August 22, 2023
To whom it may concern
Company Name:
Representative:

Nisshinbo Holdings Inc.
Masahiro Murakami,President and Representative Director(Code No. 3105, Prime Market of Tokyo Stock Exchange)
Corporate Communications GroupContact:

Notice Regarding Transfer of Shares and Loan Receivables ofConsolidated Subsidiary by Nisshinbo Holdings Inc.
At the Board of Directors meeting held today (August 22, 2023), Nisshinbo Holdings Inc. (the“Company” or “we”) resolved to transfer all shares outstanding (the “Transaction”) of TMD Friction
Group S.A. (“TMD”), one of the main pillars of the Company’s automobile brake business, and loan
receivables against TMD and its subsidiary TMD Friction Holdings GmbH (the “Loan receivables”), toa special purchase vehicle fully owned by AEQUITA SE & Co. KGaA. (“AEQUITA”), a global industrial
group with headquarters in Munich, Germany.
１． Purpose of the Transaction
The Nisshinbo Group operates under the corporate philosophy of “Change and Challenge! For thecreation of the future of Earth and People.” and as an “Environment and Energy Company” group, we
designated the Wireless and Communications, and Micro Device businesses as key investment areas torealize a super-smart society and to further enhance its corporate value through business portfoliotransformation.
The Nisshinbo Group acquired TMD, a leading European brake friction material manufacturer in 2011,
and obtained one of the top market shares worldwide. We have executed business structure reforms
with the aim to improve the profitability of TMD, but the sudden degradation in the global climate
forced the automotive industry to face new obstacles including Euro7 compliance. Under thesecircumstances, we have reached a conclusion that TMD requires continuous and profoundtransformation of its business in order to maintain its growth.
Taking into account the Company’s business portfolio strategy, we have decided to transfer all
shares of TMD to AEQUITA. Considering AEQUITA’s longstanding experience in the global
automotive industry and its extensive transformation know-how, we believe that AEQUITA is best
positioned to ensure TMD's sustainable long-term development and further growth.
Through the Transaction, we plan to strengthen the profitability of our brake business, especially at
Nisshinbo Brake Inc. and by enhancing our market share as the leader in the copper-free friction
materials 1, we aim to solidify the brake business as a foundation of our group’s profit base.

1

Copper-free friction materials: Brake friction material with less than 0.5% copper content. Reduces
environmental impact compared to conventional products.

The Transaction is subject to the completion of customary authorization procedures in accordancewith domestic and foreign competition laws and other relevant legal imperatives.
２． Overview of the subsidiary (TMD) subject to sale
（１）
（２）
（３）
（４）
（５）
（６）
（７）

NameAddressRepresentative
Business
CapitalDate of incorporation
Major shareholder

TMD Friction Group S.A.
Luxembourg, Grand Duchy of LuxembourgDavid Baines (Group CEO and President)
Manufacturing and sale of brake friction material and parts
EUR 31,000
March 18, 2009
Nisshinbo Holdings Inc. 100%
CapitalThe Company owns 100.0% of the total number of shares
relationshipoutstanding of TMD
Relationship between thePersonnel
Three directors TMD are also directors of the Company（８）listed company and thisrelationshipcompany
Business
Transactions related to loan of money with therelationship
Company.
（９）
Operating results and financial position for the past three years （unit: EUR million）
Fiscal year
December 2020
December 2021
December 2022
Consolidated net assets△142△157△185
Consolidated total assets
470523505
Consolidated sales
616
722
751
Consolidated operating profit△218△42
Consolidated ordinary profit△263△39Profit attributable to parent△22△31△51company shareholders※Other specified subsidiaries to be transferred resulting from the Transaction include the following entities.
① TMD Friction Holdings (UK) Ltd.
（１）
（２）
（３）
（４）
（５）
（６）
（７）

NameAddress
Representative
Business
CapitalDate of incorporation
Major shareholder

TMD Friction Holdings (UK) Ltd.
West Yorkshire, EnglandDavid Baines (Chief Executive Officer)
Holding company （Currently under liquidation procedure）
EUR 121 million
December 6, 2012
TMD Friction Group S.A. 100%

② TMD Friction UK Ltd.
（１）
（２）
（３）
（４）
（５）
（６）
（７）

Name
Address
Representative
Business
CapitalDate of incorporation
Major shareholder

TMD Friction UK Ltd.
West Yorkshire, England
Liam James Booth (Operations Director)
Manufacturing and sales of brake friction material and parts
GBP 64 million
November 28, 2001
TMD Friction Holdings GmbH 100%

③ TMD Friction do Brasil S.A.
（１）
（２）
（３）
（４）
（５）

Name
Address
Representative
Business
CapitalTMD Friction do Brasil S.A.
Salto, State of São Paulo
Edilson José Jaquetto (Chief Managing Director)
Manufacturing and sales of brake friction material and parts
BRL 159 million

（６）Date of incorporation（７）

Major shareholder

June 28, 1991
TMD Friction Holdings GmbH 99.999%
TMD Friction Services GmbH 0.001%④ TMD Friction México S.A. de C.V.
（１）
（２）
（３）
（４）
（５）
（６）

Name
Address
Representative
BusinessCapital
Date of incorporation（７）

Major shareholder

TMD Friction México S.A. de C.V.
Mexico City, Mexico
Edilson José Jaquetto (President of Board of Directors)
Manufacturing and sales of brake friction material and parts
MXN 746 million
August 18, 1988
TMD Friction Holdings GmbH 99.993%
TMD Friction Services GmbH 0.007%

３． Overview of the purchaser
（１）

Name

AEQH27 S.à r.l.

（２）

Address

Luxembourg, Grand Duchy of Luxembourg（３）

Representative

Ralph Westphal （Manager）
Simon Maire (Manager)（４）

Business

Holding of participations（５）

CapitalEUR 12,000（６）Date of incorporation

August 3, 2023

（７）

Major Shareholder

AEQH25 GmbH 100.0%
Capitalrelationship（８）

Relationship between thePersonnel
listed company and thisrelationshipcompany
Businessrelationship

N/A
N/A
N/A

４． Number of shares to be transferred, transferred amount, status of shares owned before and after transfer,and overview of the Loan receivables to be transferred.
Number of shares owned（１）

before transfer

3,100,200 shares（Number of voting rights：3,100,200）（Voting right ownership ratio：100％）（２）

Number of shares to be t 3,100,200 shares
ransferred（Number of voting rights：3,100,200）（３）

Transfer price of shares
Number of shares owned（４）

after transfer

Undisclosed due to confidentiality agreement with the purchaser.
0 shares（Number of voting rights：0）（Voting right ownership ratio：0％）

The Company’s loan receivable against TMD
Assets subject to transfer（５）of loan receivables
The Company’s loan receivable against TMD Friction Holdings GmbH（６）Transfer pricereceivables

ofloan Undisclosed due to confidentiality agreement with the purchaser.

５． Schedule（１）

Date of resolution by
the Board of DirectorsAugust 22, 2023

（２） Date of conclusion of theagreement

August 22, 2023

（３） Date of execution of theShare Transfer

November 30, 2023 (planned)

６． Future outlook
With regard to the Transaction, we plan to record approx. JPY 38 billion as an extraordinary loss
in the fiscal year ending on December 31, 2023. The amount of the extraordinary loss is subject tochange until the completion of the Transaction due to factors such as currency rate fluctuation.
Regarding the full-year results forecast of fiscal year ending on December 31, 2023, please referto the “Notice Regarding Revisions to Operating Performance Forecast” disclosed today.
End