Presentation for Kia Motors Conference in Orlando, FL, 2006.

1. SERVICE CONFERENCE 2006 ORLANDO, FL, USA JULY, 2006 KIA MOTORS DO BRASIL José Alli Essmael Filho, Technical Manager

2. SUBJECT: Based on 2005-2006 CSI results “ CSI IMPROVEMENT – CASE STUDY”

3. 1) IDENTIFYING CAUSES OF LOW CSI Presentation structure: 2) UNDERSTANDING KIA BUSINESS 3) CSI IMPROVEMENT STRATEGIES 4) RESULTS AND IMPROVEMENTS ACHIEVED

4. 1) IDENTIFYING CAUSES OF LOW CSI

6. “ MAIN REASONS FOR LOW CSI SCORE” AFTER GATHERING INFORMATION FROM DIFFERENT SOURCES... 1) DEALERS FACILITIES ARE POOR AND NOT FRIENDLY 1) IDENTIFYING CAUSES OF LOW CSI 2) MANPOWER QUALITY IS INADEQUATE 3) CUSTOMERS DON´T FEEL VALUED BY KIA

7. 2) UNDERSTANDING KIA BUSINESS BY 2004

8. WHOLESALES DROPPED 86% FROM 2000 TO 2004 KIA BUSINESS SHRANK DUE TO SALES DROP 2) UNDERSTANDING KIA BUSINESS BY 2004 15,400 YEAR 2000 2,140 YEAR 2004

9. 20% OF DEALERS HELD 80% OF SALES KIA BUSINESS SHRANK DUE TO SALES DROP 2) UNDERSTANDING KIA BUSINESS BY 2004

10. 20% OF DEALERS HELD 80% OF SALES KIA BUSINESS SHRANK DUE TO SALES DROP 2) UNDERSTANDING KIA BUSINESS BY 2004 15 SALES/MONTH = 2 SALES/MONTH =

11. 20% OF DEALERS HELD 80% OF SALES KIA BUSINESS SHRANK DUE TO SALES DROP 2) UNDERSTANDING KIA BUSINESS BY 2004 LESSON #1: “ WHEN MARKET BECAME MORE COMPETITIVE, PARTICULARY DUE TO PREGIO MARKET SHRINKAGE, MOST DEALERS WERE NOT PREPARED FOR THIS SITUATION. ” SO WE CAN´T MAKE IMPROVEMENT PLAN EVENLY FOR ALL DEALERS.

12. DEALER EVALUATION REQUIREMENTS BECAME EXCESSIVE KIA BUSINESS SHRANK DUE TO SALES DROP 2) UNDERSTANDING KIA BUSINESS BY 2004 DEALER EVALUATION REQUIREMENTS WERE CONCEPTED FOR MINIMUM RETAIL SALES OF 240 VEHICLES/YEAR. SO OUR STANDARDS ARE NO LONGER APPLIED TO NEW SITUATION.

20. LOSE-LOSE GAME... DEALERS INVESTMENT IN KIA DECREASED (MOST DEALERS WERE NOT MAKING MONEY) 2) UNDERSTANDING KIA BUSINESS BY 2004 SALES DROP STAFF CUT STOP TRAINING CANCEL INVESTMENT IGNORE IMPROVEMENT PLAN

23. 3) CSI IMPROVEMENTS STRATEGIES

25. 20% OF DEALERS HELD 80% OF SALES KIA BUSINESS SHRANK DUE TO SALES DROP REGULAR IMPROVEMENT PLAN EMERGENCY IMPROVEMENT PLAN (BASED ON NEW EVALUATION FORM) AFTER 6 MONTHS... GOOD OPERATION (10 DEALERS) UNDER RECOVERY (23 DEALERS) NO IMPROVEMENT (33 DEALERS) CASES DELIVERED TO KIA TOP MANAGEMENT FOR LEGAL ACTIONS 3) CSI IMPROVEMENTS STRATEGIES

27. SOME EXAMPLES OF DEALERS RECENTLY NOMINATED KIA BRAND SHOULD BE REPOSITIONED FROM COMMERCIAL TO PASSENGER AND SUV MODELS 3) CSI IMPROVEMENT STRATEGIES

34. MORE ACHIEVABLE DEALERS IMPROVEMENT PLANS DEALERS INVESTMENT IN KIA DECREASED (MOST DEALERS WERE NOT MAKING MONEY) 3) CSI IMPROVEMENT STRATEGIES FORMER PLAN ITEMS 40 PERIOD 8 MONTHS COMPLIANCE 20 ~ 25 % NEW PLAN 12 3 MONTHS 65 ~ 75 %

39. PROACTIVE USE OF CSI SURVEY AS A MARKETING TOOL CUSTOMERS WERE NOT TOUCHED BY KIA 3) CSI IMPROVEMENT STRATEGIES KIA ASSOCIATED WITH ESPM – SUPERIOR SCHOOL OF MARKETING (2004) & FAAP – FUNDAÇÃO ARMANDO ÁLVARES PENTEADO (2005) , FAMOUS UNIVERSITIES FOR BUSINESS ADMNISTRATION KIA CSI SURVEY IS CONDUCTED BY THESE PARTNERS UNDER KIA SUPERVISION THIS ASSOCIATION BRINGS TO BOTH KIA AND UNIVERSITY A VERY POSITIVE BRAND FEEDBACK 2004 Contacted customers Surveys collected PHONE CALL INTRODUCTION SPEACH IS: “KIA MOTORS DO BRASIL IN ASSOCIATION WITH OUR UNIVERSITY WANTS TO HEAR CUSTOMER VOICE” University 1050 180 ESPM 1200 300 FAAP 2005

42. SOME ADS OF 2006 SERVICE CLINIC IN BRASIL CUSTOMERS WERE NOT TOUCHED BY KIA 3) CSI IMPROVEMENT STRATEGIES

43. SOME NEWS RELEASE OF 2006 SERVICE CLINIC IN BRASIL CUSTOMERS WERE NOT TOUCHED BY KIA 3) CSI IMPROVEMENT STRATEGIES

49. 4) RESULTS AND IMPROVEMENTS ACHIEVED

51. FRFT RATE TREND 4) RESULTS AND IMPROVEMENT ACHIEVED [Unit : %] ■ Trends from 2001 to 2006 OUR FRFT INCREASED 10 POINTS

53. THANK YOU ! MUITO OBRIGADO !