SEKAI TECHNOLOGY, S.A. de C.V Reynosa, Tamps, Mexico W/H SERVICE VMI Operation Sorting-Inspection-Rework

1. Introduction COMPANY NAME: SEKAI TECHNOLOGY, S.A.DE.C.V COMPANY NAME: SEKAI TECHNOLOGY, S.A.DE.C.V (ISO 9001:2008) QUALITY POLICY: QUALITY POLICY: At SEKAI TECHNOLOGY, we commit ourselves to provide customers with the best solutions of logistics that fulfill the requirements of customers, in order to be market leaders and ensure of the personnel that works with us ADDRESS: Parque Industrial Reynosa ADDRESS: Parque Industrial Reynosa Brecha E99 #2105, REYNOSA, TAMPS C.P MEXICO TELEPHONE: +52(899) , Fax: +52(899) TELEPHONE: +52(899) , Fax: +52(899) BUSINESS STATUS: IMMEX (MAQUILADORA) BUSINESS STATUS: IMMEX (MAQUILADORA) OPERATIONS : W/H SERVICE OPERATIONS : W/H SERVICE VMI OPERATION SORTING-INSPECTION-REWORK 1

1-1. AKIYAMA ENGINEERING GROUP Clarion ERICA HARADA MABE MITSUBISHI ELECTRONICS MITSUTOYO PANAMX PHAM PAVCA JVC SEKAI TECNOLOGY LLC (McAllen, TEXAS USA) JUNTEC KUGAMI ONEDA TOYOTA TSUSHO MITSUWA CHEMICAL SEKAI TECNOLOGY SA DE CV (McAllen, TEXAS USA) FUJITSU-TEN DE MEXICO PASMX ALL 1 SOURCE ENGINEERING PTE (Since 2000) (SINGAPORE) PAVC Networks AEG A1 SA DE CV (Since1997) (Toluca,Edo de Mexico) San Juan Del Rio Plant (Queretaro, Mexico) Reunosa Plant (Tamps, Mexico) Tijuana, Plant (BC, Mexico) AKIYAM ENGINEERING (Since 1960) (Yokohama Japan) CLARION KENWOOD JVC SONY TOSHIBA VELVAC AEG A1 LLC (McAllen, Texas USA) 2

1-2. Organization Chart RICHARD HERRERA IT ADVISOR AKIYAMA PRESIDENT / CEO BELIZARIO ROJAS VMI OPERATIONS MANAGER JANET JIMENEZ IMP/EXP SUPERVISOR JOSE ROBLES WAREHOUSE SUPERVISOR CARLOS LARA SORTING MANAGER THELMA CASTILLO SORTING ASSISTANT GUADALUPE RODRIGUEZ ADMINISTRATION IVETH OLIVEROS, ELVIA PEREZ ADMIN. ASSISTANT TOYOIZUMI VICE-PRESIDENT CARLOS LARA QC MANAGER THELMA CASTILLO QC SUPERVISOR 3

2. WAREHOUSING SPACE : 30,000 SqFt (Including Offices) SPACE : 30,000 SqFt (Including Offices) EXPANDABLE TO APPROX 200,000Sqft EXPANDABLE TO APPROX 200,000Sqft BUILDING: STEEL STRUCTURE AND PREFABRICATED CONCRETE PANEL BUILDING: STEEL STRUCTURE AND PREFABRICATED CONCRETE PANEL CONTAINER YARD: 5 CONTAINER PARKING CAPACITY CONTAINER YARD: 5 CONTAINER PARKING CAPACITY DOCK: RECEIVING1 DOCK: RECEIVING1 SHIPPING1 PICK UP1 PALLET STORAGE CAPACITY: 7,000SqFt PALLET STORAGE CAPACITY: 7,000SqFt SECURITY FEAUTURE: SECURITY FEAUTURE: GATED SITE,24/7 SECURITY SECURITY WEB CAMERA VIDEO DATA MAINTEINED FOR 3 MONTHS SCHEDULED PATROL BY SEQURITY GUARD 4

