TABLE OF CONTENTS

1. INTRODUCTION
• Company Profile
• Objective / Vision
• Mission
• Organization Chart
• Executive Summary

2. LM STAR AUTOWORLD SDN BHD

• Company Profile
• Company Background
• Pre-Feasibilities Studies Report &
Business Plan
• Mission
• Objectives
• Global Network

3. OUR PRODUCT
• R & D Program
• Hydrogen Fuel Technology
• Profit & Benefit
• Product Model
• Flow Chart

4. COST ESTIMATED
• Product Cost
• Capital Cost Summary
• Financial Plan for 5 Years
• Profit & Loss Projection
 5. MARKETING PLAN
• Market Strength
• Market & Product
• Parts Development
• Parts Localization
• Parts Option & Accessories
• Parts Communizing
• Ordering Lead Time
• Ordering Process
• CKD Packing
• Transportation Surroundings
• Claim Order Flow
• Flow Chart
• Recruitment & Training

6. WORKING PLAN
• Appointment Agreement for
Automotive Assembly
• Land Approval
• Funder / Partner Agreement
• Flow Chart

OBJECTIVES
• To develop further Malaysian Brand vehicles and to be number one (1)
from sixth to achieve international car importer status giving emphasis on
SUV and 4X4 models.

• Achieving market controls for national vehicles over overseas brand as

countries like Japan and Korea’s approaches. The Nations
Aspirations,-”Cemerlang, Gemilang ,Terbilang”.
 • To show the capability of the franchiser and groups setting up
manufacturing plant and CKD Operations for Dadi & LMG Vehicles in
Oman.

• To establish the level or stage of CKD and SKD parts as well as

packaging style requirement.

• To expand the business growth by looking other products manufactured

down streams through continuous investment to support its expansion
plan.

• Seizing the opportunity presented by the overwhelming demand for other

vehicles manufactured by local automotive manufacturers for local and
overseas market.

• Fostering the development of supplier and supporting industries for

particularly the automotive industry and thereby promote increased
linkages and local contents of the components (localization).

• Making Research and Development as a frontage and essential for

leading the industries and nations towards a progressive and developed
countries.

• To develop technical and engineering skill by creating more job

opportunities.

• Established & Implementation of QUALITY supplier that meets

customer demands i.e. TS 16949 conformance.

FINANCIAL PROPOSAL

• Capital investment of USD 300,000,000 (THREE Hundred

million USD)
 Divides into Two Phases

• Phase 1 : 150 Million USD

• Phase 2 : 150 Million USD

Proposal

• Minimum investment of 25 Million USD have a

share of 15%

• A partner investing 150 Million USD have a share of

49%

• Strategic Partner

Fees to owner : 550,000 OMR for a 15%

share

MISSION
• To reduce production cost and selling price of the

cars manufactured by the company

• To create and expand business opportunities among

local producers / suppliers

• To enhance technical knowledge and skill

requirements as to cope with rapid changes in

technology

• To create and widen job opportunities among local

people

• To penetrate new market by offering brand new cars

with competitive prices in Middle East, North Africa,

Central Asia and other countries that use right hand

drive

• To generate income and profit for the company

OBJECTIVES
• To develop further Malaysian Brand vehicles and to be number one (1)
from sixth to achieve international car importer status giving emphasis on
SUV and 4X4 models.

• Achieving market controls for national vehicles over overseas brand as

countries like Japan and Korea’s approaches. The Nations
Aspirations,-”Cemerlang, Gemilang ,Terbilang”.

• To show the capability of the franchiser and groups setting up

manufacturing plant and CKD Operations for Dadi & LMG Vehicles in
Oman.

• To establish the level or stage of CKD and SKD parts as well as

packaging style requirement.

• To expand the business growth by looking other products manufactured

down streams through continuous investment to support its expansion
plan.

• Seizing the opportunity presented by the overwhelming demand for other

vehicles manufactured by local automotive manufacturers for local and
overseas market.

• Fostering the development of supplier and supporting industries for

particularly the automotive industry and thereby promote increased
linkages and local contents of the components (localization).

• Making Research and Development as a frontage and essential for

leading the industries and nations towards a progressive and developed
countries.

• To develop technical and engineering skill by creating more job

opportunities.

