Regarding the Acquisition of sharesin SHINWA VANES CO., LTD.
December 25, 2023
NPR-RIKEN CORPORATION

Overview of the Transaction
At its board meeting on 25 December 2023, NPR-RIKEN resolved to acquire shares of SHINWA VANES
through its subsidiary Riken
Target Company

SHINWA VANES CO., LTD.

Transaction

Acquisition of 90% shares of SHINWA VANES
from Endeavour United II Investment Business Limited Partnership

Post-transaction
Shareholder Composition

 Riken Corporation：
 Other individual shareholders：

90.0%
10.0%

Strategic Rationale

 Expand and strengthen NPR-RIKEN’s next core businesses in non-ICE fields
 Expand our business portfolio based on mutually complementary product lineup Mutually fortify development technologies and sales capabilities
 Allocate management resources to the thermal engineering business and support carbon
neutral initiatives

Estimated Schedule Share transfer scheduled for mid-February 2024
 Impact on the consolidated financial result forecasts for FYE March 31, 2024 is currently
under review

2Positioning of this Transaction
This transaction will serve to expand and strengthen NPR-RIKEN’s next core businesses in non-ICE fields, as part ofits Midterm Plan (2024-2026) to transform its business portfolio. We expect this to also contribute to our carbon
neutral initiatives

Transforming NPR-RIKEN’s Business Portfolio

Next Core Business
Expand this business throughaggressive investment
Existing businesses in growth areas,
new products businesses Allocate management
resources to next core/new
products businesses toincrease sales and profits inthe mid-and-long-term.
 In the areas of piston rings andfundamental businesses, weaim to expand stable sources ofincome through integration as
NPR-RIKEN.

Strengthen sustainabilityStrengthen carbon neutral
initiatives
 In view of the trend towards
carbon neutrality, a major change
is occurring in the heating processof various industries to replace
combustion heating that use fossil
fuels with electrical resistanceheating using heating elements.

Through this transaction, we will expand the thermal engineering business, one of our next corebusinesses, as an important initiative to transform our business portfolio

3Synergies with NPR-RIKEN Group Both companies will bring together development technologies and sales capabilities to jointly develop successful
new products and expand business areas
 Become a leader in the semiconductor market which has significant growth potential due to digitalization,
ultimately paving the way to becoming carbon neutral

SHINWA VANES

NPR-RIKEN (Riken Heat Techno)

Product area

Small and medium-sized heaters in thelow temperature range

Unique heating element for hightemperature ranges,
Heater units, industrial furnaces, etc.

Source of value

Customized development and design
capabilities, assembly quality assurance,and sales capabilities

Customer base

Semiconductor manufacturing
equipment industry

Development
technologies
×Salescapabilities

Material development (heating element),
Consistent design and manufacturing
capabilities from heating elements toheater units and industrial furnaces

Semiconductor manufacturing
equipment, auto parts, steel/nonferrous/glass, and chemical industry

4Overview of SHINWA VANES SHINWA VANES is a fabless maker that designs, develops, and manufactures heater parts for semiconductor
manufacturing equipment
 Sells small and medium-sized heaters in the low temperature range to major manufacturers with top shares in theglobal semiconductor manufacturing equipment market
Company Name

SHINWA VANES CO., LTD.

Representative

Noboru Arai, President

Business Profile

Design, development, and manufacturing of heating equipment and industrial heater parts
related to semiconductors, FPD, and solar cell manufacturing

Capital30 million yen

Date of Establishment

October 18, 1978

Consolidated
Results

FYE

August, 2021

August, 2022

August, 2023

Sales

6,321 million yen

7,787 million yen

6,783 million yen

OperatingIncome

687 million yen

1,114 million yen

943 million yen

5Product Portfolio of SHINWA VANESSHINWA VANES produces a wide range of heater products for the semiconductor manufacturing
equipment market

Mica heater

Cartridge heater

Jacket heater

Clean Ribbon Heater

The heater ideal for large
panels, high temperatures, anduniform temperature distribution

Heater that can make highpower density production
possible

Fibrous heater that matches
various shapes

A belt-shaped heater with highcleanliness that uses PTFE
fiber as the covering material

Silicon Rubber Heater

Cable heater

Thermocouple / RTD

Insulation material

Flexible thin sheet heater using
silicon rubber sheet

Heater with improved thermal
efficiency by surface contact

Temperature sensor which ismost widely used fortemperature measurement

Highly applicable material which
can be manufactured into
complex shapes

6Overview of Riken Heat Techno
Basic Information

Overview of Key Products
Heating elements

Company NameRiken Heat Techno Co.,LTD

Representative

President Satoshi Ohashi

Capital30 million yen

Date ofEstablishment

July 2, 2018

Number ofEmployees

61 people(as of October 1, 2023)

Products
HandledHeating elements,
heater units,
and industrial furnaces

Management
Certification

PYROMAXTMPYROMAXTM - PMD

PYROMAX SUPERTM

Unique metal heating elementwith higher durability

Metal-heating element withhigh-temperature deformation
resistance

Ceramic heating element that
achieves a maximum atmosphericheating temperature of 1800℃

Heater units

ISO9001、ISO14001

Industrial furnaces

Heater units

Radiant tube heater

PYRORIKTM

Various heater units thatmaximize the characteristics
of unique heating elements

Ideal for heat treatment inspecial atmospheres such as
carburizing gas atmospheres

Energy efficient industrial
furnace compatible witheverything from experimental tomass production equipment

7