Aisan Industry Co., Ltd. (Aisan) had closed the Joint Venture Agreement (JVA) with Fiem Industries Limited (Fiem) by purchasing the shares owned by Fiem in Aisan Fiem Automotives India Private Limited (AFI), a joint venture company. It is being further informed that the Board of Directors of AFI also approved this Share Transfer process in its meeting held on 11th June, 2022 and make the necessary changes in this regard in its records. Therefore, on 11th June 2022 Share Purchase process and closing of Joint Venture Agreement process completed.

Reason for closing of joint venture agreement

Aisan established AFI with major collaboration with Fiem on 7th June 2018 to manufacture and sales of Fuel pump module for two-wheeler and three-wheeler in India and the initial terms for this collaboration in the Joint Venture Agreement was 4 years from the date of establishment. Now, as the four years passed as well as the initial goals set by Aisan in JVA such as short-term launch of a two-wheeler and three-wheeler business and recruiting human resources are also achieved, therefore, Aisan and Fiem had mutually agreed and decided to close the JVA. Further, Aisan is also planning to expand the business in the future in India.

(1) Details of closing of Joint venture agreement and purchasing shares

Aisan purchased all shares of AFI as owned by Fiem i.e. 2,60,00,000 (26% of the total shares) and accordingly, AFI has been a consolidated subsidiary of Aisan since the first quarter of FY 2022.

(2) Overview of the joint venture

1	Company name	Aisan Fiem Automotives India Private Limited
2	Manufacturing Location	Rajasthan, India
3	Managing Director	Masaru Kamata, Chairman
4	Business Content	Manufacturing and sales of motorcycle (2 and 3 wheels) parts
5	Capital Stock	1.0 billion INR
6	Date of Establishment	7th June, 2018
7	Initial Investment Ratio	Aisan Industry Co., Ltd. 69.0% Fiem Industries Limited 26.0% Toyota Tsusho India Pvt. Ltd. 5.0%
8	New Investment Ratio	Aisan Industry Co., Ltd. 95.0% Toyota Tsusho India Pvt. Ltd. 5.0%

Schedule

Purchase of Shares process completed but change in other process of AFI is in progress such as changing of Company name, Memorandum of Association, Articles of Association. It is presumed that these activities will also be complete by end of August 2022.

Impact on on business performance

The impact on our group profits and losses due to the closing JVA is negligible.