Hitachi Kokusai Electric : Making the Turkish broadcast van manufacturer BCS into a consolidated subsidiary

July 1, 2016
Hitachi Kokusai Electric Inc.

Hitachi Kokusai Electric Inc. (hereinafter 'Hitachi Kokusai'; head office: Chiyoda-ku, Tokyo, Japan; President and Chief Executive Officer: Kaichiro Sakuma) announces that, on June 30, BCS Teknoloji Yayıncılık ve Haberleşme Sistemleri Sanayi ve Ticaret A.Ş. (hereinafter 'BCS'), which is engaged mainly in the development, design, and manufacture of outside broadcasting vehicle systems, became a consolidated subsidiary of Hitachi Kokusai Electric Turkey Elektronik Ürünleri Sanayi ve Ticaret A.Ş. (hereinafter 'Hitachi Kokusai Turkey'). The aim of this decision is to strengthen the broadcasting equipment business in the Republic of Turkey (hereinafter 'Turkey') and the Middle East.

Hitachi Kokusai established Hitachi Kokusai Turkey in Istanbul, Turkey in 2013. From the time of its establishment, Hitachi Kokusai Turkey has been working with its local partner, BCS, on creating a sales, maintenance, and service platform to strengthen the broadcasting equipment/systems business in Turkey and the Middle East. With our recent decision to make BCS a consolidated subsidiary of Hitachi Kokusai Turkey, we intend to promote further business expansion by streamlining our business strategy to speed up management decisions, and demonstrating business synergy.

Through this business reorganization, Hitachi Kokusai will further expand its global business by implementing initiatives toward the goal of a global business network. One such initiative is to have local corporations in each region form partnerships to sell product series developed and manufactured at optimal sites around the world.

Purpose of reorganization

Hitachi Kokusai expects the market for broadcasting systems in Asia and in Europe, the Middle East, and Africa (EMEA) to continue to expand in the future. Future digitalization of terrestrial broadcasting is also being planned in Turkey, and the broadcasting equipment market, including transmission facilities, is expected to expand as well.

In view of this market environment, we believe we can obtain the following benefits from this reorganization:

1. By unifying the business management of Hitachi Kokusai Turkey and BCS, we can expand our business scope.
2. By combining the business scope (which is centered around Turkey and the Middle East) of Hitachi Kokusai Turkey and BCS with the business scopes of our consolidated subsidiaries Hitachi Kokusai Asia (Singapore) and Hitachi Kokusai Europe (Germany), we can expand the territories covered by our broadcast van business. In addition, by combining the products of Hitachi Kokusai Turkey and BCS with Hitachi Kokusai's broadcasting cameras and other products, we will be able to demonstrate sales synergy.
3. By combining the products of Hitachi Kokusai Turkey with the terrestrial digital broadcasting transmitters and other products owned by our consolidated subsidiaries Hitachi Kokusai Electric Comark (North America) and Hitachi Kokusai Linear (Brazil), we will be able to expand our high-added-value business into the market for terrestrial digital technology in Turkey, where our sales activities are beginning in earnest.
4. By sharing, with the Hitachi Kokusai Group, the SI technology used in BCS's broadcast vans and studio systems, we will be able to acquire more projects related to broadcasting systems.

■Overview of Hitachi Kokusai Turkey

Trade name	Hitachi Kokusai Electric Turkey Elektronik Ürünleri Sanayi ve Ticaret A.Ş.
Date of establishment	June 2013
Head office location	Palladium Ofis ve Residence Binası Barbaros Mah. Halk Cad. No:8/A Kat:2-3 34746 Ataşehir İstanbul, Turkey
Representative	Kiyoshi Funada
Description of business	Electrical equipment, development of broadcast video/communications equipment, engineering, manufacturing, import/export, sales, maintenance, etc.

■Overview of BCS

Trade name	BCS Teknoloji Yayıncılık ve Haberleşme Sistemleri Sanayi ve Ticaret A.Ş.
Date of establishment	November 2013
Head office location	İstanbul Endüstri ve Ticaret Serbest Bölgesi, Akif Kopuz Cad. No:3 34957 Tuzla İstanbul, Turkey
Representative	Fikret Guzel
Description of business	Development of broadcast transmitters, development of outside broadcasting vehicle systems, engineering, manufacturing, import/export, sales, maintenance services, etc.

Note: Around the middle of July, the trade name of BCS will be changed to Hitachi Kokusai Electric Turkey Yayıncılık Sistemleri A.Ş.