TDC Presentation To Date: Sept.24 2002

Contents Panasonic TDC Program APLL Organization APLL Global Coverage Service Features Taiwan Organization Taiwan Office and Contact Information Operation/Documentation Process

Panasonic TDC (Transit Distribution Centre) Project Project Objectives Current Situation 13 origin ports of loading, FY2000 - 14,000 cbm & FY2001 – 10,000 cbm 2 types of shipment; Matsushita loaded (M- Van) FCL and NE (NE-Van) Loaded LCL Lack of visibility Cost pressure from Matsushita Improve the management of LCL/Overflow shipments from 13 origin ports in Asia to >35 European Panasonic customers End-to-end management with track and trace capability Complete visibility of LTL/ FTL distribution in Europe Satisfactory transit times End-to-end “per kg” pricing Bangkok Thailand Malaysia Jakarta Surabaya a Indonesia Port Kelang SINGAPORE Cebu Tokyo Kobe Seoul Korea KAOHSIUNG Taiwan China n Shanghai Manila Philippines Laos Mongolia Vietnam u Hong Kong To Europe Hakata Xiamen Pasir Gudang National Sales Companies 15 14 16 1 2 3 4 6 5 13 12 11 9 10 7 8 17 > 35 Destinations Factories and Distributors

Analysis & Solution Design Improvement Options Consolidation of shipments at Asian ports or MCC Single/multiple ports of entry into Europe Optimisation of pan-European distribution Multi Country Consolidation (MCC) Bangkok Thailand Malaysia Jakarta Surabaya a Indonesia Port Kelang SINGAPORE Cebu Tokyo Kobe Japan Seoul Korea KAOHSIUNG Taiwan China n Shanghai Manila Philippines Laos Mongolia Vietnam u Hong Kong To Europe Hakata Xiamen Pasir Gudang Constraints All factory loaded containers will not be routed through MCC hubs Increase in transit time of 7 days (MCC) not acceptable MCC program not feasible because => LCL volumes are insufficient => Transit time too long Results 40’ FCL direct to Hamburg, 20’ FCL and LCL to Hamburg via MCC hubs (SGP and KAO) yields lowest Total Import Logistics Costs Increase in transit time of between 1-8 days

Analysis & Solution Design Improvement Options Consolidation of shipments at Asian ports or MCC Single/multiple ports of entry into Europe Optimisation of pan-European distribution Port of Entry - Barcelona, Gothenburg, Genoa, Helsinki, Rotterdam of Hamburg? - Single port of entry: Hamburg - Competitive distribution costs - Fast & reliable customs - Major volume to Germany (30%) Pan European Distribution - Hamburg - current storage and distribution hub for Panasonic Logistics Europe - Storage and Distribution Centres in Hamburg– PDG and MDC (APLL) - Total orders and deliveries handled per year - Hamburg > 185k - Wiesbaden >65k Helsinki Gothenburg Rotterdam Hamburg Genoa Barcelona

Proposed Solution Physical flow Direct to Hamburg China Hamburg Bangkok Thailand Malaysia Jakarta Surabaya a Indonesia Port Kelang SINGAPORE Cebu Tokyo Kobe Seoul Korea KAOHSIUNG Taiwan China n Shanghai Manila Philippines Laos Mongolia Vietnam u Hong Kong Direct to Hamburg Hakata Xiamen Pasir Gudang Physical flow Asia to Europe Overflow Shipments: All FCL and LCL to be shipped direct to Hamburg Deconsolidate and cross dock in Hamburg warehouse European Distribution : Optimised FTL and LTL shipments from Hamburg to destinations throughout . . Germany and Europe

Proposed Solution Information Flow Web-enabled visibility to all APLL managed shipments (Ocean and Truck) Standard reports for tracking and execution PO management through refined searches with multiple selection criteria for: Order/ Product details Shipment details Equipment details Booking details “Last Mile” Delivery Documents Management and online availability of POD notes

