NEXTY ELECTRONICS WORLD vol.170 JAN 2018

東京本社(本店) 〒108-8510 東京都港区港南2-3-13 品 川 フ ロ ントビル TEL:03-5462-9611 FAX:03-5462-9690 名古屋本社 〒450-0002 愛知県名古屋市中村区名駅4-11-27 シンフォニー豊田ビル TEL:052-558-4100 FAX:052-561-1761 大阪支店 〒542-0081 大阪府大阪市中央区南船場4-3-11 大阪豊田ビル TEL:06-6243-6611 FAX:06-6243-6701 仙台営業所 〒980-0021 宮城県仙台市青葉区中央4-10-3 仙 台キャピタルタワー TEL:022-221-8061 FAX:022-221-8055 松本営業所 〒390-0815 長野県松本市深志2-5-26 松本第一ビル TEL:0263-34-6131 FAX:0263-34-6130 神戸営業所 〒651-0086 兵庫県神戸市中央区磯上通8-3-5 明治安田生命神戸ビル TEL:078-272-1660 FAX:078-272-1770 福岡営業所 〒812-0011 福岡県福岡市博多区博多駅前1-2-5 紙与博多ビル TEL:092-436-4001 FAX:092-436-4002 商品センター 〒207-0021 東京都東大和市立野4-495 TEL:042-846-0001 FAX:042-846-0101 VAセンター 〒207-0021 東京都東大和市立野4-495 TEL:042-846-0088 FAX:042-846-0099 TAQSセンター 〒446-0004 愛知県安城市尾崎町大縄1-3 豊通物流ビル TEL:0566-96-4433 FAX:0566-97-3467 Overseas Report-Part 1

Special Feature: Overseas Report-Part 1 Introducing the NEXTY Around the World

Roughly 670 employees at our overseas offi ces provide the highest standard of services to all of our customers worldwide. These offi ces manufacture and sell of semiconductors and electronic components as well as the provision of expansive, high-quality services to overseas offi ces of Japanese companies as well as local customers with same level of support as in . This fi rst overseas feature article introduce general information about each country where our overseas offi ces are located. We will showcase our overseas offi ces through a series of three volumes.

Introduction

We supervises and supports our 24 local subsidiaries, branches, and liaison offices outside of Japan. We are also able to leverage the Tsusho Group global network that has grown to more than 90 countries around the globe, which establishes a system able to support customers in every region of the world. The sales of our overseas bases have reached roughly half of our total sales and we are conducting business under a four region system made up of Asia/Oceania, East Asia, Americas, and Europe to take a step even closer to our customers and provide thorough daily Overseas Division support. Senior Executive Offi cer For example, we offer local services to ensure a stable supply by setting up warehouses dedicated Masayoshi Yamazaki to electronic components at each of our overseas bases. In addition, we are gradually expanding Toyotsu Automotive Quality Support (TAQS) Centers, which execute analyses of quality and reliability defects, to the four overseas regions and strengthening our quality support functions overseas. Furthermore, we have established a system to promote research and development tailored to the needs of our customers by opening research facilities in China (Shenzhen/Chengdu/Beijing) and India (Delhi/Pune). We aim to be an electronics business active on the global stage by taking advantage of our one of the largest corporate scale in Japan and the world’s largest scale in the automotive fi eld along with our technical proposal capabilities and global network.

Global Organization E u r N o r t h A m e i c a A s i a / O c e n E a s t A i o p e M u n i c h S a n J o s e H o n g K S i n g a p o r e M a n i l P r a g u e B a r H a n o i M o n t e r D e t r D a l i n T D e l h i K u a l L m p r B a n g k o ( D e v i c s ) B a n g k o ( S f t w r S h a n g i S h e n z ※1 ※1 ※2 J a k r t ※2 a i w n c e l o n a o i t

e y

e ) P u n e M u m b a i B e n g a l u r B e i j n g W P e n a g C h e n g d u u h a n

※1 Planned to be established in April 2018 ※2 Directly controlled by the Embedded Solution Division As of April 2018

1 Overseas Report-Part 1

Growth of the Semiconductor Market and NEXTY Electronics

Change in Semiconductor Market Scale and History Of NEXTY Electronics

1995 Release of Windows 95 1995 Singapore/Hong Kong Unit : $ and start of widespread 1996 Internet use 1996 San Jose 1997 1998

