加賀電子_決算動画_20200525_text有_門_英語版

4/10 Progress of PMI at Fujitsu Electronics ②

Next, I will explain synergies resulting from the acquisition of Fujitsu Electronics. ● Starting with the EMS business, last April we launched the EMS/EDMS Sales Division, a sales organization dedicated to EMS, at Fujitsu Electronics. This division combines with Kaga Electronics’ EMS Business Division to implement sales activities aimed at the company’s prime customers. Until now, we have approached 90 companies and secured orders from four companies, and expect to generate sales in this fiscal year as well. Sales negotiations are ongoing with 37 companies, and we anticipate some of these negotiations resulting in multiple projects that will lead to orders. ● The second synergy is cross-selling. We are working our hardest to sell Kaga Electronics products to Fujitsu Electronics’ prime customers. While we have not seen major results in this fiscal year yet, there has been progress with several projects with annual sales projected at several billion yen in two to three years. We are not able to provide details today, but this is a very hopeful development. ● Third, we are consolidating the two companies’ sales offices and organizations. 　These efforts got underway first in Japan, and we have already consolidated the two companies’ office locations in Nagoya. We have also closed Fujitsu Electronics’ sales offices in Hiroshima and Nagaoka, and moved these trading zones to Kaga Electronics’ Kansai and Niigata sales offices. 　We are making major efforts overseas and are currently working on the consolidation of the US sales company by spring 2021. Ahead of this, we plan to consolidate the offices in Chicago and Detroit in the Midwest around summer 2020. We are currently reviewing plans for the two companies’ sales companies in South Korea as well.