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5/9 Progress of PMI at Kaga EMS Towada(Former Towada Pioneer ）

The next topic is the PMI process of Kaga EMS Towada Co., Ltd., which became a Group company, in October 2019, as a result of the acquisition of former Towada Pioneer. The company was originally manufacturing automotive navigation systems and others as Pioneer Corporation’s subsidiary. After entering our Group, the company has eagerly been seeking new customers not to depend on its existing products. One approach is cooperation with Kaga Electronics’ EMS Business Division. Kaga EMS Towada has obtained two mass production orders for onboard automotive products and one mass production order for office automation equipment. As it was qualified as a certified plant of a major Japanese electronics manufacturer, transactions are expected to increase. The other way is through their own efforts. As Towada Pioneer, the company acquired a license for manufacturing medical equipment. Against this backdrop, it obtained two orders from Japanese medical equipment makers. One of our purposes of the acquisition was to strengthen our manufacturing capabilities in the EMS business. We share Kaga EMS Towada’s long-standing expertise as a dedicated electronics maker, excellent human resources for production, production facilities, quality assurance system and other tangible and intangible assets and are making horizontal deployment globally. We aim to improve quality levels of our EMS business as the Group’s mother factory and enhance our competitive edge.