1999 Introduction of the Euro in the EU 1999 Established Shanghai Hong Ri International Electronics Co., Ltd. (joint venture with Hua Hong Semiconductor Ltd.) 2000 2001 2002 2003 2003 Established Toyota Tsusho Electronics Corporation Taipei 2004 2005 2005 Shanghai/Bangkok 2006 2006 Merger of Toyota Tsusho and parent company Tomen Corporation 2007 2007 Acquired semiconductor sales business in the APAC and Indian markets from INGRAM MICRO Detroit 2008 Lehman Shock 2008 Acquired 26% equity stake of Germany-based C&S Group 2009 GmbH Established software base in Dalian Hanoi/Delhi/ Shenzhen/Kuala Lumpur/Penang/Mumbai/Bengaluru/Dalian Popularization of smart- 2010 phone and tablet terminals 2010 Beijing/Chengdu 2011 2012 Increased equity stake of Germany-based C&S Group 2012 GmbH to 34.21% Wuhan/Pune 2013 2013 Jakarta/Manila Restructuring of the semi- 2014 conductor industry 2014 Became a wholly-owned subsidiary of Toyota Tsusho Corporation Established Automotive Quality Centers in 2015 Self-driving vehicles, artifi cial Thailand and China Monterrey intelligence, and AR were 2016 Established automotive software development joint 2016 focused as technologies close to daily lives. venture company with Corporation in Thailand 2017 2017 Birth of NEXTY Electronics 2018 2018 Munich/Barcelona/Prague (planned to be established in April) 500,000 300,000 100,000 0 Notes: Information based on IHS Markit, Technology Group, Semiconductor Application Blue text: Forecast AMFT Intelligence Service, December 2017. Information is not an endorsement of Nexty Electronics. Any reliance on these results is at the third party's own risk. Established overseas Visit www.technology.ihs.com for more details. bases

Sales Ranking of Global Semiconductor Manufacturers FY2017 Consolidated Business Performance Ranking of Electronics Trading Companies in Japan

2017 2017 Revenue (Unit: M¥) Rank Vendor Revenue Market Rank Vendor (M$) Share Performance Full-year Forecast 1 1 Samsung Electronics 61,215 14.6% 1 NEXTY Electronics※ 454,693 (9.5) 491,622 (8.1) 2 Intel 57,712 13.8% 2 Macnica Fuji Electronics Holdings 398,503 (▼1.7) 420,000 (5.4) 2 3 SK hynix 26,309 6.3% 3 UKC Holdings※ 282,000 (▼2.3) Not published 4 Micron Technology 23,062 5.5% 4 Marubun 270,698 (▼3.2) 260,000 (▼4.0) 5 Qualcomm 17,063 4.1% 5 Kanematsu Electronics (Devices Division) 254,280 (8.2) 260,000 (2.2) 6 Broadcom Ltd. 15.490 3.7% 6 Kaga Electronics 227,209 (▼7.4) 230,000 (1.2) 7 Texas Instruments 13,806 3.3% 7 Ryoden 219,225 (▼1.2) 224,800 (2.5) 8 12,813 3.1% 8 Ryosan Company 218,003 (▼4.4) 230,000 (5.5) 9 Western Digital 9,181 2.2% 9 Sanshin Electronics 167,654(▼15.8) 185,000 (10.3) 10 NXP Semiconductors 8,651 2.1% 10 Tachibana Eletech 160,218 (▼1.2) 165,000 (3.0) 11 STMicroelectronics 8,138 1.9% 11 Tomen Devices 156,677(▼17.3) 160,000 (2.1) 12 Apple 7,940 1.9% 12 Vitec Holdings 138,841 (▼4.5) 170,000 (22.4) 13 MediaTek 7,829 1.9% 13 Electron Device 131,855 (11.9) 140,000 (6.2) 14 Infi neon Technologies 7,657 1.8% 14 Hakuto 127,599 (9.7) 134,000 (5.0) 15 Renesas Electronics 6,774 1.6% 15 Kanaden 122,984 (2.0) 127,000 (3.3) 16 Nvidia 6,533 1.6% 16 Sun-Wa Technos 116,611 (10.3) 126,000 (8.1) 17 6,424 1.5% 17 Shinko Shoji 112,458 (▼3.6) 123,000 (9.4) 18 Analog Devices 5,739 1.4% 18 Hagiwara Electric 101,755 (9.1) 105,000 (3.2) 1 19 On Semiconductor 5,300 1.3% 19 Iida Electronics (Tsusho) Group※ 100,300 (▼8.9) 80,000(▼20.2) 20 AMD 4,881 1.2% 20 Excel 98,703(▼33.7) 110,000 (11.4) Notes: Gartner applies M&A activity to the whole calendar quarter in ※1 Unlisted company which the deal was closed. Numbers may not add to totals shown ※2 Includes full-year forecast as of 1/30 as fi nancial results are not published because of rounding. Source: Excerpt from June 30, 2017 Dempa Shimbun Daily The table was created by NEXTY Electronics based on research by Gortner Source: Gartner「Market Share Analysis: Semiconductors,Worldwide, Preliminary 2017 Estimates」, December 29, 2017 NEXTY Electronics and partner manufacturers Group company and partner manufacturers

