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6/9 Progress of PMI at EXCEL

Excel Co., Ltd. is the final case of our PMI processes. We acquired the company in April this year with the aim of expanding the share of the Electronic Components business and the scale of the EMS business, and acquiring new businesses. Here, I will explain the progress made in the six months with respect to new businesses and consolidation and closure of business bases. Regarding the initiatives for new businesses, we introduced two examples. As I will explain the first one, collaboration with Kaltech, in detail on the following slide, I would like to mention the EV bus business. Excel established Alfa Bus Japan Co., Ltd., in 2019, as a sales agent for Jiangsu Alfa Bus Co., Ltd., a Chinese EV bus manufacturer. Alfa Bus Japan is working to expand sales of environmentally friendly EV buses in Japan. Jiangsu Alfa Bus was established in 1999. It manufactures 12-meter-long large EV buses in alliance with a Swedish bus manufacturer in terms of production of vehicles and with a Japanese battery manufacturer in terms of batteries. In China, which leads the world in EV buses, Alfa buses are adopted by the cities of Shanghai, Chengdu, and Wuxi. In Europe, they are also being used for route buses in major cities in Spain and Italy. In Japan, Alfa Bus Japan received two orders from local governments in the first half of the current fiscal year. Needless to say, EV buses are driven by clean energy with no carbon emissions, so I think it is a socially beneficial business in line with the UN SDGs. Regarding the consolidation and closure of sales offices, we are steadily implementing important structural reforms at home and abroad, such as the integration and relocation of business bases and the liquidation of subsidiaries.