—Profile of HOTAI MOTOR CO., LTD.— Excelling Today’s Dream

Hotai Motor is always on the go to pursue the ideal. By putting the new vision, “think outside the box and challenge your dreams”, as its goal, Hotai Motor is realizing its dreams today and excelling to overcome all obstacles with courage, create irreplaceable value, and challenge the extreme, in order to surpass over the dreams!

Hotai Motor Basic Data

Establishing date: September 1947 Headquarters location: 4th and 8th to 14th Floors, 121 Songjiang Road, Taipei City.

Founder: Mr. Huang Lieh-Ho Group Chairman: Mr. Su Yann-Huei

Chairman: Mr. Huang Nan-Kuang Vice Chairman: Mr. Hirokazu Hirako President: Mr. Justin Su

Capital amount: NT$5.462 billion Sales turnover: NT$86 billion (2011) Employees: 492 people (Mar. 2012)

Product brands: , , HINO Trucks, TOYOTA Industrial Equipment

Total Market EPS after Tax

NT$100mn Operating Revenues NT$100mn Profit after Tax NT$ 12.06 1,200 40% 90 12 38% 1,100 11 80 35% 1,000 32% 10 32% 31% 29% 29% 70 900 30% 8.89 8.36 9 27% 800 60 25% 25% 8

700 6.44 6.23 7 22% 50 6.23 6

600 20% 6 40 4.6 500 5 3.94 400 30 4 2.6 300 10% 3 20 1.83 200 2 10 100 1 483 603 575 763 873 659 710 530 724 743 860 9 14 21 34 45 35 34 25 32 48 66 0 0% 0 0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total 347K 399K 414K 484K 515K 366K 327K 229K 294K 328K 378K Market vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles

01 Excelling today’s dream - Core Management Team

Founder Huang Lieh-Ho I For a Beautiful Life and a Peaceful Society

Huang was born in Lugang Township, Zhanghua, on 10 January 1912. His father died when he was small, and he was raised by his widowed mother. Along the way, he studied and worked. At 27, he and other five partners with similar ideals and beliefs went to Kobe in Japan to start up their business, Hotai Trading Ltd, to trade cotton and sundry items. A few years later, eyeing at the development potential of the transportation industry in Taiwan, Huang went to Japan again to discuss business with local industries. In 1949, Hotai signed the Taiwan sole agent agreement with Yokohama Tire and TOYOTA Motors (the first overseas distributor of TOYOTA Motors). Further in 1952, Hotai became the first overseas distributor of , Ltd.

Although Hotai became Taiwan’s sole agent for TOYOTA Motors and HINO Motors, there were ups and downs during the operation. Although there were frequent setbacks, Huang never surrendered. From the first-time application for establishing an auto-making factory in 1963 to the establishment of Kuozui Motors, it took Huang twenty-three years to make his dream come true! Finally in September 1988, Zace, the first commercial vehicle built by Kuozui Motors, was launched; and a new TOYOTA business began. From then on, the leadership of Hotai Motor in Taiwan’s auto-making industry also took form.

By aiming to strengthen Taiwan’s economy with industry, Huang established Hotai Chemical Engineering (forerunner of Weichuan Corporation) in 1953 to produce MSG and soy sauce to enrich the everyday lives of people. In believing that the dairy industry could improve the living standard and nutrition standard of citizens and thereby promote rural economic development and compensate food inadequacy, Huang established the dairy product department in the beginning of the 1960s out of his insistence on establishing a “public company”. This started the diversification of Wei-Chuan into an integrated food manufacturing company. Huang was also called the “Father of the dairy industry” in Taiwan. With the food business diversification planning of Huang, Wei-Chuan became the largest food processing and manufacturing company in Taiwan in the 1960s and 1970s.

With his business insight and intelligence, Huang returned to Taiwan to re-start his business after the end of WWII. Eyeing the petroleum need in Taiwan in the postwar reconstruction period, Huang quickly obtained the distribution contract from Exxon Mobil Corporation to ship petroleum from Shanghai and sell it in Taiwan. Also, eyeing the cane sugar need of the China market, Huang shipped sugar from Taiwan to China and sold it in China. After shipping sugar to China, Huang shipped petroleum from Shanghai to Taiwan with the same vessel to double the profit from both sides. Later on, this practice built a good financial foundation for his business.

After gaining success in business, Huang spared no pain to participate in charity. In 1974, he established the Chun Ching Social Welfare Foundation. In 1979, he established the Wei-Chuan Cultural-Educational Foundation. In 1985, he established the Chun Ching Pediatric Nutrition Research Foundation. In addition to making substantial contributions to society in terms of transportation safety, social welfare, home economics and pediatric nutrition, Huang further established the Huang Lieh-Ho Social Welfare Foundation after retirement to focus on social charity and promote his belief in “a beautiful life and a happy family” for “a peaceful society”. In addition to donating money for establishing the foundation, Huang discussed various plans and worked with relevant employees at planned intervals. His spirit of total devotion for Taiwan and feedback for society were well praised.

02 Excelling today’s dream - Core Management Team

Group Chairman Su Yann-Huei I Better than the Best.

To a person who has fallen in love with since he was small, it is the biggest happiness in life for him to work with cars. It is even happier for him to work with a group of people having the same enthusiasm to make continuous breakthrough and overcome the ups and downs of the business with never-ending passion, in order to lay the foundation for Hotai Motor to be the leader of Taiwan’s automobile industry.

Employees of Hotai Motor are always self-demanding for two goals allowing them to get ready for any challenges at any time. First is enthusiasm and integrity. Enthusiasm refers to the passion for work, that is, the spirit of faith to work, love for work, and loyalty to work. Integrity is the basic principle for one to behave oneself in relation to others. As upholding integrity not only the general rule for people to conduct themselves in society, participate in politics and do business, it is also the unchanged motto of Hotai Motor over the past sixty years or so. Next is “prepare for the worst in the best moment.” This way, we can face the unpredictable future.

More than thirty years ago, as importing cars from Japan was banned by the government, Hotai Motor could only provide after-sales service, and it was a big impact to operations. However, Hotai Motor kept running the business as usual without changing its treatment for employees to overcome this period of hard time. This is because we are ready for anything at any time.

Even if there are fruitful achievements in front of us, we never give up on any possibility to make improvement. No matter what we are doing, we must ask ourselves three questions, “Have we worked with our full capacity? Are we satisfied with this? Is there any better solution?” We always believe, “Better than the Best.” Only work harder that we can conquer every peak in front of us.

At present, the global auto market is facing a significant reform. From the development of automotive electronics and environmental cars, and even to the changes in the sales system, this sustainability between the economics and the earth has become a global trend. With this opportunity, the management and everyone at Hotai must stay alert to capture the latest movements and get ready for the changes, in order to grasp the opportunities in the changing market and to continue to lead Hotai Motor to a new peak in business.