2 Overseas Report-Part 1

Semiconductors by Global Region at a Glance

Automotive Industrial

Wireless 344.510 Communication Consumer B$

Storage Compute

※The above fi gures include Mil/Space and Subsystems Wired Communication

EMEA Europe, Middle East and Africa Automotive Industrial Equipment/Power Electronics Consumer Electronics Computers Storage Information and Communications Design Amoun of Products Purchase Amount of Products

11.91811.918 10.53110.531 B$ B$ B$ B$ 9.556 9.556 9.992 9.992 B$ B$ B$ B$ 4.649 4.649 6.743 6.743 11.91811.918 B$ B$ 10.53110.531 B$ B$ B$ B$ B$ B$ Total 36.496B$ Total 34.905B$ 9.556 9.556 9.992 9.992 B$ B$ B$ B$ 4.649 4.649 6.743 6.743 Rest of Asia/Pacifi cB$ Asia/PaciffiB$ c countries excluding Japan, China and TaiwanB$ B$ 22.10022.100 17.69217.692 B$ B$ B$ B$ Design Amoun of Products Purchase Amount of Products 7.186 7.186 10.154 10.154 B$ B$ B$ B$ 6.997 6.997 9.723 9.723 22.10022.100 B$ B$ 17.69217.692 B$ B$ B$ B$ B$ B$ 7.186 7.186 10.154 10.154 B$ B$ B$ B$ 6.997 6.997 9.723 9.723 B$ B$ B$ B$ 34.19534.195 53.25253.252 B$ B$ Total 51.913B$ B$ TotalB$ 61.046B$ 33.132 33.132 51.945 51.945 B$ B$ B$ B$ The above images were created by NEXTY Electronics based on research by Gartner. (Rounded to billion dollars) 10.065 10.065 19.378 19.378 Source:34. Gartner,195 OEM,34. ODM195 and EMS SemiconductorB$ Demand,B$ Worldwide, 2016:53. Database,25253. Masatsune252 Yamaji, April B$20, 2017 B$ B$ B$ B$ B$ 3 33.132 33.132 51.945 51.945 B$ B$ B$ B$ 10.065 10.065 19.378 19.378 B$ B$ B$ B$ 43.73043.730 21.08421.084 B$ B$ B$ B$ 24.051 24.051 10.135 10.135 B$ B$ B$ B$ 12.793 12.793 9.916 9.916 43.73043.730 B$ B$ 21.08421.084 B$ B$ B$ B$ B$ B$ 24.051 24.051 10.135 10.135 B$ B$ B$ B$ 12.793 12.793 9.916 9.916 B$ B$ B$ B$ 9.6479.647 6.1456.145 B$ B$ B$ B$ 8.886 8.886 5.893 5.893 B$ B$ B$ B$ 7.513 7.513 4.118 4.118 9.6479.647 B$ B$ 6.1456.145 B$ B$ B$ B$ B$ B$ 8.886 8.886 5.893 5.893 B$ B$ B$ B$ 7.513 7.513 4.118 4.118 B$ B$ B$ B$ 11.91811.918 10.53110.531 B$ B$ B$ B$ 9.556 9.556 9.992 9.992 B$ B$ B$ B$ 4.649 4.649 6.743 6.743

