August 12, 2013
Company namePunch Industry Co., Ltd.

Head office

2-12-23 Konan, Minato Ward, Tokyo 108-0075, Japan

Representative

President, Representative Director

Masaaki Takeda(Security code：6165)

ContactDirector

Hiroyuki Yagi
TEL. 03-5460-8237

Acquisition of Panther Precision Tools Sdn. Bhd.
Please be advised that Punch Industry Co., Ltd. (hereinafter “Punch Industry”) decided at the Board of Directors meeting
held on August 12, 2013 to acquire 100% ownership of Panther Precision Tools Sdn. Bhd. (hereinafter "Panther"). The
procedures and reasons behind this decision are detailed below.

1.

Reason and Purpose of the Acquisition
Punch Group has been developing its operations placing globalization, expansion of new market and conversion tohigh profitability business model as priority targets in order to survive in the domestic mature market and aim to makesustainable growth by establishing a position in the growing markets such as Inland China and Southeast Asia.
Southeast Asia market, especially, is expected to grow from now on, therefore Punch Group will actively develop thebusiness and construct a business model which makes use of the group’s strengths, “integration” and “direct linkage”
of manufacturing and sales.
Panther has actively developed the production and sales of component for mold business in Southeast Asia since its
foundation in 2000. Panther owns sales channel in Malaysia, Singapore, Vietnam and Europe. Punch Industry has
built an amicable relationship with Panther as an overseas business cooperator.
Under that business relation, Punch Industry acquired 14% of Panther’s shares in August 2012. Punch Industry
commenced the embodiment of Southeast Asia business project by sharing each other’s expertise and customer bases,and through the use of Panther’s management resources of both production and sales.
Punch Industry decided to make Panther a wholly owned subsidiary in order to establish the business base in earlystage and accelerate the globalization instantly in Southeast Asia as well as endeavoring to expand sales, including
Panther’s existing customers, in Europe by utilizing the company’s sales channel.

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2.

Overview of Panther (As of the end of July 2013)
Company namePanther Precision Tools Sdn. Bhd.

Address

51-13-A Menara BHL Bank, Jalan Sultan Ahmad Shah, 10050 Penang, Malaysia

Representative

Managing Director, Teoh Jin ChyeBusiness

Production and sales of component for mold

Capital6,000,000RM (Malaysian Ringgit)

Established

July 3, 2000

Shareholders andTeoh Jin Chye

Ratio of Shareholding

Punch Industry Co., Ltd. 14%

86%

Business

Relationships

Punch Industry owns 840,000 shares (Ownership ratio: 14%) of thePanther’s shares.

Relationships

Personnel

Punch Industry has dispatched four employees to Panther.

CapitalRelationships
Trade Relationships
Relationships with

Punch Industry and Panther have supply and distribution
relationships with each other.
Not applicable

related parties
Operating Results and Financial Condition in the Three Most Recent Fiscal Years（RM：Malaysian Ringgit、RM 1＝JPY 30）
Fiscal Year ended

Fiscal Year ended

Fiscal Year ended December

December 2010

December 20112012 (Consolidated)※RM 9,335 thousand

RM 12,921 thousand

RM 12,728 thousand(JPY 280,066 thousand)(JPY 387,633 thousand)(JPY 381,865 thousand)RM 33,416 thousand

RM 36,949 thousand

RM 65,514 thousand(JPY 1,002,501 thousand)(JPY 1,108,492 thousand)(JPY 1,965,443 thousand)RM 15,502 thousand

RM 19,563 thousand

RM 24,147 thousand(JPY 465,083 thousand)(JPY 586,896 thousand)(JPY 724,441 thousand)RM 4,496 thousand

RM 4,162 thousand

RM 7,319 thousand(JPY 134,899 thousand)(JPY 124,875 thousand)(JPY 219,597 thousand)RM 3,769 thousand

RM 2,854 thousand

RM 5,910 thousand(JPY 113,080 thousand)(JPY 85,637 thousand)(JPY 177,324 thousand)

RM 2,267 thousand

RM 2,392 thousand

RM 6,616 thousand(JPY 68,014 thousand)(JPY 71,778 thousand)(JPY 198,504 thousand)Business year endTotal Asset
Total Net Asset
Net Sales
Operating Profit
Pretax Profit
Current Net Profit※ The numbers above are consolidated indicators as Panther acquired the shares of two sales companies and madethem consolidated subsidiaries in July 2012. The consolidated results only include their operating results for fivemonths from August 1, 2012 to December 31, 2012.
3.

Overview of Seller(1) Name

Teoh Jin Chye

(2) Address

Penang, Malaysia(3) Relationship between theThere are no capital, executive, transactional relationships between Punch Industry

individual and Punch

and the seller.

Industry- 2 -4.

Acquisition Price and Number of Shares before and after the Acquisition(1) Number of Shares held

840,000 shares (Ownership ratio：14%)

before Acquisition(2) Number of Shares to be

5,160,000 sharesacquired(3) Acquisition Price

Common shares of Panther Precision Tools Sdn. Bhd.
RM 48,458 thousand (JPY 1,453 million RM 1＝JPY 30)(4) Number of Shares held

6,000,000 shares (Ownership ratio：100%)after Acquisition
5.

Schedule(1) Board of Directors
Resolution

6.

August 12, 2013

(2) Signing Contract

August 12, 2013(3) Share Transfer

August 30, 2013 (Undetermined)

Future Prospect
Punch Industry is in the process of assessing the impact of this resolution on its consolidated financial results for thefiscal year ending March 31, 2014. Punch Industry will announce any significant developments on this matter as soon
as information becomes available.

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