April 27, 2017

This is to notify that 더킹 카지노vy Industries, Ltd. (hereinafter referred to as “SHI” or the “Company”) and its subsidiary Izumi Food Machinery Co., Ltd. have established a beverage machinery related joint venture company with Germany-based Krones AG (hereinafter referred to as “Krones”) to develop the Asia region.

1. Purpose of Establishing a Joint Venture Company
SHI Group has earmarked the beverage machinery business as a growth field and has worked over the years to strengthen its capabilities in this area. In particular in Asia, economic development has meant that the sales volume for tea and coffee-related drinks has increased, resulting in greater demand for beverage machinery. Germany-based Krones is a manufacturer of beverage machinery that was established in 1951. It is a global company with approximately 14,000 employees and a sales and service network spanning 82 countries. The company has strong distribution channels not only in Europe, but also in the future growth market of Asia.

Through the establishment of this joint venture company, SHI Group aims to capitalize on the know-how and supply chain of Krones and accelerate the development of its beverage machinery business in the Asia region.

2. Profile of Joint Venture Company
(1) Name
　　　　Krones-Izumi Processing Pte. Ltd.
(2) Address
　　　49 Kim Yam Road, Singapore
(3) Name and Title of Representative
　　　　Dr. Matthias Weinzierl, General Manager
(4) Business Operations
　　　　Engineering activities targeting facilities that manufacture soft drinks, juice, tea, coffee, water, milk, soy sauce
　　　and other beverages (excluding food, ice cream, alcoholic drinks) in the Asia Pacific region (excluding Japan,
　　　　China and India).
(5) Paid-Up Capital
　　　　SGD 2 million
(6) Capital Contribution
　　　Asia Food and Beverage Consulting Group Pte. Ltd. (a Krones Group company) – 51.0%
　　　　Integrated Packing Systems FZCO (a Krones Group company) – 22.0%
　　　　더킹 카지노vy Industries, Ltd. –13.5%
　　　　Izumi Food Machinery Co., Ltd. –13.5%

3. Profile of Krones AG
(1) Name
　　　　Krones AG
(2) Address
　　　　Böhmerwaldstraße 593073, Neutraubling, Germany
(3) Name and Title of Representative
　　　Christoph Klenk, Chairman
(4) Business Operations
　　　　Manufacturing and distribution of beverage production lines, beverage bottling machinery, and packaging
　　　　machinery.
(5) Paid-Up Capital
　　　EUR 40 million
(6) Date of Establishment
　　　　1951
(7) Major Shareholders and Shareholdings
　　　Familie Kronseder Konsortium GbR (51.58%)
(8) Net Sales
　　　　EUR3,391 million
(9) Total Number of Employees
　　　　14,433 (as at the end of December,2016)

4. Profile of Izumi Food Machinery Co., Ltd.
(1) Name
　　　　Izumi Food Machinery Co., Ltd.
(2) Address
　　　　4-2-30 Shioe, Amagasaki-City, Hyogo Prefecture, Japan
(3) Name and Title of Representative
　　　　Ken Nanataki, President and CEO
(4) Business Operations
　　　　Manufacturing and distribution of plant and equipment for the production of various food and beverages
　　　including cold beverages (fruit juices, tea, coffee, etc.), condiments and preparations, dairy products (milk,
　　　　ice cream, yoghurt, etc.), and pharmaceuticals and related drinks.
(5) Paid-Up Capital
　　　JPY120 million
(6) Date of Establishment
　　　　March 1948
(7) Major Shareholders and Shareholdings
　　　　더킹 카지노vy Industries, Ltd – 60.0%
　　　　Nihon Spindle Manufacturing Co., Ltd. –40.0%
(8) Net Sales
　　　　KRW6,400 million
(9) Total Number of Employees
　　　　172

5. Key Timeline of Transaction
(1) Date that Memorandum of Understanding was Finalized
　　　April 25, 2017
(2) Commencement Date of Operation
　　　　June 2017 (Estimated)