October 1st, 2018
To whom it may concern
This document is an English translation of aCompany Name; Musashi Seimitsu Industry Co., Ltd.

statement written initially in Japanese.

Representative;

The Japanese original should be considered as
the primary version.

President & CEO Hiroshi Otsuka(Stock code 7220 Tokyo, Nagoya)

Inquiries; Finance & Accounting GM Shinichi Takahashi(0532-25-8111)

Notice of the acquisition of share of ASADAKATAN CHUTETSUSHO Co., Ltd.
(To be consolidated)Musashi Seimitsu Industry Co., Ltd. ( hereinafter called “MSI”) announces its decision to acquire all shares ofASADAKATAN CHUTETSUSHO Co., Ltd.(Headquarters: Fukuchiyama, Kyoto-fu, Chairman & CEO Takayoshi
Asada, hereinafter called “ASADAKATAN CHUTETSUSHO”) to consolidate (hereinafter called the“ Agreement”) as outlined below.
1. Purpose of the acquisition
Since its foundation in 1938, MSI, based on the founding spirit of “Shitsujitsu - Goken” (Simple and Sturdy),“Shisei – Ikkan” (Consistent Sincerity), has taken it as a corporate mission to seek an innovative “Monozukuri”
and to contribute to global society through providing trusted and attractive products. To realize “Musashi GlobalVision 2020”, MSI has committed itself to generate MSI branded products for next generation through manyefforts such as strengthening original and high precision forging technology, expansion of global production
and sales network, optimization of global operations and strengthening product development capability. Atpresent, MSI offers services to clients globally from 30 production sites (16 bases in Asia, 5 bases in Americas,
9 bases in Europe). MSI’s business consists of Power train business unit for four-wheel vehicles (*1), L&Sbusiness unit for automotive components (2*) and Motorcycle business unit. Powertrain, in particular, under thegrowing global trend favoring reduction of environmental impacts, is also increasing its demand for newly
structured parts. Therefore, MSI has been sharpening integrated processing technologies focusing oncompetitive and precise forging technology and is further accelerating its development of smaller, lighter andhigher precision products such as Differential Assembly (*3) and Planetary Assembly (*4) .
ASADAKATAN CHUTETSUSHO, which was founded in 1916, is a manufacturer specializing in ductile
products and machining for automobile, construction machines and industrial machines with highly competitive
casting lineups sustained by original casting technology and quality control knowhow. In addition,
ASADAKATAN CHUTETSUSHO has built a strong network with major automobile manufacturers, mechanicalsystem manufacturers and automotive parts suppliers.
Through this Agreement, MSI expects to achieve synergies in development, production and sales asfollowings.
- Strengthen the infrastructure for our main product, Differential Assembly through casting processes.
- Enhancing product development capabilities for Power Train business by gaining casting knowledge.
- Expansion of global supply system by utilizing the established production system in Japan.
Through this Agreement, MSI will strengthen its business platform as a global company suppling highlycompetitive products worldwide.
*1 Automotive powertrain components.
*2 Automotive parts business for linkage of frame, suspension parts.
*3 Parts which allocate torque and absorb the rotational difference between left and right wheels as vehicles
turn.
*4 Parts converting engine power to the vehicle’s adequate revolution speed and torque2. Outline of ASADAKATAN CHUTETSUSHO Co., Ltd.
(1)

Corporate NameASADAKATAN CHUTETSUSHO Co., Ltd.

(2)

Address
Name and Title ofRepresentative

1-29 Osadano, Fukuchiyama, Kyoto(3)

Chairman & CEO Takayoshi Asada(4)

Business(5)

Capital amount

Manufacturer and processor of ductile products for automobile,
construction machine and industrial machine¥ 45 million(6)

EstablishedMay 6th, 1948

Relation between
listed company andrelevant company

CapitalRelationship
PersonalRelationship
BusinessRelationship(7)

Not applicableNot applicable
MSI has had transactions of parts supply withASADAKATAN CHUTETSUSHO.

3. Outline of the other parties to the acquisition of share
The other parties to the acquisition of share are individuals and MSI has an obligation to maintainconfidentiality, as such MSI sincerely requests your understanding that the parties are not disclosed.
Further, there is no capital or business relationship between MSI and ASADAKATAN CHUTETSUSHO.
4. Number of shares before and after the transfer
0 shareNumber of shares before(Number of voting rights: 0)(1)transfer(Ratio of Ownership of Voting Rights: 0%)
Number of shares to be
900,000(2)acquired(Number of voting rights: 900,000)
900,000
Number of shares to be(Number of voting rights: 900,000)(3)
held after the transfer(Ratio of Ownership of Voting Rights: 100%)
5. Schedule(1)
Date of stock transfer

October 19th, 2018 (Planned)

6. Future prospects
We recognize this matter does not have a significant impact on the consolidated financial results for thefiscal year ended March 31, 2019.