03 Excelling today’s dream - Core Management Team

Chairman Huang Nan-Kuang I Employee Satisfaction, Customer Satisfaction As the leading brand of Taiwan’s automobile market, we understand that there are many people out there waiting for opportunities to beat us. Facing such a challenge, every employee should stay alert, insist on providing the best products and services, and enforce various customer satisfaction campaigns, in order to make the mission of Hotai Motor a reality with the sincerest heart. This tells that LEXUS and TOYOTA can win the No.1 honor for luxury vehicles and domestically made vehicles from J.D. Power CSI and SSI for years. The winning of these awards in times of difficulty and adversity is praiseworthy.

As a benchmark company in Taiwan’s market, we always follow our “heart” and think in the position of customers and employees, in order to obtain the highest satisfaction upon mutual trust and reciprocity. In the future, whether it is the cultivation of the niche affiliate business, assurance of profit rate, increase of market share, continuous launch of various innovative services and continuous cultivation of the Chinese market, we should pursue our missions more aggressively. Also, we should maintain our CS leadership with greatest effort, in order to earn employee satisfaction and bring accomplishments beyond imagination to customers and shareholders, and dealers that have been working with us over time.

President Justin Su I Think Outside the Box and Challenge Your Dreams

We believe that the road ahead is always filled with tests and challenges. Therefore, we need to keep in the best condition at all times. We continue to focus on CR cultivation, make the best use of CR resources with innovative methods, and integrate the operations of pre-sales, after-sales and the used car business. The work of customer classification will be definately another focus as well. The synchronization of these projects, as a result, works as our foundation to win the battle in the market.

Facing the changing global economy and business environment, our employees and dealers listen to and count on the voice of customers and display passion in order to excel customer’s expectation for us! Also, we must stay alert to any possible challenges, continue to innovate, and reach to higher aims with greater courage that we can challenge our limits at all times, in order to make continuous breakthrough and work for a brighter and more promising future! Therefore, we must set “think outside the box and challenge your dreams” as our common vision, hoping to achieve the targets of selling “400K TOYOTA vehicles in the total market and occupying 40% in the shares” in 2015. This way, we can march toward success and become the champion in Taiwan’s automobile market forever!

04 Excelling today’s dream - Organization Chart

Hotai Motor Organization Chart

Supervisor of the Board Shareholder’s Meeting

Board of Directors Auditing Division Chairman Huang Nan-Kuang Vice Chairman Hirokazu Hirako

President Justin Su

T&H T&H LEXUS Administration Corporate After Sales Service Vehicles Operations Group Operations Group Planning Group Operations Group Operations Group

Customer Service Commercial Vehicle External Affairs Financial & Accounting Division LEXUS Vehicles Division Division Division Division

Service Marketing TOYOTA Vehicles Administration Corporate Planning Division Business Division Division Division LEXUS Service Technical Service Division Information System Division TOYOTA Products Division Planning Division

Parts Business Division

Information Security CS Committee Committee

05 Excelling today’s dream

Affiliates

1.Chang Yuan Motor Co., Ltd. 6.Hotai Finance Corporation 11.GTMC related businesses 2.Toyota Material Handling Taiwan Ltd. 7.Ho-An Insurance Agency Co., Ltd. 12.FTMS related businesses 3.Kuozui Motors Co., Ltd. 8.Carmax Co., Ltd. 13.TMHS related businesses 4.Hozhi Motor Co., Ltd. 9.Hotong Motor Investment Co., Ltd. 14.Hoyun International Lease Co., Ltd. 5.Hotai Leasing Corporation 10.TMCI related businesses 15.Carmax (China) Co., Ltd.

Brands Products

HINO 1.Chang Yuan

TOYOTA 2.TOYOTA Material Handling 9.Hotong LEXUS Manufacture 10.TMCI LEXUS 3.Kuozui 11.GTMC TOYOTA Hotai Motor 12.FTMS 4.Hozhi 13.TMHS Overseas 5.Hotai Leasing Business 14.Hoyun 6.Hotai Finance 15.Carmax(China) 7.Ho-An

8.Carmax

Multifaceted Affiliates

06 Always Walking Ahead with a Multidimensional Product Range

For giving Taiwan’s next generation a cleaner and better future, TOYOTA provides a series of green vehicles to fulfill the needs of the customer in many ways.

For giving Taiwan’s next generation a cleaner and better future, TOYOTA provides a series of green vehicles to fulfill the needs of the customers in many ways. With the brand new TOYOTA Hybrid System, TOYOTA will definitely create an unlimited beauty of green generation for the customers.

Domestically manufactured cars

CAMRY HYBRID CAMRY

WISH ALTIS

07 Always Walking Ahead with a Multidimensional Product Range

YARIS VIOS INNOVA

進口車

PRIUS c PRIUS

RAV4 LAND CRUISER PRADO

PREVIA ALPHARD

08 Always Walking Ahead with a Multidimensional Product Range

With perfect auto craftsmanship, praiseworthy driving experience, elegant and assertive appearance, spacious and comfortable interior design, LEXUS continuously pursues perfect classic value as the “beyond perfection” spirit suggests. In the future, we will aggressively develop environmental technologies to provide an earth-friendly driving experience.

LS

LS460 / LS460L LS Vertex

LS600hL

GS

GS 450h F SPORT GS350 GS250

ES

ES350 ES240

09 Always Walking Ahead with a Multidimensional Product Range

IS

IS250 F SPORT IS250 ISC

RX

RX350 RX450h

LX F

LX570 IS F

CT

CT200h CT200h F Sport

10 Always Walking Ahead with a Multidimensional Product Range

Setting “think outside the box and challenge your dreams” as the business philosophy and “providing professional and sincere services and exceeding customer expectations” as the business value, we aim to be the most trustworthy benchmark enterprise in the large commercial vehicle industry.

Series 300 Series 500 Series 700

HINO Bus Light bus-Coaster (imported from Japan)

Upholding the belief in ‘customers first’, Taiwan TOYOTA Industrial Equipment provides Taiwanese industries with innovative, safe and quality products and services excelling customers’ expectations. The scope of business and contents: distributoring TOYOTA industrial equipment, importing (exporting), selling, leasing and repairing TOYOTA vehicles and parts. Bulldozers Product contents: Forklifts, bulldozers, and mini tractors Internal combustion series: Diesel and petroleum seated forklifts Electric series: Seated 3-wheel/4-wheel type, stand-in lift trucks, side-seat forklifts Bulldozers: 430-900 kg Mini-tractors: Pulling up to 13,000-70,000kg Logistics consultation services

Forklifts

Mini-tractors

11 Always Walking Ahead with a Multidimensional Product Range

As a partner of Hotai Motor, Kuozui Motors maintains a close capital relationship with Hotai Motor, and has created a perfect model for division of labor in production and marketing. Due to the seamless cooperation between Kuozui Motors and Hotai Motor, Kuozui Motors possesses high-standard production technologies and capacities with expectable long-term profit and development among the global production groups of TOYOTA. In the future, Kuozui Motors will make continuous improvement in Taiwan’s auto-making technologies and uphold the “customer first” belief to continuously provide quality products expected by Taiwanese consumers through concerted efforts with Hotai Motor and contractors.

