Sankyo : Notice concerning Dissolution and Liquidation of a Consolidated Subsidiary

February 26, 2021

For Immediate Release

Listed company name: Representative:

SANKYO CO., LTD.

Kimihisa Tsutsui President & COO

Contact:

(TSE 1st Sec. Code 6417) 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 February 26, 2021, it was resolved to dissolve and liquidate its consolidated subsidiary, International Card System Co., Ltd. The details are as follows. This matter is not within the scope of the timely disclosure criteria specified by the Tokyo Stock Exchange, and therefore certain disclosure items and details are omitted from the disclosure.

1. Reason for the dissolution and liquidation

International Card System Co., Ltd., a wholly-owned subsidiary of the Company, is engaged in business activities including procurement of parts and materials for mass production of pachinko and pachislot machines and sales of parts for card units, and the Company has been mainly purchasing PCBs etc. from INTERNATIONAL CARD SYSTEM. Considering the scale of INTERNATIONAL CARD SYSTEM's business and other factors, the Company decided to dissolve and liquidate this subsidiary from the viewpoint of enhancing the efficiency of the Group.

2. Overview of the subsidiary to be dissolved and liquidated

(1) Name	International Card System Co., Ltd.
(2) Location	SANKYO 2nd Building 29-10 Shibuya 3 chome Shibuya-ku Tokyo
(3) Name and position of representative	Toshimitsu Otsuka, Representative Director
(4) Description of business	Design, development, sales of related parts of pachinko and pachislot machines.
(5) Paid-in capital	151 Millions of yen
(6) Date of Establishment	March 23, 1970
(7) Principal shareholder and percentage of shareholding	SANKYO CO., LTD., 100%

This material is an English translation of Japanese announcement made on February 26, 2021. Although the Company intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.

3. Schedule of the dissolution and liquidation

(1) February 26, 2021	Resolution at a meeting of the Company's board of directors
(2) March 31, 2021 (scheduled)	Resolution at an extraordinary general meeting of shareholders of International Card System Co., Ltd. and Dissolution
(3) June 30, 2021 (scheduled)	Completion of liquidation

4. Future prospects

Although the Company believes that the impact on consolidated financial results for the fiscal year ending March 31, 2021 is immaterial, any matters requiring disclosure will be announced promptly.

This material is an English translation of Japanese announcement made on February 26, 2021. Although the Company intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.