Sanrio : Notice Regarding Recording of Extraordinary Loss

August 4, 2020

Company Name: Sanrio Company, Ltd.

President and Chief Executive Officer: Tomokuni Tsuji

Securities Code: 8136, First Section of Tokyo Stock Exchange

Inquiries: Susumu Emori, Senior Managing Director

Tel.: [phone]

Notice Regarding Recording of Extraordinary Loss (Loss from the temporary closure of theme parks, etc.)

Sanrio Co., Ltd. (the "Company") hereby announces that it recorded an extraordinary loss (Loss from the temporary closure of theme parks, etc.) at the first quarter of the fiscal year ending March 31, 2021.

1. About Extraordinary Losses

(1) Content of Extraordinary Losses

In response to the spread of COVID-19, temporary business (includes the shortening of operating hours, etc.) and theme park closures have been put in place at our directly managed stores, etc., as well as at Sanrio Puroland in Tama City, Tokyo, and Harmonyland in Oita Prefecture, which are operated by our consolidated subsidiary Sanrio Entertainment Co., Ltd. A total amount of JPY 1.2 billion has been recorded as an extraordinary loss under "Loss from the temporary closure of theme parks, etc.," for the fixed costs that arose during said period of these park closures, etc.

(2) Effect on Business Results

The extraordinary loss described above has been reflected in the "Summary of Financial Results for the First Quarter of Fiscal Year Ending March 31, 2021 (FY2020) [Japanese GAAP]" published today.

2. About the Outlook

Even at the present time, the COVID-19 infection is in a situation where it cannot be completely

resolved. In terms of the consolidated forecast for the fiscal year ending March 31, 2021, the future environment surrounding the group both inside and outside Japan remains uncertain in many areas. Under these circumstances, as it is extremely difficult to reasonably calculate at present, the forecast is still pending.