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Business Policy & Future Challenges



Sanshin Electronics's management policy can be summed up in the policy phrase, "Sanshin Electronics demonstrates its reason for being through trust and solutions." Based on this policy, we shall reinforce our businesses by taking on the management tasks listed below, so that we can continue to grow.

1. Strengthening sales expansion with an improved technical support system

The Device Segment will concentrate staffing allocations to general-purpose products, where the Company can take the initiative in extending technical support and strengthening tie-ups with design firms. This should improve the Companyfs ability to expand sales and boost revenue. The Solution Segment will also expand its range of system proposals and maintenance and support menus by receiving partner certification from supplier vendors and acquiring the necessary technical qualifications.

2. Strengthening our global sales system

Our Device Segment has been dealing with a notable emergence of EMS/ODM companies in China and Taiwan as well as a shift to overseas production by customer set makers. The Company now operates 13 overseas facilities in nine countries. We are committed to developing new business by expanding our markets and by flexibly relocating and establishing bases through customer relationship management.

3. Expanding product lineups for turn-key solutions

Both the Device Segment and the Solution Segment have been required to offer a turnkey solution to customers in a comprehensive proposal, rather than simply selling discrete products. This makes it essential to expand the product lineup. The Company plans to continue to develop new products so that it has a broad product lineup and can offer proprietary turnkey solutions that incorporate the technologies it has developed.

4. Strengthening compliance and support for corporate social responsibility (CSR)

Increasingly, companies engaging in global operation are required to comply with laws, regulations, and directives in overseas countries. The Company will seek to strengthen compliance support so that its customers and suppliers enjoy security in transactions. In particular, the Device Segment is facing tighter controls over materials included in products, reflecting growing awareness of the environment and security. The Company has already set up sections that are responsible for each supplier and has built a cross-company control system for greater reinforcement of control. Amid growing expectations for CSR, the Company will aim to improve its internal control system, execute comprehensive quality control, and take steps to reduce the burden it places on the environment so that it is regarded as a good corporate citizen.

5. Comprehensive adoption of risk controls

While strengthening its capabilities in the areas described above, the Company will take comprehensive steps to minimize potential losses and build a lean cost structure. In particular, responding to the higher risks incurred by holding inventory to accommodate rising customer demand for shorter lead-times, the Company will aim to tighten risk control by concluding prior agreements and improving the collection of accurate information through customer relationship management, while also strengthening the monitoring function of the relevant sections.
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