Notice Regarding Establishment of Mass Production Site in Thailand through Joint Venture and Additional Capital Contribution

Overview of Business Partnership and Investment

Through the joint venture AA Diamond Technology Co., Ltd., established by Asahi Diamond Industrial Co., Ltd. and Tokyo Seimitsu, a production subsidiary will be established in Thailand to set up a mass production site for hub blades. The total capital contribution is 12.3 hundred million yen, with each company holding a 50% stake. Construction and completion timings are undecided, but funds will be allocated to capital expenditures and infrastructure development.

Outlook and Impact

The impact on consolidated results for the fiscal year ending March 2027 is expected to be minimal. The new site is scheduled to commence operations in April 2028 and is expected to capture demand accompanying the medium- to long-term expansion of the semiconductor market, contributing to the growth of the Group's semiconductor-related businesses. Any material matters will be disclosed promptly as they become available.