Tokuyama Corporation (hereinafter referred to as "the Company" or "Tokuyama") announces that, at a Board of Directors' meeting held on September 25, 2020, the decision was taken to transfer a 46% stake in Sun・Tox Co., Ltd. (hereinafter referred to as "Sun・Tox"), in which the Company holds an 80% stake, to Rengo Co., Ltd. (hereinafter referred to as "Rengo"), which currently holds a 20% stake in Sun・Tox (hereinafter, the said transfer is referred to as "the Share Transfer").

Scheduled to take place on October 1, 2020, the Share Transfer will result in the investment ratios in Sun・Tox becoming Rengo 66% and Tokuyama 34%. Sun・Tox will be excluded from Tokuyama's consolidated subsidiaries and become an equity-method affiliate. The Share Transfer is subject to the approval pertaining to the Antimonopoly Act from the Japan Fair Trade Commission.

1.Reason for Change in Subsidiary
In October 2015, Sun・Tox received a capital increase from Rengo through a third-party allocation of shares and has been operating its business with Rengo's capital participation. Tokuyama decided to transfer the shares for the purpose of strengthening and developing Sun・Tox's plastic film business. Tokuyama will continue to offer its support to the operations of its now equity-method affiliate, Sun・Tox.

2.Impact on Business Performance
The impact of the Share Transfer on the consolidated full-year earnings forecast for the fiscal year ending March 31, 2021, will be minor, but the Company will promptly give notice if the earnings forecast is revised.

3.Outline of the consolidated subsidiary whose shares are to be transferred

4.Outline of the other party of the share transfer