Otsuka Pharmaceutical Co., Ltd. (Otsuka) announces that an agreement was finalized on January 29, 2021, with Megmilk Snow Brand Co., Ltd. (Megmilk Snow Brand） to transfer all Otsuka-owned shares in Bean Stalk Snow Co., Ltd. (BSS) to Megmilk Snow Brand.

Background

1．Objective

Aiming to strengthen the group value chain and maximize internal resources, Megmilk Snow Brand has positioned the Nutrition business to "Create new growth opportunities and foster as a highly profitable business," as outlined in the Group Long-term Vision 2026 statement. Among current BSS business initiatives, the infant goods business in Japan is predicted to shrink, yet it remains the core business of the Nutrition business sector. Megmilk Snow Brand aims to grow and expand this business sector by making BSS a wholly owned subsidiary, a goal supported by Otsuka. Following the transfer of shares, Otsuka will continue to license the Bean Stalk Brand, and the three companies will continue to cooperate in various business ventures.

2．BSS Corporate Information

(1) Corporate name: Bean Stalk Snow Co., Ltd.

(2) Head office: 1-1, Naebocho 6-chome, Higashi-ku, Sapporo, Hokkaido, Japan (registered head office); 5-1, Yotsuya-Honshio-cho, Shinjuku-ku, Tokyo, Japan

(3) Representative: Akihiko Uchida (President and Representative Director)

(4) Business description: Research and development, manufacture, and sale of infant goods including powdered milk for infants and baby food; research and development, manufacture, and sale of functional foods

(5) Capital: 500 million yen

(6) Date established: August 7, 2002

3．Details of share transfer
(1) 600 shares of BSS owned by Otsuka will be transferred to Megmilk Snow Brand.
(2) Through the transfer of shares, the shareholder composition of BSS will change as follows:

4．Date of share transfer
April 1, 2021 (projected)