Unipres : Message from Top Executives updated.

Our consolidated financial results for the second quarter of fiscal 2019 (April 1, 2019　to September 30, 2019) showed decreases in both income and profit due to the effect of reduced production among customers. Specifically, we posted 148.6 billion yen for net sales, 3.9 billion yen for operating income, 3.7 billion yen for ordinary income, and 1.3 billion yen for net income attributable to owners of parent.

We have established a subsidiary company in Wuhan, China in August 2019 as the 6th production base in China in order to expand businesses with carmakers located in Wuhan.

Additionally, in June 2019, we acquired additional shares of UM Corporation, SAS, an affiliate accounted for under the equity method, to make it a subsidiary. UM Corporation, SAS is an important production base for Unipres Group in continental Europe and has been positioned to play a vital role in expanding the Group's European business going forward, mainly through its business with Renault SA.

Furthermore, we have entered into a capital alliance with METALTECH LTD. in October 2019. METALTECH LTD. has become an affiliate of Unipres accounted for under the equity method through the underwriting of a capital increase by METALTECH LTD. by way of third-party allotment. We will make efforts to expand sales to automobile manufacturers with a focus on Japan and Asia through the utilization of two companies' networks.

As for the world economy, uncertainty continues to prevail with the trade friction between the US and China, UK's BREXIT, among others. The automobile industry is undergoing a major transformation that occurs only once every 100 years. A transformation that is changing the industry's structural landscape, including cross-industry collaboration that extends beyond mere technological innovation, and the circumstances surrounding our company is becoming even more challenging. Although the circumstance surrounding our company is becoming even more challenging, we will all strive as one Global Unipres and further deepen UPS Activities to enhance our profitability and competitiveness by trying to build up a robust and flexible corporate structure that enables to take advantage of each opportunity. We ask for your further support and guidance.

December, 2019

CSR activities of Unipres Group that contribute to SDGs

The sustainable development goals (SDGs) adopted by the United Nations in 2015 are common goals for all humans to be achieved by 2030. Companies are being asked to play increasingly greater roles in the achievement of SDGs.

We promote CSR initiatives through our technology, products and various other business activities, with an awareness of the challenges of the SDGs. 　

Establishment of a Subsidiary Company in Wuhan, China

We have established a subsidiary company in Wuhan, China in August 2019.

As China's automotive market has been the largest in the world and is expected to grow further, carmakers from around the world are increasing production capacities. Although we already have production bases in Guangzhou, Zhengzhou, and Dalian, we have decided to expand to Wuhan in order to expand businesses with carmakers located in Wuhan including Renault-Nissan-Mitsubishi Alliance.

Regarding the Acquisition of Treasury Shares

We announced the acquisition of its treasury shares on May 14, 2019. To provide a return to shareholders and to increase capital efficiency, the acquisition was implemented for a total amount of 5.0 billion yen (maximum) and the total number of shares to be acquired at 3,200,000 shares (maximum). Although the acquisition period had been set to continue until October 31, 2019, the acquisition was completed on August 27, 2019, as the maximum amount of the acquisition had been reached. (total number of shares acquired：2,986,900 shares, total amount of acquisition：4,999,970,900 yen) Going forward, we will continue to consider the acquisition of its shares in light of the situation.