and Staff Centre. Injection and Motor would be 100% self-supplied with the annual output 20 million units. Staff care, technology orientated, informationization, high efficiency and environmental protection would be the 5 focus, through which the new base will be the leading manufacturing based 3 years ahead of VC industry. • Environmentally Friendly Industrial Park • floor heating system • photovoltaic power generation • rainwater recycling and wastewater treatment system

  12. Production facilities Production facility – Total 11 million units capacity Motor Plant Vacuum Motors Annual Production Capability: 10 million units Testing center R&D center Injection Plant 20 Injection machines Factory for Bissell Project Building Area: 38,300 Sq. m Annual capacity: 4 million units Free Area for New Project Building Area: 20,000 Sq. m Available lines: 5 Lines Annual Production Capacity: 2.5 million units Vacuum Cleaner Plant Building Area: 54,300 Sq. m Vacuum Cleaner Assembly line: 10 Lines Annual Production Capacity: 4.5 million units

  13. Development Planning • Cost Leadership Strategy • Appropriate Scale Oriented; Key Account Focus; Key Market Breakthrough • Whole-Category & Omni-Channel Cover; Strive to be No. 1 both in Overseas and Domestic Sales • Scheme medium-and-long term core competence; Devoted to be the best VC supplier of the world

  14. 3-year Technology Planning 2013 2014 2015 ECO Grade C,D A,B A,A+ 62 61 60 Bag Noise (dBA) 80 72 67 Bagless 80 82 85 Carpet Pick up 103 108 110 Floor -Noise -Emission Technology New tool development Low noise -Efficiency -Power 1200W / 900W / 700W 900W/700W Pick up -Pick up -Noise Emission New tool & New design-1ST New tool & New design-2nd Input power -Power(W) -Noise New design

  15. Technology Innovation Technology Easy to use Hygienic Intellectual Technology Multi-stage Silence System High Efficiency Filtration System Single and Multi Cyclone System Novel Materials Deep Clean and Steam Sterilization BLDC+Battery+Fan Easy moving structure Miticide Device

  16. Industrial Chain Review Design Sales R&D Manufacturing Consumer Industry Design R&D Agency Testing Tooling Development and Manufacture Motor Development and Manufacture Molding Manufacture Logistic Warehouse Assembly

  17. Industry Design Industrial Design Company has become a professional, international team, which can complete all design aspects from “Concept to production”. We are committed to providing high-quality products for customers and consumers both home and abroad. Our design concepts and innovation have won various international design awards. Midea Industrial design company has gradually become one of China’s top design leaders. In the future, we will continue to innovate and develop, cutting edge products with the aim of becoming a world-class design team. 70 domestic designer + 7 South Korea/USA/Italy expert Silver Award included

  18. System Construction Midea Products have passed UL、CE、CB、GS、LCIE、EMC、CCC, etc. ISO90001 ISO40001 QC080000

  19. Information Construction Comprehensive informatization management system in the company provides strong support to the production management, by taking Enterprise Resource Planning(ERP) as the core. Order driven Multi-language upgrade Statement optimization ERP Process analysis

  20. Overview of R&D Devoted to improve the quality of human life, Midea VC company is making great efforts on the research and development of new technologies, such as cyclone, high efficiency, silence system and ECO design tec. with the prior consideration of energy saving, environment protection, and intelligence technology. These years, many joint projects were established with Nanjing University, Zhejiang University, Huazhong University of Science and Technology. With more than 150 national and international patent, Midea VC Company is honored National Post-Doctoral Research Center, Provincial R&D Center, Engineering Technology Center and High and New Tech Enterprise.

  21. R&D Professionals XinXianshan (Korean) Design Specialist Profession Experience: 16 Years Rinaldo (Italy) Design Specialist Profession Experience: 10 Years William (USA) Design Specialist Profession Experience: 8 Years

  22. R&D Professionals BYUNGSUN YANG (Korean) VC R&D Specialist 大谷利夫 (Japanese) Motor R&D Specialist CHANGDO PARK(Korean) VC R&D Specialist KYUNG CHUL KIM (Korean) VC R&D Specialist Profession Experience: 22Years Profession Experience: 38Years Profession Experience: 25Years Profession Experience: 28Years