• Established & Implementation of QUALITY supplier that meets

customer demands i.e. TS 16949 conformance.
FINANCIAL PROPOSAL

• Capital investment of USD 300,000,000 (THREE Hundred

million USD)

Divides into Two Phases

• Phase 1 : 150 Million USD

• Phase 2 : 150 Million USD

Proposal

• Minimum investment of 25 Million USD have a

share of 15%

• A partner investing 150 Million USD have a share of

49%

• Strategic Partner

Fees to owner : 550,000 OMR for a 15%

share
 MISSION
• To reduce production cost and selling price of the

cars manufactured by the company

• To create and expand business opportunities among

local producers / suppliers

• To enhance technical knowledge and skill

requirements as to cope with rapid changes in

technology

• To create and widen job opportunities among local

people

• To penetrate new market by offering brand new cars

with competitive prices in Middle East, North Africa,

Central Asia and other countries that use right hand

drive

• To generate income and profit for the company

PRE-FEASIBILITIES STUDIES
REPORT & BUSINESS PLAN
1.0 INTRODUCTION

Based on the result of recent study in competitiveness of

Oman, it clearly shown that it has the strength in various
field through fundamental economic indicator. It includes
high percentage growth in Gross Development Product
(GDP), productivity, labour, infrastructure, services and
transparency in implementation of Government policy.

From the above indicator, together with firm and

continuous support from the government, the Oman’s
economy is able to sustain the growth rate as predicted.
The government is undertaking many development
projects to modernize the economy, improve the standard
of living and become a more active player in the global
market.
To visualize the inspiration, amongst others, it is inevitable
that the efficient venture in new industry such as
automotive has to be established particularly in Oman.

In view of the above, it is due time that Oman looks into a

new era of being the leader in Automotive Industry
especially in facilitating the Gulf region, Middle east and
Africa.

Therefore, it is proposed that an automotive area be

provided and an Assembly Plant be constructed in Al
Buraymi
Other reasons for the need of the automotive
plants are;

a) Improved Development

Providing an automotive plant will improve and spur the

developments in the northern coastal area. The plan
focuses on income diversification, job creation for Omani in
the private sector and development of Oman’s interior.

b) Potential Land Use Development

As a spill over of the Automotive Plant in Al Buraymi, the

northern coastal areas of Oman are expected to experience
rapid growth within the next decades. By the year 2010, the
growth is expected to double the current rate. With the new
automotive Assembly Plant, the development in the area is
expected to increase. All areas along the coastal are likely
to benefit from this project where developments are currently
at a slower pace.
 The proposed Automotive Assembly Plant is
expected to realize the “long awaited” development
plans of the Al Batinah state. The project is also
expected to accelerate land use development of the
border town of Liwa and

2. OUR PRODUCTS
• R & D Program
• Hydrogen Fuel
Technology
• Profit & Benefit
• Product Model
• Flow Chart
 R & D PROGRAM
In order to develop/increase R&D as well as technical
knowledge and skills in automotive industry, LM Star is in the
process of collaborating with local higher learning institute.
This is mainly to encourage them to directly involve in car
manufacturing industry and R & D program.

Among the local institute that will be select by LM Star to be

its ‘R&D Arm’ are.;

University Technology Malaysia (UTM)

University Malaya (UM)
University of Maria Technology (UTM)

LM Star together with UTM, are about to finalize the MOU draft
for the program. The objectives of the industry are;

• To development and expend the industry by

encouraging more players to be actively involve in the
local automotive industry.

• To save time and cost on RAD investment.

• To make use of all facilities and testing equipment

available in universities and local automotive industry.
HYDROGEN FUEL
TECHNOLOGY (HYDROXENE)

The launch of hydrogen Fuel Technology (HYDROXENE) to

the Malaysian market will propel new and unprecedented
technology advancements in the automobile industry. This
technology will provide a new launching pad for Malaysia as it
enters the new millennium. The technology is here today and
the device has been developed.

The HYDROXENE system is designed to fit all type of cars

with particular emphasis to our LMG cars, namely Cruise,
Tourer, Shuttle and Trekker, The HYDROGEN system is plan
for market introduction in the second half of 2006.

