 Dai-ichi Kogyo Seiyaku Co., Ltd.
www.dks-web.co.jp

NEWS RELEASE
15th December, 2005

Announcement on merger of a subsidiary
The Board of Dai-ichi Kogyo Seiyaku Co., Ltd. (Dai-ichi Kogyo Seiyaku) has resolved to absorb asubsidiary Dai-ichi FR Co., Ltd. (Dai-ichi FR) which deals with flame retardants in the Board
Meeting on the 15th December, 2005. The merger will be carried out according to “simplifiedmerger”1 procedures.
The details are given below.
1. Aim of the merger
The initial aim of establishing Dai-ichi FR has been to restructure the group’s flame retardantbusiness in the situation at the time where globalization was in progress and market competition
was getting severer. Now that this aim has been achieved and its flame retardant business is
expected to stably grow and expand, it is going to be absorbed to Dai-ichi Kogyo Seiyaku so thatthe group can further strengthen and expand the business by its full potential.
2.

Summary of the merger
1) Schedule of the merger
Board meeting approval of the contract of merger: 15th December, 2005
Conclusion of the contract of merger:
15th December, 2005
Shareholders meeting for approval of the contract of merger
Dai-ichi Kogyo Seiyaku:
Not to be held2
Dai-ichi FR:
11th January, 2006
Date of the merger:
1st March, 2006
Registration of the merger:
1st March, 2006 (as planned)
2) Form of the merger
Dai-ichi FR is to be dissolved in the form of absorption by Dai-ichi Kogyo Seiyaku.
3) Other information
The merger is with a 100%-owned subsidiary and thus there will be no issuance of new sharesand no money delivery due to the merger.

1

Simplified merger: According to the Article 413-3 of the Commercial Law of Japan, the merger is to bedone without obtaining an approval for the contract of merger at the shareholders meeting of Dai-ichi KogyoSeiyaku.
2See 1 above.
International Business Division Tel: +81-3-3274-6048 / Fax: +81-3-3274-4128 / E-mail: d-kaigai@dks-web.co.jp

3.

Outline of the companies involved in the merger (as of 30 September, 2005)(1) Trade name

Dai-ichi Kogyo Seiyaku Co., Ltd.
(surviving company)

Dai-ichi FR Co., Ltd.
(mergee)(2) Description of businessManufacturing and sales ofsurfactants, amenity materials,
urethane materials, functional
materials and electronic devicematerials etc.

Manufacturing and sales of flame
retardants and other plastic
additives(3) Date of establishment

25 August, 1918

1 October, 2002

(4) Address of head office

55 Nishi-shichijo
Higashi-kubocho, Shimogyo-ku,
Kyoto

12-1 Nihonbashi 3-chome,Chuo-ku, Tokyo(5) Representative

TSUDA Akihiro, president

TSUTSUMI Eijiro, president(6) Capital

JPY 5,985,000,000

JPY 450,000,000(7) Number of outstanding
shares35,650,8619,000(8) Shareholders’ equity

JPY 13,414,000,000

JPY 613,000,000(9) Gross asset

JPY 37,515,000,000

JPY 1,151,000,000(10) Settlement of accounts

31 March31 March(11) Number of employees

663(excluding workers at Dai-ichi FR)

4(All dispatched from Dai-ichi
Kogyo Seiyaku)(12) ClientsHika & Co., Ltd.
Shiraishi Co., Ltd.
etc.

Korea Kumho Petrochemical Co.,Ltd.
Toyo Styrene Co., Ltd.
Toray Industries, Inc.
etc.

(13) Major shareholders &shareholding ratio

The Dai-ichi Mutual Life Insurance Dai-ichi Kogyo Seiyaku Co., Ltd.
100.0%
Company
8.60%
Asahi Life Insurance Co.
4.76%
Mizuho Corporate Bank, Ltd.
4.17%
The Bank of Kyoto, Ltd.
4.12%

(14) Line banks

Mizuho Corporate Bank, Ltd.
The Bank of Kyoto, Ltd.
Resona Bank, Ltd.

Mizuho Corporate Bank, Ltd.
The Bank of Kyoto, Ltd.

International Business Division Tel: +81-3-3274-6048 / Fax: +81-3-3274-4128 / E-mail: d-kaigai@dks-web.co.jp

(15) Performances for the last 3 fiscal years

Settlement of accounts

Dai-ichi Kogyo Seiyaku Co., Ltd.
MarchMarchMarch
2003
2004
2005
32,54932,11832,736523
608861548
582
882- 246
296
393

Dai-ichi FR Co., Ltd.
MarchMarchMarch2003
2004
2005
845
1,469
1,863
4
15
163
38165
23103

Sales (mill. yen)
Operating income (mill. yen)
Ordinary income (mill. yen)Term’s net income (mill. yen)Term’s net income per share- 7.369.05
12.06
284.79349.97 11,514.54(yen)Dividend per share (yen)
3.00
5.00
6.00
- 4,375.00
Shareholders’ equity per355.37374.19378.30 50,284.79 50,733.80 61,372.69
share (yen)Notes: Figures below million have been rounded down.
The performance of Dai-ichi FR for the fiscal year which ends in March 2003 is for the six
months period from October 2002 to March 2003.

4.

Post-merger integration
1) Trade name:2) Description of business:

Dai-ichi Kogyo Seiyaku Co., Ltd.
Manufacturing and sales of surfactants, amenity materials,
urethane materials, functional materials and electronic devicematerials etc.
3) Address of head office:55 Nishi-shichijo Higashi-kubocho, Shimogyo-ku, Kyoto
4) Representative:
TSUDA Akihiro, president5) Capital:
No capital increase occurs due to the merger.
6) Gross asset:
The influence of the merger on the gross asset is minor.
7) Settlement of account:
31st March
8) Influence on performance: The influence of the merger on the company performance isminor.

International Business Division Tel: +81-3-3274-6048 / Fax: +81-3-3274-4128 / E-mail: d-kaigai@dks-web.co.jp