May 15, 2017
Company: Nihon Parkerizing Co., Ltd.
Representative: Kazuichi Satomi, President & C.O.O.
(Code: 4095, Tokyo Stock Exchange, First Section)
Enquiries: Hiroyasu Tamura,
Director & General Manager of Administration Div.
(TEL. 03-3278-4333)

To whom it may concern

Notice concerning absorption-type merger (simplified merger / short-form merger)
with a consolidated subsidiary
A resolution was passed at a meeting of the Board of Directors of Nihon Parkerizing Co., Ltd. on May 15,2017 to absorb our consolidated subsidiary Parker Industries, Inc. in an absorption-type merger (hereinafter “theMerger”).
Since the Merger is a simplified absorption-type merger of a wholly owned subsidiary, certain disclosure items
and details are omitted.

Notice1. Purpose of the Merger
Parker Industries, Inc. is a wholly owned subsidiary of Nihon Parkerizing Co., Ltd., and is mainly
engaged in the manufacture and sale of rust preventive oils. As part of Nihon Parkerizing’s strategy toensure sustained growth of the Parker Group and restructuring of its organization in order to improve
corporate value, it has decided to absorb Parker Industries in order to strengthen the Group’s technicaland sales capabilities by creating a consistent development structure for the development of chemicals
from rust preventive oils to degreasing and phosphate treatments, as well as integration withdevelopment of rolling oils.
2. Outline of Merger(1) Schedule of Merger
Resolution of Board of Directors relating to the Merger: May 15, 2017Conclusion of Merger agreement: February 2018
Date of Merger (effective date): April 1, 2018
Nihon Parkerizing will follow the procedures for a simplified merger under the provisions of Article796, Paragraph 2 of the Company Act of Japan and Parker Industries will follow the procedures fora short-form merger under the provisions of Article 784, Paragraph 1 of the same Act, and therefore
neither company requires approval of the merger agreement by a general meeting of shareholders.
(2) Method of Merger
It is an absorption-type merger in which Nihon Parkerizing will be the surviving company and Parker
Industries will be dissolved.
(3) Allotment details pertaining to the Merger
There is no allotment of shares or other assets in the Merger.
(4) Treatment of stock acquisition rights and bonds with stock acquisition rights in connection with themerger
Parker Industries has not issued any stock acquisition rights and bonds with stock acquisition rights

3. Overview of the companies involved in the merger (as of March 31, 2017)
Surviving company

Company to be dissolved

（１）

Name

Nihon Parkerizing Co., Ltd.

Parker Industries, Inc.

（２）

Location

1-15-1 Nihonbashi, Chuo-ku, Tokyo

2-16-8 Nihonbashi, Chuo-ku, Tokyo（３）

Nameandtitle

ofrepresentative

C.O.O.
ofHiroshi Kijima, President

Manufacture and sale of metal

Manufacture and sale of rustbusinesssurface treatment chemicals

preventive oil（５）Capital4,560 million yen

300 million yen（６）

Establishment

July 12, 1928

May 1, 1972

（７）

Number of outstanding

132,604,524 shares

600,000 sharesFiscal year end

March 31

March 31

Major

shareholders

Nippon Life Insurance Company 5.29％

and

ratio

Meiji Yasuda Life Insurance Company 4.20％（４）Description

Kazuichi Satomi, President andshares（８）（９）

ofshareholding（10）

The Chiba Bank, Ltd.

Nihon Parkerizing Co., Ltd. 100％

3.59％

Business results and financial condition in preceding business year
March 2017 (consolidated)

March 2017 (individual)

Net assets

145,944 million yen

2,321 million yen

Total assets

196,456 million yen

4,227 million yen

1,011.60 yen

3,869.23 yen

Net sales

109,569 million yen

4,484 million yen

Operating income

16,934 million yen

401 million yen

Ordinary income

18,779 million yen

443 million yen

12,228 million yen

321 million yen

99.14 yen

536.48 yen

Net assets per share

Net income（attributable to parent
company shareholders）
Net income per share

4. Conditions after merger
The Merger does not affect Nihon Parkerizing’s name, location, representative’s title and name,business content, capital stock or fiscal year end.
5. Future outlook
Since the Merger only involves Nihon Parkerizing and its wholly owned subsidiary, it will have nosignificant impact on the consolidated business results.

End(Reference) Forecast for consolidated financial results for FY2018 (as announced May 15, 2017) andconsolidated financial results for FY2017(unit: million yen)
Net income
Consolidated

Consolidated

Consolidated

attributable tosales

operating income

ordinary income

parent companyshareholders

Forecast of
consolidated financial

110,000

17,00019,50011,400109,569

16,934

18,77912,228results for FY2018
Consolidated financial
results for FY2017