Presentation from Supplier s Viewpoint SHIMADZU CORPORATION Solutions for

Presentation from Supplier’s Viewpoint SHIMADZU CORPORATION Solutions for Science since 1875 (http: //www. shimadzu. com) IAQG General Assembly Meeting March 14 th, 2002 in Kyoto

Presentation Outline Brief Overview of Shimadzu Corporation Aircraft Equipment Division _ Trend of Business Environment _ Key Points of Supplier’s Quality Activity _ Concluding Remarks _

Shimadzu Corp. Aircraft Equipment Division Outline • LOCATION • EMPLOYEES • AREA • SALES (2000) • PRODUCTS : : : Kyoto, Japan 470 77, 100 Square Meters (857, 000 SF) 227 Million US$ (120 YEN/US$) AEROMECHANICAL EQUIPMENT AVIONICS EQUIPMENT SPACE EQUIPMENT GROUND SUPPORT EQUIPMENT • CORPORATION : HONEYWELL INTERNATIONAL WITH KAISER AEROSPACE & ELECTRONICS (OVERSEAS CAE ELECTRONICS PARTNERS) • CUSTOMERS : JDA AIRCRAFT COMPANIES AIRLINE COMPANIES

Shimadzu Corp. Aircraft Equipment Division Approval Status of Our System _ Approved Organization (Mar. 23, 1964) based on Civil Aeronautics Law _ Business Permission (Nov. 27, 1979) based on Aircraft Manufacturing Industry Law _ _ _ Boeing D 1 -9000 ISO 14001 ISO 9001: 1994 (Nov. 12, 1992) (Jun. 24, 1997) (Aug. 24, 1999)

Shimadzu Corp. Aircraft Equipment Division Main Products AEROMECHANICAL EQUIPMENT • ENVIRONMENTAL CONTROL SYSTEM • FLIGHT CONTROL SYSTEM • HYDRAULICS SPACE EQUIPMENT • FUNCTIONAL COMPONENTS FOR ROCKETS & SATELLITES • SPACE EXPERIMENT EQUIPMENT • GEARBOX • ELECTROMECHANICAL ACTUATOR AVIONICS EQUIPMENT GROUND SUPPORT EQUIPMENT • COCKPIT DISPLAY SYSTEM • FUNCTIONAL TEST EQUIPMENT • AIR DATA SYSTEM • AEROSPACE MEDICAL EQUIPMENT • MAGNETIC ANOMALY DETECTOR SYSTEM • ELECTRONIC CONTROL EQUIPMENT/OTHERS

Shimadzu Corp. Aircraft Equipment Division Samples of Main Products (1 of 2) T-4 ECS PACKAGE B 767 SHUTOFF VALVE MODULE F 2 PDU GEARBOX B 767 SLAT GEAR BOX B 777 MLG TRUCK POSITION ACTUATOR B 757, 767, 777 POWER DRIVE UNIT, CARGO DOOR HINGE

Shimadzu Corp. Aircraft Equipment Division Samples of Main Products (2 of 2) B 747, 757, 767 APU DOOR ACTUATOR BK-117 ACTUATOR & CONTROLLER ATM & SAM, MISSILE FIN ACTUATOR F-15 HUD H-1 PROPELLANT VALVE, G-TRAINING CENTRIFUGE FILL & DRAIN VALVE

Trend of Business Environment （Level） high Supplier’s Goal ・quality ・delivery current level ・regulation ・quantity ・price low Present Future

Key Points of Supplier’s Quality Activity _ _ _ Standardization of Quality Requirement Efficient Evaluation for Supplier Evaluation for Vendors of Purchased Parts including Catalog/Standard Parts and Raw Materials Consideration for Production Volume Difference of Requirements between AS 9100 and FAR Deregulation for Export Parts

Key Points of Supplier’s Quality Activity Standardization of Quality Requirement Present Requirements in individual companies AS 9100 as the common requirement of the aerospace industry (AS 9100 + additional requirements in individual companies) Future - Simplification of supplier’s documents - Reduction of redundant expenses

Key Points of Supplier’s Quality Activity Efficient Evaluation for Supplier Present Third-party audit + Customer audit + Internal audit - Emphasis on audit evaluation by third-party - Standardization of self-evaluation for internal audit Future Third-party audit + Internal audit

Key Points of Supplier’s Quality Activity Evaluation for Vendors of Purchased Parts including Catalog/Standard Parts and Raw Materials Present Audit responsibility for supplier using the above parts Establishment of an authorized audit group consisting of IAQG memberships Future Reduction of redundant audit expenses sharing the information through the authorized audit group

Key Points of Supplier’s Quality Activity Consideration for Production Volume Present Requirement to use statistical control, in particular key characteristics Flexible requirements in consideration of small lot production, in particular parts machined by manual operation Future - Conformity against AS 9100 even for small lot production through emphasizing on processes - Reduction for administrative expenses

Key Points of Supplier’s Quality Activity Difference of Requirements between AS 9100 and FAR Present Difficulty of understanding Instruction / guidebook / cross reference about FAR as related document of AS 9100 Future Clarification for compliance with airworthness conformity

Key Points of Supplier’s Quality Activity Deregulation for Export Parts Present Complexity of regulatory formalities AS 9100 Conformity Mark on products sample: AS Future Simplification of regulatory formalities 9100

Concluding Remarks We are convinced that quality improvement & cost reduction as supplier’s responsibility will be achieved through leadership of IAQG. Thank you for your great efforts !