FACTORY LAYOUT 5 Expandable

Security Camera View 6

3.SORTING & INSPECTION 7 OUR RELIABLE AND EXPERICENCED QA STAFF WILL WORK WITH YOU

4. Measurement and Inspection Instruments Inspection Microscope Digital Microscope Height Gauge Ionizing Air Gun CMM 8

5. VMI SUPPORT OPERATIONS (1) BENEFITS CUSTOMER INVENTORY REDUCTION WAREHOUSE COST REDUCTION ⇒ BETTER CASH FLOW CLOSENESS TO SUPPLIERS’ INVENTORY ⇒ SHORTER TRANSIT TIME SEKAI’S DELIVERY TRUCK IS AVAILABLE FOR URGENT MATERIAL SUPPLIER SERVICE IMPROVEMENT AT COMPETETIVE COST OF SEKAI ⇒ BUSINESS EXPANSION COMMON BENEFIT MINIMIZING EXPEDITED AIR FREIGHT COST NO EXTRA COST FOR TRANSPORTATION WHEN SORTING, REWORKING, AND VMI 9

(2) VMI OPERATION SEQUENCE 1. CUSTOMER: RESERVATION / BLANCKET ORDER TO SUPPLIER 2. SUPPLIER:SHIPMENT TO SEKAI VIA NIPPON EXPRESS (cross-dock for Sekai) 3. SEKAI:BORDER CROSSING 4. SEKAI:RECEIVING & INSPECTION WHEN NECESSARY 5. CUSTOMER:DELIVERY ORDER TO SEKAI 6. SEKAI:SHIPMENT (VIRTUAL EXPORT) TO CUSTOMER 7. SEKAI:SHIPPING REPORT TO SUPPLIER 8. SUPPLIER:INVOICING * VMI Warehouse Inventory Can Be Monitored at Potal Site 10

2 SHIPPING 2 SHIPPING VMI PROCESS VMI PROCESS USA 3.CROSS-DOCK MEXICO CUSTOMS CUSTOMS INSPECTION INSPECTION CUSTOMS CUSTOMSCLEARANCE 1.P/O 1.P/O 7.PAYMENT 7.PAYMENT 9. INVENTORY CHECK CHECK CUSTOMER CUSTOMER 5. PULL ORDER 6. DELIVERY 9. INVENTORY CHECK INSPECTION SEKAI WAREHOUSE SUPPLIER 11

ASN (advance shipping notice) Electronic ASN between Nippon-Sekai-Customer when shipment is in transit. Shipment arrival to Sekai; Sekai scans Nippon’s order number and supplier’s barcode label. Sekai’s system will match and verify against ASN data. Minimal amount of manual work in the process of receiving. High level of efficiency in receiving and productivity Supplier Nippon Express Electronic ASN 12 Panasonic Electronic ASN

MONTHLY REPORT 13

Inventory Screen 14

Manual Pull Order Screen 15

SEKAI’S WEB INVENTORY & EDI SYSTEM

Welcome page 17

1 st Step 1. Click on the Login 18 1 st Step 1. Click on the Login

2 nd Step Fill in the Username and Password. Username= pasmex10 password: pm1234 (Note: you can change password to your shown on next slide) Click on the Submit button 19

3 rd Step Click on My Info 20

On this screen you have access to change your old password and assign a new password as desired. Click submit to approve of changes 21

4 th Step Click on Inventory Report to view current inventory 22

5 th Step Select the dates Select the supplier (here you only see one supplier but as we start receiving suppliers you will see the list expand) Click on submit to view report on hand 23

6 th Step On this step you will be able to see all the information requested by P.O.# 24

EDI System allows us to provide varieties of services to our customers Creating and sending the pull request (Kanban Release) is time consuming, isn’t it? 25

From the information provided through EDI, SEKAI will be able issue the pull request on be half of our customer. 26

Our Web Inventory and EDI system will provide you all necessary information at your finger tip. System also allows you to access various information that you might need. 27