Starting with this slide, we can see our four main businesses. We will explain the EMS
business, in the upper right‐hand corner, which is the main theme of today’spresentation.

These are our management targets in the new medium‐term management plan,announced last November. This three‐year plan from FY2022 to FY2024 calls for net
sales of 600 billion yen based on organic growth and 750 billion yen when we include
M&As, operating income of 20 billion yen, and a stable ROE of 8.5% or more in the final
year, which is FY2024.

These are the sales by segment.
In the vertical bars, the EMS business is the second block from the bottom. We believe
EMS business sales will land at about 110 billion yen this fiscal year (FY2021). From
there, the plan is to increase sales by 40 billion yen to 150 billion yen in FY2024.
Therefore, the EMS Business plays a very important role alongside our electronic
components side.

This is a bird’s‐eye view of our new medium‐term management plan. In this plan, oursources of growth will be "organic growth" and "further M&A challenges," which will
generate 750 billion yen.
Our growth opportunities come from our overseas business and EMS business. From
here, we will focus on growth areas like mobility, communications, environment, andindustrial equipment. In these fields, we will aim to be the number one corporate groupin the industry here in Japan, with sales of 750 billion yen. These sales will be driven by
the dual axis of our electronic component business and the high value‐added EMS
business.
In the new medium‐term plan, we are working to go beyond that, to achieve sales of 1
trillion yen and to realize our vision of becoming a world‐class competitive company.
Since the 60th anniversary of our founding coincides with the period of the plan after
the new medium‐term plan, we have established "CHALLENGE 1.60," an expression of
our desire to reach 1 trillion yen at our 60th year. Thank you for your attention to thisbrief introduction. Now, let's move on to the presentation.

Let me begin with a presentation of our EMS business, which is a convenience store‐typeEMS.
Our approach is to create a convenience store‐type EMS that offers convenience andvalue to our customers. On the left side of this page, you can see a comparison between
our own convenience store‐type EMS and general merchandise store‐type EMS –otherwise known as mega EMS. With a small initial investment, we have rented land andbuildings and created a standardized interior construction. In addition to this, as I will
explain later, we are also working to own developed manufacturing equipment. In
addition, we specialize in high‐mix, small‐lot production, and we are especially tailored
toward Japanese‐affiliated industries. Furthermore, we have adopted a “local production
for local consumption” model that enables us to procure, manufacture, and distributeproducts from individual plant hubs.
As for how this is different from mega EMS, despite working on a small scale, we arerolling out a global system where we produce and supply closer to the customer. Today,
under the concept of "Kaga Electronics: Close to our customers" that you can see on theright side, we produce at 21 factories in 10 countries.
Let me take a moment to talk about our history. In 1999, we established Kaga
(Shenzhen) Electronics Ltd. in Shenzhen, China, our Group’s first in‐house plant. In 2004,
we opened a plant in Thailand in Southeast Asia, followed by plants in Suzhou in China in
2007, Czech Republic in Europe in 2009, Hubei in Central China in 2014, Mexico in 2016,
Vietnam in 2017, India and Turkey in 2018, and Aomori and Tottori in Japan in 2019. As
you can see here, with our 21 plants across 10 countries, we have been building asystem over the past two decades that can address our customers' horizontal expansion
on a global scale by securing backup bases to handle country risks.

Next, I would like to introduce one of the most recent examples of the problem‐solving
capability offered by our convenience store‐type EMS. The manufacturing industry has
been directly impacted by a number of issues amid a dramatically changing external
environment: trade friction between the U.S. and China, the impact from the COVID‐19
pandemic, and semiconductor supply shortages. In the midst of these impacts, many of
our customers in the manufacturing industry are experiencing a number of problems,
including longer shipping times, higher logistics costs, financial pressures, reduced
flexibility, and increased risk of supply disruptions when handling exports from remotelocations.
In response to these emerging problems, we have decided to launch a circuit board
mounting business in Turkey in order to meet the growing demand for local production,
especially from our customers in Europe as mentioned here. We believe that this system
will enable us to shorten transport times, control logistics costs, improve financial healthand flexibility, and reduce the risk of supply disruptions. Here, we believe our strength isbeing able to rapidly progress through launch phases by deploying our expertise as is inconvenience store‐type projects mentioned on the previous page.