Developed by Malaysian scientists HYDROXENE uses water

as a complementary fuel to petrol and diesel. It is based on
high compression Nano technology that devise water into
hydrogen and oxygen which is then pumped into fuel line.
The new fuel mixture (petrol/diesel, hydrogen and oxygen) is
then injected into the engine the combustion takes place.
HYDROGEN FUEL
TECHNOLOGY (HYDROXENE)

The composition has been in a car where it clocked about

100,000 km. The fuel H20 is able to generate a fuel capacity of
20 liters (10 from petrol: 10 from H20. The system was also
tested in a compact car where it operated as anticipated.
Further testing of the system would be conducted in the
following LMG Car Models:

1. Cruiser
2. Tourer
3. Shuttle
4. Trekker

The project with further research and development would

pave the way for other groundbreaking innovations and in
turn create opportunities for Malaysia a hundred – fold. This
would propel Malaysia by leaps and bounds into a new era in
pioneering new technologies.
PROFIT &
BENEFIT
Profit and benefit from this project can be translated
into further economic growth as well as development
in automotive industry
PROJECT: LMG-OMAN ASSEMBLY PLANT

PRODUCTS
 3. COST ESTIMATED

• Product Cost
• Capital Cost Summary
• Financial Plan for 5
Years
• Profit & Loss Projection

PROJECT: LMG-OMAN ASSEMBLY PLANT

CAPITAL COST SUMMARY

ITEM DESCRIPTION UNIT QTY

Sub-Total TOTAL Percentage

A DEVELOPMENT COST:

1 PRELIMINARIES
USD 4,500,000 3%
 2 ASSEMBLY PLANT FACILITIES
USD 43,500,000 29%

3 EQUIPMENTS
USD 46,500,000 31%

4 INFRASTRUCTURES
USD 30,000,000 20%

SUB-TOTAL
USD 124,500,000 83%

B LANDS COST:
USD 13,500,000 USD 13,500,000 9%

C OTHER COST:

1 CONSULTANCY FEES
USD 7,500,000 5%

2 CONTINGENCIES SUM
USD 4,500,000 3%

USD 12,000,000

TOTAL CAPITAL COST

USD 150,000,000 100%

PROJECT: LMG-OMAN ASSEMBLY PLANT

PRODUCT COST

SUV
SALOON TREKKER
SELLING PRICE USD 13,000
USD 10,000 USD 9,000

PRODUCTION COST

MATERIAL USD 6,000

USD 6,000 USD 4,500

LABOUR USD 1,500

USD 1,500 USD 1,500

COST USD 7,500

USD 7,500 USD 6,000

GROSS PROFIT USD 5,500

USD 2,500 USD 3,000

MARGIN 42%
25% 33%

PROJECT: LMG-OMAN ASSEMBLY PLANT

FINANCIAL PLAN (5 YEAR)

Item / Month USD Per Unit Year 0 Year 1 Year 2 Year
PRODUCTION OUTPUT (Number)
Increase/Decrease (%) 0% 10% 20
SUV 20,000 22,000 26,4
SALOON 80,000 88,000 105,6
TREKKER 20,000 22,000 26,4
Total Output − 120,000 132,000 158,4
REVENUE (USD)
SUV 13,000 − 260,000,000 286,000,000 3,432,000,0
SALOON 10,000 − 800,000,000 880,000,000 1,056,000,0
TREKKER 9,000 − 180,000,000 198,000,000 237,600,0
1,240,000,00 1,364,000,00
Total Revenue − 0 0 1,636,800,0
COST (USD)
Capital Cost
Land 13,500,000
Preliminaries 4,500,000 4,500,000
Assembly Plant facilities 43,500,000 43,500,000
Equipments 46,500,000 46,500,000
Infrastructures 30,000,000 30,000,000
Consultancy fees 7,500,000 7,500,000
Contingencies sum 4,500,000 4,500,000
Total Cost of Capital 150,000,000 136,500,000 − −
Product cost (incl. Labour)
SUV 7,500 − 150,000,000 165,000,000 198,000,0
SALOON 7,500 − 600,000,000 660,000,000 792,000,0
TREKKER 5,500 − 110,000,000 121,000,000 145,200,0
Total Product Costs − 860,000,000 946,000,000 1,135,200,0
Operational Costs
Management 1.00% − 8,600,000 9,460,000 11,352,0
Power & Utilities 1.50% − 12,900,000 14,190,000 17,028,0
Marketing 2.00% − 17,200,000 18,920,000 22,704,0
Transportation 0.80% − 6,450,000 7,095,000 8,514,0
Miscellaneous 0.50% − 4,300,000 4,730,000 5,676,0
Total Operational Costs − 49,450,000 54,395,000 65,274,0
WITHOUT LOAN
Total Costs 150,000,000 1,045,950,000 1,000,395,000 1,200,474,0

SURPLUS / DEFICIT -150,000,000 194,050,000 363,605,000 436,326,0

Cumulative -150,000,000 44,050,000 407,655,000 843,981,0