Fujimi Incorporated : Notice Concerning Acquisition of Fixed Asset(Land)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

December 23, 2021

FUJIMI INCORPORATED

Representative: Keishi Seki, President & CEO

Listings: Tokyo and Nagoya Stock Exchanges (Stock code: 5384)

Contact: Toshihiro Kawashima

Deputy Senior General Manager, Finance Division. P h o n e: [phone]

Notice Concerning Acquisition of Fixed Asset (Land)

FUJIMI INCORPORATED ("Fujimi"), today, signed a contract for the acquisition of fixed asset (land) based on a resolution of the Board of Directors Meeting held on December 21, 2021.

1. Reason for acquisition

Fujimi engages in research and development ("R&D"), manufacturing and sales of lapping abrasives and polishing compounds for the silicon wafers as well as CMP processes for semiconductor manufacturing.

Fujimi's customers, such as silicon wafer manufactures and semiconductor device manufactures have announced capacity expansion plans to meet strongly growing semiconductor demands.

Under these circumstances, Fujimi is already making capital investments to ensure its supply responsibilities. In addition, given the future demand growth expectation, Fujimi decided to acquire a land with a purpose of building a new plant.

2. Details of assets acquired

Location	4 Kakaminishi-machi and 1 Kakamiyamanomae-cho,
	Kakamigahara-City,Gifu-Prefecture
Purpose	New Plant
Area	28,120.29 ㎡
Cost for acquisition	Approximately 1.3 billion yen (full amount is self-funded)

The cost for this acquisition is less than 30% of the consolidated net assets as of the end of the preceding consolidated fiscal year.

3. Counterparty

Kakamigahara City Land Development Public Corporation

4. Outlook

In response to the capital investments by the customers, Fujimi is appropriately increasing the production capacity not only in Japan but also in Taiwan and the United States. In addition, Fujimi will be further strengthening R&D capabilities in order to support the development and mass production of customers' advanced semiconductor devices.

Although the impact of the acquisition of the aforementioned fixed assets will be minor on the business results for the current fiscal year, Fujimi will promptly disclose any events that fall under the disclosure items in the future.

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