This is an overview of the new KD TEC Turkey plant, our hub for circuit board mounting
in Europe. Construction is scheduled for completion in November 2022, with a site areaof 15,000 square meters and a total floor area of 11,600 square meters. The plant's
production equipment includes board mounting and manufacturing and inspection
equipment associated with the assembly of electrical components. With a planned
number of 330 employees, this is to become a main plant in Europe for the productionof air‐conditioning equipment, which we already produce elsewhere, as well as mounted
circuit boards for electrical tools and automotive equipment, which we plan to produce
in the future.

These are the details of our medium‐term management plan. While I am sure everyone
is aware of this already, I would like to reiterate a few points. The first is that, tostrengthen and expand our customer base, we are targeting not only Japanese‐affiliatedcustomers, who require quality‐oriented product lines with stable long‐term demand,
but we are also looking to expand to customers based in Europe and the United States.
The second point is that, in our value chain shift to higher value‐added areas, we areaiming to expand our business domain to include development, manufacturing, andmaintenance. Here, we add to our currently established mass production manufacturingcore business by expanding our business domains into development and facilities. The
third point, reinforcing our business base, focuses on our Towada Plant and harnesses
our production center and mother plant. I will explain these in the second half of thepresentation.

Let me quickly explain each of our individual areas of business. The upper section to theright is the automotive field, a core product category for us because of high quality
requirements and stable long‐term demand. Here, we have started producing control
units for various internal equipment, such as electric compressors and AC inverters. We
also produce lighting equipment for the exterior. We produce LED lighting units as well,which are becoming much more prevalent in automobiles. We also make in‐vehicle
auxiliary battery packs, as demand for these packs is growing considerably for usage incommunications. In the center‐right is air conditioner‐related equipment, or more
specifically electrical components used in outdoor A/C units. Our plants handle
everything from board mounting to aluminum sheet assembly. The lower section shows
products for washing toilets. Here, we make sanitary ventilation units, control units, andremote control‐related units. Next to it is electrical tools. The DIY market here has
exploded amid the COVID‐19 pandemic, and we, too, are involved by producing
primarily control boards for DC motors in electrical tools.

Our business domains to this point have been procurement, manufacturing, andinspection; however, from here, we will extend our value chain to development, design,
testing, analysis, and maintenance. This is in order to strengthen the value chain byadding the functions of Fujitsu Electronics (now KAGA FEI), which we acquired three
years ago. In the past, we used "mass production" as the entry point for our transactions.
However, this new expansion will enable transactions to begin with services, like costplanning and cost improvement, that will build business. This will allow us to expand ourbusiness domains from our customers' upstream
into the EMS mass production and manufacturing domains, with added value growing
accordingly. This is the sort of business model that we envision.

This is another high value‐added value chain, but with internally developed production facilities
and IT systems. "HATTEN" in the upper left‐hand corner is a registered trademark of ourcompany. Its brand name, Japanese for "development," expresses our desire to do just that.
Currently, we are working on four areas here: modular soldering baths, surface mounting
equipment, testing equipment, and vertical high‐temperature furnaces. We have alreadyachieved #1, #3, and #4 of these. For #2, we are currently conducting proof‐of‐concept tests.
This is an area where we intend to focus on achieving consistently internally developed
equipment going forward. This will lead to stronger competitiveness with controlled
depreciation, which will allow us to manufacture and process products at prices appealing to ourcustomers. This is an area we intend to refine further going forward.
Next is the "visualization systems" you can see on the right‐hand side. This comes amid the"smart factory" trend, in which quality control, production control, and other manufacturing
data are collected and linked with business data, like current production status and current
inventory levels. This linked data is "visualized" on a real‐time basis. Currently, this visualizationis only available on dedicated computers, but in the future we would like to change this to asystem that can be handled on the cloud, etc., building an environment where data can beviewed anywhere, such as on a smartphone. Below this is our vision of the future system
integration with our customers. In the very middle, we see the external systems – our customers
and suppliers. By linking business data, including an SAP system as shown in the upper section,and manufacturing data, including an MES system as shown in the section below, bothcustomers and suppliers will be seamlessly connected. This initiative, the adoption of digitaltechnologies, is important because it builds a business that is resilient amid change and can keeppace. This is precisely what we are aiming for, to build a business that can ratchet up its
production and manufacturing pace alongside our customers and suppliers amid a rapidlychanging business environment. Our concept is to link these two parties through themechanisms we are building, and to adopt digital technologies in these. The mechanisms we at
the Kaga Electronics Group seek to build are, in a word, resilient.

