Sohgo Security Services : Notice Concerning Absorption-type Merger of Wholly Owned Subsidiary(Simplified Merger and Short-form Merger)

June 8, 2021

To whom it may concern

(This is an English translation of the Japanese original)

Company:	SOHGO SECURITY SERVICES CO., LTD.
Representative:	Yukiyasu Aoyama,
	President and Representative Director
	(Securities Code: 2331, TSE 1st Sec.)
Contact:	Eitoku Kato, General Manager of IR Office
	(Phone: [phone])

Notice Concerning Absorption-type Merger of Wholly Owned Subsidiary

(Simplified Merger and Short-form Merger)

SOHGO SECURITY SERVICES CO., LTD. (hereinafter, the "Company") announces that at the meeting of Board of Directors held on June 8, 2021, the Company resolved to carry out an absorption-type merger (hereinafter, the "Merger") of its wholly owned subsidiary, ALSOK LEASING CO., LTD. (hereinafter, the "ALSOK LEASING"), effective from April 1, 2022.

The Company omitted some disclosure items and details because the Merger is a simplified absorption-type merger of a wholly owned subsidiary.

1. Purpose of the Merger
   ALSOK LEASING have been providing lease and installment sales of security equipments such as surveillance camera and access control system and various properties such as fire prevention equipment including fire alarm system. With the purpose of streamlining the organization of the Company and its subsidiaries, we decided to carry out the absorption-type merger of ALSOK LEASING.
2. Outline of the Merger

1. Schedule

1	Date of the resolution of the Board of Directors	June 8, 2021
2	Date of signing of the Merger agreement	June 8, 2021
3	Effective date of the Merger	April 1, 2022 (planned)

As the Merger falls under a simplified absorption-type merger as prescribed in Article 796, Paragraph 2 of the Companies Act in relation to the Company, and a short-form merger as prescribed in Article 784, Paragraph 1 of the same act in relation to ALSOK LEASING, the Merger agreement will be approved without convening General Meeting of Shareholders of either companies.

(2) Method of the Merger

The Merger will be an absorption-type merger with the Company as the surviving company. ALSOK LEASING will be dissolved.

(3) Details of allotment related to the Merger

As ALSOK LEASING is a wholly owned subsidiary of the Company, no shares or money will be allotted as a result of the Merger.

1. Handling of stock acquisition rights and bonds with stock acquisition rights upon the Merger No applicable items.

3. Overview of the companies involved in the Merger

	Surviving Company		Absorbed Company
(1) Company name	SOHGO SECURITY SERVICES	ALSOK LEASING CO., LTD.
	CO., LTD.
(2) Head office	1-6-6 Motoakasaka, Minato-ku,	Shin-kokusai Building 3-4-1
location	Tokyo		Marunouchi, Chiyoda-ku, Tokyo
(3) Representative	Atsushi Murai, Chairman and		Hirohisa Hokari, Chairman and
	Representative Director		Representative Director
	Yukiyasu Aoyama, President and	Yuji Iizuka, President and
	Representative Director		Representative Director
(4) Main lines of	Security Services		Lease and installment sales
business	General Property Management and	business of security equipment, fire
	Fire Protection Services		prevention equipment, energy
	Long-term Care Services		saving equipment, informations
	etc.		communication equipment,
			equipment for stores and offices,
			medical equipment, and vehicles
			and other transportation equipment
			etc.
(5) Capital	¥18,675million		¥100 million
(6) Date established	July 16, 1965		April 3, 1996
(7) Number of shares	102,040,042 shares		2,000 shares
issued	(As of March 31, 2021)		(As of March 31, 2021)
(8) Fiscal year end	March 31		March 31
(9) Major	SOHGO CORPORATION	7.29%	SOHGO SECURITY SERVICES
Shareholders and	Japan Master Trust Bank,Ltd.		CO., LTD.	100%
Shareholding ratio	(Trust account)）	6.31%
	Saitama Machinery Co., Ltd. 5.21%
	Custody Bank of Japan, Ltd.
	(Trust account)	5.11%
	Kamakura Corporation	4.09%
	Employees Shareholding Association
		3.66%
	Custody Bank of Japan, Ltd. (as
	trustee for Mizuho Bank Ltd.
	Retirement Benefit Trust Account
	re-entrusted by Mizuho Trust and
	Banking Co., Ltd.)	2.92%
	Kizuna Corporation	2.91%
	Atsushi Murai	2.84%

	SMBC Trust Bank Ltd. (as trustee for
	retirement benefit of Sumitomo
	Mitsui Banking Corporation)	2.70%
	(As of March 31, 2021)
(10) Financial	Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2021）
Position and results	Net assets		¥224.3 billion	Net assets	¥0.5 billion
of operation for the	Total assets		¥319.6	billion	Total assets	¥23.5 billion
most recent fiscal	Net assets per		¥2,215.25	Net assets per	¥254,502.91
year	share		share
	Net sales		¥244.4 billion	Net sales	¥9.5 billion
	Operating		¥18.7 billion	Operating	¥0.9 billion
	income		income
	Ordinary income		¥29.2 billion	Ordinary	¥0.4 billion
			income
	Profit				Profit
	attributable to		¥23.1 billion	attributable to	¥0.2 billion
	owners of parent		owners of
					parent
	Net income per		¥228.00	Net income per	¥143,047.48
	share		share

4. Status after the Merger

There will be no changes in company name, head office location, name and title of representative, main lines of business, capital, or fiscal year end of the Company.

5. Future outlook

Since this is a merger of a wholly owned subsidiary of the Company, the effect of the Merger on

the Company's consolidated results of operations is immaterial.

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For inquiries: Eitoku Kato, General Manager of IR Office

E-mail:[e-mail]

URL: https://www.alsok.co.jp/en/ir/index.html