Framework Diagram

TOYOTA HINO

Technical Cooperation

CBU / Parts Taiwans’ Part Suppliers Kuozui Motors Export / Import Parts Supply GCC, Australia, Japan, Philippines, Technical Support Thailand, Indonesia, South Africa, etc.

Agency Car Sales

Hotai Motor Chang Yuan Motor

Kuozui Motors Basic Data:

Establishing 1984 / 4 / 9 Kuozui Motors Share-holding Proportion Date

Capital NT$3.46 billion

Chung-Li Plant : 100,000 (cars /year ) Kuan-Yin Plant : 65,000 (cars /year ) HINO 5% 2006 2,900 96,800 99,700

2007 1,700 98,600 100,300 TOYOTA 65%

Capital 2008 2,300 (70) 65,600 67,900 HOTAI 30%

2009 2,400 (60) 90,900 (7,020) 93,300

2010 4,600 ( 5 0 ) 117,700 (30,450 ) 122,300

2011 5,000 (10) 152,000 ( 50,630 ) 157,000

Unit ︰Cars Trucks Cars ( ) Export

Major Cars : CAMRY, CAMRY HYBRID, COROLLA ALTIS, WISH, VIOS, YARIS, INNOVA products Trucks : HINO small / medium / large truck, bus

12 Always Walking Ahead

Double High-Standard Operations, Industry-Recognized Production Capacity

■ High-Quality Production Technology . 01. Production Technology Center

02. Kuozui Motors won the TMAP-EM quality citation, TOYOTA Quality Activity Achievement Award FY2011 in Warranty Reduction. Award-winning criteria: Demanding requirement on market guarantee compensation fee and case history must reduce by at least 10% a year. 03. Production quality is approved by TMC over the years.

■ High-standard R&D capacity RD institution of KRDC Kuozui Motors R&D Center (KRDC)

Computer simulation & Styling analysis

Vehicle and Product Planning.

Design Testing

Export Sale of Kuozui Motors ■ Stepping on the accelerator for vehicle export, new highs for output and export of Kuozui Motors After creating a historical record of a single month output at 14,000 vehicles of a single plant in Taiwan in May 2005, Kuozui Motors, the manufacturer of TOYOTA vehicles in Taiwan, has been making continuous improvement in factory capability and manufacturing technologies and aggressively cultivates overseas markets with great results. With the push of the significant growth in export sales to the six GCC (Gulf Cooperation Council) countries, Kuozui Motors broke the record again by creating a new single month output at 16,844 vehicles in July 2011. With the total of 157,000 cars manufactured in 2011, Kuozi has reached a new record of manufacturing capacity in Taiwan auto industry.

With the advantage of the multifaceted experience in the Export Sales of Kuozui Motors over the Years manufacturing, Kuozui Motors has pushed the steady growth 2008 70 Vehicles of the overall auto industry. In the future, following the gradual 2009 7,080 Vehicles recovery of the domestic auto market, export sales will continue to grow. It is estimated that the prosperity of Kuozui 2010 30,500 Vehicles Motors and the upstream and downstream suppliers on the 2011 50,640 supplier chain of the entire auto industry is expected. This is Vehicles also an important support for the profit of Hotai Motor.

TOYOTA Altis waiting for loading at Taipei Port: Kuozui Motors broke the vehicle export record of all domestic automakers in 2011 with a total export of 50,640 vehicles.

13 Service is Always One Step Ahead

The human-center spirit of Hotai Motor is the most important core value. From pre-sales marketing to after-sales maintenance service, we make service more than just a job, and always create touching moments and satisfaction from the angle of customers at all times.

Multifaceted After-Sales Service System In order to become “the most trustworthy benchmark automobile group”, Hotai Motor realizes the TOYOTA Way (the operational value of global TOYOTA business) in promoting after-sales services. The two major spiritual pillars of the TOYOTA Way are “Continuous Improvement” and “Respect for People.” We challenge targets against the status quo at anytime, propose intelligence and methods and realize them. We take every action to promote human progress. We treat employees well, listen to the voice of customers, and contribute to communities and society as a whole.

Vehicle sales

customer maintenance service service

Multifaceted Service

customer information concerns integration system

logistics system

14 Service is Always One Step Ahead

■ Services across Taiwan through meticulous and complete channels

110 sales showrooms and 119 service workshops Kuotu Motor

17 Sales Showrooms Binjiang /Xinzhuang /Yangming /Zhonghe Sanchong /Tianmu /Tucheng /Linkou /Shulin Tau Miau Motor Yingge /Luzhou, Northern Yonghe /Danshui Southern Songjiang /Puqian /Danfeng /Minsheng 17 Sales Showrooms Zhongli /Xinzhu /Taoyuan /Northern Taoyuan /Toufen /Zhubei 16 Service Workshops Zhudong /Southern Zhongli /Yuanli /Bade /Miaoli /Yangmei Binjiang /Xinzhuang /Yangming /Zhonghe /Sanchong Longtan /Southern Xinzhu /Nankan /Dagang /Taoying Tianmu /Tucheng /Linkou Workshop/Shulin /Yingge Luzhou /Northern Yonghe /Danshui /Puqian /Danfeng 18 Service Workshops Xinzhu /Taoyuan /Zhongli /Northern Taoyuan /Toufen /Zhubei Zhudong /Yuanli /Bade /Southern Miaoli /Yangmei /Longtan Pingzhen /Gueishan /Southern Xinzhu /Nankan /Dagang /Taoying Taipei Motor 10 Sales Showrooms Central Motor Nangang /Shuangyuan /Xindian 25 Sales Showrooms Daan /Neihu /Badu /Wenshan Xizhi /Ankeng /Dunhua Southern Taichung /Central Taichung /Tanzi /Yuanlin Chaotun /Zhanghua /Dajia /Zhushan /Fengyuan /Xihu 16 Service Workshops Eastern Taichung /Lugang /Wenya /Puli /Dali /Northern Zhanghua Nangang /Wanda /Xindian /Songshan Nantou /Shalu /Beidou /Donghai /Erlin /Daya /Northern Fengyuan Daan /Neihu /Badu /Wenshan /Xizhi Taiping /Wuquan Ankeng /Zhongzheng /Shenkeng / 25 Service Workshops Dawulung /Fuyuan /Donghu /Xinyi Southern Taichung /Tanzi /Yuanlin Chaotun /Zhanghua /Dajia /Northern Taichung /Zhushan Fengyuan /Xihu / Eastern Taichung /Lugang /Wenya Puli /Dali /Northern Zhanghua /Nantou /Shalu /Beidou Lanyang Motor Donghai /Erlin /Daya /Northern Fengyuan /Taiping 2 Sales Showrooms Wuquan Luodong /Yilan

