December 2, 2020
To Whom It May Concern:
Name of Company: Arisawa Mfg., Co., Ltd.
Representative: Yuta Arisawa, Representative Director and CEO(Code No.: 5208 Tokyo Stock Exchange, 1st Section)
Contact: Takeshi Masuda, Senior Operating Officer in charge ofCorporate Planning Department(TEL: 025-524-7101)
Notice of Commencement of Tender Offer for Shares of ThinFlex Corporation of Taiwan
The Company resolved at the Board of Directors’ meeting held on December 2, 2020 to acquire
additional shares in ThinFlex Corporation of Taiwan (hereinafter referred to as “ThinFlex”), a consolidated
subsidiary of the Company, by means of tender offer under Taiwanese laws (hereinafter referred to as“Taiwanese Tender Offer”), and accordingly, we hereby notify you as follows.
1.

Reason for the Acquisition of Shares and the Tender Offer
The Company and ThinFlex both manufacture and sell raw materials for flexible printed wiring boards,
and based on our respective specialized products and major customers/markets, we have coexisted
separate from each other.
In anticipation of intensifying competition in the coming years, it will be necessary to deepen ouralliance to take advantage of our respective strengths and enhance our competitiveness in all aspects ofdevelopment, sales, and manufacturing, as well as to capture growth in Asia including peripheral areas ofbusiness, focusing on Greater China. For this reason, the Company has decided to acquire additional
shares of ThinFlex.

2. Outline of the Taiwanese Tender Offer
Arisawa Mfg., Co., Ltd.
(1) Tender Offeror(2) Target Company(3) Tender Offer Period

ThinFlex Corporation(4) Class of Shares to be
Purchased(5) Tender Offer Price

Common Shares(6) Funds Required for Tender
Offer

Scheduled from December 8, 2020 to January 26, 2021
(Note) The Tender Offer Period may be extended for up to 50
days if the terms of purchase are not met.

36 Taiwanese dollars per common share(Note) The Tender Offer Price is determined based on the stock
price level of the Target Company, taking into
consideration a comprehensive view of the marketability(trading volume, market making, etc.) and future profits,etc., of the Target Company’s shares.
1,728 million Taiwanese dollars (6,325 million yen)
(Note) This is the amount required to purchase 47.7% of thenumber of shares issued of ThinFlex.

(7) Minimum Number of Shares to 17,813,244 shares (17.7% of the number of shares issued)
be Subscribed(8) Maximum Number of Shares
48,004,569 shares (47.7% of the number of shares issued)
to be Subscribed(9) Conditions of Tender Offer

3. Outline of the Target Company(1) Name

This will be conducted on condition that subscription for
17,813,244 shares (17.7% of the number of shares issued) be made,clearance from the Investment Commission and the Financial
Supervisory Commission of Taiwan be obtained, and any otherconditions normally required for similar transactions be met.

(2) Location

ThinFlex Corporation
No.8, Luke 2nd Rd., Luzhu Dist., Kaohsiung City 821, Taiwan(3) Representative

Chia Neng Huang, Chairman(4) Capital

1,006,378 thousand Taiwanese dollars
100,637,750 Shares
June 2, 2000

(5) Number of Shares Issued(6) Date of Establishment(7) Business Description(8) Stock Exchange of Listing

Development, manufacturing, and sales of FPC materials, etc.
Taiwan Gre Tai Securities Market (Stock Code: 3144)(9) Major Shareholders andShareholding Ratio

The Company (Arisawa Mfg., Co., Ltd.): 52.30%
Chang Wah Electromaterials Inc.: 5.01%(10) Relationship with the Company Capital
Relationship

The Company owns 52,633,181 commonshares (52.30% of the number of shares issued)of ThinFlex.

Personal
RelationshipThree of the Company’s officers andemployees serve as directors of ThinFlex
concurrently.
Business
The Company supplies raw materials and sells
Relationshipproducts relating to electronic materials toThinFlex.
Status as a
ThinFlex is a consolidated subsidiary of theRelated Party
Company, and therefore falls under a relatedparty.
(11) Business Performance and Financial Position for the Past Three Years
Fiscal YearNet Assets
Total Assets
Net Assets Per Share
Sales
Operating Profit
Current Net Profit
Current Net Profit per ShareDividend per Share

Fiscal Year ended
December 31, 2017
1,435 million TWD
2,916 million TWD

Fiscal Year ended
December 31, 2018
1,479 million TWD
3,475 million TWD

Fiscal Year ended
December 31, 2019
1,506 million TWD
3,690 million TWD

14.27 TWD

14.70 TWD

14.97 TWD

2,491 million TWD

2,616 million TWD

2,909 million TWD

234 million TWD173 million TWD

216 million TWD
164 million TWD

212 million TWD
140 million TWD

1.72 TWD
1.1 TWD

1.64 TWD
1.0 TWD

1.40 TWD
0.9 TWD

4. Schedule(1) Date of Resolution of the Board of Directors(2) Commencement of Acceptance of Subscription to theTender Offer(3) End of Subscription Period for the Tender Offer(4) Date of Share Transfer

December 2, 2020
December 8, 2020
January 26, 2021 (planned) (Note)

February 1, 2021 (planned) (Note)(Note) Subject to change or extension due to the permission procedures, etc., of the Taiwanese authorities.

5.

Future Outlook
Results of the Taiwanese Tender Offer will be disclosed as soon as available. If this Taiwanese Tender
Offer is successfully concluded and any impact on the forecast of business results arises, details will be
disclosed as soon as they are finalized.