August 6, 2020

To whom it may concern

Company Name

ASKUL Corporation

Representative

Akira Yoshioka, President and CEO

(Code No. 2678, Tokyo Stock

Exchange First Section)

Contact

Name and job

Tsuguhiro Tamai, Executive Officer

title

and CFO

Phone: 03-4330-5130

Notice of Filing of Lawsuit

We hereby notify you that we have filed a lawsuit with the Tokyo District Court to seek damages from K.K. Miyazaki as follows.

  1. The court with which the lawsuit was filed and the filing date
    (1) Court: Tokyo District Court
    (2) Filing date: August 6, 2020
  2. The party who filed the lawsuit
  1. Name: ASKUL Corporation
  2. Address: Toyosu Cubic Garden, 3-2-3 Toyosu, Koto-ku, Tokyo
  3. Representative: Akira Yoshioka, President

3. The adverse party in the lawsuit

  1. Name: K.K. Miyazaki (hereinafter referred to as "Miyazaki")
  2. Address: 93 Nishisukaguchi, Kiyosu, Aichi
  3. Representative: Shingo Umeda, Representative Director

4. The circumstances that led to the filing of the lawsuit

Pursuant to an agreement with Miyazaki to continuously sell recyclable resources (corrugated cardboard, etc.) in our possession to Miyazaki (hereinafter referred to as the "Agreement"), we have engaged in transactions to sell recyclable resources. According to its website, Miyazaki was established in 1969, and with 1,834 employees as of May 2019, is one of the leading companies in the wastepaper recycling industry.

Based on an agreement between our Company and Miyazaki, recyclable resources were continuously delivered at

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the scrap material yard (hereinafter referred to as the "Scrap Material Room") of our logistics center "ASKUL Logi PARK Tokyo Metropolitan" (located in Miyoshi-machi,Iruma-gun, Saitama at the time; hereinafter referred to as the "Logistics Warehouse"). On February 16, 2017, a fire (hereinafter referred to as the "Fire") occurred due to the improper use, etc. of a forklift by Miyazaki's employee while such employee was collecting and transporting recyclable resources in the Scrap Material Room.

Our Company has suffered significant losses due to the Fire, including total loss of the Logistics Warehouse, compensation for the neighborhood, funding for significant labor costs for responding to the fire, establishment of an alternative logistics center and other direct losses, as well as indirect losses such as loss of sales opportunities. After reviewing the fire cause determination certificate prepared by the fire department regarding the Fire, we had meetings with Miyazaki several times from April 2019 to explain the damage our Company suffered due to the Fire and the cause of the fire, as well as to discuss future actions to be taken by Miyazaki in relation to compensation for the damage we suffered, etc. However, since we could not receive any sincere response from Miyazaki, we have determined that it would be difficult to settle the matter through discussion and have filed the lawsuit in this case.

  1. Details of the lawsuit and amount claimed We claim the following amount:
    JPY 10,105,916,808 as damages and delay damages thereon
  2. Future outlook

The progress of the lawsuit and other information will be disclosed as necessary.

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Disclaimer

ASKUL Corporation published this content on 13 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2020 06:02:18 UTC