Wing Win Okayama Aircraft Component Joint Sales Team Okayama Prefecture Industrial Promotion Foundation February, 2006

Table of contents １． Outline of Wing Win Okayama ２． Background of organization ３． Objectives of Wing Win Okayama ４． Member companies ５． Approaches: Details of promotional activities ６． Past contributions to customers ７． 5-year business plan of Wing Win Okayama ８． Future deployment

１． Outline of Wing Win Okayama 19 companies possessing outstanding technical and engineering capabilities and able to assist customers in development and manufacturing of aircraft components Member companies October 28, 2004 Establishment

２． Background of organization Make the best use of technical and engineering capabilities, as well as the quality capability that can meet customers’ satisfaction, so as to contribute to the production activities of companies in Japan and other areas of the world Key industries of Okayama are: Manufacturing of automobiles, ships, and agricultural equipment Sales activities as a team make the communication among suppliers easier, providing further advantages to customers Okayama companies which have experience in manu- facturing aircraft components Develop a partner team which consists of parts suppliers in Okayama Prefecture who are able to enter the air craft component businesses

■Need for 25,000 aircraft in coming 20 years (200 billion US dollars) ① Micro-compact aircraft: 17% (4290 aircraft) ① Micro-compact aircraft: 17% (4290 aircraft) ② Compact aircraft (with one aisle) : 59% (14770 aircraft) ② Compact aircraft (with one aisle) : 59% (14770 aircraft) ③ Middle-size aircraft (with two aisles) : 21% (5150 aircraft) ③ Middle-size aircraft (with two aisles) : 21% (5150 aircraft) ④ Large-size aircraft : 3% (790 aircraft) ④ Large-size aircraft : 3% (790 aircraft) Reference ： Estimate of aircraft needs in coming 20 years

（財）日本航空機開発協会 資料 Estimate of air passengers in the world Asia/Pacific ROW 1981 Europe NA More than double in Result Estimate Total of world 8249 Fare-paid passen. traveling distances (1Bill. People ・ Kilo) YEAR 1981 AVE.ANNUAL GROWTH RATE (%) NORTH AMERICA EUROPE ASIA / PACIFIC REST OF WORLD TOTAL WORLD YEAR 2001

1981 Remaining planes New needs Estimate of the number of jet planes by size Result Estimate Number of seats Number of plane Source of doc.: Japan Aircraft Development Corporation 25,000 aircraft, 200 billion $ in

Figure of job shares of Japanese manufacturers Job share of Japan among components for 767 Job share of Japan among components for 777 Mitsubishi Heavy Industries Kawasaki Heavy Industries Fuji Heavy Industries NIPPI Corporation Shinmeiwa

３． Objectives of Wing Win Okayama The Wing Win Okayama member companies, which can provide the utmost cooperation and contributions supported by technical, quality, and development capabilities, aim to provide technical and engineering suggestions to the aircraft manufacturers, which can expect sharp and further sustained growth in the near future, based on the most recent technologies in component manufacturing. To bring this to fruition, small and medium member companies of Wing Win Okayama shall strengthen their cooperation not only within the team but also with other industries, university labs, and municipal governments in Okayama Prefecture

Gain know-how, knowledge, and information continuously and hold seminars so as to provide new customers with cutting edge technologies concerning aircraft component manufacturing and innovative suggestions which no other companies are able to provide 1 Meet fundamental needs through information exchange programs such as having institute for aircraft-related companies and plant tour seminars of aircraft manufacturers ２ Each individual supplier and unit/module supplier of aircraft components and trim parts shall consider the merits of customers as the first priority ３ Constant transmit the most recent information from Wing Win Okayama to the world, using various communication media ４

４． Member Companies ■Timec Inc. Stamping ■Koyo Sangyo Co., Ltd. Heat treatment ■Sanyo Tekko Co., Ltd. ■Takeda Ironworks Corporation ■Tanaka Machinery Inc. Cutting of large parts ■OM Sangyo Corporation ■Hori Metal Finishing Ind.,Ltd. Surface treatment ■Kyoei Engineering Co., Ltd. ■Mori Machinery Corporation Assembling ■Okayama Prefecture Industrial Promotion Foundation Organizer ■Konan Sekkei Co., Ltd Designing ■Meidai Co.,Ltd. Materials ■ Hikari Light metals Co., Ltd. Aluminum die cast ■Nagasaki Iron Works Co., Ltd. ■Ikeda Precision Industries Co.,Ltd.■Onik Corporation ■Kowa Industries Corporation■Nakatsuka Iron Works Co., Ltd. ■Yasda Engineering Service Co., Ltd. Precision cutting ■Yamamoto Jikousya Corporation