Benefits 1 3 4 Destinations Direct to Hamburg Optimised solution developed from historical shipment data and identified constraints Visibility of all shipment status inbound from Asia and outbound from Hamburg Manage delays and other “events” in advance Single point of contact for seamless end to end inter-continental supply chain management Reliable Transit Time that meet Panasonic’s SCM requirement Significant reduction in costs compared to current supply chain Bangkok Thailand Malaysia Jakarta Surabaya a Indonesia Port Kelang SINGAPORE Cebu Tokyo Kobe Seoul Korea KAOHSIUNG Taiwan China n Shanghai Manila Philippines Laos Mongolia Vietnam u Hong Kong Direct to Hamburg Hakata Xiamen Pasir Gudang National Sales Companies 15 14 16 1 2 3 4 6 5 13 12 11 9 10 7 8 17 Destinations 1 3 4

APLL Organization Dick Metzler CEO Thomas Poulsen President, Europe Rick Moradian President, Asia/ME Bill Villalon President, AM Danny Goh VP, S. Asia/ME Antonio Leung VP, N. Asia Paul Man MD, N.China Jacky Li MD, S.China/Hkg Joseph Wu MD, Twn/Korea Tita Rivera-Lim GM, Philippines Yutaka Goshu GM, Japan

Worldwide Coverage 4050 Employees 130 Cities in 56 Countries 200 Facilities with 30m Ft2

Service Features Global Coverage Global Logistics Procedures (LP,SOP) PO Management Receive/Sort/Segregate Cross Docking - Warehousing Single & Multi-Country Consolidation Vendor Management Production Compliance Program Barcode Scanning & Label Production Carrier Arrangements Documentation Verification QA Inspection Information Services Value Added Services Warehousing and Distribution NVOCC AIR Freight Logistics Management

APLL Taiwan Organization Managing Director (Korea & Taiwan) Joseph Wu Organization Sales Manager Jennifer Wang Total : 50 Service Integrity Manager Alice Lee Finance Analyst Dora Lin Account Executive Sally Huang Operation Manager Diana Chiang Operation Manager Funney Wu Warehouse Manager Eddy Chen Sales Rep. Nicole Chou Account Team JCP MDSI Account Team AMC Marshall Account Team Kmart Venator Account Team Nike Limited A&A Kaohsiung Warehouse + MCC Hub N. Taiwan Warehouse Tao Yuan Sales Support Joey Lee

APLL Taiwan Contact Information APL Logistics Taipei: 世捷集運股份有限公司 台北公司. 地 址 : 台北市敦化北路168號六樓E室 ( 宏泰世界大樓) 電 話 : Jennifer Wang - Sales Manager (02)25145908(E-mail:jennifer_wang@apl.com Sally Huang - Account Executive (02)25145903 (E-mail:sally_huang@apl.com) Nicole Chou - Sales Rep. (02)25145955(E-mail:nicole_chou@apl.com) 傳 真 : 02 - 25147091 Taiwan Facility for cargo Delivery North Taiwan: ACT 桃園貿聯貨櫃廠 South Taiwan: Pier 78高雄78號碼頭 Closing Date : Every Monday for both South and North Taiwan : South Taiwan –Every Monday Carrier : Hanjin Sailing : Every Thursday Cargo Destination: Hamburg Final Destination: Per Panasonic Order

Operation and Documentation Process Phase Process 4-5 days prior vessel Tamaco make booking to APLL Taiwan by fax or email(Booking Form) Closing APLL Taiwan make booking with carrier or co-loader , then confirm the s/o number to broker within 1 hours upon booking received. Cargo deliver Tamaco deliver cargo to designated facility notified by APLL. (designated facility will notify any shortage/damage while receiving) APLL Tpe office notify Tamaco for action. Closing date Tamaco’s broker arrange the customs clearance and send B/L instruction to APLL. APLL pass the B/L details to co-loader or carriers. (Designate facility will notify for any varience while load cargo into container) 1 day after closing Cargo stuffed into container and drayage to port by carrier for load on board. Vessel sails Co-loader release B/Lading to APLL Twn. APLL prepare and release the HBL to Tamaco Twn and collect the local charge 3 days after vessel APLL Taiwan send SA( shipping Advice) to Panasonic, APLL Germany Sails office . Invoice APLL Taiwan will prepare charge summary and send to Panasonic Taiwan every 5th of month for C& F shipment.