Supplier Annual Conference 2022-1

Quality Control Ms. Paradee Somsuk QC AMGR, Thai Summit PK Group March 4th, 2022 My Quality Declaration “I will deliver the highest quality products and services. To meet the customer's required specification & ultimate satisfactions” “ดฉิ นั จะสง่ มอบผลติ ภณั ฑแ์ ละใหก้ ารดูแลลูกคา้ ดว้ ย คุณภาพดที สี ุด เพอื ตอบสนองความตอ้ งการและสรา้ ง ความพงึ พอใจอย่างสูงสดุ ใหก้ บั ลูกคา้ ”

Quality Weekly Meeting Agenda 1. Supplier quality score evaluation manual Y2022 1.1 Target Y2022 1.2 Quality evaluation score manual Y2022 2. Quality performance Y2021 2.1 Supplier quality score evaluation result 2.2 Top 10 supplier 2.3 Supplier trend 2.4 Lessons learned quality issue 3. Quality activity Y2022 4. Contact person 4.1 TSPK Contact 4.2 Supplier contact

1. Supplier quality score evaluation manual Y2022

1. Supplier quality evaluation manual Y2022 1.1 Target Y2022 *** A level = Supplier evaluation score 99 points up 4

1. Supplier quality evaluation manual Y2022 1.2 Quality evaluation score manual Y2022 *** The period from the 26th day of the immediately preceding period through the 25th day of the current period. 5

1. Supplier quality evaluation manual Y2022 1.2 Quality evaluation score manual Y2022 40 S1 : Claim (PPM) < 10 PPM 20 S2 : PDR & 8D reply 1 PDR + Reply 8D within due date 20 S3 : Problem frequency No repeat issue + No disruption TSPK 20 S4 : Co-operation Support activity 100 S5 : Field claim Without field claim 6

1. Supplier Quality Evaluation Manual S1 : Claim ( PPM ) - 40 Points Claim ( PPM ) = FY2021 Target ≤ 20 PPM Start : April 2022 FY2022 Target ≤ 10 PPM Reduce PPM Target from Claim PPM Score Claim PPM Deducts Score < 20 30 20 PPM to 10 PPM < 10 0 and change PPM Range 21 - 120 29 - 20 >10 - 60 - 10 121 - 220 19 - 10 >60 - 110 - 20 221 - 320 >110 - 160 - 30 9-0 - 40 > 320 0 > 160 7

1. Supplier Quality Evaluation Manual S2 : Number of PDR Issue and 8D Report reply - 20 Points S2 = S2.1 + S2.2 = -20 Point S2.1 : Number of PDR Issue -10 Points PDR issue Score Start : April 2022 PDR issue Deduct Score 1 9 1 0 2 8 2 -2 3 7 3 -4 4 6 4 -6 5 5 5 -8 6 4 ≥6 -10 7 3 8 2 No deduct score 1st Issue 9 1 If over deduct score 2 points / PDR ≥10 0 *** Major case within 3 Days / Minor case within 7 Days *** S2.2 : 8D Report reply -10 Points 8D Report Reply Within Due date Over 1 Week Over 2 Weeks Over 3 Weeks Deduct Score 0 -2 -4 -10 8

1. Supplier Quality Evaluation Manual S3 : Problem Frequency - 20 Point S3 = S3.1 + S3.2 + S3.3 = -20 Point S3.1 : Q’ty of Problem Type ≤ 1Type / Month Q’ty Problem 1 2 3 4 Deduct Score 0 -2 -4 -6 S3.2 : Q’ty of Repeat problem time “No repeat problem” 23 4 -4 -6 -8 Repeated Time 0 1 Deduct Score 0 -2 S3.3 : Q’ty of disruption TSPK line “No disruption” Disruption 0 1 Deduct Score 0 -6 New addition Evaluation Criterial *** Supplier must be accept claim only *** 9

1. Supplier Quality Evaluation Manual S4 : Co-Operation & Counter Measurement - 20 Points 4.1 Inspection data - Supplier need to submit monthly inspection data within 25th day. And in February for yearly inspection / annual test. Item Frequency Due date Data Type Monthly inspection data 1 / Month Before 25th Electronic file Full Layout 100% on Dwg. February Electronic file 1 / Year February Electronic file ELV. Regulation (SoC) 1 / Year - Sending data support Over target or Not send Over due date 1 Month 2 Months continue 3 Months continue Over 3 Months continue Deduct Score -5 Points -10 Points -15 Points - 20 points 4.2 Support in TSPK activity - Co-operation in countermeasure problem and support sorting & Repair - Process and product audit : preparation of document and process , including concern person support - Co-operation for new model / ECN : PPAP submission - Process change information : If RPCA. Submit to TSPK less than 4 weeks before SOP. 4.3 Containment action - Quality alert reply within 24 hours and 1st lot information *** If Supplier any feed back over due date deduct score 5 points / Case*** 10