2 Service Workshops Luodong /Yilan

Eastern Motor Nandu Motor 2 Sales Showrooms 19 Sales Showrooms Hualian /Taidong Northern Tainan /Minxiong / Dounan Eastern Tainan /Xinying /Western Tainan 4 Service Workshops Beigang /Jiali /Jiayi /Douliu /Guiren /Yongda Hualian /Taidong /Yuli /Meilun Puzi /Guantian /Lunbei / Shanhua Southern Jiayi /Huwei /Annan

19 Service Workshops Northern Tainan /Minxiong /Eastern Tainan Xinying /Western Tainan /Beigang /Jiali /Jiayi Douliu /Guiren /Yongda /Puzi /Guantian /Lunbei Shanhua /Southern Jiayi /Huwei /Annan

4

Kaudu Motor

18 Sales Showrooms 20 Service Workshops Northern Kaohsiung /Gangshan /Pingdong Northern Kaohsiung /Gangshan /Pingdong Qishan /Chaozhou /Xiaogang /Jiuru /Fengshan Qishan /Chaozhou /Xiaogang /Jiuru /Fengshan Hunei /Northern Pingdong /Qingnian /Nanzi Hunei /Northern Pingdong /Qingnian /Nanzi Ruifeng /Youchang /Donggang /Fenglin /Hengchun Ruifeng /Youchang /Linluo /Donggang /Ligang Sando /Penghu (contract dealer)/Jinmen (contract dealer) Fenglin /Hengchun /Sando

15 Service is Always One Step Ahead

19 Sales showrooms and 25 Service workshops

Kuotu Motor

3 Sales showrooms Songjiang /Zhonghe /Xinzhuang

3 Service Workshops Binjiang /Xinzhuang /Zhonghe

Tau Miau Motor

3 Sales showrooms Taoyuan /Zhongli /Xinzhu

4 Service Workshops Taoyuan /Zhongli /Xinzhu /Southern Miaoli Taipei Motor

3 Sales showrooms Renai /Nangang /Dunnan

3 Service Workshops Central Motor Guangfu /Nangang /Xindian 4 Sales showrooms Taichung /Northern Taichung Southern Taichung /Zhanghua

5 Service Workshops Northern Taichung /Taichung Lanyang Motor Southern Taichung /Zhanghua /Nantou 1 Sales showroom Luodong

1 Service Workshop Luodong Nandu Motor

2 Sales showrooms Tainan /Jiayi Eastern Motor 3 Service Workshops Tainan /Jiayi /Dounan 1 Sales showroom Hualian

2 Service Workshops Hualian / Taidong

Kaudu Motor

2 Sales showrooms Minzu /Chienkuo

4 Service Workshops Jiuru /Pingtung /Minzu /Chienkuo

16 Service is Always One Step Ahead

■ Services across Taiwan through meticulous and complete channels

14 Sales Showrooms and 15 Service Workshops 8 Sales Showrooms

Xinzhuang Sales Showroom/Service Workshop

Taoyuan Sales Showroom/Service Workshop Xinzhuang Sales / Service

Taoyuan Sales / Service Taipei Sales Showroom/Service Workshop Xinzhu Sales Showroom/Service Workshop

Miaoli Sales Showroom/Service Workshop Head Office

Taichung Sales / Service

Taichung Sales Showroom/Service Workshop

Lan Yang Motor Nantou Sales Showroom/Service Workshop

Lan Yang Motor

Yuanlin Sales Showroom/Service Workshop

Jiayi Sales Showroom/Service Workshop Jiayi Sales / Service Eastern Motor Tainan Sales / Service Tainan Sales Showroom/Service Workshop

Eastern Motor

Kaohsiung Sales / Service

Xiaogang Service Workshop

Pingtung Sales Showroom/Service Workshop Kaohsiung Sales Showroom/Service Workshop

HINO TOYOTA Industrial Equipment

17 Service is Always One Step Ahead

■ Introducing the latest information technology to provide high-efficient integrated services

01 Service information integration by sea by air for real-time customer’s record Domestic Supplier through nation-wide connection. Overseas Kuozui Motors Co., Ltd suppliers 02 On-line electronic parts catalogue Yang-Mei Logistics Center TOYOTA to ensure real-time update of stock TMAP information of the required parts. HINO Cooperates with professional 3rd party 03 Part logistics information logistics provider to deliver parts to every system and supplier’s direct workshop in Taiwan. delivery mechanism for real-time Taichung Sub-Depot dispatch to fulfill customer’s 2 times delivers per day demands. 04 TOYOTA Club On Line (TOYOTA website network service function) Synergy Deport 05 Remote insurance estimation system for vehicles for BP works to Hu-Nan Sub-Depot facilitate customers to pick up their vehicles within the shortest time. Delivery truck arrives at a workshop

Workshops

Yang-Mei Logistics Center provides services to By using centralized warehouse,Yang-Mei more than 162 workshops in Taiwan. Logistics Center fufills demand of service parts across Taiwan.

The nation-wide parts logistics network achieves parts supply chain management based on the spirit and practice of the TOYOTA Production System (TPS) and plays the role of the group’s supply chain hub to provide professional logistics services to the Taiwan TOYOTA Group.

■ From customer concern to excelling customer expectations

The customer is the most important brand asset. In order to maintain customer relationship, apart from providing car owners with tangible professional services, we are concerned about how to improve the living quality of car owners through various auto-related activities for owners. Over the years, we have organized or sponsored various culture, leisure and wealth management activities to repay the support from owners and indirectly enhance customer satisfaction and loyalty. For example, we organize a new car owner experience camp teaching owners the knowledge concerning vehicle safety, easy maintenance and insurance claim. We also remind owners of periodic maintenance through different channels (DM, text, Car Owner Experience Camp phone and e-mail) to ensure that their cars are in the best condition.

■ Listen intently; the voice of customers is the drive to pursue progress

Upholding the “customer first” concept, apart from enhancing customer trust and satisfaction by improving our competitive strength in speed, quality and price, we innovate and strengthen customer service, expand the breadth and depth of customer concern activities, and provide more and better services that excel customer’s expectations.