11.91811.918 B$ B$ 10.53110.531 B$ B$ Overseas Report-Part 1 B$ B$ B$ B$ 9.556 9.556 9.992 9.992 B$ B$ B$ B$ 4.649 4.649 6.743 6.743 Design11.91811. 918Amount/PurchasingB$ B$ 10.53110. 531AmountB$ B$ 22.B$10022.B$100 17.B$69217.B$692 B$ B$ B$ B$ 9.556 9.556 9.992 9.992 7.B$186 7.B$186 10.B$154 10.B$154 B$ B$4.649 4.649 B$ B$6.743 6.743 6.B$997 6.B$997 9.B$723 9.B$723 22.Greater10022. China100 China,B$ Taiwan B$ 17.69217.692 B$ B$ B$ B$ B$ B$ Design7. Amoun186 7. of186 Products Purchase Amount10. 154of Products10.154 B$ B$ B$ B$ 6.997 6.997 9.723 9.723 22.10022.100 B$ B$ 17.69217.692 B$ B$ 34.B$19534.B$195 53.B$25253.B$252 B$ B$ B$ B$ 7.186 7.186 10.154 10.154 33.B$132 33.B$132 51.B$945 51.B$945 B$ B$6.997 6.997 B$ B$9.723 9.723 10.B$065 10.B$065 19.B$378 19.B$378 34.19534.195 B$ B$ 53.25253.252 B$ B$ B$ B$ B$ B$ Total 98.442B$ Total 157.462B$ 33.132 33.132 51.945 51.945 B$ B$ B$ B$ 10.065 10.065 19.378 19.378 34.Americas19534.195 North, MiddleB$ and SouthB$ America 53.25253.252 B$ B$ 730 730 21.08421.084 43.B$ 43.B$ B$ B$ B$ B$ B$ B$ Design33. Amoun132 33. of132 Products Purchase Amount51. 945of Products51.945 24.B$051 24.B$051 10.B$135 10.B$135 B$ B$ B$ B$10.065 10.065 19.378 19.378 12.B$793 12.B$793 9.B$916 9.B$916 43.73043.730 B$ B$ 21.08421.084 B$ B$ B$ B$ B$ B$ 24.051 24.051 10.135 10.135 B$ B$ B$ B$ 12.793 12.793 9.916 9.916 43.73043.730 B$ B$ 21.08421.084 B$ B$ 9.6479.647 6.1456.145 B$ B$ B$ B$ B$ B$ Total 112.943B$ B$Total 63.B$966B$ 24.051 24.051 10.135 10.135 8.B$886 8.B$886 5.B$893 5.B$893 B$ B$12.793 12.793 B$ B$9.916 9.916 Japan 7.B$513 7.B$513 4.B$118 4.B$118 9.6479.647 B$ B$ 6.1456.145 B$ B$ B$ B$ B$ B$ Design Amoun of Products Purchase Amount of Products 8.886 8.886 5.893 5.893 B$ B$ B$ B$ 7.513 7.513 4.118 4.118 9.6479.647 AutomotiveB$ B$ Industrial 6.1456.145 B$ B$ B$ B$ B$ B$ Wireless886 886 344.510 8.Communication8. Consumer 5.893 5.893 B$ B$ B$ B$ B$ 7.513 7.513 4.118 4.118 StorageB$ B$ Compute B$ B$

Total 43.719B$ Total 26.135B$

Automotive Industrial Equipment/Power Electronics Consumer Electronics Computers Storage Information and Communications

Each region includes the fi rst to third ranks. Monetary amount and size of the illustration are unrelated.

4 Overseas Report-Part 1

Basic Information of Each Country/Region (1) ~Outline of Each Country/Region NEXTY Electronics Operate~

Republic of Singapore ■ Language: English, Chinese (Mandarin), Malay, and Tamil ■ Religion: Buddhism, Islam, Hinduism, Taoism, Christianity, etc.

.0% ■Topics 2 ・ Singapore is advancing its“ Smart 297(B$) 52.961(K$) Acreage: 719.2km2 Nation”concept that utilizes ICT Total Nominal GDP Nominal while providing further investment (Approximately the size of the 23 GDP Per Wards of Tokyo) Real GDP Person into self-driving technology Growth Rate as one measure to resolve traffi c Current problems Account .50% Balance ・ The nation is strengthening Population: 5.61 million 0 56.501 (B$) % measures to control the 2016 Singapore Department of Trade 17 Statistics Balance Corporate increase of foreign workforce. 82.786 (B$) Tax The evaluation criteria are Consumer Singapore US Dollar % becoming stricter not only for Dollar Exchange 7 Value-added Inflation Rate 1.38 Rate new applications but also for Tax renewals

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS SINGAPORE PTE. LTD. Address:600 North Bridge Road, No.16-03 Parkview Square, Singapore 188778 Capital:SGD 500,000 Established:March 1995 Employees:37

Kingdom of Thailand ■ Language: Thai ■ Religion: Theravada Buddhism, other Islam religions, Christianity, etc.