1. Supplier Quality Evaluation Manual S5 : Field Claim *** Supplier must be accept claim only *** S5 Case of field claim at our customer - Customer Disruption - Customer Field return - Customer Notification Case of field claim Domestic parts CKD Parts Deduct Score -5 Point -35 Point

2. Quality performance Y2021

2. Quality performance Y2021 2.1 Supplier quality score evaluation result Y2021 Overview of TSPK-G Target > 99 points 100 99.62 99.64 99.46 99.91 99.93 120 99.31 100 98.93 99.02 99.16 99.26 98.73 98.73 98.74 80 95 60 40 20 90 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG. 13

2. Quality performance Y2021 2.2 Top 10 supplier P1 P4

2. Quality performance Y2021 2.3 Supplier trend BMW PTA SPA KLK 98.8 99.2 99.7 98.5 98.5 99.3 97.2 96.5 97.6 98.7 99.0 99.2 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 Up trend : Suppliers which have a better trend Down trend : Suppliers which downward trend and success to reach the target. “Keep going” over the past year. “Mind your trend” HUAMEI TYL UHM TSAT4 95.4 96.0 96.7 98.8 96.55 97.9 96.4 98.6 96.2 93.4 94.2 93.3 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 Side way : Suppliers which inadequate improvement continue 3 past year. “Let’s start now”

2. Quality performance Y2021 2.4 Lessons learned quality issue (Dimension) Detail Problem Details : BRKT ASS’Y ENGINE LH 1) Engine LH trim line out off spec. 2) Engine LH dimension out off spec. Effect for This Problems 1. Deduct Score 35 points & Problem recurrent 5 points 2. Lost cost for sorting and reworked 1,936,110 Baht (Still Sorting & Rework) No. Process Problem Root cause Improvement In-Charge Mission Description Jan’22 Feb’22 Mar’22 Apr’22 Status QC D Merit / Advantage 1. Press 1.On July 02nd'2019, K. Fernandez 1.At the Stamping process 1. Die F1+Pi UHM adjusted Mr. Pongphon  - No complain by 31/07/19 customer Pablo notified Engine LH trim line F1+ Pi stopper die damage distance the stopper & die F2 out off spec. was 14.00 mm, which &F2 pad cushion was loose process UHM developed insert it does not meet the specified. due to haven’t PM check die by welding and grinding 2.On November 19'2020 K. Pablo sheet. refer to CAD to solve the die Marafuschi notified Engine LH 2. Insert die upper/Lower 3/5 was loose. dimension out off spec. & 4/5 damage due to haven’t 2. Make PM check sheet and Mr. Pongphon  31/07/19 PM on plan. traing. 3. New insert die upper/Lower Mr. Sarawut 30/03/22 3/5 & 4/5

2. Quality performance Y2021 2.3 Lessons learned quality issue (Appearance) Detail Detail / Problem : BRKT LOWER ARM is crack. Effect for this problems 1. Deduct score 1 point. 2. Lost cost for sorting 12,696.91 Baht No. Process Problem Root cause Improvement In-Charge Mission Description July 21 Aug Sep 21 Oct 21 Status QC D Merit / Advantage 21 1. ASSY Full BRKT LOWER ARM is Component part thickness reduce - Adjust position die and lock Mr. Tanigpong  No complain by 15/10/21 customer 15/10/21 weld. crack on 12/01/2021 Q'ty lower spec due to die insert die can pin to insert die. 15/10/21 1 U' shifting and daily check die not have - Revise daily check die add point check. point check. - Addition point check thickness reduce on check sheet.

2. Quality performance Y2021 2.3 Lessons learned quality issue (Dislocation weld) Detail Detail / Problem : Saddle Spring 4x2 Weld dislocation of bead. Improve clamp for lock parts Effect for this problems 1. Deduct score 5 points. Problem Repeated 2 times 2. Lost cost for sorting 18,384.10 Baht No. Process Problem Root cause Improvement In-Charge Mission Description Jan 21 Feb 21 Mar 21 Apr 21 Status QC D Merit / Advantage 1. Welding Q-Gate Axle TSPK-L - Clamp lock Jig assembly loose due - Improvement clamp lock jig Mr. Tanigpong  - No complain by 7/01/21 customer 7/01/21 Assembly. Found Problem Saddle to not have daily check jig and PM assembly. 7/01/21 spring 4x2 weld Plan. - Make daily check jig add point 7/01/21 dislocation of bead date check clamp before production. 12/11/20 Q’ty 10 U' - Make PM Plan - Add process 100% check appearance weld.

