1 April 2015
To whom it may concern

Showa Holdings Co., Ltd.
Mamoru Shigeta,
Representative Executive Officer and Managing Director(Code 5103 Tokyo Stock Exchange)
Contact: Tomohiko Shoji, Executive Officer(Tel: 04-7131-0181)

Rubber Lining Business Launch in Thailand- Facilities and Business Succession from Ajinomoto Group -We had established Showa Rubber (Thailand) Co. Ltd. (SRT) in 2013 for the purpose ofexploring the possibility of rubber business development in Thailand. We would like to inform you
that, on March 5, 2015, we concluded a contract to purchase facilities and other related assets
from AET manufacturing co., ltd., which is the Thai subsidiary of the Ajinomoto Group, and tosucceed their customer base. Herewith, we start rubber lining business in Thailand from April 1,2015.

1. The transaction and its backgroundWe had announced “Acceleration Plan 2012” in 2012 as well as the medium-term management
plan for rubber business owned by our subsidiary.
http://www.showa-rubber.co.jp/company/news/sr20120627.pdf(in Japanese)In this plan, one of our objectives is to aim to be “No. 1 rubber lining company in Asia.” Inaccordance with this objective, we decided to carry out the business succession.
AET manufacturing co., ltd. (AET) is the subsidiary of Ajinomoto Co., (Thailand) Ltd. that is theThai affiliated company of Ajinomoto Co., Inc. (Ajinomoto). They had operated rubber lining
business for 22 years in Samutprakarn Province, Thailand as the last business location
performing Ajinomoto’s lining technique.
Ajinomoto Group requires advanced rubber lining work for their core products in manufacturing
process, etc. Therefore, they had developed rubber lining technology and operated the businessfor themselves. However, with their business perspective of selection and concentration,
Ajinomoto Group withdrew the rubber lining business in 1978 in Japan and we succeeded theirtechnologies including materials. Currently, our subsidiary Showa Rubber Co., Ltd. provides
rubber lining work for Ajinomoto Group.
Ajinomoto has announced that they shut down AET business in Thailand according to their1

selection and concentration perspective. Rubber lining business is valued as the core business forour subsidiary rubber business and we agreed the business succession from AET accordingly.
Herewith, SRT launches rubber lining business in Thailand.

2. Business development of our rubber lining business
Metal (iron apparatus) is easily eroded with use of acid or alkaline liquid. Rubber lining has arole to protect important facilities in such conditions. In order to protect apparatus includingtanks and pipes, which are used with acid or alkaline liquid in various plants and factories,
corrosion-resistant rubber is lined their inside. Therefore, for new construction of various plants
and their maintenance work, our rubber lining work is necessary. Typical customers for rubber
lining business are chemical plant, water treatment system, power plant, mine, ironmanufacture, and engineering company that constructs the plant.
By this business succession, future SRT business will include the following items, covering all
the existing AET business as well as lining work with Showa Rubber original material. SRT will
provide them throughout inland ASEAN region with focus on Thailand.
* Various lining works including rubber and FRP (work in our factory or on-site work)* Maintenance and repair, inspection, and life assessment* Procurement of cored bar (can manufacturing)Rubber lining is the core business with a history of 60 years by our subsidiary Showa Rubber.
SRT will be a significant foothold in Southeast Asian market after our Malaysian factory (ShowaRubber (Malaysia) Sdn Bhd).
Although rubber business of our subsidiary is their family work with a history of 130 years,
they suffer from business slump in recent years. However, our group will grow steadily withbusiness strategies such as the expansion of rubber business in Asia in the future. In the rubber
business for recent three years, we have hired talented people from Asian countries. For
example, a local Malaysian was appointed as the president of our Malaysian subsidiary. With
these excellent talents, our organization is almost ready to expand our business in Asian
countries and this business launch is the first step.
http://www.showa-holdings.co.jp/news/doc/news20140507e_1.pdf

3. Structure of Thai new subsidiary
Fukuji Ikegami, Plant & Anti-corrosion Business Unit COO in our Japanese subsidiary Showa
Rubber Co., Ltd., is appointed to the president of SRT and transferred to Thailand. For the factory
manager, Mr. Unit Markmul who had worked as the core talent for AET was appointed.

