Notice Regarding the Acquisition of Denso Corporation’s Head-Up Display Business

Overview of this matter

Nihon Seiki will acquire the development, manufacturing, and sales of Denso's HUD business, incorporating Denso's technology and manufacturing know-how and combining it with our development and manufacturing base to enhance production and development efficiency and cost competitiveness. Target regions are Japan, China, Spain, the United States, and Mexico. The acquisition target includes production equipment and related intellectual property. Directors and employees of the Denso Group are not part of the acquisition. The acquisition price will be calculated based on future cash flows and is undisclosed. The execution date is February 26, 2027 (planned), and payment will be in cash. The anticipated impact is minimal, and appropriate disclosures are expected in due course.

Outlook and strategy

The HUD market for automotive information displays is expected to grow, and we position enhancing HUD presence and expanding sales opportunities as core to our medium-term plan. By leveraging Denso's technology and business foundation through the acquisition, we will strengthen the supply framework and customer response capabilities. As of the March 2026 term, financial results for the target business are undisclosed. The financial impact of the acquisition is expected to be minimal, with timely and appropriate disclosures anticipated.