2. Quality performance Y2021 2.3 Lessons learned quality issue (Wrong assembly) Detail Detail / Problem : MEMBER ASSY-CROSS,FR Position nut NG. Effect for this problems Deduct score customer claim 5 Point No. Process Problem Root cause Improvement In-Charge Mission Description Mar21 Apr21 May21 Jun21 Status Mr. Wannipa QC D Merit / Advantage 1. Welding Customer Information -Locator pin control of assembly jig - Change Locator pin control of  -No complain by 29/03/21 Assembly. MEMBER ASSY-CROSS,FR is wear due to PM check sheet not assembly jig customer Position nut NG effect to have point check. - Revise PM check sheet add process assembly at point check diameter pin 29/03/21 customer on 27/03/2021 control.

3. Quality activity Y2022

3. Quality activity Y2022 Top 5 suppliers  Countermeasure present 1st month : MGR 2 month cont. : GM 3 month cont. : MD / President “Q” up  Weekly follow up  Measuring system development  Process audit  Customer requirement : CQI, Safety part audit Critical part audit  Product audit Dimension Weld performance Appearance 21

4. Contact person

4. Contact person 4.1 TSPK-G Contact Plant Product group No. Name Position E-mail Axle group 1 Mr. Jaturaporn Pumsakuln MGR QC [email protected] 2 Mr. Nattaporn Pomdee STAFF QC [email protected] TSPK FORD Frame group 3 Mr. Rangsan Chanya SUB FOREMAN QC [email protected] 4 Mr. Prachuab Rodyim FOREMAN QC [email protected] ISUZU Frame group 5 Ms. Paradee Somsuk AMGR QC [email protected] 6 Mr. Sarawut Suya STAFF QC [email protected] TSPK-BP All parts model 7 Mr. Warit Phudtho LEADER PQC [email protected] TSPK-L All parts model 8 Mr. Banluesak Somton LEADER PQC [email protected] 9 Mr. Natthaphon Prathumthong AMGR QC [email protected] 10 Mr. Nanthapong Changhin STAFF QC [email protected] 11 Mr. Manit Khamkula FOREMAN QC [email protected] 12 Mr. Pratuan Khumnenr FOREMAN QC [email protected] 1 Mr. Akekachai Inthajak MGR QC [email protected] 2 Mrs. Wannipa Dachmala STAFF QC [email protected] 3 Mr. Jakkaphol Lakchai SUB LEADER PQC [email protected] 1 Mr. Narathip Pakkunnan MGR QC [email protected] 2 Mr. Tanigpong Mayom STAFF QC [email protected] 3 Mr. Santi Thongkorn CHIEF LEADER PQC [email protected] 23

4. Contact person 4.2 Supplier Contact Please submit TSPK within 30 Mar 2022 24

Supplier Annual Conference 2022 Mr. Ratthakiat Sarageng Director, Thai Summit PK Group March 4th, 2022 My Quality Declaration “We will not Receive, Make and Deliver the Defected product” “เราจะไมร่ บั ไม่ทาํ และไม่สง่ ของเสยี ” 25

Supplier Annual Conference 2022 Agenda 1. Manufacturing Strategy 2. V5 Business plan of Factory 26

1. Manufacturing Strategy

1. Manufacturing Strategy S : Safety Must = “0” Accident : Internal and External : Incoming-Internal-Customer Q : Quality First = “0” Defected : Incoming-Internal-Customer : Reduce Cost of Poor Quality D : Delivery = 100% : Improvement Activity C : Cost Competitiveness Basis required by : 1. Raising awareness(SQDC) for employee all levels 2. Good Communication Everything must be start by 3. Keep all Customer’s Requirements and Training to all levels Management level 4. Emphasize “Work discipline” and “3S” 28

1. Manufacturing Strategy S: Safety Must = “0” Accident  KYT for every working day and shift.  Near missed and TSPK safety way.  Safety of each plant meeting once a month by safety and plant Mgr.  Safety of group meeting and sharing once a month by Safety and EVP.  Incase has an accident occurred will be immediately reporting to Top management and sharing to all BU. These activities we have implemented and request supplier to implement in activity for achieve the Safety Target 29

