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KDSIntroductionFebruary17,2015DaishinkuCorp.中国区代理商上海唐辉电子有限公司Headquarters:Kakogawa,HyogoJAPANCompanyName:DAISHINKUCorp.BrandName:KDSTypeofBusiness:ManufacturingandsalesofelectroniccomponentsStartBusiness:November03,1959CapitalFund:JPY19.345bilBusinessYear:April-MarchAnnualBusiness:JPY32.9bilasofMarch2013Listing:TokyoStockExchange(March,1983)Employees:4,455(Consolidated)HQLocatedAtHyogoPref.(AsofJuly16,2013)CompanyConfidentialManagementPhilosophyGlobalQualityReliablePeopleReliableProductsReliableCompanyVerticallyintegratedmanufacturerCompanyConfidential4OurProductsCrystalCrystalFiltersCrystalUnitsOpticalProductsTFCrystalUnitsCrystalOscillatorsTCXOSPXOCompanyConfidential5CompanyOrganizationPresidentS.HasegawaBusinessManagingDirectorH.TanakaSalesGeneralMGRY.MiyanagaAdministrationManagingDirectorN.DoiR&DDirectorJ.MorikawaProductionDirectorH.TanakaControl&FinanceDirectorT.IshiiAuditingDept.DirectorN.DoiQ&ADirectorK.NakazawaManagementPlanH.MaedaVicePresidentH.NakataCentralLab.VicePresidentH.Nakata--T.Morimoto--J.MorikawaT.Ishii--K.Nakazawa----J.MorikawaCompanyConfidential6SalesOrganizationCompanyConfidential7Sales,R&DSites-JapanCentralLab.TokyoLab.TokyoSalesNagoyaSalesAnnextoHeadOfficeHeadOfficeOsakaSalesCompanyConfidential8SalesSites-OverseasShanghaiLondonFountainValleyDüsseldorfThailandSingaporeShenzhenSuzhouHongKongXianTaiwanSanJoseCompanyConfidential9ManufacturingSites-JapanTottoriEstablishment;October1980Size;35,000m2MainProducts;TCXO,CrystalResonator,TFCrystalUnitsTokushimaEstablishment:April1984Size;88,900m2MainProducts;SyntheticQuartz,SPXO,MCFKanzakiEstablishment;June1974Size;12,500m2NishiwakiEstablishment;January1973Size;15,600m2MainProducts;SyntheticQuartzKyushuEstablishment;November1976Land;24,300m2MainProducts;TFCrystalCompanyConfidential10ManufacturingSites-OverseasHARMONYELECTRONICSShenzhenHARMONYELECTRONICSThailandEstablishment;March,1990Size;11,570m2MainProducts;CrystalResonatorPT.KDSINDONESIAEstablishment;July1989Size;33,000m2MainProducts;CrystalResonatorHARMONYELECTRONICSTaiwanEstablishment;September.1976Size;6,930m2MainProducts;CrystalResonator,SPXOTianjinKDSEstablishment;May1993Size;45,000㎡MainProducts;TFCrystal,OLPFCompanyConfidential11ISO14001:2004ISO9001:2008TS16949:2009HeadofficeTottoriProductionDiv.NishiwakiPlantKYUSYUDAISHINKUCORP.TokushimaProductionDiv.PT.KDSIndonesiaHARMONYELECTRONICS(ShenZhen)CO.,LTD.HARMONYELECTRONICS(THAILAND)CO.,LTD.TIANJINKDSCORP.HARMONYELECTRONICSCORP.(Taiwan)AsofNovember13,2013ISO/TSCertificatesCompanyConfidential12ManufacturingSites/ProductsMatrix(AsofOctober,2013)[●]:Available[●]:willbeavailablein2013[▲]:DeclineProductTypePackageSizeTottoriTokushimaKyusyuIndonesiaTianjinTaiwanThailandShenzhenDSX1612S1612●●DSX211Ax2016●●DSX211G2016●DSX221G2520●●DSX221Sx2520●●●DSX321Gx3225●●●DSX320G3225●DSX321Sx3225●●●DSX530Gx5032●●DSX840Gx8045●●DSR221STH2520●●DSR211ATH2016●AT-49/SMD-49●●●DST1610A/DST210A1610/2012●DST310S/410S3215/4015●DMX-26S8032●●DT-38/DT-263x8,2x6●TCXOAllsize●DSO1612AR/211AR1612/2016●DSO221SR/321SR2520/3225●●DSO751SR7349●●FilterDSFSeriesAllsize●OpticalOLPF,IRCF●OscillatorMHzCrystalUnitkHzCrystalUnitCompanyConfidential1334,76335,88240,90141,94636,47831,97837,98335,1501,6733,8204,462-3831,2271,42531630,22534,50032,8551,6352,539800381-5,00005,00010,00015,00020,00025,00030,00035,00040,00045,000FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13NetSalesOperatingIncomeMilJPYNetSales,OperatingIncome1-3Q26,3331-3Q786CompanyConfidential14SalesBreakdownbyMarketSegment36%32%30%29%26%19%20%30%28%20%17%16%17%14%13%15%15%18%20%3%4%4%5%6%22%26%33%36%41%6%0%20%40%60%80%100%FY07FY08FY09FY10FY11FY12IndustrialAutomotiveComputer&PeripheralConsumerTelecommunicationCompanyConfidential1560%58%66%68%61%62%28%34%27%25%31%29%6%4%4%3%4%5%5%4%4%4%5%5%0%20%40%60%80%100%FY07FY08FY09FY10FY11FY12EuropeNorthAmericaJapanAsiaSalesBreakdownbyRegionCompanyConfidential16Y2012CrystalCompanyW/WRankingB16%KDS10%F4%G3%H2%Others24%E5%D6%I2%C9%A19%Source)KDSestimateMarketsizeJPY326.4BCompanyConfidential1717FocalProducts–MobileDeviceGPS/GNSSPMDST1610AL•Ultrasmall,thin32.768kHz•1610size•0.35mmMax.HeightDSB1612SDM•HighStabilityTCXO•LowPhaseNoise•1612Size3G/4GDSR211ATH•XTALwithbuiltinTemp.Sensor•2016sizeWiFi/BT/NFCDSX1612S•XTALUnit•1612sizeCompanyConfidential18FocalProducts–AutomotiveElectronicsECURKE/TPMSDSX320G•Heatcycling3000cyclesdurable•Lowfrequency8MHzavailable•AEC-Q200DSX321G•Highshockdurability•AEC-Q200Camera•HighreliabilityOpticalthinfilm•ApplicableforvariousimagesensorsOLPF,IRCFITSDSX321G•XTALUnit•3225size•AEC-Q200DSK321STD•32.768kHzTCXO•13smo.deviationovertemprange•AEC-Q100CompanyConfidential19FocalProducts–SmartMeterDSB535SG•UltraHighStabilityTCXO•Stratum3•5032sizeWirelessDataTransferMeteringUnitDST311S•32.768kHzcrystalunit•LowEMI•3215sizeTimekeepingDSK324SR•HighStabilityRTCModule•LowCurrentConsumption•I2CBUSinterface(400kHz)•3225size“I2CBUS”isaregisteredtrademarkofNXPSemiconductorCompanyConfidential20FocalProducts–OtherApplicationsSurveillanceCa

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