Here, we present the role of the production center. Here, please consider procurement,
manufacturing, and inspection as value‐added areas. As mentioned earlier in thepresentation, the production center becomes the heart of cross‐functional management
and standardization of 21 factories across 10 countries. It is a section that handles
everything from establishment support, technological support, and facility selection andstandardizes these in a cross‐functional manner while conducting audits and managing
milestones, pursuing the answer to the question of how we can provide products to ourcustomers at consistent quality at the most rapid speed possible.

This is the Towada Plant. Here, we see the trend of combining the functions of a
production center and a mother plant. In other words, our aim is to achieve global
collaboration and development of human resources for production. In addition to thecross‐functionality andstandardization of the production center I mentioned a moment ago, and improving our
BCP linkage, the Towada Plant will serve as both a mother plant and core plant. Here, wewill promote automation, labor‐saving, and adoption of IT technologies, plus support
the start‐up of plants outside of Japan. Our vision here is to develop a global system like
this, consolidating our production, quality, and automation expertise in the Towada Plant
for provision to Group plants.

This is an illustration of the cross‐functionality of our global functions. As I explained
earlier in the presentation, the production center exists to horizontally roll out
standardization of the manufacturing expertise we have developed over two decades.
For the five major markets of Japan, China, ASEAN, the Americas, and Europe, we will
look at our production engineering, quality control, production management,
procurement, and IT in a cross‐functional way. Through standardization, we strive to beconsistent in meeting standards and providing quality levels and services. We haveestablished KPM, our own unique production system, and TTS as our technical standards.
We have documented these and rolled them out to each of our plants. I would like you
to imagine this as a process for building deeper collaboration among the Kaga
Electronics family, ensuring that any of its members, no matter where they are, can havea conversation in the same internal language.

This is our portfolio by industry. By implementing the three priority strategies explainedso far in this presentation, that is, reinforcing and expanding our customer base, shifting
to value chains in high value‐added areas, and reinforcing our business base, we willachieve 150 billion yen in sales in FY2024, 1.4 times the 110 billion yen in sales for thecurrent fiscal year. The fields we will be particularly focusing on as we aim to achievebusiness growth will be the automotive mobility field, the industrial machinery industry,
and the medical field.

In closing, I would like to present two of our SDGs initiatives. On the left side, we have a
picture of solar panels, illustrative of our work to harness renewable energy. We areplanning to introduce solar energy at some of our plants starting in FY2022, with the aimof maximum possible use of renewable energy by 2030. As for the other initiative, in
FY2021, we invited children of our employees to the Shenzhen Plant to experience thework environment and offer a learning experience about comfortable working
environments for our employees and their families. This is one example of our efforts tocreate a comfortable working environment and part of our outreach work to help
deepen understanding of what it is the Kaga Electronics Group does, including ourcontributions to the local community. We intend to continue actively pursuing thesekinds of efforts going forward.

