Japan Exchange : Notice concerning Dissolution and Liquiadation of a Consolidated Subsidiary

November 29, 2019

For Immediate Release

Listed company name:	SANKYO CO., LTD.
Representative:	Kimihisa Tsutsui
	President & COO
	(TSE 1st Sec. Code 6417)
Contact:	Yoko Oshima
	Executive Operating Officer
	TEL.: [phone]

Notice concerning Dissolution and Liquidation of a Consolidated

Subsidiary

SANKYO CO., LTD. (the Company) today announced that, at the meeting of the Company's board of directors held on November 29, 2019, it was resolved to dissolve and liquidate its consolidated subsidiary, SANKYO CREATE CO., LTD. The details are as follows.

1. Reason for the dissolution and liquidation

SANKYO CREATE CO., LTD., a wholly-owned subsidiary of the Company, was established in March 1998 to principally operate real property leasing and management businesses of SANKYO Group (the Group), and has been mainly engaged in leasing of real property to the Company and its Group companies. The Company has been pursuing an efficient way of managing assets held by the Group, and it decided to dissolve and liquidate SANKYO CREATE CO., LTD. Going forward, the Company is to receive a distribution of residual assets (in-kind distribution of real property) and to take over the businesses.

2. Overview of the subsidiary to be dissolved and liquidated

(1)	Name	SANKYO CREATE CO., LTD.
(2)	Location	29-14 Shibuya 3 chome Shibuya-ku Tokyo
(3)	Name and position of	Hideyuki Busujima, Representative Director
representative
(4)	Description of business	Leasing and management of real property
(5)	Paid-in capital	24 Millions of yen
(6)	Date of Establishment	March 6, 1998
	Principal shareholder
(7)	and percentage of	SANKYO CO., LTD., 100%
	shareholding

This material is an English translation of Japanese announcement made on November 29, 2019. Although the Company intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.

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Relationship between

1. the Company and the subsidiary to be dissolved and liquidated

Capital	SANKYO CREATE CO., LTD. is a
relationship	wholly-owned subsidiary of the Company.
	Two directors of the Company concurrently
Personnel	serve as directors at SANKYO CREATE CO.,
LTD., and one statutory auditor of the
relationship
Company concurrently serves as a statutory
	auditor at SANKYO CREATE CO., LTD.
Business	SANKYO CREATE CO., LTD. leases real
relationship	property to the Company.
Status as a	SANKYO CREATE CO., LTD. is a
related	consolidated subsidiary of the Company, and
party	therefore, is a related party of the Company.

1. Operating results and financial position in the past three years

	Accounting period	FY 3/2017		FY 3/2018	FY 3/2019
Net assets	50,856		43,910	44,326
Total assets	53,231		46,454	46,696
Net sales	2,687		2,782	2,824
Operating income	857		1,076	998
Recurring income	871		1,083	1,018
Net income	545		▲1,946	416
						(Millions of yen)
3. Schedule of the dissolution and liquidation
(1)	November 29, 2019		Resolution at a meeting of the Company's board of
	directors
(2)	November 29, 2019		Resolution at an extraordinary general meeting of
	shareholders of SANKYO CREATE CO., LTD.
(3)	November 30, 2019 (scheduled)		Date of dissolution
(4)	March 15, 2020 (scheduled)		Completion of liquidation

4. Future prospects

As a result of the dissolution and liquidation of SANKYO CREATE CO., LTD., the Company is to take over the real property which SANKYO CREATE CO., LTD. leases and manages. Accordingly, the Company believes at this point in time that the impact on consolidated financial results for the fiscal year ending March 31, 2020 is immaterial. Any matters requiring disclosure will be announced promptly.

This material is an English translation of Japanese announcement made on November 29, 2019. Although the Company intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.

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