February 21, 2020

Kuroda Electric Co., Ltd.
Koichi Hosokawa, President and Executive Officer

Notice of Transition to a Holding Company Structure
and its Management Structure
Kuroda Electric Co., Ltd. announced today that its new group structure and management structure
effective from April 1, 2020 as follows.
Kuroda Electric Co., Ltd. and its subsidiaries have been operating trading and manufacturingbusiness in Japan and overseas, with Kuroda Electric at the top. However, effective from April 1,
2020, our group will shift to a group structure with the holding company, Kuroda Group Co., Ltd.
(currently KM Holdings Co., Ltd., the corporate name to be changed on April 1, 2020) at the top.
In addition, Kuroda Electric Co., Ltd. will focus on the trading business as a business unit of theDomestic Trading Division, and it plans to transfer the shares of its domestic and overseas subsidiaries
to Kuroda Group Co., Ltd. by the end of June 2020. Furthermore, the administrative and support
functions that Kuroda Electric Co., Ltd. has been providing to itself and its subsidiaries will betransferred to a new company, Kuroda Management Service Co., Ltd., which is scheduled to beestablished on April 1, 2020.

1. Holding Company Structure after April 1, 2020
(1) Overview of the New Group Structure

Kuroda Group Co., Ltd. (Holding Company, Headquarter in Tokyo)
Domestic Trading Division

Overseas Trading Division

Domestic Manufacturing Division

Data Storage Division

Overseas Manufacturing Division

Administrative and Support Division

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(2) Objectives of the New Group Structure
Kuroda Electric Co., Ltd. began its business as a specialized trading company mainly focusing onelectrical materials and electronic components in 1945. Shortly, it started its manufacturing andprocessing business, becoming the base of current Kuroda’s group structure. While Kuroda groupwill continue its unique business model as “a trading company with manufacturing capability”, inorder to further strengthen both of our trading and manufacturing business, it will shift from angroup structure with Kuroda Electric Co., Ltd. (trading business) at the top, to a new groupstructure with the holding company at the top that enables us to deploy trading and manufacturingbusiness in parallel. With this new group structure, Kuroda group will “rebuild and build”
corporate governance, deal with management issues promptly, optimize management resource
allocation, and utilize human resources proactively, aiming to fully leverage each business’scompetitive advantages.
(3) Roles of the Holding Company “Kuroda Group Co., Ltd.”
Kuroda Group Co., Ltd. will have four functions: Business Supervision, Technology Supervision,
Legal and General Affairs Supervision, and Management Supervision, and will operate six businessdivisions: Domestic Trading Division, Overseas Trading Division, Domestic Manufacturing
Division, Data Storage Division, Overseas Manufacturing Division, and Administrative andSupport Division, at the top of the group governance system.
The execution of business operation at Kuroda Group Co., Ltd. will be outsourced to Kuroda
Management Service Co., Ltd. in Administrative and Support Division.
(4) Roles of “Kuroda Electric Co., Ltd.” in Domestic Trading Division
Currently, Kuroda Electric Co., Ltd. has been providing administrative and support functions toitself and its subsidiaries, in addition to its domestic trading business. From April 1, 2020, Kuroda
Electric Co., Ltd. will transfer these administrative and support functions to Kuroda ManagementService Co., Ltd. and focus on trading business.
Through the collaboration with its suppliers and customers from various industries, which havebeen cultivated over the past 75 years since its foundation, Kuroda Electric Co., Ltd. will continue
to play an indispensable role in value creation by consolidating“valuable information” fromexcessive information and applying it in other business divisions.
(5) Roles of “Kuroda Management Service Co., Ltd.” in Administrative and Support Division
Kuroda Management Service Co., Ltd., which is scheduled to be established on April 1, 2020,
will provide administrative and support functions to all Kuroda group as an “executive unit ofgroup management”, and will aim to exploit full potential of each Kuroda group’s company.
Specifically, Kuroda Management Service Co., Ltd. will establish departments for Corporate
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Planning, Finance and Accounting, Human Resources, Legal and General Affairs, Information
Management, and Business Development. We will aim to become a “value-creating”
Administrative and Support Division, by managing and supporting other five business divisions,and focusing on “rebuilding and building corporate governance”, “strengthening finance”,“solving management issues”, and “contributing to the achievement of goals of each businessdivision and company ”.

2. Executive Structure in FY2020 (from April 1, 2020)(1) Kuroda Group Co., Ltd.
Directors / Auditor
Representative Director

Koichi Hosokawa

Director

Kenichiro Kagasa

Director

Tetsuya Kaneko

AuditorHisashi Chisaka(2) Kuroda Electric Co., Ltd.
Directors / Auditor
Representative Director

Koichi Hosokawa

Representative Director

Yasunobu Mori

Director

Katsuhiro Sasano

Auditor

Masayuki Nagashima

Executive Officers
President
and Executive Officer
Vice President
and Executive Officer

Koichi Hosokawa

Department Director
Automotive Business Department

Yasunobu Mori

Executive Officer

Kozo Nakayama

Executive Officer

Maki Ishii

Executive Officer

Hiroyuki Machii

Department Director
Western Japan Business Department
Department Director
Administrative Department
Deputy Department Director
Administrative Department

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