I will now introduce and start the virtual factory tour of KAGA EMS TOWADA, which is
positioned as the mother factory of KAGA Electronics’ EMS business. KAGA EMSTOWADA has the areas and number of employees shown here, and has acquired ISO
certification with respect to quality, environment, medical, and on‐board automotive. In
addition, it has also acquired a license for the general medical device manufacturingbusiness in Japan.
I will mainly explain our key production processes—the mounting process, whereby
components are soldered to circuit boards, and the finished product assembly process,whereby circuit boards with mounted components, mechanical parts, and housing areassembled. I will also introduce the features of our company.

This shows an overview of our factory. The main production items are board mounting,electronic equipment assembly, and inspection. Priority is given to the on‐board
automotive‐related and medical device‐related product fields. Our production lines areautomated surface mount technology lines and dual in‐line package lines, and we also
have finished product assembly lines. For finished products, we have lines to flow a wide
variety of products in small batches, ranging from conveyor production lines to cell
production lines.

Now I will explain our surface mount technology lines, and you will be given a video tourof the lines. First, let’s look at circuit board mounting. There is a process to solder
components to the surface of a circuit board. Recently, as the extreme densification andhigh precision of electronic equipment progress and the components also become
increasingly miniaturized and higher precision, surface mount technology is frequently
used as a technique to mount high‐precision components with high density. Please lookat the figure at the top right for a specific example. This board has an electronic circuit
wired according to the design with pattern copper foil to solder components on top of it.
The technique aligns the terminals of the electronic components with the surface andthen solders them to these parts.

I will explain the specific flow. First, I will give a rough overview of the flow. The photo at
the bottom left shows the state with no components mounted to the board. The parts
where you can see copper foil here are the parts to solder. The terminals of electronic
components are soldered onto this surface. The process involves printing solder paste ina semi‐liquid state onto this terminal part. As shown in the top right figure, a metal platewith holes made just where components are to be soldered is aligned on the board andsolder paste in a semi‐liquid state is printed onto the hole parts of the metal plate. The
holes are filled with the solder by scraping from left to right with a blade‐shaped pieceof metal. The figure at the bottom right shows the finished state. The solder is printed
with extreme precision and minute dimensions, as high quality is demanded.

Next, the photo at the bottom left shows the printed board. An inspection machine forhigh‐resolution 3D optical images such as that in the figure at the top right is used toinspect the printed solder state, including the volume, bleeding, dimness, and position
deviation. If a problem is found in this inspection, the board does not proceed to thenext process. At KAGA, an extremely high level of maintenance and technology ingenuity
ensure an extremely high non‐defective rate.

Next is the process to mount components. The bottom left photo shows the state after
mounting. The specific mounting method is shown in the bottom right illustration. The
electronic components are prepared by inserting them into cassettes in advance, andthose cassettes are placed in the automatic mounter. The automatic mounter performs
vacuum pickup of the components and moves them to their mounting positions at highspeed. The process is implemented by our engineer programming the component
mounting positions and conditions to operate the machine. This is a process that also
demands a high level of engineering skills.

When component mounting is finished, the reflow and oven process begins. In thisprocess, the board is conveyed through a long oven. The solder parts of that board flow
while being subjected to temperature differences in the form of preheating, high‐temperature heating, and finally cooling. When the flow is finished, solder bonding isachieved and the state is as shown in the bottom left photo.

This explains how the line is configured for the basic flow that I explained. Unlike generallines and other companies’ lines, KAGA lines have our unique know‐how incorporated atvarious places. Specifically, (2) the laser marking system and (6) the conveyor with
operator crossing indicated in red on this page are equipment aimed at saving
manpower, as they allow operation by one operator. In addition, (7) joined production
equipment and unjoining equipment are devised so as to increase the speed of board
component mounting. We aim to pursue quality and productivity at a level othercompanies cannot match by incorporating equipment such as this that we have designed
in‐house.

