Group March 2014

Table of Contents 1 2 3 4 5 6 7 8 9 10 11 12 Industry Positioning Honors 2 3 Timeline Strategy 4 5 Management Innovation Brand Structure 6 7 Business Areas Global Presence 8 9 Customer Interaction R&D Resources 10 11 Corporate Culture Corporate Social Responsibility 12

Industry positioning A leading global platform for smart home solutions of the Internet era Haier has customers in more than 100 countries and region across the world. Each year, Haier products and services become the choice of over 100 million customers. In 2013, Haier reported global revenues of CNY 180.3 billion and profits of CNY 10.8 billion. According to Euromonitor International, a leading consumer market research firm, Haier ranked #1 among the world's white goods brands for the fifth consecutive year in 2013, with a 9.7% global retail volume share. Industry positioning March 2014 Section 1

Honors 2013: 9.7% global retail volume share, #1 for the 5th year Most Innovative Company 2013 #8 among the Most Innovative Companies, ranking higher than any other consumer product and retail company Top brand valuation among home appliance brands on the Best China Brands 2013 list The Most Innovative Company in China, 2011 & 2012 Top brand valuation among home appliance brands on the Best China Brands 2013 list The World's Most Reputable Companies Honors March 2014 Section 2

Timeline Providing premium customer experience 1984-1991 1991-1998 1998-2005 2005-2012 2012- "We provide nothing but the best." We met customer demand by providing quality products. We expanded our portfolio to provide a wide variety of high quality white goods and related services. We exported our products not only to make profits but to build our brand overseas. By satisfying individual customer needs, we have become an industry leader in creating best customer experience. We provide personalized customer experience through customization in design, manufacturing, and delivery. Timeline March 2014 Section 3

Strategy Facing the Third Industrial Revolution, Haier has adopted a network-based strategy to build a platform organization where the enterprise is boundary-free, management is manager-free, and the supply chain is scale-free. Haier is building a benefit-sharing business ecosystem with customers, suppliers, partners, and all the other stakeholders. With the two listed companies, Qingdao Haier (600690) and Haier Electronics (01169) as its pillars, Haier is building a leading global brand of the Internet era. A global leader and standard setter of the home appliance industry To incorporate virtual and physical networks into the business model and build a platform for an end-to-end best customer experience 690 1169 Disruptive innovation for smart appliances Business ecosystem based on interaction &delivery platforme Strategy March 2014 Section 4

Management Innovation Individual-Goal Combination The Win-win Model of Individual-Goal Combination brings passion and creativity to the organization, enabling employees to fully realize their personal value in the process of creating value for customers. Along the same lines of this model the central theme at Haier Group is to create a platform-based business, to encourage employees to become maker-entrepreneurs, and to provide personalized customer experience. Management Innovation March 2014 Section 5

Brand Structure 5 brands owned by the Group, each tailored to specific markets, regions, and diverse consumer needs: A top global brand for kitchen appliances A high-end white goods brand for excellent value Home appliances with artistic designs for upscale international markets An industry leader and standard-setter #1 brand for Internet-era customizable home appliances A Internet-based platform that incorporates online and offline networks and serves the wider business community Brand Structure March 2014 Section 6

Business Areas Haier has built a comprehensive industry ecosystem that covers home appliance manufacturing (refrigerators, washing machines, air conditioners, etc.), integrated services (based on online/offline networks), and equipment products (robotics, 3D printing and other new technological applications). Product lines include refrigerators, washing machines, air conditioners, water heaters, TVs, etc. We have an innovation center for molding that produces molds and components for a variety of applications, including appliances, electronics, automobiles, telecommunications products. In our highly automated facility, there are four industrial robotics systems, respectively for injection molding, sheet-metal stamping, high-end smart applications, and special-purpose applications. We are also involved in developing 3D printing and other cutting edge technologies. These are all parts of our efforts to build a comprehensive support system for innovation. Incorporating distribution, logistics, service, and online networks ("four networks"), we provide end-to-end integrated solutions for users and clients while enhancing e-commerce business. Business Areas March 2014 Section 7

Global Presence Haier is dedicated to becoming a favorite local brand for global consumers. Localized R&D, manufacturing, and sales have been Haier’s time-tested strategy for overseas expansion. Today, Haier has 24 industry parks, 5 R&D centers, 66 trade companies as well as customers in over 100 countries and regions across the world. Global Presence March 2014 Section 8

Customer Interaction End-to-end Customer Interaction Haier is building a platform for end-to-end customer interaction. In the Internet era, Haier is pursuing customer-oriented innovation by engaging customers in the entire product cycle starting from the design phase. The purpose is to provide an end-to-end best customer experience. Customer Interaction March 2014 Section 9

R&D Resources In a boundary-less Haier, the entire world is its R&D department. Haier is building an open platform for innovation, involving customers in the entire product cycle from design, manufacturing, delivery, to after-sales service. At the same time, Haier is cooperating with world-class R&D resources to provide solutions tailored to customer needs. R & D Resources March 2014 Section 10

Corporate Culture Innovation is at the core of the culture From thinking pattern, strategy, organizational structure, technology, to marketing practices, innovation is embedded in all aspects of the Haier culture. The Haier culture is evolving as Haier goes from strength to strength and from China to the world. ’s Core Values On right and wrong: The customer is always right and we are always wrong —Haier’s motivation to create more customers On growth: Entrepreneurship and innovation —Haier’s cultural DNA On rewards: Individual-Goal Combination —Haier’s cornerstone of sustainable operation Corporate Culture March 2014 Section 11

Corporate Social Responsibility 1Economy 2Education 3Poverty Reduction 4Environment Haier is committed to a better education for China's next generation. Haier’s donation has been used to build 185 elementary schools and one middle school in China's poverty-stricken areas. Haier is committed to poverty reduction and disaster relief by providing resources needed, helping to improve local ecology and building local capacity. Sustainability and green management is embedded in all aspects of Haier's business operations and social undertakings. Through relentless innovation, a resilient Haier has achieved sustained growth despite the recent global economic crisis. It has ranked #1 among the world's large home appliances for 5 years in a row. We play an active part in meeting global development needs. Corporate Social Responsibility March 2014 Section 12

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