.2% ■Topics 3 ・ There are more than 5000 406.95(B$) 5.899(K$) Japanese companies located Capital: Bangkok Total Nominal GDP Nominal in Thailand (2017) 2 GDP Per The country is putting its strength Acreage: 513,115km Real GDP Person ・ (Approx. 1.4 times the size of Growth Rate into attracting industries in Japan) Current pursuit of advanced technology, Account such as next-generation automo- .2% Balance 0 48.237 (B$) % biles, and intends to prepare Trade 20 benefits such as income tax Balance Corporate deductions for up to 15 years 36.539 (B$) Tax Population: 66.76 million under the slogan,“Thailand 4.0” Consumer US Dollar % 2013 National Economic and ・ The treaty of amity between Inflation Rate Baht Exchange 7 Value-added Social Development Board 35.30 Rate Tax Japan and Thailand celebrated 130 years in 2017 Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS (THAILAND) CO.,LTD Address:15th-16th Floor, Mercury Tower, 540 Ploenchit Road Lumpini, Pathumwan, Bangkok 10330 THAILAND Capital:THB 32,000,000 Established:April 2005 Employees:284

Malaysia ■ Language: Malay, English, Chinese (Mandarin), and Tamil ■ Religion: Islam, Buddhism, Hinduism, Christianity, etc.

.2% ■Topics 4 ・ Malaysia is advancing industry 297(B$) 9.390(K$) based on its Vision 2020 Total Nominal GDP Nominal “ ” Capital: Kuala Lumpur GDP Per and is putting its strength Real GDP 2 Person into attracting companies to Acreage: 330,290km Growth Rate the country, such as aviation (Approx. 0.87 times the size of Current instrument parts, robotics, IoT, Japan) Account .1% Balance and medical devices 6.921 (B$) % 2 ・ Diplomatic relations was Trade 24 Balance Corporate established with Malaysia 60 Population: 31.70 million 24.377 (B$) Tax years ago as of 2017 2016 Department of Statistics Consumer US Dollar % Malaysia Inflation Rate Ringgit Exchange 6 Value-added 4.46 Rate Tax

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS MALAYSIA SDN. BHD Address:Room1406, Wisma Lim Foo Yong, No86, Jalan Raja Chulan 50200 Kuala Lumpur,Malaysia Capital:MYR 600,000 Established: May 2008 Employees: 12

※ The number of employees of the company is as of the end of November 2017

5 Overseas Report-Part 1

~Singapore, Thailand, Malaysia, Indonesia, India, and the Philippines~

Republic of Indonesia ■ Language: Indonesian ■ Religion: Islam, Hinduism, Christianity, etc.

.0% ■Topics Capital: Jakarta 5 ・ President Joko Widodo declared 932(B$) 3.604(K$) 2 his desire to develop a project Acreage: 1,910,931km Total Nominal GDP Nominal in the field of infrastructure with (Approx. 5.1 times the size of GDP Per Real GDP Person Japan) Growth Rate Japan thanks to 60 years of diplomatic relations as of Current Account 2018 .0% Balance 3 △16.769(B$) % Trade 25 Population: 258.71 million Balance Corporate 2017 Estimates of Statistics 15.437 (B$) Tax Indonesia Consumer US Dollar % Inflation Rate Rupiah Exchange 10 Value-added 13,307 Rate Tax

Company Name:PT.TOYOTA TSUSHO TOMEN ELECTRONICS INDONESIA Address:Mid Plaza 2 Building Lantai 12. Jl. Jend. Sudirman kav. 10-11 Jakarta 10220, Indonesia Capital:USD 2,500,000 Established:January 2013 Employees:25

India ■ Language: Hindi, English, etc. ■ Religion: Hinduism, Islam, Christianity, Sikhism, Buddhism, etc.

