Aisin : Business Reorganization (Merger) with a Consolidated Subsidiary

Business Reorganization (Merger) with a Consolidated Subsidiary

Oct. 31, 2024

News Release

AISIN CORPORATION ("AISIN") hereby announces that it has signed a Memorandum of Understanding today to merge its consolidated subsidiary Aisin Chemical Co., Ltd. ("Aisin Chemical") into AISIN (the "Merger").

The environment surrounding the automotive industry is changing dramatically, with a trend toward carbon neutrality and electrified, intelligent mobility accelerating further. Particularly with regard to the electrification of automobiles, BEVs are drastically changing the value chain of the entire industry, including vehicle structure, value sought by users, and supply chains.

To turn these environmental changes into business opportunities, AISIN has positioned businesses that solve social issues as a growth area and is transforming its business portfolio. To achieve this transformation, AISIN will aim to optimize the allocation and utilization of resources throughout the Group by steering the Group from branch management to group management and by further strengthening and expanding growth areas.

Aisin Chemical has been engaged in multiple business areas, including chemical products, friction materials, and plastic parts for automobiles, some of which overlap with the businesses of companies within the Group. In order to grow efficiently as a group while quickly leveraging the strengths of each business area, we have decided to integrate the company with AISIN and reorganize our business areas.

By unifying Aisin Chemical and AISIN through the Merger, the allocation and utilization of management resources will be optimized, thereby enhancing management efficiency within the AISIN Group's growth strategy.

1.Outline of Merger

(1) Merger schedule
Date of resolution by Board of Directors	October 31, 2024
Date of contract	TBD
Date of merger	April 1, 2025 (scheduled)
(2) Method of merger
Aisin Chemical will repurchases all of its shares held by companies other than AISIN as treasury stock, which makes Aisin Chemical a wholly owned subsidiary of AISIN, and then AISIN and Aisin Chemical will merge.(with AISIN as the surviving company).

2.Outline of merging companies

Company name	AISIN CORPORATION	Aisin Chemical Co., Ltd.
Head office address	2-1 Asahi-machi, Kariya, Aichi	1141-1 Okawagahara, Fujioka-Iino-Cho, Toyota, Aichi
Established	August 1965	February 1952
Capital	45,049 million yen	2,118 million yen
Representative	Moritaka Yoshida, President	Takatora Sugiura, President
Number of employees	35,099 (as of March 31, 2024)	1,032 (as of March 31, 2024)
Businesses	Manufacturing and sale of automotive parts and energy solution-related products	Development, manufacturing and sale of chemical products, friction materials and plastic parts for automobiles

3.Future Outlook

This Business Reorganization has no significant impact on the consolidated financial results. We will promptly notify you of any matters that need to be disclosed in the future.