Idemitsu Kosan Co. Ltd. announced as follows, that (i) it has resolved, at its board of directors meeting held on December 21, 2021, to execute an agreement regarding an absorption-type company split which will cause SDS Biotech K.K., which is a consolidated subsidiary of Idemitsu Kosan (SDS Biotech), to succeed to Idemitsu Kosan's agri-bio business, to be effective on July 1, 2022 (the Absorption-type Company Split) (such agreement, the "Absorption-type Company Split Agreement"), and (ii) it has executed the Absorption-type Company Split Agreement. Purpose of the Absorption-type Company Split: The purpose of the Absorption-type company split is to further strengthen two companies' business competitiveness and thereby improve their corporate value through establishing an organizational structure capable of prompt and accurate decision making, by causing SDS Biotech to succeed to Idemitsu Kosan's agri-bio business and thereby implementing integrated operation of the agri-bio business.