.1% ■Topics 7 ・ India has surpassed Germany Capital: Delhi 1,818.56(B$) 1.723(K$) 2 Total Nominal GDP Nominal in the number of new vehicle Acreage: 3,287,263km GDP Per sales in 2017 to become the (Approx. 8.8 times the size of Real GDP Person fourth largest market in the Growth Rate Japan) world Current Account ・ The country is expected to .5% Balance simplify the tax procedures △22.088(B$) % 4 and make distribution more Trade 30Corporate Balance Tax efficient among other things △118.717(B$) Population: 1,210.19 million % through the introduction of Consumer US Dollar 2011 Census Rupee Exchange 12.5~14.5 goods and services taxes Inflation Rate 67.03 Rate Value-added Tax (GST) in July 2017

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS INDIA PRIVATE LTD. Address:Offi ce No.108-111, Plot no.A-2/3/4, Tower 1, HB Twin Tower, Netaji Subhash Place, New Delhi 110034, India Capital: INR 500,000 Established:May 2008 Employees:40

Republic of the Philippines ■ Language: Filipino, English, etc. ■宗Religion: Christianity and other Christian denominations, Islam, etc.

.9% ■Topics 6 ・ The Philippines clarifi ed policies (B$) .924(K$) Capital: Manila 305 2 that focus on improving the Nominal 2 Total Nominal GDP Acreage: 300,000km GDP Per investment environment with the Real GDP Person (Approx. 0.8 times the size of Growth Rate “10-Point Socioeconomic Japan) Agenda”in May 2016 Current Account ・ The country announced the .8% Balance Comprehensive Automo- 1 0.601 (B$) % Trade 30 tive Resurgence Strategy Balance Corporate Population: 100.98 million △34.079(B$) Tax (CARS) Program in 2015. This program aims to produce 2015 Philippine Statistics Authority Consumer US Dollar % Peso Exchange 12 Value-added 600,000 vehicles annually after Inflation Rate 47.5 Rate Tax six years.

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS SINGAPORE PTE. LTD. MANILA REPRESENTATIVE OFFICE Address:W-15 23rd F Tower 6789, Ayala Avenue 6789,Bel-Air, Makati City 1227, Philippines Established:August 2013 Employees:5

Source: 2016 data from the basic economic indicators on the JETRO website (as of end of December 2017) Some information is based on our research

6 Overseas Report-Part 1

Basic Information of Each Country/Region (2) -Outline of Each Country/Region NEXTY Electronics Operate-

Hong Kong ■ Language: Chinese and English ■ Religion: Buddhism, Taoism, and Christianity

.95% ■Topics 1 ・ Hong Kong started the opera- Acreage: 1,104.4km2 320.7(B$) 43.528(K$) Nominal tion of a facial recognition (Approx. Half the size of Tokyo) Total Nominal GDP GDP Per system for foreign national Real GDP Person Growth Rate from abroad in the customs area at the Hong Kong Inter- Current Population: 7.37 million Account national Airport in 2017 2016 Hong Kong Census and .39% Balance 14.886 (B$) .5% Statistics Department 2 Trade 16 Balance Corporate △17.575 (B$) Tax Consumer Hong US Dollar % Kong Exchange 0 Value-added Inflation Rate Dollars 7.76 Rate Tax

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS HONG KONG CO., LIMITED. Address: Room 2702, Block 1, 27/F, Admiralty Centre, 18 Harcourt Road, Hong Kong Capital:HKD 3,000,000 Established:July 1995 Employees:33

Taiwan ■ Language: Chinese, Southern Min (Taiwanese), etc. ■ Religion: Buddhism, Taoism, and Christianity 1.5% ■Topics 528.6(B$) 22.453(K$) ・ Taiwan is entering Muslim Total Nominal GDP Nominal markets and strengthening Acreage: 36,197km2 GDP Per relationships with ASEAN, Real GDP Person (Approx. size of Kyushu) Growth Rate Southern Asia, New Zealand, and Australia through export Current Account of IoT systems such as smart .4% Balance Population: 23.54 million 1 72.252 (B$) % medicine and human re- Trade 17Corporate source exchanges as part of its 2016 National Statistics, Republic Balance Tax of China (Taiwan) 70.631 (B$) New Southbound Policy % Consumer New US Dollar Taiwan Exchange 5 10 Inflation Rate Dollar 32.3 Rate ̃ Value-added Tax

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS HONG KONG CO., LTD. TAIWAN BRANCH Address:10F-2, No.577 Lin Shen North Road, Taipei, Taiwan 10406 ROC Capital:New Taiwan Dollar 5,000,000 Established:June 2003 Employees:7

