1. Presentation of quality Results July– September 2010

2. 1. Quality July-September owerwiew 2. Quality October-December plan 3. Quality – summarization activities 4. Operations: Trend payoff products ETA ČR 5. Suppliers claims 6. Trend payoff and sales products ETA 2009-2010 ČR+SR 7. Efficiency of ETA QI at supplier – China 8. Appendix: Strategy of quality 2

3. 3 China Local quality Projects Activities  Preparation of coffee mill ETA 0067 (focusing on the modifications, tests in the test laboratory)  Control Plans - to ensure continuous innovations for the Spring 2011  Control Plans – actual status - 60  Deliveries TESCO  Analyzer plastics company GUT /NOT - open collaboration with the Faculty of Chemical Technology in Pardubice-based authentication IMD-cooperation with ETA project manag  Process Mapping in servicing ETA -> suggestions for improvements, setting new processes  The ”Project Management“ in the IS Business – cooperation with JKR and Mrs. T. Kožuská  ISO 9001:2008 – Update and create a process map current processes + cards Others  Canton Fair 10/2010 - Products for 2011, meeting with key suppliers ETA  IFA Fair in Berlin  Support for Chunju suppliers in China to launch serial production of the ETA-863,ETA-865, ETA- 861 modifications  Verification of payment method options within the ETA Office Shenzhen

4. 4 China Local quality Projects Activities  Select your product from Canton r. 2010 - provide samples for ETA CZ  Check the current status of projects ETA products  Support for the implementation of the signing of a new contract supplier in China  Defining new rules for price negotiation in the process of embedding the standard ETA target end of October  Financial audit in the office  Production of coffee mill ETA 0067 (focusing on the modifications, tests in the test laboratory)  Strengthened control of the first delivery to ETA Hlinsko News Christmas 2010  Control Plans - to ensure continuous innovations for the year 2011  Deliveries of ETA x865  The ”Project Management“ in the IS Business – cooperation with JKR and Mrs. T. Kožuská  Process Mapping in servicing ETA -> suggestions for improvements, setting new processes  Process SP (spare parts)– effective set-ordering spare parts  ISO 9001:2008 ->ISO 9001:2008 – Update and create a process map current processes + cards => implementation to QMS  Improving internal communication system of quality management Others

5. Process – effective activities in service ETA Hlinsko Process – logistik new packaging possibilities Process – possibilities for material testing – equipment Process – continual update procedural maps Process – externaly activities – resulting and implementation into handbook of quality Process – personal reduction high job flexibility in China office Process – communication improvement Process SP (spare parts) – effective set-ordering spare parts Process „Project management“ – IS Business Process - six sigma finalizing basic project 5 Support and cooperation in all process across company ETA

6. 6 The proportion of defective products in servicing ETA ETA on products sold during the period leden2008 - August 2010. Course of return depends on the amount of sales and quality of entries for selected products The negative trends caused by product např.konvice ETA 2596, ETA 0172 fryer, vacuum ETA x466, bakery ETA7149, 2149, kuch.robot ETA0027, chopic ETA 6078 - a partial failures - these affect the overall trend.. Ensuring the quality of news - our own projects, process news release, acceptance and acceptance by the Control Plan, the goal of PQA China

