1. INTRODUCTION

The Board of Directors of ASM wishes to announce that its wholly-owned subsidiary, Arrow Systems Sdn. Bhd. (“ASSB”), has on 25 November 2025 entered into a Business Alliance Agreement (“Agreement”) with Tokyo Automatic Machinery Works, Ltd. (“TAM”) to collaborate in promoting, developing, manufacturing and selling new products and new technologies with the objective of contributing to the growth and development of both Parties.

(ASSB and TAM shall hereinafter be collectively referred to as “Parties” and individually as “Party”).

2. INFORMATION ON TAM

TAM is a Japanese company incorporated and headquartered in Tokyo, Japan. TAM is also listed on the Tokyo Stock Exchange. TAM is principally engaged in the business of development, design, production and sale of various types of automation packaging machinery.

3. SALIENT TERMS OF THE AGREEMENT

(a) The Agreement is intended for ASSB and TAM to cooperate in promoting the sale of products by leveraging their respective expertise and resources, and developing new products and new technologies to contribute to the growth and development of both Parties.

(b) The scope of collaboration between the Parties shall include:

• the sale and after-sales service of products manufactured by either Party;

• the manufacture of products developed by either Party; and

• the planning, development, design, manufacture and sale of new products to be developed by both Parties.

(c) ASSB and TAM will enter into separate sales agreements where necessary. Both Parties will also conduct regular exchanges of technical personnel to enhance mutual understanding of each other’s products, and entering into separate technical agreements where appropriate.

(d) Any new intellectual property developed under the collaboration, such as new inventions, ideas, designs, creations of know-how, will generally be owned by the Party to which the developer belongs, and in cases for jointly created intellectual property, the ownership and handling of the intellectual property rights will be determined through mutual consultation.

(e) The Agreement is effective for 3 years and will be automatically extended for further 3-year terms unless either Party gives notice of non-renewal at least 6 months prior to expiry. The Agreement may also be terminated under circumstances including breach of any provision of the Agreement, insolvency or other creditworthiness issues.

4. RATIONALE

The Agreement enables ASSB to benefit from the technology development in automation machinery solutions, market expansion and knowledge exchange. This collaboration also strengthens ASSB’s engineering capabilities, drives product innovation, enhances branding and opens opportunities to tap into international markets through TAM.   
 

5. FINANCIAL EFFECTS

The Agreement is not expected to have any immediate material effect on the earnings, net assets and gearing of the Company. Any financial effects will depend on subsequent arrangements that may be undertaken pursuant to the Agreement.
 

6. APPROVAL REQUIRED

The Agreement does not require approval from shareholders of the Company or any regulatory authorities.
 

7. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS OR PERSONS CONNECTED WITH THEM

None of the Directors or major shareholders of the Company or persons connected with them has any interest, whether direct or indirect, in the Agreement.
 

8. STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors, having considered all aspects of the Agreement, is of the opinion that the Agreement is in the best interest of the Company.

This announcement is dated 25 November 2025.