※ The number of employees of the company is as of the end of November 2017

7 Overseas Report-Part 1

-Hong Kong, Taiwan, China, and Vietnam-

People’s Republic of China ■ Language: Chinese ■ Religion: Buddhism, Islam, Christianity, etc. 6.7% ■Topics 11,218(B$) 8.113(K$) ・ The Chinese government an- Capital: Beijing Total Nominal GDP Nominal nounced the“Fuel Economy GDP Per Standards and NEV Man- 2 Real GDP Person Acreage: 9.6 million km Growth Rate date”in September 2017 (Approx. 25 times the size of Current ・ The country is seeing a 5 to Japan) Account .0% Balance 7% rise in labor costs 2 196.380(B$) % Trade 25 Balance Corporate 494.077(B$) Tax Consumer US Dollar % Inflation Rate Renminbi Exchange 17 Value-added Population: 1,382.71 million 6.64 Rate Tax 2016 National Bureau of Statistics of China Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS SHENZHEN CO., LTD. Address:Suite A03-04, 12th Floor Anlian Plaza, 4018 Jintian Road, Futian District,Shenzhen, PRC 518026 Shenzhen, PRC 518026 Capital:USD 500,000 Established:May 2008 Employees:39 Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS SHANGHAI CO., LTD. Address:2nd Floor Wheelock Square, 1717 Nanjing Road West, JingAn Dist., Shanghai, PRC 200040 Capital:USD 3,000,000 Established:May 2005 Employees:30 Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS(DALIAN)CO., LTD. Address:No.4, #03, 04, 4F, No7, Hui Xian Yuan, Hi-tech Industrial Zone, Dalian, 116025 China Capital:JPY 195,000,000 Established:November 2008 Employees:167

Socialist Republic of Vietnam ■ Language: Vietnamese and other minority languages ■ Religion: Buddhism, Catholicism, Caodaism, Hoahaoism, etc.

.2% ■Topics 6 ・ Vietnam has changed the 202.62(B$) 2.215(K$) import vehicle tariff from 30% Capital: Hanoi Total Nominal GDP Nominal GDP Per to 0% in accordance with 2 Real GDP Person Acreage: 331,690km Growth Rate a mutual agreement of the (Approx. 0.88 times the size of Association of South East Asia Current Japan) Account Nations (ASEAN) .7% Balance ・ Diplomatic relations was 2 8.235 (B$) % Trade 20 established between Japan and Balance Corporate 1.777 (B$) Tax Vietnam 45 years ago as of 2018 % Population: 92.70 million Consumer US Dollar Dong Exchange Value-added 2016 General Statistics Offi ce Inflation Rate 10 21,932 Rate Tax of Vietnam

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS HONG KONG CO., LTD. HANOI LIAISON OFFICE Address:Room 106,Business Center,Sun Red River Building 23 Phan Chu Trinh Street, Hoan Kiem District, Hanoi, Vietnam Established:April 2008 Employees:3

Source: 2016 data from the basic economic indicators on the JETRO website (as of the end of December 2017) Some information is based on our research.

8 Overseas Report-Part 1

Basic Information of Each Country/Region (3) -Outline of Each Country/Region NEXTY Electronics Operate-

Federal Republic of Germany ■ Language: German ■ Religion: Catholicism, Protestantism, and Judaism

.77% ■Topics 1 ・ Germany is the largest trading (B$) (K$) 3,467 41.902 partner of Japan in Europe Total Nominal GDP Nominal Capital: Berlin GDP Per ・ The country has the highest GDP Real GDP Person in all of Europe Acreage: 357,385km2 Growth Rate ・ Germany has adopted legisla- (Approx. 0.95 times the size of Current Japan) Account tion to prohibit diesel and gaso- .48% Balance 0 289.16(B$) % line vehicles by 2030 Trade 15 Balance Corporate 301.01(B$) Tax Population: 82.18 million Consumer US Dollar % Euro Exchange 19 Value-added 2015 Federal Statistical Offi ce of Inflation Rate 0.90 Rate Germany Tax

Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS EUROPE GmbH Capital:EUR 161,000 Established:January 2018 Employees:Approx. 20

Czech Republic ■ Language: Czech ■ Religion: Catholicism, Non-religious, Protestantism, etc. 2.41% ■Topics Capital: Prague 193(B$) 18.286(K$) ・ The restoration of diplomatic relations was established 2 Total Nominal GDP Nominal Acreage: 78,870km GDP Per between Japan and the Czech Real GDP (Approx. 0.21 times the size of Person Republic 60 years ago as of Japan) Growth Rate Current 2017 Account ・ Major domestic automotive .64% Balance 2.1387 (B$) % manufacturers have commit- Population: 10.58 million 0 Trade 19 ted to the promotion of robo- 2016 Czech Statistical Offi ce Balance Corporate 10.2868(B$) Tax tics in their factories Consumer US Dollar % Inflation Rate Koruna Exchange 21 Value-added 24.44 Rate Tax