You will now be given a video tour. The first video is about the laser marking described
previously. Laser marking is the process whereby each individual board is marked with aserial number.
Other companies do not generally mark a serial number on each individual board, orthey do so but employ the old method of using a sticker with a printed barcode. We
employ the technique of highly detailed laser marking to achieve a more detailed board
and save board area space. On top of that, we clean the board using board cleaner, andperform solder printing and print inspection as described previously. The beginning of
this video shows about three lines, but you will notice that there are only two or threeworkers.
Whereas other companies have two or three workers per line, we have two or threeworkers for three lines. In other words, you will see that our aim is for one line to be
operated by one operator to save manpower.
–Video playback– (1 minute 20 seconds)
There are very few workers. You are looking at three lines. This is laser marking. Pleaselook at the right side of this board. A laser beam was just emitted. Again, another laser
beam was emitted. At the place pointed to afterwards, a QR barcode is marked where
originally there was nothing. Next, the board is cleaned with air. This is solder printing.
Please look at the printing movement. When the solder paste is inserted into the parts
where holes have been made, it penetrates into the holes. Solder is put on the board inthis state, and the machine you see on the right side of the printer at the center of thisstill image is the printing inspection machine. The inspection image is displayed on themonitor of this inspection machine, and a judgment is made automatically by inspecting
this inspection image from various angles.

–Video playback– (0 minute 46 seconds)
From here onward, the components will be mounted. You can see five machines. The
components are loaded at the bottom of this machine. The middle robot performs theprocess of picking up these components from the near side and opposite side andplacing them on the board. This scene shows components being placed at rapid speed.

–Video playback– (0 minute 36 seconds)
The board with components placed on it is then put in an oven and preheated. This line
then heats and cools the solder to properly bond the board and components together.
The board enters the oven from here. Preheating, heating, and cooling take place in thislong oven. Afterwards, the cooled board is output. An optical inspection is thenperformed on it. This is the optical inspection equipment. There is a board in thelocation that can be seen through this gap, and its image is being inspected precisely by
3D optical inspection. A board judged to be OK in the precision inspection flows to thenext process.

Up to now, I have covered from solder printing to mounting and bonding in the process
for surface mounting and surface soldering, followed by image inspection. Next, I will
cover large components. This process involves soldering components that are notsurface mounted such as large components, connectors, and coils whereby theterminals of the components are inserted into the through holes in the boards that I am
sure you are all familiar with and then soldered from the opposite side of the board.
The flow is as shown. First, the components are inserted into the board. This is shown in
the photo on the left. The board in that photo is then placed in the soldering oven on its
right, and soldering is performed by jet‐flowing molten solder from the opposite side of
the board as shown in the illustration at the bottom right. This is the normal process. We
have uniquely incorporated an image inspection machine developed by the KAGA Groupto perform inspection during the process from mounting components to soldering inorder to ensure quality. Inspection is performed by this image inspection machine toprevent missing components, component mistakes, polarity mistakes, tilting, height, andother human errors. This is also one of our unique initiatives.

This is the overall configuration of a dual in‐line package line. Starting from (1) at the top
left, a reel of components is cut to the specified dimensions. (2) below shows S‐AOI
which is the image inspection machine I explained previously that was independently
developed by the KAGA Group. (3) above shows a spray flux. This applies flux to improvespreading of the solder. (4) below shows a solder bath. This is equipment to jet flow
solder. Out of (2) to (4), (2) was independently developed by the KAGA Group. Although(3) and (4) are equipment that other companies also have, we made them in‐house inorder to achieve productivity and cost improvements. From (5) onwards are theinspection and other processes.

–Video playback– (0 minute 50 seconds)
This is our unique image inspection machine on the conveyor line where components
are inserted. It accurately inspects for mistakes such as component mounting mistakes,
input mistakes, and polarity mistakes by checking images. Only those that are OK aresent to be soldered.
Here you can see a soldering machine called a solder bath, which is made by the KagaGroup. This scene shows the applying of solder. This black box contains boards withcomponents mounted to them. Solder is sprayed from the bottom of the box, which has
parts cut out only where soldering is to be performed on the opposite surface of theboards. The process to apply solder to boards has been covered up to this point.

Next, I will introduce the finished product assembly lines. We have various lines for
assembly. There is a clean room to assemble modules as well as an area to assemble
finished products using a conveyor.

