Note : This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

December 26, 2022

Company name:
Representative:

Inquiries:

RIKEN TECHNOS CORPORATION
Kazuaki Tokiwa, Representative Director, President& CEO(Securities code: 4220; Tokyo Prime Market)
Junji Irie, Representative Director and Senior
Managing Executive Officer(Senior General Manager of Administrative Division& Senior General Manager of Corporate PlanningDivision)(Telephone: +81-3-5297-1650)

Notice Concerning a Merger Involving a Consolidated Subsidiary (SimplifiedMerger/Short-Form Merger)
RIKEN TECHNOS CORPORATION (the “Company”) hereby announces a decision reached at a meeting of theBoard of Directors held today to the effect that the consolidated subsidiary RIKEN TECHNOSINTERNATIONAL CORPORATION is to be subject to an absorption-type merger as outlined below.
The merger will take the form of a simplified merger/short-form merger involving a consolidated subsidiary that iswholly owned by the Company. As such, certain disclosure items and details have been omitted.
Details1.

Purpose of the merger
By undertaking the merging and unification of RIKEN TECHNOS INTERNATIONAL CORPORATION
and the Company, the Company aims to further improve upon the efficiency of group management andimprove upon sales capabilities through the consolidation of management resources.
Through this merger, the Group will further strengthen its business and will go about continuing to provide
new value and satisfaction to its customers.

2. Summary of the merger(1) Merger schedule
Date of issuance of a resolution by the Board of Directors for the approval of the merger agreement:
December 26, 2022
Date of execution of the merger agreement:
December 26, 2022
Scheduled date of the merger (Effective date)
April 1, 2023 (Planned)(Note) For the Company, this merger constitutes a simplified merger as stipulated in Article 796, Paragraph 2of the Companies Act. For RIKEN TECHNOS INTERNATIONAL CORPORATION, the merger
constitutes a short-form merger as stipulated in Article 784, Paragraph 1 of the Companies Act.
Therefore, this merger will be carried out without having approval regarding the merger agreement
provided at a General Meeting of Shareholders.

(2)Merger format
RIKEN TECHNOS INTERNATIONAL CORPORATION will be dissolved through an absorption-typemerger wherein the Company will constitute the surviving company.

(3)

Details on allotments pertaining to the merger
This is a merger involving a consolidated subsidiary that is wholly owned by the Company. As such, noallotment of shares, cash, or other such items will take place.

(4)

Handling of stock acquisition rights and bonds with stock acquisition rights of the absorbed company inassociation with the mergerRIKEN TECHNOS INTERNATIONAL CORPORATION has not issued any stock acquisition rights orbonds with stock acquisition rights.

3.

Overview of the companies involved in the merger
Surviving company(1) Name
RIKEN TECHNOS CORPORATION(2) Address(3) Official position andname of representative(4) Business description

2-101, Kanda-Awajicho, Chiyoda-ku,
Tokyo, Japan
Kazuaki Tokiwa, Representative
Director, President & CEO

Absorbed company
RIKEN TECHNOSINTERNATIONAL CORPORATION
2-101, Kanda-Awajicho, Chiyoda-ku,
Tokyo, Japan
Kazunari Arai, President and CEOProcessing and sales of vinyl andPurchase and sale of processed
other synthetic resins
synthetic resin products(5) Capital stock
8,514 million yen
10 million yen(6) Date of establishment
March 30, 1951
December 3, 1962
(7) Number of shares issued
64,113,819 shares
20,000 shares(8) Fiscal year end
March 31
December 31(9) Major shareholders and The Master Trust Bank of Japan, Ltd. RIKEN TECHNOS CORPORATION
shareholding ratios(Trust Account)100%(As of September 30, 2022)
9.88%(Note 1) Shin-Etsu Chemical Co., Ltd. 5.15%
Mizuho Bank, Ltd.
4.54%
Resona Bank, Limited
4.53%
Sompo Japan Insurance Inc. 3.90%(10) Financial status and operating results for the previous business year
Fiscal year end
March 31, 2022 (Consolidated)
December 31, 2021
(Non-consolidated)
Net assets
65,448 million yen
65 million yen
Total assets
102,641 million yen
1,781 million yen
Net assets per share
914.83 yen
3,284.14 yen
Net sales
109,923 million yen
4,518 million yen
Operating profit
6,292 million yen
77 million yen
Ordinary profit
6,889 million yen
89 million yen
Current net profit(Note 2) 3,941 million yen
57 million yen
Earnings per share
62.47 yen
2,862.48 yen(Note 1) Shareholding ratios have been calculated in a manner which excludes treasury stock (301 shares).
(Note 2) Profit attributable to owners of parent.

4.

Status after the merger
There will be no changes to the name, location, official position and name of the representative, businessdescription, capital stock, or fiscal year end of the Company as a result of the merger.

5.

Outlook for the futureThis merger is an absorption-type merger involving a consolidated subsidiary that is wholly owned by theCompany. Thus, impact of the merger on consolidated financial results will be negligible.
END