Date: August 5, 2020
Company Name: Nihon Dempa Kogyo Co., Ltd.
Representative:

Hiromi Katoh, Representative Director andPresident
Code: 6779, First Section of the Tokyo Stock
Exchange

Contact:

Michio Aoyama, Corporate Officer andGeneral Manager of Administration Division
03-5453-6711

Tel:

Re: Completion of Payment With Respect to Issuance of Class Shares through Third-Party
Allotment, and Reduction of Amounts of Capital Stock and Legal Capital Surplus
Nihon Dempa Kogyo Co., Ltd. (“NDK” or “we”) hereby announces that, as of today, the payment
with respect to the issuance of the Class A Shares, which was announced in the notices “Re:Issuance of Class Shares through Third-Party Allotment, Reduction of Amounts of Capital Stockand Legal Capital Surplus and Appropriation of Surplus, Partial Amendments to the Articles ofIncorporation, and Reduction of Amounts of Capital Stock and Legal Capital Surplus on Issuance ofClass Shares” as of June 19, 2020, has been completed, and the Class A Shares have been issued.
In addition, the Company also announces that, as a result of the above-mentioned payment, theconditions to the reduction of amounts of capital stock and legal capital surplus to be conducted asof October 1, 2020 as the effective date, which was announced in the above-mentioned notices,taking effect have been fulfilled.
I. Issuance of Class A Shares
1. Overview of Issuance of Class A Shares through Third-Party Allotment(1) Payment Date

August 5, 2020

(2) Number of shares issued

5,000 shares of Class A Shares(3) Issue price

1,000,000 yen per share(4) Total issue price5,000,000,000 yen(5)Increase in capital stock Capital stockand legal capital surplus Legal capital surplus

2,500,000,000 yen (500,000 yen per share)
2,500,000,000 yen (500,000 yen per share)(6)

Method of subscription All of the Class A Shares were allotted to Japan Industrialor allotment (Allottee) Solutions Fund II through third-party allotment.
Mr. Eiketsu Tsuchiya, whose election of directors of NDK was approved at the 79th ordinary
general meeting of shareholders held on July 31, 2020, has formally assumed his office upon
the completion of payment with respect to the issuance of the Class A Shares.

2. Changes in Total Number of Issued Shares through Third Party Allotment and Amount ofCapital Stock
Total number of issued
Total number of issued
Amount of Capital Stockcommon sharesClass A Shares
Before the20,757,905 Shares
0 Shares
5,596,291,657 yen
issuance
After the20,757,905 Shares
5,000 Shares
8,096,291,657 yen
issuance
II. Reduction of Amounts of Capital Stock and Legal Capital Surplus
As announced in the notices of “Re: Issuance of Class Shares through Third-Party Allotment,
Reduction of Amounts of Capital Stock and Legal Capital Surplus and Appropriation of Surplus,
Partial Amendments to the Articles of Incorporation, and Reduction of Amounts of Capital Stockand Legal Capital Surplus on Issuance of Class Shares” as of June 19, 2020, the reduction ofamounts of capital stock and legal capital surplus to be conducted as of October 1, 2020 as theeffective date, which was approved and adopted at the 79th ordinary general meeting ofshareholders held on July 31, 2020, was subject to the condition that the payment with respect tothe issuance of the Class A Shares be made, and such condition has been fulfilled as a result of
the payment having been made. Therefore, the reduction of amounts of capital stock and legal
capital surplus will take effect on October 1, 2020, as follows:
1. Reduction of Amount of Capital Stock and Increase of Amount of Other Capital Surplus
In accordance with the provisions of Article 447, Paragraph 1 of the Companies Act, theCompany will reduce the amount of capital stock by 2,500,000,000 yen and transfer the entire
amount of capital stock so reduced to other capital surplus.
2. Reduction of Amount of Legal Capital Surplus and Increase of Amount of Other CapitalSurplus
In accordance with the provisions of Article 448, Paragraph 1 of the Companies Act, theCompany will reduce the amount of legal capital surplus by 2,500,000,000 yen and transfer theentire amount of legal capital surplus so reduced to other capital surplus.
As a result of the effectuation of the reduction of amounts of capital stock and legal capitalsurplus, the amount of capital stock after such effectuation will be 5,596,291,657 yen, which is adecrease from the amount shown as the amount after the issuance in “2. Changes in Total
Number of Issued Shares through Third Party Allotment and Amount of Capital Stock” of “I.
Issuance of Class A Shares” above. In addition, the amounts of legal capital surplus and othercapital surplus will be 0 yen and 7,849,087,924 yen, respectively.
End