Total CS Culture Personnel of the Call Center of Hotai Motor are on duty on weekdays and holidays to answer the calls from customers and listen to their problems. Top management and all employees of Hotai Motor work in turn at the call center to listen to the calls from customers, especially customer’s opinions, in order to make aggressive improvement and enhance customer satisfaction.

18 Building a Huge and Healthy Business from a Point to a Plane

Instead of just a mode of transportation, Hotai Motor understands that a car is a family member or the realization of a dream to people; Hotai thus spares no pain to build a huge and healthy business for life.

Expansion of the scale of car value chain and achievements

In recent years, Hotai Motor has been changing its operations from “product-selling-oriented” into “customer-service oriented”, and its role from a product distributor into a provider of value-added services, in order to quickly fulfill the demands of customers and provide them with service for life. Hotai Motor also aggressively expands its business value chain to used car business, car rental business, car loan business and car accessory business, in order to mature the framework of the automobile group and thereby to become one of the forces leading the national economic development.

Hotai Finance TOYOTA used cars Corporation

Ho-An Insurance Hozhi Motor Ltd. Hotai Motor Agency

Hotai Leasing Carmax Co., Ltd. Corporation

19 Building a Huge and Healthy Business from a Point to a Plane

TOYOTA used cars I The best partners you can count on.

In order to provide car owners with a more complete service chain, Hotai Motor assists dealers in running the TOYOTA-certified used car showrooms to provide more convenient trade-in and trade-out services for car owners wishing to change their cars. Also, by selecting used cars in good condition in the trade-in business, the certified TOYOTA technicians certify and examine these cars sold as qualified used vehicles.

Business Philosophy To provide customers trade-in service when buying a new TOYOTA car; to run the used car business with a professional, open and transparent attitude; to develop the most trustworthy used car brand; and to become the benchmark enterprise in the used car business.

Business Contents TOYOTA-certified Used Cars accepts used cars of all brands and provides the best offer for customers to buy a new car through trade-in service through a transparent and professional valuation mechanism. Systematic management is applied to manage the trade-in process to protect the rights and benefits of customers and the safety of the transaction process. Hotai Motor adopts the same standards of the parent company in Japan for TOYOTA-certified used cars to select quality used cars free from critical accidents, floods, registration fabrication and mileage adjustment. Also, every used car is tested to comply with the quality requirements of the original manufacturer through uncompromised inspection and maintenance on 160 items by authentic TOYOTA technicians. More importantly, a one-year or 20,000km warranty is provided after sales.

TOYOTA Used Car Sales Locations

Kuotu Taipei Tau Miau Central Nandu Horong Lanyang Eastern Motor Motor Motor Motor Motor Motor Motor Motor

Songjiang Nangang Taoyuan Taichung Jiayi Mingchen Luodong Hualian

Zhonghe Dawulung Zhubei Zhanghua Tainan Chenchin

Pingzhen Minzu

20 Building a Huge and Healthy Business from a Point to a Plane

Hozhi Motor Ltd.

In order to encourage owners of LEXUS cars to buy new cars and fulfill consumer’s aspiration for possessing a LEXUS car, Hozhi Motor was established in May 2004. By upholding the “beyond perfection,” the LEXUS brand spirit, Hozhi Motor establishes sales location across Taiwan to sell used LEXUS cars through a professional management team, well-laid certification system, and professional and enthusiastic employees.

Business Philosophy Hozhi Motor is established to provide owners of LEXUS cars with fuller and better services and provide the most trustworthy platform for trading used LEXUS cars. From new to used cars, Hozhi Motor asks for perfection in every detail out of the brand spirit “Extends Perfection and Nearly New Cars” to further strengthen the brand spirit of LEXUS and thereby set new criteria for classy used cars.

Business Contents Trading of used Lexus cars Repair and maintenance of LEXUS cars

Hozhi Motor Organization Chart Chairman Mr. Justin Su

President Mr. Hsiao Jin-Chuan

Operational Administration Dept

Taipei Taichung Kauohsiung Sales Showroom Sales Showroom Sales Showroom

21 Building a Huge and Healthy Business from a Point to a Plane

Hotai Leasing Corporation

Established in 1999, Hotai Leasing Corporation builds a complete car rental service system through continuous efforts out of its cherishment on customer satisfaction. Today, Hotai Leasing has become the largest car rental company with the fullest services in Taiwan. Also, Hotai Leasing has established Hoyun International Lease Co., Ltd. in China to provide one-stop car rental services in Taiwan, Hong Kong and China.

Business Philosophy Customer First: Out of the belief in “human centered and customer first”, Hotai Leasing continuously improves its service process to provide innovative products and professional services that meet the expectations of customers.

Professional Service: Hotai Leasing is committed to building a complete support system, including a dedicated call center, to provide customers with multifaceted professional car-related financial consultation service.

Business Contents Long-term car rental service for enterprises: Hotai Leasing has a professional fleet management and uninterrupted car rental services to tailor the best car tax saving plan for enterprises. Short-term car rental for business and travel: Hotai Leasing has the most ubiquitous car rental network in Taiwan and provides service warranty—renting from one place and returning at another place, vehicle maintenance by original manufacturers, on-line booking and multiple rental options, to ensure the best and safest car rental for business and travel purposes. Professional pick-up and drop-off service: Hotai Leasing provides business and travelling Charter service, airport pick-up and drop-off and limousine services with our prestige LEXUS Fleet. Used car auction: Hotai Leasing pioneers Taiwan’s first wireless auction system, professional vehicle inspection team and on-line auction participation system to provide members with a more convenient and more professional used car auction platform.

Hotai Leasing Organization Chart Chairman: Mr. Hung Nan-Kuang President: Mr. Tien Tien-Ming Hoyun International Lease

Sales Division Management Division

Hotai Credit Customer Business Car Rental Car Leasing Car Leasing Finance Administration Auto Auction Management Service Planning Dept. Dept. I Dept. II Dept. Dept. Dept. Dept. Dept. Dept.

22 Building a Huge and Healthy Business from a Point to a Plane

Hotai Finance Corporation

Hotai Finance Corporation was established in 1999, with Hotai Motor and TOYOTA Financial Service Corporation as its two major shareholders. Upholding the operation philosophy of “customer first with expert focus”, Hotai Finance provides multidimensional, innovative and quality car mortgage and professional finance management services.

Business Philosophy Customer First: Based on the belief in “human centered and customer first”, we make continuous improvement of our service process and continuously provide customers with various innovative products and professional services meeting their demands. Expertise Focus: We are committed to building a complete support system by establishing a dedicated call center to provide customers with multifaceted professional car-related financial consultation services.

