2020

Apr.30, 2020

MINEBEA MITSUMI Inc.

Announcement of Completion of Acquisition of All Shares of ABLIC Inc.

MINEBEA MITSUMI Inc. (the "Company") previously entered into a share transfer agreement with Development Bank of Japan Inc. and Seiko Instruments Inc. regarding the acquisition of the shares (the "Acquisition of Shares") of ABLIC Inc. ("ABLIC"), as announced in the press release dated December 17, 2019, titled "Announcement of Acquisition of All Shares of ABLIC Inc." The Company is hereby pleased to announce that, today, it completed the Acquisition of Shares, as was announced to be completed in the press release dated April 27, 2020, titled "Announcement of Closing Date of the Acquisition of All Shares of ABLIC Inc."

1. Purpose of the Acquisition of Shares and the Company's Future Operating Policy

The Company's basic strategy is to identify the products as its core business called the "Eight Spears" in which the Company can demonstrate its strength, such as super-precision processing technologies and mass production technologies, and which would not be easily eliminated from the market and to provide the customers with new values by combining and integrating such products. Because analog semiconductors, one of the "Eight Spears", are important input-output components of IoT technologies, which is a business area that the Company is focusing on, the Company intends to further expand its analog semiconductor business by enhancing its product portfolio and entering new application markets.
ABLIC is a semiconductor manufacturer based on watch-related technologies with a large number of unique products that utilize low-current consumption, low-voltage operation and ultra-small packaging technologies, mainly analog ICs, such as voltage regulators / voltage detectors and lithium-ion battery protection ICs for consumer products, automotive EEPROM*1, and ultrasound imaging ICs for medical devices. In addition, in the growing markets such as those for automotive devices, medical devices, and IoT/wearable devices *2, ABLIC has realized a continuous design-win*3.
ABLIC and the Company have respective product portfolios which can be complemented each other, and the Acquisition of Shares will enable us to achieve multiple synergistic effects. In respect of research and development, the Acquisition of Shares will enable the Company to develop and manufacture products with even higher performance and quality by integrating both companies' advanced technologies. In addition, when it comes to manufacturing, the Company will be able to improve quality and productivity and strengthen both companies' BCP*4 responsiveness through joint production activities at the wafer process and assembly and testing process plants of both companies and by sharing industrial technologies and know-how seamlessly between the companies. Furthermore, the Company expects to generate synergies that are not limited to the semiconductor field, such as the mutual use of the sales channels of the Company's group and ABLIC, and the application by ABLIC of the knowledge possessed by other divisions of the Company to the development of new products.
Through the Acquisition of Shares, the Company will strengthen its efforts to expand the sales of high value-added products targeting medical devices as well as products targeting the industrial/housing device market and enhance the expansion of its market share in the car infotainment*5 market.
Furthermore, the Company published its "Targets for the Next Decade" in May 2019, with target sales of ¥2.5 trillion and target operating profit of ¥250 billion for its group, and has been making company-wide efforts towards such targets. Specifically, for the semiconductor business, the present targets are sales of ¥100 billion and operating margin of 10%. Through the Acquisition of Shares, the Company has built a solid foundation for achieving these targets.
The Company will contribute to the re-growth of the Japanese semiconductor industry by promptly expanding the scale of its semiconductor business and enhancing its position in the analog semiconductor market.

• *1 "EEPROM" is a type of non-volatile memory whose recorded content is not deleted even after the power supply is disconnected and can be rewritten electronically.
• *2 "Wearable devices" mean electronic devices that can be worn when in use.
• *3 "Design-win" refers to cases where it has been determined that the company's own product will be adopted in a customer's new product.
• *4 "BCP" is an abbreviation of Business Continuity Plan and means a plan to prevent the interruption of business activities in the event of natural disasters or other events, or to restore business operations at an early stage in case of such an interruption.
• *5 "Car infotainment" means in-vehicle information and entertainment systems.

2. Outline of ABLIC

3. Future Outlook

As a result of the Acquisition of Shares, ABLIC will be a subsidiary of the Company. The impact of this transaction on the Company's consolidated business results for the fiscal year ending March 31, 2021 is currently being examined, and will be disclosed as soon as it is determined.

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