November 18, 2016
For immediate release
Company name: Daidoh Limited
Representative: Shin Okawa, President(Code 3205 in the First Section of the Tokyo and Nagoya Stock Exchanges)
Contact: Kiyoshi Fukura, Director and Senior Executive Officer in Charge ofAccounting and Finance(Tel: 03-3257-5022)

Acquisition of shares in Italy’s Pontetorto S.p.A. and incorporation of the company as a subsidiary
At a meeting of Daidoh Limited’s Board of Directors on November 18, 2016, the board resolved to acquire shares inPontetorto S.p.A. (hereinafter, “Pontetorto”), an Italian company engaged in the manufacture and sales of fabrics forfashion lines and sportswear, and to incorporate the company as a subsidiary. Details regarding this resolution, as well as
details relating to the agreements reached with Pontetorto’s current shareholders, including Victoria S.p.A., are described
below.
1. Reason behind the acquisition of shares
Daidoh Limited has, at its factories for its clothing business, been traditionally concerned primarily with wool as a raw
material for use in men’s clothing, and with suits and knitwear as its clothing products.
Pontetorto has achieved growth through its entrepreneurship, combining its innovation, creativity, and outstanding
technologies with the accumulated traditions of the past. The company manufactures and sells a great diversity of goods,
from highly fashionable women’s clothing to fleeces and materials for sports and the outdoors that combine both highquality and functionality. Daidoh Limited has decided to acquire a 65% stake in Pontetorto and to incorporate it as asubsidiary, given that Pontetorto has established a strong foundation for sales in both its home country of Italy and otherparts of Europe, and has sales experience in Eastern Europe, America, and Asia.
With Pontetorto as a subsidiary, Daidoh Limited will be involved in materials for women’s clothing and sportswear, areasin which Pontetorto excels, adding these areas to Daidoh Limited’s existing focus on materials and clothing products formenswear. Daidoh Limited expects that this will allow access to more customers, and is hopeful that taking advantage ofsynergies with Pontetorto customer assets and business know-how will lead to an active expansion overseas in all areas of
the company’s business related to materials, products, and retail.
Further business expansion, not only in Asia but in Europe as well, is an important priority for Daidoh Limited, which isaiming to achieve even greater growth through its various activities in the aforementioned areas.
In addition, Daidoh Limited plans to acquire the remaining 35% stake in Pontetorto within the next four years, making thecompany a wholly owned subsidiary.

2. Overview of the subsidiary created by the acquisition (Pontetorto S.p.A.)(1) Name

Pontetorto S.p.A.

(2) Location

Prato,Tosc ana,Ital y(3) Name and position of representative

Enrico Banci, Chairman(4) Business areas

Manufacture and sale of fabrics for fashion lines and sportswear(5) Capital

1,559,830 euros(6) Date established1952(7) Major shareholders and percentage of ownership

Victoria S.p.A (62.11%)(8) Relationship between the company and publicly

Capital ties

n/alisted companies

Personnel ties

n/a

Rel ated transa ctions

n/aConsolidated net assets

Period ended
December, 2013
7,783

Period ended
December, 2014
8,917

(Figures are inthousands of euros,
unless otherwiseindicated)
Period ended
December, 2015
8,563

Consolidated total assets

26,124

27,46925,737

Consolidated net assets per share (in euros)

259.43297.24285.44

Consolidated sales

54,04455,65452,246

Consolidated operating profit

4,801

4,360

3,379

Net income attributable to shareholders

2,783

2,634

2,046

Consolidated net income per share (in euros)

92.77

87.80

68.20

(9) Consolidated operational results and consolidated financial condition of the company
over the last three years
Accounting period

3. Overview of the parties from whom shares are being acquired①(1) Name

Victoria S.p.A.

(2) Location

Prato,Tosc ana,Ital y(3) Name and position of representative

Enrico Banci, Managing Director(4) Business areas

Acquisition and holding of stocks, acquisition and lea s ingof real est ate(5) Capital

1,548,000 euros(6) Date established1980(7) Net assets

5,360,000 euros(8) Total assets
(9)

Major

6,860,000 euros

shareholders

andpercentageof

Enrico Banci (30%), Luigi Banci (30%), Elena Banci (30%)

company

andCapital ties

n/aPersonnel ties

n/aRel ated transa ctions

n/aownership(10)

Relationshipbetweenthepublicly listed companies②(1) Name

Enrico Banci(2) Location

Prato,Tosc ana,Ital y(3)

Relationshipbetweentheindividualandn/apublicly listed companies③(1) Name

Luigi Banci(2) Location(3)

Relationship

Prato,Tosc ana,Ital ybetweentheindividualandn/apublicly listed companies

4. Number of shares acquired, value of the acquisition, and status of shares held before and after the acquisition
0 shares(1) Number of shares held before the acquisition(Number of voting rights: 0)(Percentage of voting rights held: 0%)(2) Number of shares to be acquired

19,500 shares(Number of voting rights: 19,500)
Shares of Pontetorto: 19,500,000 euros(3) Value of the acquisition

Fees for advisors, etc. (estimated): 200,000,000 yen
Total (estimated): 2,462,000,000 yen

(Currency conversion rate used for theacquisition: 1 euro to 116 yen)
(4) Number of shares held after the acquisition

19,500 shares(Number of voting rights: 19,500)(Percentage of voting rights held: 65.0%)

5. Schedule(1) Date of the meeting of the Board of DirectorsNovember 18, 2016

(2) Date of conclusion of the contract

November 18, 2016

(3) Date of transfer of shares

November 21, 2016

6. Future outlook
Daidoh Limited is currently assessing how the acquisition described herein will affect Daidoh Limited’s consolidated
results for the period ending March 2017. Any matters that require disclosure will be communicated promptly following
their discovery.