Business Contents Car installment payment service: We offer installment payment service for new and used cars of any brands with quick review and approval and multiple payment modes to meet different demands of customers. Equipment installment payment service for SMEs: To help SMEs to have adequate capital for business operations, we introduce different installment payment plans for office equipment. Also, Hotai Finance Corporation has contracts with different equipment suppliers to expand its scope of services and provide the most efficient integrated service. Consumer installment payment service: We provide installment payment service for heavy motorcycles and other installment payment plans for general motorcycles, home appliances and books. 總經理 田 天 明

HFC Organization Chart Chairman: Mr. Hung Nan-Kuang President: Mr. Tien Tien-Ming

Sales Division Management Division

Credit Customer Business Car Loan Car Loan Finance Administration Management Service Planning Dept. I Dept. II Dept. Dept. Dept. Dept. Dept.

23 Building a Huge and Healthy Business from a Point to a Plane

Ho-An Insurance Agency

Ho-An Insurance Agency Co., Ltd. provides car insurance planning service and other property insurance agency service. Ho-An Insurance Agency is rated “twA” by Taiwan Ratings for its healthy financial structure and achieved ISO 9001 certification. Thus, Ho-An earns acclaim from car owners.

Business Philosophy Integrity: Upholding integrity, we perform our commitment and win trust from customers. Expertise: We make the best risk planning for customers with our professionalism and provide the optimal insurance products and services. Innovation: We fulfill the protection needs of customers and create enterprise performance through continuous innovation and development of products and services. Service: We strive for the biggest insurance benefits for customers with great services excelling their expectations.

Business Contents Ho-An Insurance Agency mainly distributes insurance-related “application” and “claim coordination” services, with car insurance as its main product range. We also provide services for cargo transportation insurance, fire insurance, project insurance, golf liability insurance, employee honesty and credit insurance, and personal injury and accident insurance. At present, we have signed agency contracts with 12 insurance companies.

Ho-An Insurance Agency Organization Chart

Chairman: Mr. Su I-Chung President: Mr. Bair Shyi-Tarn

Automobile Commercial Mainland China Administration Insurance Insurance Business Planning Division Division Division Division

24 Building a Huge and Healthy Business from a Point to a Plane

Carmax

As the largest professional car accessory supplier in Taiwan, Carmax Co., Ltd. provides owners of TOYOTA vehicles with more comfortable and more convenient car accessories through the sales and services of TOYOTA dealers across Taiwan. Products from Carmax include multimedia players, GPS navigators, HUD (head-up display), CAN Bus and LED electronics, outer parts and inner parts. Some Carmax products have been certified by TOYOTA Japan and are exported to TOYOTA distributors in Japan, China, Southeast Asia and the Middle East. From now on, we will launch more comprehensive products with innovative and unique concepts to meet the multifaceted demands of TOYOTA car owners and thereby to become the leading car accessory supplier in Asia Pacific.

Business Philosophy To provide innovative products and extra-value services. To meet the multidimensional demands of customers in different countries.

Business Contents Designing, developing, selling, and providing after-sales service of TOYOTA-licensed genuine accessories and Carmax products. Developing, selling, and providing post-delivery service for service workshops. Conducting new vehicle inspection and accessory installation services.

Carmax Organization Chart Chairman Hung Nan-Kuang

President Hunter Lai

Carmax Administration Technical Marketing Products (China, Shanghai) Division Division Division Division

Carmax (China, Guangzhou)

25 Embracing Possibilities without Restrictions

Hotai always moves agilely, stably, and accurately. As a result, we maintain the best mobility with innovative thoughts. Wherever Hotai Motor sets its sights, the target will be included in the boundless dreamed blueprint of Hotai Motor. We have the courage to challenge, and to make our dreams come true.

Framework of Investments of Hotai Motor in China Partners of TOYOTA Japan in China

Chongqing Heling Lexus

Shanghai Heling Lexus

Nanchang Heling Lexus TOYOTA Motor (China) Investment Co., Ltd. TMCI related businesses Imported cars: LEXUS

Tangshan Heling Lexus

Tianjin Heling Lexus

Guanzhou TOYOTA Motor Co., Ltd. Shanghai He-zhan CAMRY (May 2006) YARIS (May 2008) GTMC related businesses HIGHLANDER (May 2009) Tianjin He-zhan CAMRY HYBRID (Apr 2010)

Hotong Motor Chongqing Yurun Investment Co., Ltd. Shanghai Hoyu Chairman: Mr. Huang Nan-Kuang FAW TOYOTA Motor Sales Co., Ltd. VIOS (Oct 2002) President: Mr. Wang Tung-Chou Tianjin Hoyu COROLLA EX (Feb 2004) FTMS related businesses CROWN (Mar 2005) Beijing Hoyu REIZ (Oct 2005) COROLLA (May 2007) Zaozhuang Hoyu RAV4 (Mar 2009)

Linyi Hoyu

Chongqing Yudu

TMHS related businesses Shanghai Hoqian

Hoyun International Lease Co., Ltd. Shanghai Suzhou Hangzhou Kunshan Guangzhou

Carmax (China) Co., Ltd. Shanghai Guangzhou

Hotai’s investment business in China Hotai’s joint ventures in China TOYOTA Motor Corporation’s business in China

26 Embracing Possibilities without Restrictions

China Locations of Hotai Motor Group

Shanghai is the base of the overseas expansion of Hotai Motor. By first locking the hub of the Chinese market with a population of 1.3 billion people, Hotai Motor links up major Chinese cities from Shanghai with a radiating network. Also, with combining of the operation of high-standard software and hardware and the highly qualified talents, Hotai Motor expands its territory to the overseas market in China.

Beijing Tianjin Hebei

Shandong

Shanghai

Chongqing Jiangxi

Guangzhou

Hotong Motor Investment Co., Ltd.: Hoyun International Lease Co., Ltd.: FTMS related businesses: Hotai Motor Shanghai Headquarters Shanghai Hoyun Shanghai Hoyu Suzhou Hoyun Tianjin Hoyu TMHS related businesses: Hangzhou Hoyun Beijing Hoyu Shanghai Hoqian Kunshan Hoyun Zaozhuang Hoyu Guangzhou Hoyun Linyi Hoyu TMCI related businesses: Chongqing Heling LEXUS GTMC related businesses: Carmax (China) Co., Ltd.: Shanghai Heling LEXUS Shanghai He-zhan Shanghai Carmax Co., Ltd. Nanchang Heling LEXUS Tianjin He-zhan Guangzhou Carmax Co., Ltd. Tangshan Heling LEXUS Tianjin Heling LEXUS

Affiliates: Chongqing Yudu TOYOTA Sales Co., Ltd. Chongqing Yurun Automobile Sales & Service Co., Ltd

27 Embracing Possibilities without Restrictions

Hotong Motor Investment Co., Ltd. Hotong was established in July of 2010 and invested 100% by Hotai. Hotung registered capital of US$ 30 Million, in Shanghai, China.

