Services overviewSeptember 2012 l Copyright © 2011 HD Tyres (Pty) Ltd

Introduction

• HD TYRES, established in 1989, pioneered and introduced the concept of preventative maintenance

• We have over 20 years of experience in tyre repairs• HD TYRES is the biggest user of REMA TIP TOP OTR materials in Africa and one of the

biggest in the world• HD TYRES is the single largest owner of EMII plus and EM III thermopress's in Africa with

a total of 24 machines at an average cost of R420K per machine• All senior repair staff are trained and certified at REMA TIP TOP Germany training centre• All repair staff are certified by REMA TIP TOP• REMA TIP TOP Automotive South Africa and HD TYRES has an alliance contract in place

Introduction

• HD TYRES and REMA TIP TOP Automotive South Africa are active members of the S.A.B.S. SANS 765:2009 OTR Repairs and Retreading standards for South Africa

• HD TYRES is SANCERT ISO 9001 – 2000 International Standard for Quality Management Standard, ISO 18001 - 2007 Occupational Health and Safety Management Systems and ISO 14001 - 2004 Environmental Management Systems certified and audited annually

• HD TYRES is audited by PricewaterhouseCoopers (PWC)• The alliance agreement between REMA TIP TOP Automotive SA and HD TYRES requires

that HD TYRES is audited on a quarterly basis

Introduction

ISO 9001 – 2008 International standard for quality management systems

ISO 14001 – 2004 Environmental management systems

ISO 18001 – 2007 Occupational health and safety management standard

• We no longer view our business relationships with our customers as a service provider but rather as a partnership!

• All our repair work is guaranteed for no less than as per REMA TIP TOP standards

• HD TYRES has repaired over 5100 tyres with a ZERO workmanship repair failure• We make use of latest technology and machinery supplied by REMA TIP TOP

International• HD TYRES introduced the Preventative Maintenance concept into the Southern African

market

1, 000HOURS

Introduction

• Repairing of OTR tyres is largely misguided due to lack of control, lack of knowledge and the lack of or access to suitable repair equipment and materials. REMA TIP TOP and HD TYRES is able to address all three these matters

• Recycling of all tyres except for OTR tyres are already very advanced but the recycling of OTR tyres are a problem due to the size

• REMA TIP TOP and HD TYRES are able to address the recycling of OTR tyres by reducing the number of tyres being scrapped by means of preventative maintenance and tyre repairs

Introduction

REMA TIP TOP AND HD TYRES SOLUTION TO THE PROBLEM

CORRECT repairing of OTR tyres is therefore considered to be the most efficient and cost effective way of recycling these tyres as well as being the most responsible way of controlling the destiny of these large tyres by extending service life until a suitable disposal solution is found

Introduction

Our focus

Our focus

+/- R150, 000 BUYS

WHAT DO WE MEAN

HD TYRES is a tyre maintenance company and not a tyre supply company

We believe that the two functions combined, creates a conflict of interest

Our focus

Repair & Maintenance is fixing any sort of device should it become out of order known as repair or unscheduled maintenance

As well as performing the routine actions which keep the device in working order or prevent trouble from arising (preventative maintenance)

Our focus

REPAIRING OF TYRES

Preventative Maintenance is an equipment or parts maintenance strategy based on replacing, overhauling or remanufacturing an item

Corrective Maintenance is any maintenance activity to correct a failure that has occurred or is in the process of occurring by means of repairing, restoring or replacing

Which results

in!

Our focus

PREVENTATIVE MAINTENANCE

Periodic tyre injury inspection of the fleet to ascertain and identify tyres for repair and/or preventative maintenance

The inspection reports builds a knowledge-base data with• Planning and managing tyre removal for repair and/or preventative maintenance i.e.

planning the breakdown• Management of the tyres identified for monitoring future removal/s• Reliable history data identifying removals by machine thereby allowing identification of

operators needing operator training

Our focus

IDENTIFICATION

• HD TYRES strives to deliver the highest quality products on time and competitively priced

• We requires all employees involved with the OTR products to ensure that ISO standards are adhered to at all times

• We ensure product quality through the communications and implementation of ISO 9001 – 2000 International Standards

• Provide training and continuous support to all employees to ensure quality workmanship

• Measure Customer satisfaction and act on results • Manage Customer relationship and partnership

Our focus

HD TYRES QUALITY POLICY

• Carry out work in accordance with standards laid down by REMA TIP TOP International

• Carry out inspections with reasonable frequency by means of instrumental and visual methods

• Recommendations to customers will be based on the most efficient action criteria to provide the best utilization of the remainder of the tread life

• Test the quality of the repair in accordance with the approved methods and standards before certification of the repair

Our focus

THE RIGHT WAY TO DO IT

The repair process is designed to follow the procedures, limitations and recommendations of REMA TIP TOP - one of the best OTR tyre repair authorities in the world with an ISO 9001 TUV certificate

The basic tyre repair procedure follows these main stages which is also in accordance with HD TYRES documentation for the annual SANCERT ISO 9001 – 2000 certification:

• Tyre inspection and mapping of all damages• Pre-selecting the appropriate repair schemes in accordance with the REMA TIP TOP

charts• Evaluating repair costs and the commercial opportunity for repair• Customer agreement with the quotation

Our focus

PROCEDURES FLOW CHART

Correct training

Training can be provided by way of • REMA TIP TOP South Africa training officer• HD Tyres Training Academy

The training module provides specific training with regards to tyre construction, description and operation; tyre maintenance and tyre repair

• Tyre construction, descriptions and operating capabilities• Tyre maintenance and tyre repair

Training is available to our employees, third parties, as well as to operator personnel. The training includes theoretical presentations and an extensive, hands-on practical session

Correct training

TRAINING

In addition to the training, HD TYRES management regularly visit and evaluate on-site branches in order to

• Ensure the mines SHEQ policies are adhered to

• Ensure satisfaction of workmanship and that the highest levels of standards are adhered to

• Offer on the job training to ensure that “bad working habits” are not formed

• Ensure satisfaction of documentation recording each repair done

Correct training

REPAIR WORK EVALUATION

Health & safety

HD TYRES considers health and safety to be priority number one and therefore a great deal of emphasis is placed on the topic to ensure

• Safe working environment• Safe working practices• Meet with the clients SHEQ policies and procedures• We are audited by Sancert on Health and Environment policies

Health & safety

ISO 9001 – 2008 International standard for quality management systems

ISO 14001 – 2004 Environmental management systems

ISO 18001 – 2007 Occupational health and safety management standard

Thank you for your time

HD TYRES together with REMA TIP TOP Automotive looks forward to providing you with the the same high quality service and workmanship currently enjoyed by our existing partnersAnglo American Coal DivisionKleinkopjie, Isibonelo, Kromdraai, Kriel and New VaalXstrata Coal, South AfricaATCOM and GGVJwaneng Dimond Mine, Debswana Khumani Mine, Assmang Iron OreMCC Group