５． Approaches: Details of promotional activities ●Aircraft component manufacturers in Japan Hold on-site technical training seminars at aircraft component manufactures ２ ●Marketing (finding technical needs)●Business Fair●Company promotion Promote to develop new markets ３ ●Technological and engineering capabilities of member companies for aircraft components manufacturing ●Approach of officers of organizer (Industrial Promotion Foundation) Advertise using Industry magazines and trade journals ５ ●Guidebook: English-Japanese ●CD’s & Web site: Eng.-Jpn.-Chinese Prepare guidebooks, CD’s, and Web sites of member companies ４ ●Technical training seminars instructed by specialists and university professors who are familiar with aircraft components Hold technical seminars 1

Year and month of meeting Title of meeting Contents of program Jul Aug.Sept.Oct.Dec.Feb Mar No.1 Regular Meeting No.2 Regular Meeting No.3 Regular Meeting No.4 Regular Meeting No.5 Regular Meeting No.6 Regular Meeting No.7 Regular Meeting Business plan (draft) and budget plan (draft) of 2005 ● Seminar ●●● Material-related seminar ●●●●●●● Seminar for aircraft parts construction ●●●●●●● Seminar for manufac- turing technologies ●●●●●● Quality Manag. Seminar ●●●●●●● Seminar for Ind. trends ●●●● ◆ Plan of technical exchange meeting (Reg. Meeting) in 2005 Supports for member companies to be certified JISQ9100 (aircraft standard)

October (Tue) ■ Forty meeting ● Lecture meeting (1) Title: “Aircraft manuf. Technology, mainly glues for composite materials, NC machining, and stamping” By Mr. T. Nagumo (GM, Process Eng., Utsunomiya Works FHI, Aerospace company) (2) Title: “Quality Management System Standard for Aerospace” By Mr. T. Takase (Kawaju Techno Service) ● Training seminar (1) Title: “Recent aerospace industries” By Mr. N. Nakayama (Chubu Aerospace tech. Center) (2) Title: “Recent materials for aerospace components” By Mr. H. Ide (Assist. Professor, Nippon Univ. aerospace engineering” (3) Title: “Aircraft body components” By Mr. S. Tachikawa (Assist. Professor, Nippon Univ. aerospace engineering) ■ First meeting July 20, 2005 (Wed) ◆ Details of Technical Exchange Meeting held in 2005 (regular meeting)

Background of the birth of ISO9000 series as international standards based on the traditional quality control systems. Internal and external quality assurance ISO9000 series Quality Management System for managements System of assessment and registration ◆ “Example of Quality management – Aircraft and Quality Management System” “Birth of Quality Management System, a series of ISO9000” First To JISQ9100, Quality Control Program for aircraft Additional requirements of JISQ9100 from ISO9001 (1) “Standards of Quality Management System for aerospace (1)” “Standards of Quality Management System for aerospace (1)” Sec. Additional requirements of JISQ9100 from ISO9001 (2) Movement of industry for JISQ9100 in the future “Standards of Quality Management System for aerospace (2)” Third Reliable design FMEA and FTA “Reliability of aircraft” Forth Additional and supplementary explanations for the seminars 1 to 4 as a summary “Summary of aircraft and quality management system” Fifth

◆ Other approaches MHI, Nagoya aerospace system works KHI, Aerospace company FHI, Aerospace company IHHI Aircraft manufacturers in the world Promotion to develop new markets Major aircraft manufactures in JPN & the world On-site technical training seminar Major aircraft manufacturer in JPN Holding business fairs Guidebook, CD ’ s, and Web site of member companies Promotion of PR Visit and research aircraft component manuf. companies Marketing

６． Past contribution to customers 13 companies New customers Total of approx million JPY (as of Dec. 2005) Amount of orders received

７． 5-year business plan of Wing Win Okayama Strive to provide companies in Japan and other areas in the world with quality aircraft components More than 80% of the member companies aim to capture individual business opportunities Through on-site training seminars at aircraft manufacturing plants in Japan and other areas of the world Aim to improve aircraft manufacturing technologies ● Introduce unprecedented large machines and facilities. ● Appeal to and highlight the existence of companies which have sufficient unique and characteristic capabilities which are suitable for aircraft component production Make the Wing Win Okayama even more famous in Japan so as to form an aircraft industry cluster in Okayama Prefecture

８． Future deployment Narrow down the targets Establish an alliance with aircraft body and engine manufacturers, trim parts manufacturers, and airlines Develop components and trim parts for aircrafts 1 Products with brand name plates indicating the unique technologies Receive orders of a part of manufacturing processes of aircraft components and trim parts ２ Increase the size of the industry including suppliers and sub suppliers Receive orders of auxiliary supportive equipment and facilities for aircraft and facilities for aircraft ３ Manufacturing machines, tooling, operating services, and equipment and machines for maintenance Utilize the unique technique and control technique of aircraft for the base of further improvement of our technologies → Contribute to customers and local industries though further improvement of our products ４