July 15, 2020
Japan Industrial Solutions Co., Ltd.
JIS TO INVEST IN CLASS-A AND CLASS-C SHARESISSUEDBY MITSUBA CORPORATION

Japan Industrial Solutions (“JIS”) announced today that JIS has entered into an agreement
to invest in 15,000 Class-A shares (15 billion yen) and 5,000 Class-C shares (5 billion yen)issued through third-party allotment by Mitsuba Corporation (TSE 1st Section; 7280,“Mitsuba”), through Japan Industrial Solutions Fund II.
Mitsuba is a business group operating globally focusing primarily on auto electoral products
and motorcycle electrical products business. Mitsuba develops top-of-the-line products byinterconnecting control and mechanism technologies with their core strength in motor
technology in face of the accelerating pace of technical innovations in the automobile andmotorcycle markets and an increasingly diverse global market environment.
Mitsuba developed “Mitsuba Vision 2024” in 2013 and continued investing aiming atestablishing flexible capabilities in responding to customers by expanding domestic andoverseas sites and internalizing the development of equipment, jigs, and molds toward a goalof expanding the revenue base. However, in addition to a rapid deterioration of the external
environment such as U.S.-China trade friction, a decline in profitability due to an excessiveemphasis on sales, an increase in fixed costs with the expansion of a global network, outflows
of funds due to violations of the Antimonopoly Law and the handling of recall, and otherfactors led to a decline in the finance and business performance. In the term ended March
2020, extraordinary losses including the impairment loss on fixed assets and structuralreform expenses were posted. As a result, the current term net loss was posted for threeconsecutive terms, and the consolidated capital adequacy ratio worsened further. Under
such circumstances, Mitsuba developed the 12th medium-term management plan including afundamental structural reform toward the improvement of financial strength and businessperformance and considered a need for seeking external support for the area of governanceand management PDCA, in addition to capital and funds, in order to resolve issues infinance and business swiftly and fundamentally.
1JIS highly values that Mitsuba is a distinguished player that differentiates themselves fromother motor manufactures, in that Mitsuba is able to collaborate closely with customers,such as offering customization of electric components and electronic control backed by theiradvanced motor technologies and in-depth understanding of vehicles and systems.
JIS has entered into an underwriting agreement with Mitsuba as a result of thorough indepth discussions of their medium-term management plan. JIS supports their view on
improving productivity of auto electrical products and increasing profitability by driving afundamental structural reform while enhancing governance and business managementcapabilities including the establishment of an appropriate management PDCA cycle, andshifting business resources to motorcycle business that is expected grow in Asia and otherregions going forward.
Investment in Class-A shares and Class-C shares is subject to approval of the issuance in theMitsuba’s Extraordinary General Shareholders Meeting as well as other conditions
pertaining to the issuance of these shares.
JIS is committed to supporting the implementation of Mitsuba’s strategy for its sustainablegrowth as an automotive components supplier that supports the global automobile andmotorcycle industries through offering solutions that will lead to corporate value growth andtheir market advantage.

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