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, 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) SEKAI TECNOLOGY SA DE CV Clarion ERICA HARADA MABE MITSUBISHI ELECTRONIC S MITSUTOYO PANAMX PHAM PAVCA JVC JUNTEC KUGAMI ONEDA TOYOTA TSUSHO MITSUWA CHEMICAL (Mc. Allen, TEXAS USA) FUJITSU-TEN DE MEXICO PASMX ALL 1 SOURCE ENGINEERING PTE PAVC Networks (Since 2000) (SINGAPORE) 2

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

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

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 9

(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 10

SUPPLIER n VMI PROCESS 2 SHIPPING 1. P/O 7. PAYMENT USA 3. CROSS-DOCK 9. INVENTORY CHECK INSPECTION MEXICO CUSTOMS 4. INSPECTION CUSTOMER CUSTOMS CLEARANCE SEKAI WAREHOUSE 5. PULL ORDER 6. DELIVERY 9. INVENTORY CHECK 11

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 12

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 1 st Step 18

2 nd Step • Fill in the Username and Password. • • Click Username= pasmex 10 password: pm 1234 (Note: you can change password to your shown on next slide) 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