1. Manufacturing Strategy Customers Satisfaction Target : Quality Target (PPM) Unit : PPM 6 5 4 3 2 5 4.2 3.7 1.9 2018 2019 1.8 2021 4 2020 5.1 2 0 2017 30

1. Manufacturing Strategy Q: Quality First = “0” Defected  Strong control to enable employees to work according to established procedures.  I Do I Check activity.  Strong controlling for 4 M changed .  Quality Layer Audit activity ( Plant Mgr., Mgr., Staff & LD).  Poka-Yoke and apply to use automation system.  Strong to achieved to all customer’s requirements. These activities we have implemented and request supplier to implement in activity for achieve the Quality Target 31

1. Manufacturing Strategy Unit : % 100% Customers satisfaction Target : Delivery target (%) 2021 100.0% 99.98% 99.85% 99.97% 100% 95.0% 2017 2018 2019 2020 90.0% 85.0% 80.0%

1. Manufacturing Strategy D: Delivery = 100%  Efficient communication to suppliers.  Team meeting for 2 shift every day. (SD,PC,PL,PD,QC&MT)  Production dashboard for Mgr. monitoring by real time.  Daily production performance control >95%  Keep FG stock > 3 day for all products and models.  Install QR code system to check the correct frame before delivery. These activities we have implemented and request supplier to implement in activity for achieve the Delivery Target

1. Manufacturing Strategy C: Cost Competitiveness  Challenge plan for CR activity from all departments.  Labor and OH cost will control by each section and share best practice.  Group activity. - Waste walk ( 7 waste, 16 losses, 0 accident) by President 3 month. - CI walk by K J.Sakultorn EVP. 3 month a time. - QCC , Inhouse-defected reduction. - Show and share among TSPK-G and TS-G.  Automation for new project and balancing C/T for current model. These activities we have implemented and request supplier to implement in activity for achieve the Cost Target

1. Manufacturing Strategy KPIs Target FY2022 TSPK-G TSPK TSPK-L TSPK-BP No KPI Evaluation Method Target Score Target Score Target Score Target Score 1 Financial perspective 1.1 Cost of good sold MAFR ≤ 81.1% 8 ≤ 79.6% 8 ≤ 84.3% 8 ≤ 78.4% 8 1.2 Sale & admin cost MAFR ≤ 13.1% 6 ≤ 13.2% 6 ≤ 12.0% 6 ≤ 14.6 % 6 2 Customer perspective 2.1 Customer claim Official Claim ≤ 1.9 PPM 6 ≤ 1.7 PPM 6 ≤ 2.8 PPM 6 ≤ 1.2 PPM 6 2.2 Delivery rate Official Result 100 % 6 100 % 6 100 % 6 100 % 6 2.3 Customer Awards Official Result 3 4 1 4 L1 4 L1 4 3 Internal process 3.1 Internal defect Actual Result ≤ 40 PPM 5 ≤ 40 PPM 5 ≤ 31 PPM 5 ≤ 37 PPM 5 3.2 Safety (Serious + Fire) 3.3 Master plan & Activity Actual Result 05 05 05 05 improvement 4 Training Refer to Master plan 100 % 5 100 % 5 100 % 5 100 % 5 4.1 Competency 4.2 Functional Actual result vs Plan 100 % 3 100 % 3 100 % 3 100 % 3 Actual result vs Plan 100 % 2 100 % 2 100 % 2 100 % 2

1. Manufacturing Strategy Challenge Plan TSPK TSPK-L TSPK-BP No Item Evaluation 2022 2021 2022 2021 2022 2021 1 Cost Saving Actual Result 40 M 20 M 20 M 2 Inventory Actual Result < 7.5 D 10.6 D <7D 5.5 D <7.5 D 11.4 D 3 Award from Actual Result 1 2 L1 L3 L1 L1 Customer 4 QCC Award Actual Result 1 1 1 2 1 1 3 5 Eng. Day & KS Actual Result 2 6 2 1 2 Award 6 VMI Full Automation, OEE Reporting from Dashboard and E Documentation

2. V5 Business plan of Factory

2. V5 Business plan of Factory V5 Policy (FY2022 – 2025) : Key Target & Strategy “We are the World Class Manufacturer of Chassis Frame and Axle for Pick-up Truck” Quality Management System Financial Customer Productivit Human Engineerin Target Satisfactio y Target Capital g Strategy n Target and Target & Strategy Strategy 5S , TPM , Core activity Teamwork & Continuous Improvement Spirit 38

