January 26, 2021
For Immediate Release
Company name: Nihon Dempa Kogyo Co., Ltd.
Representative: Hiromi Katoh, Representative Directorand President(Code Number: 6779, TSE First Section)
Inquiry:
Michio Aoyama, Corporate Officer andGeneral Manager of Administration
Division
Tel: +81-3-5453-6711

Notice Regarding the Business Termination of Consolidated Subsidiary
due to Structural Reform and Posting of Other Operating Expenses
Nihon Dempa Kogyo Co., Ltd. (hereinafter “NDK”) is proceeding with structural reforms of theGroup as outlined in the “Notice Regarding Implementation of Structural Reforms” announcedon November 8, 2019. At its Board of Directors meeting held January 26, 2021, NDK resolvedthat as of September 30, 2021, it will discontinue the business of, and then dissolve throughprescribed procedures, Niigata NDK Co., Ltd. (hereinafter “Niigata NDK”), a consolidated
subsidiary of NDK.
Notice1. Background to business termination (implementation of structural reforms at NDK Group)
The NDK Group has been experiencing sustained and severe business conditions and has beenin the red for three consecutive financial years from FY2017 (April 1, 2017 to March 31, 2018).
Going forward, there is an urgent need to enhance cost competitiveness and reform the Group
into a robust corporate structure so as to respond to growing demand for crystal devices
focusing on 5G (the 5th generation mobile network systems) and ADAS (Advanced Driver
Assistance Systems) equipped in automobiles.
For this reason, the Group offered employees of the Company (non-consolidated) a voluntary
retirement program in FY2019, and in October 2020 transferred part of the SAW filter
business. NDK is currently undertaking a comprehensive structural reform of its consolidatedsubsidiaries, and it is already moving forward with structural reforms, including therationalization of personnel at its subsidiaries in China and Malaysia. For Japanesesubsidiaries, NDK is conducting a review of its systems focusing on the restructuring of its
production system. NDK resolved that as of September 30, 2021, it will discontinue thebusiness of, and then dissolve through prescribed procedures, Niigata NDK.

2. Reason for business termination
NDK Niigata was established as Hawk Denshi Co., Ltd., in Niigata City in March 1970 withthe aim of manufacturing crystals for taxi radio communications. In October 1990, it became asubsidiary of NDK, in October 2002, a wholly owned subsidiary, and in April 2005 changed its
company name to the current name. Since then, Niigata NDK operated its business focusing
on sales of wide variety of products in small quantities, but due to a decrease in small-lot
product sales over recent years, the company’s non-consolidated business results are expected
to fall into the red for the third consecutive fiscal year. Since it was determined that it would
be difficult for the company to drastically improve earnings in the future, and continuation ofthe company would be problematic, it was determined that its business would be terminatedon September 30, 2021.
Details about the dissolution/liquidation of Niigata NDK after business termination are to beannounced as soon as it is fixed.
3. Overview of the subsidiary to be terminated(1) Company name
Niigata NDK Co., Ltd.
(2) Location
251-1 Kawasaki Nishikanku, Niigata-city, Niigata Prefecture(3) Representative
Hirofumi Shinada, Representative Director and President(4) Business content
Manufacturing of crystal oscillators and other products(5) Share capital
50 million yen(6) EstablishedMarch 11, 1970
Major shareholder and(7)Nihon Dempa Kogyo Co., Ltd. 100%
share-holding ratio
71 (As of December 31, 2020)(8) Number of Employees
Capital
A 100% owned subsidiary of NDK
relationships
The three officers of the consolidated subsidiary
PersonalRelationship between
are: one director from NDK, one corporate officer
listed company (NDK) relationships
from NDK, and one employee from NDK.
(9)and the companyBusiness
Manufactures crystal products for NDK andconcerned
relationships rents equipment from NDK.
Status as aConsolidated subsidiary of NDK and falls underrelated party the category of related parties.
(10) Operating results and financial position for the last three years
Fiscal year
Ending March 2018 Ending March 2019 Ending March 2020
Net assets
334 million yen
318 million yen
265 million yen
Total assets
761 million yen
657 million yen
561 million yen
Net asset per share
5,214.78 yen
4,971.74 yen
4,133.94 yen
Net sales
1,159 million yen
1,023 million yen
916 million yen
Operating income/(loss)
46 million yen(19) million yen(50) million yen
Ordinary income/(loss)
48 million yen(16) million yen(48) million yen
Net income/(loss)
31 million yen(16) million yen(54) million yen
Net income/(loss) per share481.21 yen(243.05) yen(837.80) yen
Dividend per share
0 yen
0 yen
0 yen
4. Schedule for business termination
September 30, 2021 (Planned)

5．Other operating expenses
NDK expects to record approximately 600 million yen as other operating expenses in thefourth quarter of the fiscal year ending March 31, 2021. This includes the impairment loss onequipment and other facilities that will cease to be used as a result of the businesstermination of the subsidiary (Niigata NDK), and structural reform expenses
6．Outlook going forward
Consolidated financial forecasts of the fiscal year ending March 31, 2021 is under review
taking the factors not limited to this issue into consideration. If any revision to the forecast
announced on November 10, 2020 is necessary, the revised forecast will be disclosed promptly.
END