Nippon Denkai : Updating the Plan of New Plant Construction in U.S.

	July 20, 2022
Company Name	Nippon Denkai, Ltd.
Representative	Hidemasa Nakajima
	President & CEO
Listed on	TSE Growth
Stock Ticker Code	5759
Contact Person	Nobuaki Masuda
	Executive Officer - Finance

E-Mail：[e-mail]

Updating the Plan of New Plant Construction in U.S.

Nippon Denkai, Ltd. ("Nippon Denkai") announces that it will build a state-of-the-artelectro-deposited copper foil (ED copper foil) plant with an annual capacity of 9,500 Metric tons in Augusta, Georgia. The construction will start shortly with support from the State Government of Georgia, Richmond County, and the City of Augusta, to start shipping product in summer 2024.

Nippon Denkai announced on December 15, 2021 that it would build a plant adjacent to its existing one in Camden, South Carolina, in the course of examining more advantageous plant locations, it has decided to change the plan to the new site in consideration of the future expandability of plant functions and cost competitiveness.

The Augusta plant will be designed to triple its production capacity to 28,500 Metric tons per year in the future with a key cost competitive edge in electricity price, local quality team members and business friendly support of the local governments.

Nippon Denkai aims to keep up with the fast-growing North American automotive electric vehicle battery and ED copper foil markets. Its proximity to major highways and ports will contribute to its competitiveness. It is merely two-hour drive from its operating Camden Plant, allowing for the smooth transfer of manufacturing and management skills.

1. Outlines of the New Plant

• Location / Site area: Augusta, Georgia, U.S. / 115 acre
• Capital Expenditure: 150 Million US dollars (10 Million US dollars increase from the previous plan)
• Product and Capacity: Copper foil for EV batteries, 9,500 Metric tons per year (500 Metric tons increase from the previous plan)
• Construction Schedule: Start Construction in September 2022,

Start sample shipping in summer 2024

• For details, please refer to "Presentation for New Plant Construction".

Reference: Previous Plan announced on December 15, 2021

• Location: Camden, South Carolina, U.S. (next to existing plant)
• Capital Expenditure: 140 Million US dollars
• Product and Capacity: Copper foil for EV batteries, 9,000 Metric tons per year
• Construction Schedule: Start construction in spring 2022 to completion in summer 2023

2. Impact on Future Business Performance

On our business performance in FY2022, construction of this plant will have a marginal impact.

In the fiscal years after the start of operations at New Plant (scheduled in FY2024), depreciation are assumed to increase for the new production facilities. Although it would be absorbed by the increase in revenues associated with the increase in the supply of products.

In the event that any matters requiring disclosure arise in the future, it shall be promptly disclosed.

》Reference Materials《

• Presentation for New Plant Construction

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail.