Notification of capitalization change

2018/03/20

We hereby announce that at the Nikken Foods Co., Ltd. provisional general stockholders’ meeting held on January 19, 2018, a vote on reducing stated capital and capital reserve and transferring the full reduced amount to other capital surplus prevailed, taking effect on March 20, 2018 following designated procedures.

1. Purpose of capitalization change
The decision for capitalization change considered factors such as corporate size and securing flexibility and maneuverability for capital policy.

2. Specifics of capitalization change
(1) Stated capital reduction
The total of ¥1,369,420,000 was reduced by ¥874,420,000 to generate a new balance of ¥495,000,000.
(2) Amount reduced from capital reserves
Capital reserves of ¥725,780,000 were reduced in full.
(3) Recipient account of reduced capital transfer
The total reduction of ¥1,600,200,000 from (1) and (2) above was transferred to other capital surplus.

3. Impact on business performance, etc.
As this action represents a transfer between net assets accounts and has no impact on corporate net asset totals and represents no change or refund of the aggregate number of issued shares, it has no impact on corporate performance.