※Planned to be established in Prague in April 2018

Spain ■ Language: Spanish ■ Religion: Catholicism

.24% ■Topics 3 ・ Spain has a 460 year history (B$) .609(K$) 1,233 26 of favorable relationship with Total Nominal GDP Nominal Capital: Madrid GDP Per Japan Real GDP Person ・ Exports from Japan in terms 2 Growth Rate Acreage: 505,968km of foreign trade have been (Approx. 1.3 times the size of Current Account increasing since 2012 Japan) .20% Balance 0 24.077 (B$) % Trade 25 Balance Corporate △19.646(B$) Tax Consumer US Dollar % Population: 46.47 million Euro Exchange Value-added Inflation Rate .90 21 2016 Spanish National Institute 0 Rate Tax of Statistics ※Planned to be established in Prague in April 2018

※ The number of employees of the company is as of the end of November 2017

9 Overseas Report-Part 1

-Germany, Czech, Spain, United States, and Mexico-

United States of America ■ Language: English ■ Religions: Protestantism, Roman Catholic, Judaism, etc.

.5% ■Topics 1 ・ The U.S. lowered its corporate 18,625(B$) 57.591(K$) tax rate from 35% to 21% Total Nominal GDP Nominal GDP Per ・ The country is impacted by the Real GDP Person various infl uences of the political Growth Rate Capital: Washington D.C. party in power (Mexican factory Current plans, stricter V2X extensions/ 2 Account Acreage: 9,833,517km Balance .3% 451.685 visas, etc.) (Approx. 26 times the size of 1 △ (B$) % Japan) Trade 35 Balance Corporate △752.507(B$) Tax % Consumer US Dollar Inflation Rate Yen Exchange 0 Value-added 108.7 Rate Tax Population: 323.12 million 2016 Estimates Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS AMERICA, INC. Address:1798 Technology Drive Suite 210, San Jose, CA95110, U.S.A. Capital:USD 300,000 Established:January 1996 Employees:6

United Mexican States ■ Language: Spanish ■ Religion: Catholicism, etc.

.9% ■Topics 2 ・ Many automotive and automotive .93(B$) .562(K$) 1,076 8 component manufacturers, etc. Total Nominal GDP Nominal GDP Per established new factories and Real GDP Person sales companies in Mexico after Capital: Mexico City Growth Rate the Japan-Mexico EPA was 2 Current Acreage: 1,964,375km Account signed (Approx. 5.2 times the size of .4% Balance ・ Increase in new and additional △22.650(B$) % Japan) 3 investments Trade 30 Balance Corporate ・ The minimum wage is roughly △13.125(B$) Tax % 90 dollars a month, which Consumer Mexican US Dollar Peso Exchange 16 Value-added is the among the lowest in Inflation Rate 18.6641 Rate Population: 122.27 million Tax developing nations 2016 National Population Council (CONAPO) Company Name:TOYOTA TSUSHO NEXTY ELECTRONICS MEXICO, S.A. DE C.V. Address:Calle Septima No. 300, Suite 1020,Parque Industrial Monterrey, Apodaca, NL, C.P. 66603, Mexico Capital:MXN 1,292,860 Established:June 2014 Employees:11

Source: 2016 data from the basic economic indicators on the JETRO website (as of December 2017). Some information is based on our own research.

Contact: Corporate Planning Dept. ℡.03-5462-9666

10 NEXTY ELECTRONICS WORLD

特集企画:海外特集 第一弾 世 界 に広 がるネクスティをご 紹 介します vol.171 APR 2018 半 導 体 市 場 の成 長とネクスティ エレクトロニクス ひと目で分かる世界の地域別半導体 デザイン額・購入額 各国・地域の基本情報① ~シンガポール、タイ、マレーシア、インドネシア、インド、フィリピン~ 各国・地域の基本情報② ~ 香 港 、台 湾 、中 国 、ベ ト ナ ム ~ 各国・地域の基本情報③ ~ドイツ、チェコ、スペイン、アメリカ、メキシコ~

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