2. V5 Business plan of Factory V5 Policy (FY2022 – 2025) : Customer Satisfaction Target (Quality & Delivery) TSPK-G Customer Claim 2017 - 2021 (Unit ; PPM) TSPK-G Customer Satisfaction 2017 - 2021 (Unit ; %) 5.1 4.2 3.7 99.83 99.99 99.93 100 100 100 100 100 100 1.8 1.9 2 2 2 2 2017 2018 2019 2020 2021 2022 2023 2024 2025 2017 2018 2019 2020 2021 2022 2023 2024 2025 V4 V5 V4 V5 Quality Policy Delivery Policy 1. Claim limit each plant less than 2 PPM (Y 2022-2025) 1. Delivery target 100 % (On time delivery and meet customer  TSPK < 1.9 PPM ( 20 Pcs.) requirement)  TSPK-L < 1.7 PPM ( 4 Pcs.) 2. Setup delivery team to analytical & improve delivery performance  TSPK-BP < 1.1 PPM ( 1 Pc. ) 2. Internal quality defect limit (Y 2022-2025) 3. Smart factory  TSPK < 50 PPM  TSPK-L < 50 PPM  MRP( Material Requirement Planning)  TSPK-BP < 50 PPM  QR code & Barcodes implement 100% 3. Setup quality team  To build up quality personnel (Skill, Awareness, Mindset)  Realtime traceability system : Customer order & FG stock control  To achieve and maintain quality performance by systemic improvement  To be smart quality system (High accuracy & precision and Traceability) 39

2. V5 Business plan of Factory Defects Analysis FY2017-2021 ( Unit : % ) Incoming In process Customer Metal chip 0.4% Wrong part ass'y 0.3% Torque Down 1.1% Paint peeling 0.5% Dimension NG 1.2% Mix model 0.5% Skip process NG, 8.1% Spot cold weld, 1.2% Functional NG 0.2% Wrong part Delivery 3.2% Spatter 2.5% Burr 0.1% Wrong part Ass'y 3.2% Metal chip 0.5% Appearance NG Missing part 0.1% Dimension 10.4% NG Supplier part Dimension NG, Supplier part 4.3% 19.7% 27.7% 0.04% Missing parts Appearance, Welding 17.3% Defects Welding Wrong Weld Defects 11.7% 15.4% Defects Assembly, 84.8% Functional NG Spatter 21.4% 13.3% 24.3% 11.7% Appearance NG 14.9% TSPK-G Supplier score target Y2021 => 99 point Actual are 98.97 point. Almost supplier not achieve the target are the same 6-7 supplier. Then we will collaboration with STA team for implement development activities with them to achieve our target in 2024. 40

Customer Satisfaction (Quality & Delivery) Delivery performance 2017-2021 (Unit ; %) Problem : Delivery TSPK PM fail 99.83 99.99 99.93 100 100 Forklift Down time 10% Parts Skip process shortage Mixed Part 2017 2018 2019 2020 2021 (Unit ; %) 10% Lower Skip 100 TSPK-L Stock process Missing Packaging 30% 41 100 99.98 100 100 check 10% Difficult Communication Wrong check 10% Wrong Delivery Planning 20% 2017 2018 2019 2020 2021 100 TSPK-BP 10% (Unit ; %) Missed 99.98 99.99 100 100 communication FG stock not matching with 2017 2018 2019 2020 2021 inventory data.

2. V5 Business plan of Factory V5 Policy (FY2022 – 2025) : Productivity Target & Strategy 2.3 Productivity Item 2.1 Target (Unit ;MB) P 1. Productivity Up Factory Countermeasure Target R 2. RECS (ECRS) O 3. OEE Plant 2022 2023 2024 2025 C 4. Core Activity TSPK 40 100 80 10 TSPK-L 20 90 60 10 TSPK-BP 20 65 50 10 TSPK-E 5 10 9 2 TSPK-G 85 265 199 32 2.2 Productivity Policy E 5. Energy Saving 2.2.1 Achieve operation EBIT ≥ 6% S 6. Smart Factory 2.2.2 Productivity up 7% to countermeasure increase expense S 7. Smart Engineering each year 2.2.3 New project achieve target COGS ≤ 80% 2.2.4 Smart factory by applying innovation for optimizing benefits organization 42

We are Good Teamwork with Continuous Improvement Spirit