Autobacs Seven : To strengthen the wholesale business in China and procuring high-quality air fresheners AUTOBACS SEVEN Capitalizes Chinese Company “CarHouse

September 6, 2017

To strengthen the wholesale business in China and procuring high-quality air fresheners

AUTOBACS SEVEN Capitalizes Chinese Company "CarHouse"

In-vehicle Air Fresheners

September 6, 2017 (Tokyo, Japan) - AUTOBACS SEVEN Co., Ltd. ("the Company," Representative Director and CEO: Kiomi Kobayashi) hereby announces that the Company has concluded and signed a capitalization agreement with Guangdong CarHouse Industrial Development Holdings Co., Ltd. (Chairperson：Jiang Hai Tao. "CarHouse"), a Chinese company that operates the BtoB platform for supply of car goods and services, and manufactures and sells in-vehicle air fresheners.

Key Points

■Car House manufactures and sells in-vehicle air fresheners, and operates the BtoB platform for supply of car goods and services in China.

■Through this capitalization, the Company can procure high-quality air fresheners at reasonable price. In addition, via the platform being operated, the Company will aim to expand the wholesale business in China.

CarHouse manufactures and sells in-vehicle air fresheners, and operates the BtoB platform for supply of car goods and services in China.

The in-vehicle air fresheners manufactured by the company are widely known under the CARORI brand in China. CARORI has penetrated the country as a mid- to high-price range brand, and is on sale in Japan too. In April 2016, CarHouse also launched a BtoB platform for smart phones to sell car parts and accessories and connect manufactures of car parts and accessories with retail car goods stores or car wash shops in China. The revenue in this business has been increasing steadily, and continued growth is expected in the future.

In China, automotive demand has increased rapidly since 2000, and the number of automobiles owned in the country reached 140 million in 2014. China now has the second highest car ownership ratio in the world behind the United States. This has also led to an increase in demand for car parts and accessories, including in-vehicle air fresheners.

The Company acquired 10% of CarHouse's shares through this capitalization. The Company will aim to expand the wholesale business in China by procuring high-quality air fresheners at reasonable price and exhibiting our merchandise on the platform

operated by CarHouse. Home page ofthe

platform

Merchandise page of the platform

profile of CarHouse

Company name	Guangdong CarHouse Industrial Development Holdings Co., Ltd.
Location	Dongguan City, Guangdong Province, China
Chairperson	Jiang Hai Tao
Line of business	Manufacture and sales of in-vehicle air fresheners, manufacture and sales of molded plastic goods Operation of the BtoB platform for car parts, accessories and services
Capital	11,029,000 yuan (1.8 million yen)
Incorporation	July 14, 2004

Based on the Group's management principle, "constantly propose the best way of enjoying motoring to each customer and create a rich, sound motorized society," the Company will continuously aim to be a company that you can consult regarding anything to do with cars.

Disclaimer: Please note that this document is a summary translation of the Japanese press release and prepared for reference purposes only. We do not assure the correctness or completeness of this summary translation. Please note that this summary translation may be amended without notice, or be pulled from our website for such amendment purpose, etc., at our own discretion.