Business operation policyof the new organization(FY2020－FY2022)
February 21, 2020

Kuroda Group Co., Ltd.

(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

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TABLE OF CONTENTS

1. About the new system(1) Transition to a holding company structure(2) Kuroda Group Organization Chart
2. Basic operational policy
3. “Rebuilding and Building” Governance
4. Business Overview(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

･･･ 3･･･ 4･･･ 5･･･ 6･･･ 7

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1. About the new system(1) Transition to a holding company structure

 “Rebuilding and Building” Governance Required for the Kuroda Group

Purpose of Transition
 Visualization and Reflection of Cost Effectivenessto New Structure Focusing and customizing in each business

Before (Until March 31, 2020)
Kuroda Electric Co., Ltd.

Administrativeand Support

After (after April 1, 2020)
Kuroda Group Co., Ltd. (Holding Company)

Development / Manufacturing

Domestic Trading Division

Manufacturing / Proc. (Data Storage)

Overseas Trading Division

Manufacturing / Proc. (Automotive)

Domestic Manufacturing Division

Manufacturing / Proc. (Others)

Data Storage Division(Kuroda Electric Co., Ltd.)

Overseas Manufacturing DivisionAdministrative and Support Division(Kuroda Management Service Co., Ltd.)(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

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1. About the new system(2) Kuroda Group Organization Chart

Kuroda Group Organization (April 1, 2020)
Kuroda Group Co., Ltd. organisation

Board ofDirectors

Auditor

CEOGroupInternal Audit OfficeGroup
Business supervisor

Group
Technicalsupervisor

Group
Legal andGeneral Affairssupervisor

Group
Managementsupervisor

Domestic Trading
Division

Overseas Trading
Division

Domestic
Manufacturing
Division

Data Storage
Division

Overseas
Manufacturing
Division

Administrativeand SupportDivision

1 company
263 employees

15 companies
244 employees

4 companies
444 employees

3 companies
634 employees

7 companies
2,153 employees

1 company
38 employees
Number of employees: 3,776(As of the end of December 2019)(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

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2. Basic operational policy“Value Creationand Customer Satisfaction”
Region (where) × Customer (who) × Customized Business (what)
Creating No.1 from the perspective of increasing No.1

Building a Structure to Strengthen Business(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

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3. “Rebuilding and Building” Governance
Governance (Obligations and Responsibilities)

CommonHoldingCompany

Customization

Tradingcompany

Manufacturing① Dissemination of the Action
Guidelines and Corporate Principles② Building a Risk Management System③ Establish a compliance structure④ Powers and responsibilities clarified

Risk management

ComplianceAppropriate identification and managementof operational risks of each organization,
operation, and process

Strict observance of laws and regulations aswell as in-house rules and respect for social
normsInternal Control
Establishment and operation of systems and processes to properlyand efficiently execute business

Purpose : Continuation of the Kuroda Group's businessSpecific measures (customized by business/region)
Overseas

Storage

Domestic

Overseas

Domestic

 Establishment of guidelines
and implementation of education
 Environmental Measures

Restructuring

Establishment(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

 Response to Financial Risk

 Review of personnel system
 Drafting a BCP(Business Continuity Plan) Supply responsibility and quality
responsibility
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4. Business Overview
Domestic Trading

Overseas Trading

Administrative and Support<Business>
Provide electronic parts and materials
primarily to customers in the automotive andelectronics industries<Business>
・ Provide international trading service tooverseas customers with Domestic Trading
Division・ Provide local trading service to overseas
customers<Business>
Provide value-added management services tothe Kuroda Group<Strength>■ Optimal sales proposals for products fromvarious domestic and overseas suppliers■ Solution-based business that solves
customer problems<Strength>■ Global network of 15 offices in China, Hong
Kong, Taiwan, Malaysia, Thailand, Singapore,
the Philippines, Indonesia, India, Czech Republic,
the United States, and Mexico
China, East Asia, Southeast Asia, Europeand North America

11 sales offices and 6 distribution offices in Japan<Strength>■ Support system for group management withcomprehensive understanding of eachbusiness■ Specialists with deep knowledge ofaccounting, taxation, and legal affairs ineach country
Tokyo, Osaka and China

Domestic Manufacturing

Data Storage

Overseas Manufacturing<Business>
・ Manufacture automatedequipment
・ Manufacture special printing plates・ Contract development of electronic circuitdesign/board design
・ Manufacture electrical equipment andpower materials etc.

<Business>
Manufacture components for hard disk drives(HDD) and solid state drives (SSD)<Business>
Manufacture tooling, metallicparts, plastic parts, and composite products,
mainly in the automotive industry<Strength>■ Development and manufacturing leveraging
proprietary technology in niche industries<Strength>■ Stable supply of mechanical parts to meetcustomers’ quality requirements, supportedby the network of processing technology
and material manufacturers developed overmany years

Kanagawa, Osaka and China(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

Thailand, Japan and China<Strength>■ Production and supply systems to meetcustomers’ requirements in each region

China, Vietnam, Indonesia, Mexico,Thailandand Japan

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End of File(C) 2020 Kuroda Group Co., Ltd. All Rights Reserved.

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