Nissha Printing Co., Ltd. (hereinafter, the “Company”), through the conclusion of a share purchase agreement by and between Nissha Europe GmbH, its consolidated subsidiary, and shareholders of Schuster Kunststofftechnik GmbH (hereinafter, “Schuster”) engaged in the manufacturing and sales of automobile interior plastic molded components mainly in Europe, and Back Stickers GmbH (hereinafter, “Back Stickers”) engaged in the manufacturing and sales of decorative films dated as of September 23, 2016, acquired Schuster and Back Stickers including its related group companies (hereinafter, “Back Stickers Group”) as subsidiaries of the Company. The transaction is expected to close in late October 2016.

In the Company’s Fifth Medium-term Business Plan implemented since April 2015, the Company has established its medium-term vision as: “We will acquire and merge new technologies into our core printing technologies and expand our business portfolio into global growth markets.” Due to normalized volatility in product demand and price reduction pressures for products and services in the consumer electronics industry, which includes the Company’s mainstay smartphone and tablet devices, the Company thinks it is necessary to diversify its business and establish a foundation that can secure sustained sales growth and stable profits. Within its Fifth Medium-term Business Plan, the Company has identified M&A as one of the important methods to diversify its business portfolio. As part of its M&A strategy, the Company has been aiming to enter into new markets, promote vertical integration and acquire new core technologies.
The Company’s Industrial Materials business unit aims to expand the printing-related materials field following the acquisition of metallized paper-related business in August 2015, and to widen the scope in the automotive field which is expected to grow on a global basis and is designated as a key market.
The Industrial Materials business unit is improving product line-ups and building supply chains adapting to the needs of our automotive customers. As the supply chains of the automotive market are spread in all parts of the world, the Industrial Materials business unit has expanded molding production bases in Southeast Asia, USA and Mexico so far, shifting toward a business model based on local production and consumption rather than exports. Through this acquisition, the Company will gain manufacturing bases in Europe which is important to the automotive market complimenting its existing networks in Asia, North America, and Central and South America.
Schuster and Back Stickers Group have decoration technologies which supplement mutually the Company’s existing decoration technologies. In addition, their production know-how is class leading. Furthermore, they have established strong customer relations with a focus on the major automotive manufacturers in Europe. In the future, the Company is planning to integrate Schuster and Back Stickers Group decoration technology, production know-how and sales channels with the Company’s existing network for the purpose of expanding its business in the automotive market.

*The consolidated sales of Schuster and Back Stickers Group is EUR 20.6 million (year ended December 31, 2015)

The impact of the acquisition on the Company’s consolidated business results is expected to be minor. Prompt notification will be made should the need arise regarding revision of forecasts or disclosure of other matters.

Date of execution of the share purchase agreement：September 23, 2016
Date of acquisition of the shares：Late October 2016 (scheduled)