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4. Positioning of ASEAN economy and the Thai factory
The succeeded factory is located in the southwest of Thai capital city, Bangkok. Although thearea is the industrial zone developed from relatively early stage in Thailand, the conditions there
as industrial zone used to be inferior due to bad access from the Thai’s largest international port
Laem Chabang Port. However, the surrounding logistics has been dramatically improved by thelarge-scale Bangkok outer loop expressway completed about nine years ago and later roadmaintenance and improvements.
Thailand is located in node of inland ASEAN or CLMV countries (Cambodia, Laos, Myanmar, andVietnam), and it is thus in a geographically strategic position. Intersection of Asian Highway
Network is formed within Thailand, which connects China through Singapore by the north-south
highway and the Pacific Ocean in Vietnam through the Indian Ocean in Myanmar by the eastwest highway.
Under these conditions, land route to the west from Thai capital Bangkok has been
constructing to Dawei port in Myanmar, which will be the exit to the economic area of IndianOcean. The area of our new factory has easier access to various land routes to all areas inSoutheast Asia, and its convenience for goods shipping throughout Thailand, Southeast Asiancities, and Indian Ocean economic area has been improving.
http://business.nikkeibp.co.jp/article/money/20071130/142083/?ST=print (in Japanese)(For your reference, the link above is for the 2007 article of Nikkei Business Online on which
our CEO Tatsuya Konoshita explained about the highway opening, etc.)3

To Laos, China
Loop ExpresswayTo MyanmarBangkok
To Malaysia
To Cambodia

In the developing economic markets in Southeast Asia and CLMV countries, demands forrubber lining are considered to increase in the near future. By utilizing geographical advantage,
we will supply their needs of various lining inside and outside of Thailand.
With strong support of recently leaping our group company GL Group, our subsidiary’s rubber
business will develop throughout Asia in the future. In addition, SRT will not only conduct
rubbery lining business but also expand its business scope largely to other rubber businesses ofour subsidiary and other group businesses in Thailand.
We will greatly appreciate your support and expectation for our group’s rubber business andfuture SRT business expansion.

5. Outline of Showa Rubber (Thailand) Co. Ltd.
1. Trade name
2. Location of headquarter
3. Title and name ofrepresentative
4. Business description
5. Amount of capital
6. Establishment date
7. Major shareholder andshareholding ratio

Showa Rubber (Thailand) Co., Ltd.
Bangkok-city, Thailand
Fukuji Ikegami, CEOLining work and maintenance2 million Thai baht
2012
Showa Rubber Co., Ltd. 100%

6. Outline of purchased facilities and succeeded business(1) AET Manufacturing co., ltd.
1. Trade name
2. Location of headquarter
Location of factory

AET Manufacturing co., ltd.
Bangkok-city, Thailand
Samut Prakan Province, Thailand

43. Title and name ofrepresentative
4. Business description
5. Amount of capital
6. Establishment date
7. Major shareholder andshareholding ratio(2) Ajinomoto Co., (Thailand) Ltd.
1. Trade name
2. Location of headquarter
3. Title and name ofrepresentative
4. Business description
5. Amount of capital
6. Establishment date
7. Major shareholder andshareholding ratio

Kagefumi Nagao, CEOLining work and maintenance6 million Thai baht
1993
Ajinomoto Co., (Thailand) Ltd. 49％

Ajinomoto Co., (Thailand) Ltd.
Bangkok-city, Thailand
Etsuhiro Takato, CEO

Manufacture and sales of seasoning, food,amino acid for feed, etc.
796.36 million Thai Baht (as of June 2, 2014)
1960
Ajinomoto Co., Ltd. 74.3% (as of June 2,2014)

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Fujiku Ikegami

1970

Born in Fukushima-prefecture

1992

Started working for Showa Rubber Co., Ltd.
Assigned to Rubber mixing Division

2011

Appointed to Manager of Industrial Products
Department and Manager of Food & Medical
Products Department

2014

Appointed to Director and COO of Plant & Anticorrosion Business Unit

April 2015 Managing Director,
Showa Rubber (Thailand) Co., Ltd.

1970

Born in Satun Province, Thailand

1992

Started working for AET Manufacturing Co.,
Ltd.
Assigned to Production Division
Later,
Laboratory staff, Quality control Division
Production Leader, Production Division

2007

Sales supervisor, Sales Engineering Division

April 2015

Factory manager,
Showa Rubber (Thailand) Co., Ltd.

Unit Markmul

Thank you.

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