02 February 2023

At the Board of Directors meeting held today, Sumitomo Electric Industries, Ltd. (President: Osamu Inoue; the “Company”) resolved to acquire common stock of Nissin Electric Co., Ltd. (President: Yoshihiro Matsushita; “Nissin Electric”) and TECHNO ASSOCIE Co., Ltd. (President: Mamoru Moritani; “TECHNO ASSOCIE”) through a tender offer (the “Tender Offer”) to make Nissin Electric and TECHNO ASSOCIE wholly owned subsidiaries in accordance with the Financial Instruments and Exchange Act.

The Company established and announced “Sumitomo Electric Group 2030 Vision” in May 2022 based on the “spirit of always contributing to the public benefit through business while striving to ensure mutual prosperity with our stakeholders.”

The Company considers its “Purpose” to be “contributing to building a better society by pursuing Top Technology, using the integrated capabilities of the Sumitomo Electric Group (the “Group”).”

In light of the various newly surfaced or protracted risks, such as geopolitical risks regarding supply chain, during a period of dramatic upheaval in the business environment, the Company has been working on further enhancing the corporate value of the Group as a whole through group-wide efforts by providing an extensive range of “products and services for the development of infrastructure and industries.”

Meanwhile, Nissin Electric, with its unique technology and products, has been steadily expanding its business, centering on the fields of Power Supply and Environment Systems, Beam and Plasma, and Equipment and Parts Solutions, under the slogan “NISSIN ISSIN (New Each Day)”, aiming to become “a company creating a sustainable future through reliable technical capabilities where each of employees can realize the contribution to society.”

The Company believes that these visions and efforts of Nissin Electric and the Company are headed in the same direction.

In November 2007, the Company acquired additional shares of Nissin Electric to make it a consolidated subsidiary of the Company in order to strengthen collaborative ties, particularly in the environmental and energy fields. Thereafter, the Company has conducted comprehensive exams of way to create further synergies. The Company has reached the conclusion that it is desirable to further strengthen the direct capital relationship in order for the Company and Nissin Electric to create further synergies in the future.

Through the Tender Offer and the scheduled subsequent procedures, Nissin Electric will become the Company’s wholly-owned subsidiary. The Company believes that this will result in enhancement of the ability to offer solutions for customers through merging and combining core technologies, maximum utilization of human resources through the integration, exchange, and rotation of teams and personnel, and acceleration of global expansion, and reduction of costs and risks through the mutual utilization of overseas offices and customer bases, etc., which will lead to reinforcement and maximization of the Group’s integrated power and further enhancement of the corporate value of the Group as a whole.

TECHNO ASSOCIE has unique sales capacities (“development proposal-based sales”) and broad supplier and processing networks, and it has been steadily engaged in the electronics business, automotive business, and area sales. Utilizing the knowledge obtained through sales activities, as well as its creativity and proposal-making capabilities as an engineering company, TECHNO ASSOCIE will accurately meet the diversified needs, will provide high-value-added services to its customers, and will also aggressively make efforts towards alliances, partnerships, and collaborations to expand business opportunities and market domains.

The Company believes that these visions and efforts of TECHNO ASSOCIE and the Company are headed in the same direction.

In September 2019, the Company acquired additional shares of TECHNO ASSOCIE to make it a consolidated subsidiary of the Company. Thereafter, the Company explored various manners of collaborations and made efforts to create collaborative ties by utilizing prototype functions, enhancing and improving the procurement capabilities, and uncovering customer needs. As a result, it has reached the conclusion that it is desirable to further strengthen the direct capital relationship in order for the Company and TECHNO ASSOCIE to create further synergies in the future.

Through the Tender Offer and the scheduled subsequent procedures, TECHNO ASSOCIE will become the Company’s wholly-owned subsidiary. The Company believes that this will improve the added value as a group and expand the sales revenue and profits by utilizing the unique sales capabilities and broad supplier and processing networks, and will allow for mutual utilization of group resources, such as corporate functions, which will lead to reinforcement and maximization of the Group’s integrated power and further enhancement of the corporate value of the Group as a whole.

By making Nissin Electric and TECHNO ASSOCIE its wholly-owned subsidiaries, the Company will further reinforce the Group’s integrated power and will make efforts to further enhance the corporate value of the Group as a whole.

Through these efforts, the Company will strive to ensure mutual prosperity with stakeholders.