July 18, 2019Japan Industrial Solutions Co., Ltd.

JIS TO ACQUIRE CLASS-A SHARES ISSUED BY AKEBONO BRAKE INDUSTRY CO.,LTD.
Japan Industrial Solutions (“JIS”) announces today that we have entered into an agreement toacquire Class-A shares through third-party allotment issued by Akebono Brake Industry, Co.,
Ltd. (TSE First Section: 7238, “Akebono Brake”), through its investment vehicle, Japan
Industrial Solutions Fund II.
Akebono Brake is a global manufacturer specializing in brake products contributing directly tothe safety of people. In May 2016, they announced the new medium-term management plan
“akebono New Frontier 30 - 2016” (hereinafter referred to as the “aNF30-2016”) to beconcluded in fiscal 2018, and, in line of the aNF30-2016, they have worked to realize goals of(1) rebuilding North American operations, (2) establishing global networks based on productbased business units, and (3) expanding high performance brake business and recreating
European operations. In particular, they implemented the following four measures for thebusiness in North America where production issues occurred: (1) fundamental organizational
reforms, (2) productivity improvement, (3) manufacturing capacity increase, and (4)optimization of sales and purchase prices. However, the Company’s business environment andfinancial condition remain challenging in the face of new issues with the business in North
America that arose from certain North American manufacturer’s withdrawal from sedan models
productions and failure to win orders for new generation models of brake system due toproduction issues.
In light of these severe circumstances, they have resolved to seek a business turnaround inaccordance with the specified certified dispute resolution proceedings (i.e., the Turnaround
ADR proceedings) under the Industrial Competitiveness Enhancement Act of Japan in order toachieve establishing robust profitability and improving their financial condition fundamentallyfor future business regrowth, with the consent of the financial institutions. Akebono Brake andJIS have been considered together about management support with capital injection of 20 billion
yen by JIS, and an agreement has been reached as of today.
JIS entered into an investment agreement with Akebono Brake to underwrite the 20,000 Class-A
shares (20 billion yen) issued through third-party allotment, which was resolved by the Board ofDirectors of Akebono Brake today. The payment is scheduled on September 30, 2019, subject tothe conditions that each proposal pertaining to the issuance of the Class-A shares is approved at1

the Extraordinary General Meeting of Shareholders of Akebono Brake, and that their businessturnaround plan under Turnaround ADR proceedings is resolved.
JIS has a mission to contribute Japanese economy by supporting business reorganization andturnaround through our solutions enhancing corporate value and global competitiveness ofJapanese companies. JIS’s acquisition of Class-A shares will support Akebono Brake toestablish a robust profitability and improve their financial condition thoroughly. At the sametime, the acquisition will contribute to the revitalizing and strengthening Japanese industry
through the support of Akebono Brake in implementing their business turnaround plan.

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