Founding Objectives 1. Apply advanced technologies and operational management approaches championed by Hotai Motor to joint ventures in China to provide consumers in the China market with products of premium quality and customer-oriented services and fulfill Hotai Motor’s business philosophy – “Professional, Innovative and Relentless”. 2. Adopt centralized management approaches for all joint ventures in China, make efficient use of all corporate resources, including capital, talent, equipment, technology and information, to coordinate and manage details of product sales and after-sales services and maximize the aggregate economic benefits. 3. Strengthen financial management for all joint ventures in China to accelerate reinvestment for all business entities and improve operational efficiency of the entire group. 4. Conduct comprehensive and overall market resources, establish development guidelines and expand the scope of China investment based on the guidelines.

Nanchang TMCI related businesses Shanghai Tangshan Engaging in the sales, maintenance and after-sales service of LEXUS 4S locations.

Tianjin Chongqing Nanchang

TMHS related businesses

Shanghai As an authorized dealer of TOYOTA Material Handling (Shanghai) Co., Ltd. (TMHS), TMHS related businesses provides comprehensive services of forklift sales, after sales services, safety training, and professional consultation and so on. The scope of services includes the sale of products from internationally famous brands, such as TOYOTA, BT and Raymond; supply of genuine parts; provision of after sale service; concern for all customer demands; and the sale and service of TOYOTA and BT forklifts.

Hoyun International Lease Co., Ltd. Apart from cultivating the Taiwan market, Hotai Leasing Corporation entered the China market and established the Hoyun International Lease Co., Ltd. in Shanghai in 2007 to provide Taiwanese merchants with long-term car rental and equipment leasing services of consistent quality in China following the prosperous trade development across the strait. Also, following in the footsteps of Taiwanese merchants, Hoyun International Lease has expanded its operations to Suzhou, Kunshan, Hangzhou and Guangzhou. Over the past two years, Hoyun International Lease has provided long-term car rental and equipment lease services to nearly 600 enterprises. In April 2009, Shanghai Hoyun International Lease obtained the first Shanghai City Car Rental Business Operation License among Taiwanese merchants. With this license, Hoyun International Lease can expand its scope of operations to short-term car rental and pick-up and drop-off services. It even established a counter in Shanghai Pudong Airport to provide door-to-door pick-up and charter services at Shanghai airports. In coping with the direct flight service across the strait, Hoyun International Lease will continue to plan various car rental products in the future to expand its scope of services and to start an one-stop service with quality across the strait. 28 Embracing Possibilities without Restrictions

GTMC related businesses It is one of the TOYOTA 4S stores approved by GAC-TOYOTA. The scope of businesses is to sell the Camry, Camry Hybrid, Highlander, Yaris, EZ, Alphard, FJ Cruiser series and provide after-sales and maintenance service for various TOYOTA vehicles.

Shanghai Chongqing

FTMS related businesses The FTMS is a large auto business engaging in vehicle sales, repair and maintenance, parts and accessory supply, and information feedback. Major scope of business includes sales of various TOYOTA series (Crown, Reiz, Prius, RAV4, Corolla, Corolla EX, Vios, Land Cruiser, Prado, and Coaster). It also provides sales, repairs, maintenance and enquiry services, covering one-stop service of pre-sales, in-sales and after-sales. In addition to selling domestic TOYOTA vehicles, various TOYOTA luxury sedans, SUVs and AWD jeeps imported from Japan, and light buses are also sold. It is the most professional TOYOTA distributor in Shanghai with a full range of TOYOTA vehicles.

Shanghai Tianjin Beijing

Zaozhuang Linyi Chongqing

Carmax (China) Co., Ltd. Carmax fully displays the characteristics of possessing the strengths of the high-tech of Taiwan electronics and has gathered nearly 100 suppliers to cultivate the Chinese market together to provide one-stop service covering new product development, real car installation test, special edition car package, and after-sales warranty. In addition to servicing the distributors of Hotai Motor Group, Carmax is committed to cultivating the markets of different brands and channels. At present, it has started a cooperation project with Guangzhou Automobile Group Co., Ltd. (GAC). At TOYOTA dealers run by GAC and Hotai Motor, the vehicles with special edition equipped with Carmax products are displayed in April 2011. Carmax is a Tier 1 accessory supplier of Kuozui Motors. In recent years, it has received critical acclaim from TOYOTA for its accessories installed in TOYOTA vehicles made by Kuozui Motors and exported to the Middle East. In the future, Carmax will establish the auto accessory and installation cooperation with China automakers with the experience of being working with Taiwanese automakers in order to develop the auto accessory business meeting the characteristics of the China market and to expect itself to be the leader of auto accessories in Asia Pacific. 29 Talent Cultivation and Enterprise Informatization: The Keys to Success of Excelling Others in the Industry

In the eyes of Hotai Motor, every employee is highly potential and excellent. Therefore, talent cultivation and enterprise informatization are the keys to success.

Four Elite Cultivation Programs

01 Organizing High Level Mangement Learning Program—Personnel Transformation and Cultivation The aim of this educational program is to help middle-level and high-level management to improve management ability, develop macroscopic leadership and shape the atmosphere for continuous learning and growth through a stage-based and systematic training program.

02 Design of Salary and Promotion System Reform—Encouragement and Ability Orientations In the new system, employees are divided into 13 grades according to their positions. The mid-point level and upper and lower limits are set for individual grades according to their market value and corporate salary policy. This way, the system makes employee salaries more flexible. And this reasonable structure can also effectively encourage employees to create better performance and improve productivity.

03 Utilization of the Assessment Center—Vocational skill orientated, talent development and cultivation With the Assessment center, employees and supervisors can understand their fitness to the required vocational skills and the direction of future improvement which can be seen as a reference for future development and trainings. This benefits the company’s development and cultivation in HR in the long run.

04 Provision of More Opportunities for Employee Learning and Growth The company has planned the following education and training framework for employees to learn and develop within the company:

(1) To make vocational skill trainings as the main axis of training. (2) To focus on OJT (on the job training) and situational education. (3) To arrange planned education and trainings to ensure that the development of employees meets the needs of the company. (4) To make use of ICT(Intra-Company Transferee) to work overseas within TMC’s organization and create opportunities for sending qualified people to affiliates to take up management and etc.

30 Talent Cultivation and Enterprise Informatization: The Keys to Success of Excelling Others in the Industry

Hotai Motor’s Skill Assessment Model

t c e j o r P n a l P r e e r a C Director ) C A ( r e t n e C t n e m s s e c c A and above

General Managers

Department Leaders & Promoted to Sales Field People Deputy General Manager

Project Manager Promoted to Assistant Manager Senior Specialist

Specialist and below

Enterprise Informatization 01 Hotai Motor and eight dealers have passed the ISO27001 certification Improving operational structure with ISMS within Taiwan TOYOTA group. Providing accurate services with IT. Leading the business among the automobile service industry, as the first distributor in the industry to obtain international certification together with its dealers. Possessing high-standard IS protection to properly protect customer data. Establishing IS operation system for continuous improvement (Better than the Best).

