Nidec to Acquire Mitsubishi Heavy Industries Machine Tool Co., Ltd. - Seite 2

Mitsubishi Heavy Industries Machine Tool started its business in 1936 for manufacturing of lathe in Hiroshima, Japan. Since then, Mitsubishi Heavy Industries Machine Tool has been a group company of Mitsubishi Heavy Industries and has grown its business, while supporting Japanese manufacturing for many years. Mitsubishi Heavy Industries Machine Tool, which designs, manufactures and sells machine tools, cutting tools and related products and provides after-sales services for the products, owns highly professional personnel in addition to its long-nurtured technologies. Mitsubishi Heavy Industries Machine Tool has products related to automotive transmissions and reducers businesses, such as a gear cutting machine and a gear grinding machine with high accuracy and efficiency. The company has top market share in Japan with this product. The company also has laser and semiconductor manufacturing equipment with unique cutting-edge technologies.

After this acquisition is completed, Nidec has a view of further expansion of machine tool business with Mitsubishi Heavy Industries Machine Tool, and believes that, with necessary investment, the business will be able to play a major global role in our group. It is our intention to mutually leverage the Nidec Group’s and Mitsubishi Heavy Industries Machine Tool’s respective technological capabilities, brand strength, and customer bases, to contribute to the further development of the global machine tool market.

3. Schedule

(1)	Board of Directors resolution	February 4, 2021 (Japan time)
(2)	Contract signed	February 5, 2021 (Japan time)
(3)	Closing	Expected in May 2021 (The transaction may be deferred with the status of approval of antitrust authorities and license of each country)

4. Effect on Financial Performance for the Current and Next Fiscal Year

The transaction is expected to have no impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2021 and no significant impact for coming fiscal year ending March 31, 2022. If necessary, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.