  23. R&D abilities HUMAN RESOURSES BYUNGSUN YANG (Korean) Position: R&D Technology Expert Joined in Jan., 2013 • Years of working:25 years in VC Industry • Engineering Experience • 1988-2012，LG electronics ，Director for R&D Department • R&D Experience • Bagtype/Stick/Steam/Wet & dry/Motor/Power Nozzle/Hose/Robot/upright(Bagless)/Bagless（cyclone) • Award • Good Design award • New Technique award • Red dotaward

  24. R&D abilities HUMAN RESOURSES CHANGDO PARK(Korean) Position: R&D Technology Expert Joined in Feb., 2013 • Years of working:22 years in VC Industry • Engineering Experience • 1991-2012，LG electronics ，Director for R&D Department • R&D Experience • motor/Bag/low noise bag/SRM bagless/Robot/RK2 dev. modify models/Bedding cleaner • Award • Good Design award • New Technique award • Red dotaward • 6sigma Black Belt

  25. R&D abilities HUMAN RESOURSES KYUNG CHUL KIM (Korean) Position: R&D Technology Expert Joined in Jan. 2013 • Years of working:28 years in VC Industry • Engineering Experience • 1984-2009，engineer in LG (25 years) • 2010-2012，SEILSA，Director for R&D Department • R&D Experience • Wet & dry/Up-Right/Low noise/stick/Robot • Award • Good Design award

  26. R&D abilities HUMAN RESOURSES 大谷利夫 (Japanese) Position: Motor Technology Expert Joined in Feb., 2010 • Years of working:38 years in VC Industry • Engineering Experience • 1974-2006，SANYO，motor Research and design (32 years) • 2006-2008，Shanghai Xingpen，New product research • 2009-2010，Suzhou EUP, new product development • R&D Experience • Minor motor/high efficiency/Low noise • Award • JEMA(Japanese Motor Industry Association) progress prize

  27. R&D abilities HUMAN RESOURSES SOAK PARK(Korean) Position: Motor Manufacturing Technology Expert Joined in MAR., 2013 • Years of working:23 years in VC Industry • Engineering Experience • 1990-2007，DAEWOO，motor Research and design (17 years) • 2007-2008，Imperial Goldrich Hongkong，General Manager • 2008-2012，慧仁CITY(株) research laboratory, Director • R&D Experience • Wet & Dry/Up-Righ/high efficiency/Low noise • Award • KS(Korea Standard) committee member

  28. Agency Testing Midea Testing Center is highly equipped with more than 50ea testing machines. Testing capacity covers more than 400 items, including performance, safety, reliability, and precision testing for components etc. What’s more, Midea Testing Center was accepted and authorized by Bissell and TTI. Sound Testing Performance Testing Life Testing Life Test for Components UE Room Precision Measurement Materials Testing Lab Cleaning Performance

  29. Agency Testing Midea Testing Center is recognized by many international certification organizations, such as UL, TUV, SUD, TUV, Rhineland, Intertek, BV-LCIE etc., which is available to testing witness on IEC/EN60335-1、60335-2-2、60335-2-54、60335-2-10、UL1017. Once participate the edition and revision of National Standard related to home appliance, especially for Vacuum Cleaner.

  30. Molding Manufacture High efficiency of more than 40ea injection machines fully support 40% self-supplying unit assembly manufacturing. Besides, Highly equipped prototype processing center offer strong support for design and evaluation testing.

  31. Motor Development and Manufacture Independent Development and Manufacturing of VC Motors

  32. Assembly Manufacture Manufacture：20assembly lines，3 flexible lines, Annual output of 10 million. Lean Production：automation equipment and informatization system would be brought to support the JIT lean production Quality Control：2~3 inspecting positions have been placed when produced, to ensure 100% pass rate.

  33. Warehouse & Logistics Large Capacity Warehouse with 150, 000 capacity; shipment quantity per day can reach 50, 000 with 2 loading stages.

  34. Care for Staffs • Opportunity and Trend Research • Development in New Technology • Learn through New Technology Technical Innovation Lean Manufacturing Customer Value Quality Oriented • Reliable Quality Control • Brand Quality Value • Automation • High Quality • Eco-friendly • Customized Offers and Solutions • go beyond your expectation

  35. Thank You !

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