02 LEXUS spent over NT$10 million in utilizing i-Pad in customer service.

31 Giving More to Society while Focusing on Our Main Business

Hotai Motor has cared for Taiwan for decades, and its love for this land is increasing. Therefore, it has committed to shortening the gap between people and land and has been promoting social and cultural spirit over time.

Traffic Environment Eco Educational Culture Healthy CSR Safety Protection Sustainability Program Cultivation Life

■ Traffic Safety: Promoting the Going Out Happily and Going Home Safely Environment In 1974, Hotai Motor began its involvement in traffic safety related CSR activities in ahead of other businesses, especially in various traffic safety promotion and other related programs. At that time, Hotai Motor organized the children painting and calligraphy competitions to promote the importance of traffic safety. Later on, Hotai donated safety vests, offered scholarship to the children of good drivers, donated vehicles to taxi drivers with distinctive performance, provided accidental medical insurance for members of the Taipei City Voluntary Traffic Police Squad, and held activities for children’s traffic safety series etc. Over the past thirty years or so, Hotai Motor’s concern for traffic safety has never stopped. ▲ TOYOTA Traffic Safety Carnival

■ Better than the Best, for Environmental Protection: Moving Forward for a Better Environment On Earth! TOYOTA Japan has been promoting charity activities for environmental protection over the years. It is also committed to the R&D of environmental cars and recyclable materials for manufacturing vehicles, in order to realize its corporate social responsibility. In the United Nations Environment Programme (UNEP) launched in 1999, TOYOTA Japan won the Global 500 Environmental Protection Achievement Award. In 2000, it launched the TOYOTA Environmental Protection Activity Research Program to support environmental recovery and environmental protection by subsidizing practical projects relating to environmental technologies and environmental education on a community basis. For this reason, Hotai Motor has been ▲ TOYOTA Environmental Protection Submit: Green Campus Reengineering organizing various environmental protection activities to display its social and environmental responsibility through concrete actions in recent years, in order to do its part for earth.

■ All Creatures will Benefit from Ecological Conservation and Thrive Along with Human Beings. Let Us Turn Formosa into a Permanently Beautiful Island. “Taiwan is a beautiful island”. As a member of the transportation business, Hotai Motor has spared no pain to express concern for and be involved in Taiwan’s environmental protection since it was established some sixty years ago. This allows us to feel that beautiful things are around us and worthy of discovering and experiencing. “Looking at the birds flying in the blue sky and watching butterflies hovering in the green,” Hotai Motor and its affiliates will continue to promote and involve in environmental protection, respect nature, cherish life, feedback to the society, and support for the public.

▲ Hotai Motor donated water-saving valves to all elementary schools in Taiwan to urge society to value water resources. 32 Always Plus One

■ Providing Practical Experience through Academic Programs to Cultivate Future Enterprise Leaders on Campus Over the years, Hotai Motor has been effectively using its enterprise resources to different parts of the society to achieve the goal of enriching society and sustaining economic development. In recent years, in order to increase social contributions and cultivate excellent talents for the future, Hotai has organized various academic exchange activities. In a relaxing academic atmosphere, people exchange opinions and inspire one another. These vivid and interesting interactions, face-to-face exchanges, and learning environment arouse the student’s interest in enterprise management research, innovation and improvement. We ▲ T-TEP Interschool Skill Competition believe that these activities are positive to enterprise development, talent growth and our society as a whole.

■ Cultural, Art and Musical Treats for a Better Life As the best way of relaxing the spirit and being the common language for human communication, music is great for changing one’s character and personality. Art is the quintessence of human civilization, a part of life and the basic of holistic education. With the influence of music, living quality is improved with true and consoled emotions and souls. By seeing the importance of music education, Hotai Motor began inviting world-leading orchestras to give performances in Taiwan in 1990 to aggressively promote art literacy to the public, hoping to encourage the public to participate in art activities, increase the art population, turn art and culture into a social norm, and enhance the living quality of all citizens. ▲ LEXUS Classical Concert 2011: Maestro Zubin Mehta and the Maggio Musicale Fiorentino Orchestra

■ Improving Physical Fitness with Healthy Activities: Walking 10,000 Steps for Health Upholding the belief in “Better than the Best,” we keep providing perfect services and quality through continuous improvement. Similarly, Hotai Motor has spared no pain to participate in health-promoting and meaningful activities to the public and car owners. Hotai Motor pays attention to the need of customers at different stages, and every activity is tailored for customers’ needs. In the future, in addition to continuously creating and developing brand value, we will combine the power of enterprise and a large quantity of resources to provide the public and car owners with more and multidimensional concern activities. ▲ TOYOTA Family Day: TOYOTA 10,000 Steps Walk for 10,000 People

■ Spreading Love with Charity Activities and Sponsoring Activities for Social Well-beings “The stars are the most beautiful things in the sky, and affection the most wondrous thing in humans.” Upholding the belief in “caring for the elderly as if they were your parents, and nurturing the young as if they are your children”, Hotai Motor and Chun Ching Social Welfare Foundation spread the spirit of “we are in the same boat” to different parts of the world, in order to send love to the underprivileged and warmth to all parts of the world. We hope that this can bring warmth to society, promote social well-beings and fill the world with love. ▲ ▲ ▲ Donated NT$30 million to Japan after the Tohoku Donated a total of NT$60 million for victims of Donation of materials. Earthquake typhoon Morakot.

33 The Most Glorious Approval for Hotai Motor is Customer’s Satisfaction

From quality to service, even the seemingly unimportant detail is also the focus of our greater effort. Instead of being self-content about the present glory, Hotai Motor always hopes that things can be better!

J.D.Power began the customer satisfaction index (CSI) survey on Taiwan’s auto industry in 1999. Over the past 13 years, LEXUS has been rated No. 1 for thirteen times. In sales satisfaction index (SSI), LEXUS has been rated No. 1 for eleven out of the total of twelve surveys.

Mr. Su Yann-Huei, Group Chairman, accepted the National Hotai Motor won the Most Admired Company in Taiwan from Quality Award. CommonWealth Magazine: Chairman Nan-Kuang Huang received the trophy.

Hotai Motor won the CSR Award from Global Views Monthly President Justin Su accepted the J.D.Power No.1 trophy. Magazine.

34 Think Outside the Box and Challenge Your Dreams

We will keep going with a heart to make breakthroughs and turn our achievements into the drive for a better future. In the future, Hotai Motor will excel with total devotion, in order to break through any confinement in vision, and build a more beautiful dream for car owners and the earth.

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