–Video playback– (0 minute 34 seconds)
This is a finished product assembly line for assembling car navigation systems.
The flow from the front is assembly of the module, assembly of the front panel of the
car navigation system, then installation in the housing, and finally inspection. After that,the navigation system is sent to the packing line.
Next, I will explain those assembly processes that are not ordinarily used or thatincorporate unique methods devised by the KAGA Group.

This page introduces the screw fasteners manufactured by KAGA.
While many factories normally use electric screwdrivers as screw fasteners, KAGA aims
to automate screw fastening. For screw fastening, KAGA has uniquely designed anddeveloped both a pressure‐feeding screw fastener and a horizontal screw fastener. Thisinitiative provides better productivity than normal screw fastening.

–Video playback– (0 minute 50 seconds)
This process fastens a board to the housing with screws. Screws are taken out fasterthan with a robot. To achieve this purpose, we use a tube and developed our own
unique technology to automatically feed water through the tube. Next, the screws are
fastened from the side. Whereas normally a worker would turn over or otherwisechange the orientation of the product to fasten screws, we aim to automate the process
by fastening the screws from the side, rather than above, without changing theorientation. This is another example of significantly contributing to productivity andquality improvements.

When a finished product such as a car navigation system is assembled and shipped as a
product, a number of accessories such as an instruction manual, warranty, and otheraccompanying documents are shipped with it. For the process to pick them up to create
one set, we have also independently developed a picking machine to prevent missing
accessories, mistakes, and other human errors.

–Video playback– (0 minute 36 seconds)
The next set is about to begin. A manual drops down from the back left automatically,another manual drops down from the center, a disclaimer is placed on top of them, andfinally an accessory is placed at the very top. This robot that is employed on the line wasdeveloped in‐house to create individual sets without any missing accessories.

Finally, I would like to introduce our features, KAGA Electronics’ EMS business, and thehigh‐quality and high‐reliability initiatives of KAGA EMS TOWADA, which is our motherfactory. We do not accept, use, make, or allow the flow of defective parts, nor do westop the supply to customers, and various mechanisms have been implemented toachieve this goal. A traceability machine has been employed in all appropriate places toimplement proper traceability from part comparison to completion.
Please look at the left middle section. Measures such as static electricity measures andforeign material measures are also implemented at each appropriate place. Next, pleaselook at the right side. To improve the production system, a network‐connected
monitoring system is deployed to always monitor in real time from the production
progress to production planning at the production site, and then control at the office.

This introduces the smart system. This system connects all of the traceability, part
replenishment, and automatic inventory control systems, and performs all line site andoffice control online.

This introduces part control and the implementation of traceability on an individual partbasis. We have deployed a barcode control system.

This introduces our independently developed and deployed system to affix an in‐house
control label to each part when parts enter the warehouse to properly implement thetraceability of parts in all of our processes.

This shows our part alarm and part shortage warning system that we independently
developed to enable one production line to be operated by one operator. With othercompanies’ lines, if a part shortage occurs for an automated machine, a red lamp rotates
and the operator pauses the line to replenish the part. On our lines, such a pause does
not occur because we have independently developed a program to display a warning on
the operator’s tablet notifying them which line a parts shortage will occur on and after
how many minutes. The operator takes the necessary measure before the line stops.

We have received awards for equipment that we independently developed to achieve
productivity and quality improvements. The four representative examples that I
introduced previously received the Commendation for Science and Technology and Prize
for Creativity by the Minister of Education, Culture, Sports, Science and Technology.

In addition, we implement static electricity and foreign material removal at eachappropriate place in the factory, and implement control properly using measures such as
an air shower.

Finally, the TOWADA factory implements productivity improvement, quality
improvement, and our own independent development initiatives, and these initiatives
and the resulting know‐how will be gradually rolled out at other factories of the KAGA
Group. The quality and productivity improvements arising from the rollout of such know‐
how will be further standardized worldwide in order to positively promote the role ofour mother factory to ensure customers continue using our products and services withpeace of mind.
Thank you for your time.