SEKAI TECHNOLOGY S A de C V Reynosa

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

1. Introduction n n COMPANY NAME: SEKAI TECHNOLOGY, S. A. DE. C. V (ISO 9001: 2008) 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 n Parque Industrial Reynosa Brecha E 99 #2105, REYNOSA, TAMPS C. P. 88785. MEXICO TELEPHONE: +52(899) 2634078, 1295927 Fax: +52(899) 1295929 n BUSINESS STATUS: IMMEX (MAQUILADORA) n OPERATIONS : n ADDRESS: W/H SERVICE VMI OPERATION SORTING-INSPECTION-REWORK 1

1 -1. AKIYAMA ENGINEERING GROUP AKIYAM ENGINEERING (Since 1960) (Yokohama Japan) AEG A 1 LLC (Mc. Allen, Texas USA) CLARION KENWOOD JVC SONY TOSHIBA VELVAC AEG A 1 SA DE CV (Since 1997) (Toluca, Edo de Mexico) San Juan Del Rio Plant (Queretaro, Mexico) Reunosa Plant (Tamps, Mexico) Tijuana, Plant (BC, Mexico) SEKAI TECNOLOGY LLC (Mc. Allen, TEXAS USA) Clarion ELIKA HARADA TOPRE AUTOPARTS MEX MITSUBISHI ELECT. PANAMEX (Panasonic Mex) PHAM (Panasonic Monterrey) PAVCA JVC JUNTEC KUGAMI ONEDA TOYOTA TSUSHO MITSUWA CHEMICAL CMK (Mc. Allen, TEXAS USA) FUJITSU-TEN DE MEXICO PASMX (Panasonic Reynosa) ALL 1 SOURCE ENGINEERING PTE PAVC Networks SEKAI TECNOLOGY SA DE CV (Since 2000) (SINGAPORE) 2

1 -2. Organization Chart H. AKIYAMA PRESIDENT / CEO RICHARD HERRERA TATSUMI HORI VICE-PRESIDENT IT ADVISOR CARLOS LARA QC MANAGER BELIZARIO ROJAS VMI OPERATIONS MANAGER J. Alejandro Gonzalez IMP/EXP SUPERVISOR Jose Robles, Adara Jacome WAREHOUSE SUPERVISOR CARLOS GUADALUPE LARA RODRIGUEZ SORTING MANAGER Thelma Castillo, Alejandro Villanueva SORTING ASSISTANT ADMINISTRATION IVETH OLIVEROS, ELVIA PEREZ ADMIN. ASSISTANT Thelma Castillo QC SUPERVISOR 3

2. WAREHOUSING n SPACE : 30, 000 Sq. Ft (Including Offices) EXPANDABLE TO APPROX 200, 000 Sqft n BUILDING: STEEL STRUCTURE AND PREFABRICATED CONCRETE PANEL n n CONTAINER YARD: 5 CONTAINER PARKING CAPACITY DOCK: RECEIVING 1 SHIPPING PICK UP n n 1 1 PALLET STORAGE CAPACITY: 7, 000 Sq. Ft SECURITY FEAUTURE: GATED SITE, 24/7 SECURITY WEB CAMERA VIDEO DATA MAINTEINED FOR 3 MONTHS SCHEDULED PATROL BY SEQURITY GUARD 4

FACTORY LAYOUT Expandable 5

Security Camera View 6

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

3. 1 SORTING SECTION PANEL, ESCUTCHEON, LENS (PLASTIC PARTS) PC BOARDS CHASSIS (METALLIC STAMPING PARTS) HEAT SINK (DIE CASTING) LCD 8

3. 2 LCD INSPECTION INSTRUMENTS OSCILOSCOPE POWER SUPPLY SOURCE 9

4. Measurement and Inspection Instruments Inspection Microscope Digital Microscope Height Gauge CMM Ionizing Air Gun 10

5. VMI SUPPORT OPERATIONS (1) BENEFITS CUSTOMER SUPPLIER • INVENTORY REDUCTION • SERVICE IMPROVEMENT AT COMPETETIVE • WAREHOUSE COST REDUCTION ⇒ BETTER CASH FLOW COST OF SEKAI ⇒ BUSINESS EXPANSION • CLOSENESS TO SUPPLIERS’ INVENTORY ⇒ SHORTER TRANSIT TIME • SEKAI’S DELIVERY TRUCK IS AVAILABLE FOR URGENT MATERIAL COMMON BENEFIT • MINIMIZING EXPEDITED AIR FREIGHT COST • NO EXTRA COST FOR TRANSPORTATION WHEN SORTING, REWORKING, AND VMI 11

(2) VMI OPERATION SEQUENCE 1. CUSTOMER: 2. SUPPLIER: 3. SEKAI: 4. SEKAI: 5. CUSTOMER: 6. SEKAI: 7. SEKAI: 8. SUPPLIER: RESERVATION / BLANCKET ORDER TO SUPPLIER SHIPMENT TO SEKAI VIA NIPPON EXPRESS (cross-dock for Sekai) BORDER CROSSING RECEIVING & INSPECTION WHEN NECESSARY DELIVERY ORDER TO SEKAI SHIPMENT (VIRTUAL EXPORT) TO CUSTOMER SHIPPING REPORT TO SUPPLIER INVOICING * VMI Warehouse Inventory Can Be Monitored at Potal Site 12

SUPPLIER n VMI PROCESS 2 SHIPPING USA 3. CROSS-DOCK 8. INVENTORY CHECK INSPECTION MEXICO CUSTOMS 4. INSPECTION CUSTOMS CLEARANCE 1. P/O 7. PAYMENT SEKAI WAREHOUSE CUSTOMER 5. PULL ORDER 6. DELIVERY 9. INVENTORY CHECK 13

ASN (advance shipping notice) Supplier Nippon Express Panasonic Electronic ASN n n 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 14

Welcome page http: //www. sekaitechnology. com 15

SEKAI’S * Web Inventory * EDI System * Sorting Materials - Module

Pull Order Customer 17

Inventory Screen 18

Pick List 19

Shipment – Delivery Note 20

ASN to Customer 21

Sort Materials Module - Hold qty. - Good qty - NG qty (identification by defect and quantity it). 22

Sort Materials Module - Identification by defect and quantity it. Damaged Maintenance Client: Panasonic Automotive Systems Supplier: CMK America Corporation Report Run: 3/6/2013 8: 23: 05 AM Date 03/05/2013 02/06/2013 Invoice# INQ 13011852 INQ 12121721 FO-CCA-34 PO# Supplier PO# Packing# Part# 8049089 20130125/C-PASM-05124 -00 2013010781 M 3 J 486601 A 8048461 20121130/C-PASM-05062 -00 2012111237 M 3 J 486617 Bin CMK-NG CMK-NG No Good Sort Issue 546 Foreign Material 63 scratch pad 42 Copper Exposed 8 Obstructed Hole 2 scratch pad ===== Total: 661 23