Notification of the Launch of ASAHI AFRICA (PTY) LTD Project in the Republic of South Africa.

We established a South African office for further growth and sustained development of the value and piping systems business in the African region, but we have recently acquired all the stock from CELTECH PIPE SYSTEMS (CEL) and relaunched the business as a new ASAHI AFRICA (PTY) LTD.

Due to the start of the project, the South African Office will close in April 2020.

1. Purpose of stock acquisition

Following the establishment of the South African Office in October 2018 to contribute to the expansion of the resin valve market and the development of industry in the South African region, we together with CEL Co., Ltd. undertook proactive marketing activities in the South African region, including further deepening of markets in the mining field (smelting, refining, environmental processing) and unexplored fields.

As a result, we have acquired CEL's total stock in order to provide our corrosion resistant solutions, which can contribute to the promotion of industry not only in the mining field, but also in the plant's efficiency operation, mainly in paper and water treatment, thereby contributing to the promotion of industry in the region.

2. Overview of the company

Trade name: ASAHI AFRICA (PTY) LTD (Trading as CELTECH PIPE SYSTEMS)

Location: Unit 5 Airborne Park, Taljaard Road, Bartlett, Boksburg, 1459 RSAs

President & Representative Director: Hiroyuki Umino

Director: Hideyuki Kanai

Number of employees: 5

Launch date: December 2019

3. Future Prospects

We anticipate that the impact of acquiring the stock on the concatenated performance in March 2020 will be slight, but we will promptly disclose any findings that may significantly affect the concatenated performance in the future.