A business proposal by Achadiat A. Suhadi PT. KURNIA ABADI NIAGA CITRA INDAH LESTARI

1. A business proposal by Achadiat A. Suhadi PT. KURNIA ABADI NIAGA CITRA INDAH LESTARI (PT. KANCIL), JAKARTA - 2001

2. KANCIL A SMALL 4 WHEELER PUBLIC TRANSPORT MOTOR VEHICLE SAFE, ENVIRONMENT FRIENDLY, COMFORTABLE, AFFORDABLE AND PROFITABLE DEVELOPED BY PT. KANCIL – INDONESIA

3. PT. KANCIL AT A GLANCE, • PT. KURNIA ABADI NIAGA CITRA INDAH LESTARI • OR KNOWN ALSO ASPT. KANCIL, AUTOMOTIVE INDUSTRIES • deal with Design development, Engineering, Production,and Marketing up to After Sales Services. • TO EARN A LIVING AMONG GIANTS, • Dedicated to be a market driven company at niche market with a concern to social responsibility. • To be a spearhead, to open opportunity to grow together with respect to multi resources synergy • Developing good quality motor vehicle affordable to most people.

4. THE MAN BEHIND THE GUN, PT. KANCIL, An infant with professional man powers as the most valuable assets, mostly come with a long employment experience with reputable brand, such as Daihatsu and Mitsubishi in Indonesia. A NICE RELATIONSHIP, In developing the product, PT. KANCIL obtains good support from government, education institution and, most important, from renown automotive part manufacturers in Indonesia.

5. APRODUCT that called KANCIL, • 4 Wheel Small Public Transport, 3 – 4 Passenger, • Fiber Reinforced Plastic Body • L x W x H = 2,850 x 1,380 x 1,720 mm, • WEIGHT : Empty 480 kg, GVW 830 kg, • CITY CAR : 60 km/H max speed, 51% Grade-ability, • 404 cc gasoline engine, 4 stroke, air cooling, electric & manual dual starter, 13.5 hp/3600rpm, 28.5 Nm/2500rpm, • Automatic Continuous Variable Transmission, • 5.00 – 10, 4PR tire, • Independent Front suspension with Rack & Pinion steering NOTE: KANCIL IS ALSO INDONESIAN NAME FOR MOUSE DEER, A FAMOUS SMART ANIMAL CHARACTER IN INDONESIAN FABLE.

6. Small car with enough room for the whole family • Fit to accommodate 4-5 passengers with luggage • 830 kg of GVW • Space Efficient, small road space for such a load!

7. No Missing Link……… Evolvement of Category IV transport means in Indonesia

8. Kancil as a successor of BAJAJ

9. Kancil as a successor of BAJAJ

10. Can Be used also As short range Commuter or Delivery purposes

11. KANCIL UTILITY Representative media element for company image development Eye catching, yet good looking as well.

12. Mobile Billboard Public Transport as Mobile billboard increasing local government income from tax

13. Product Liabilities Finite Element Structural Analysis & Tests Static and Dynamics stress analysis, vibration modes, comfort-ability, road simulation on fatigue analysis and noise

14. Road Test

15. SET NEW STANDARD OF MINI TAXI, • Environment friendly; low emissiondual fuel, gasoline & CNG. • User friendly; economy of operation, automatics transmission ergonomics lay-out, easy to maintain.

16. Target Market • Customer Profile: - Bajaj & taxi owner, member of transport association / cooperatives, (category IV operator) - Medium high segment as “third car /leisure car owner” - Delivery/retailer/utility services company - Tourist operator/ resort area commuter services • Usage: - Regional taxi (category IV) in our regulation - Commuting and leisure - City car in a broad senses

17. Product Positioning Up grading of BAJAJ but, Lower than sedan TAXI As a substitute product, there is no direct competitor to KANCIL so far at the moment in Indonesia market

18. Product Positioning

19. PRODUCT PLANNING

20. INDONESIA MOTOR VEHICLE MARKET • Economics crisis since 1997 • Free market since 2000 • Record 1996 : 400.000 units • Normally 80% is commercial vehicle

21. Project Status To Date • PRODUCT -Type approval (certification) is OK -Industrial license & right to issue VIN - OK -To be proceed by 20,000 km road test • MARKETING -Prospecting & Letter of Intent from potential buyer -Lobbying to influence the local government’s regulation • PRODUCTION -Production preparation (investment, tool & sample development, quality approval, facility preparation) • FINANCIAL -Invite additional investor to face the future commercial production.

22. Kancil’s Living Environment SOCIAL • Lower buying power, need for productive goods, • Social empowerment for economics recovery TECHNOLOGY • Shorter life time, lower production volume, multi variant • Appropriate technology for low volume production, • Extended enterprise by managing team work across supply chain of logistics & production • Flexible manufacturing, multi resources-multi facilities • Concurrent Engineering to speed up time to market

23. Kancil’s Living Environment ECONOMICS • Foreign exchange saving, import substitution • Ride on rebound wave of economics recovery • Conserve government subsidiary on fuel cost • Add government income from moving billboard tax ENVIRONMENT • Conserve non renewable natural resources • Environment friendly of product and production facility POLITICS • To stimulate economics activity at grass root level

24. Balance of Power….. • STRENGTH -Human Assets & know how -New concept in business, technology & investment -Access & relationship in industry & government • WEAKNESS -New comer: image, market, distribution network -Production facility -Financial strength

25. Balance of Power…. • OPPORTUNITY -ASEAN Free trade area (AFTA) -Brand new investment (focus & accuracy) -Government policy on small scale industry, environment protection, energy conserving, etc • THREATS -Slump down of global economics -Global automotive industry excessive capacity -New player & new product in the same segment -Import Trade liberalization

26. It’s only a beginning.. A long journey always starts with a single small step, Kancil would think big, but starts small. Kancil committed to accomplish every single things it has been believed. In this purpose, true friends are expected to share the venture together in this ever changing world. • Thank you for your attention.