Tokyo, Japan, January 27, 2020 - This serves as notification that JSR Corporation (Representative Director, CEO: Eric Johnson, hereinafter referred to as ”JSR”) and Musashi Seimitsu Industry Co., Ltd. (President and CEO: Hiroshi Otsuka, hereinafter referred to as ”Musashi”) agreed to transfer 80% share of JM Energy Corporation (President: Mikio Yamachika, hereinafter referred to as ”JM Energy”), a consolidated subsidiary of JSR, to Musashi.

JM Energy is a company engaged in the development, manufacturing, and sale of lithium-ion capacitors, which are energy storage devices, and has been promoting its business with the assumption of its use in several applications, including public transportation applications. However, JSR figured out that it would be difficult to further expand its earnings just within the Group, and capital alliances with companies that have strong ties with end customers and can expect business synergies were under consideration. As a result of the consultation, JSR and Musashi reached an agreement to transfer JM Energy shares. With Musashi holding a wide range of know-how in the production and sales of automotive parts, JSR recognized that it is promising to have high synergies such as expansion of this business and the creation of new businesses.

The impact on the consolidated financial results for the full year is expected to be minor.