Restructuring of European Automotive Business

JTEKT Corporation (Headquarters: Kariya-shi, Aichi Prefecture | President & CEO: Yoshihito Kondo, hereinafter referred to as "JTEKT") has reached a basic agreement * with a LEO III.-VV25-A GmbH, which is exclusively advised by DUBAG Investment Advisory GmbH, an investment company headquartered in Munich, Germany for the transfer of our automotive business for European OEM, including all shares of our seven consolidated subsidiaries engaged in the manufacture and sale of automotive components (hereinafter referred to as "Target Companies").

In our Second Medium-term Management Plan for the period from Fiscal Year 2024 through 2026, JTEKT is planning to strengthen its management and business structure by restructuring its global structure. As for our European business segment, we aim to become profitable by restructuring and consolidating our businesses and improving profitability.

We will pursue our internal reform through optimizing our strategies and business structure according to the market environment in each region and continue proposing solutions to meet demand from customers.

* This basic agreement is a put option agreement, pursuant to which LEO III.-VV25-A GmbH committed to purchase the business including the Target Companies. In case of exercise of such put option by us further to the completion of the consultation of the relevant works council of JTEKT EUROPE S.A.S. and JTEKT COLUMN SYSTEMS FRANCE S.A.S, part of the Target Companies on this transaction, which is compulsory under French law, JTEKT and LEO III.-VV25-A GmbH will execute a sale and purchase agreement.

[Outline of Target Companies]

France

France

Czech Republic

Morocco

BELGIUM

BELGIUM

U.S.A

Refer timely disclosure material