7. 7 Dodavatelské reklamace 2010 level of performance complaints costs 42,15% increase in the success of outcomes analysis Factor Three, press the QCR 8Doing 'validation of process, release products, according to CP, effective communication, claim cost -. Liantek,Donlim,KingClean, TOP 20 dodavatelé produktPO/POV,závadaprioritadodavatelrekl./upoz.zaháj.rekl.skut. nákl.přizn.nákl.obdrž.nákl. ukonč.rekl.poznámka 2140vys. návratnostCGalyR16.9.2009$0,00$1 613,85 30.3.2010197110203 2775197110082CShunkangR21.9.2009$2 266,00$1 270,50 17.3.2010197110195-odečet 0417197110066AKing CleanR26.10.2009$864,00 12.3.2010197110189-odečet 0041255030009702000117komponentSilitalR26.11.2009$58,50 8.1.2010 1153vys. návratnostBConvideR3.12.2009$1 318,75$312,50 31.3.2010197110196 7595víkoADon LimR16.12.2009$761,20 26.2.2010přijata NO 0981912609000702000001komponentContrexR9.2.2010$21,09 2.3.2010 0143410000000702000005komponentWuhanR9.2.2010$18,15 polovina června 2010 7011vys. návratnostBLianchuangR22.3.2010$3 994,37$3 969,75 107110061 7332kabel,elektronikaALenaU23.3.2010 098192508,508,5079702000109komponentKing CleanR9.11.2009$31,10 6.4.2010 7246žehlící deskaBSanwellU13.4.2010 12.5.2010přijata NO x582vys. návratnostASupremeR15.4.2010$0,00$3 500,00 107110163, není smlouva 6450PCBAChunjuR27.4.2010$280,00 21.6.2010107110053 0041254001000702000029,0700000007komponentMerlettR29.4.2010$1 375,00 odečteno z faktury 004125704000,0141250030000700000008,9komponentCapitaniR29.4.2010$330,00$269,00 14.6.2010dobropis 0027příd.strojky197110169BJTWTR18.5.2010$920,11 $1 022,34 0141213010009702000108komponentIrcaR13.11.2009$26,00$8,67 21.5.2010odečet z faktury 2140vys. návratnostCGalyR16.9.2009$0,00$3 227,70 1.6.2010107110022 004125702000,0041254001009702000096,110komponentMerlettR18.11.2009$80,36 25.6.2010 7345rozlepené krabiceBLenaR3.6.2010$178,00 200 krabic zdarma 0981912609000702000017komponentContrexR11.6.2010$21,09 23.8.2010 x582spínačASupremeU16.6.2010 1866197110222AChunjuR18.6.2010$4 199,10 0032PCBBLianchuangR21.6.2010$9 696,96 $3 040,96 poštou, další 107110133 3582prasklé pláštěASupremeU24.6.2010 0027příd.strojky197110210BJTWTR28.6.2010$721,80 $802,00 2140vys. návratnostCGalyR16.9.2009$0,00$3 227,70 22.7.2010107110058 3591107110039AEternalR9.7.2010$5 535,00 2596197110223AGalanzR13.7.2010$7 257,00 0596107110081ADon LimR18.8.2010$4 948,60 2460107110053AChunjuR19.8.2010$2 681,04 014125001000špatná funkce přístřikukomponentArieteR24.8.2010$3 671,67 0474107110112AKing CleanR10.9.2010$4 765,70 0151107110090BConvideR13.9.2010 2300107110103CLundarR20.9.2010$5 413,60 0149ND rámy víkaADon LimR21.9.2010 107110187 0041254000000702000039komponentMerlettR21.9.2010$242,00 7595ušpiněné podstavceADon LimU27.9.2010 6.9.2010přijata NO 11750700000018DArieteU29.9.2010 celkem $112 364,43$47 364,78$22 654,31

8. 8 Legenda: - Total product return ETA% (the proportion of defective products sold products) - Sales in units CR + SR for the period

9. 9 NOK supply in % of the total supply of each supplier OK supply in % of the total supply of each supplier The annual evaluation of suppliers with the requirements for products => selection of suppliers according to quality of process stability. ETA CZ for Chinese producers suppliers evaluation structures in 2011

10. 10 Base Value Current Target Long Term Goal (FY 2010) (actual Q) (FY 2011) (FY 2013) 1.Defect rate 7,53% 8,02% 7% < 5,7 % 2. Returned the cost of poor quality 47,6% 42,15% 60% 80% 3.Control plan (SKUs ) 31 60 80 100% new products 4.ISO 9001 ISO9001:2000 ISO9001:2008 surveillance audit according to ISO continual improvement of the Quality management system 5.Supply contracts (TOP20 CN suppliers ) 0% 5% 25% > 90% 6.Project of testing laboratory in China -- prepare for the possibility of testing the products directly in China – verification testing.Select equipment in Europe company GUT 1.Quality manual for year 2011 update and replenishment

11. Thank you for attention 11