スポーツ ベッティング国 On the Absorption-type Split Agreement Related to the Spinning Off of the General Transmission and Distribution Business and Retail Electricity Business

Today, スポーツ ベッティング国 concluded absorption-type split contracts with the スポーツ ベッティング国 Transmission and Distribution Business Split Preparation Company (hereinafter Transmission and Distribution Split Preparation Company) and the スポーツ ベッティング国 Retail Electricity Business Split Preparation Company (hereinafter Retail Electricity Split Preparation Company) regarding the spinning off of the general transmission and distribution business and retail electricity business. (The direction under which the company will split have been announced on November 27, 2018).

This company spin off requires the permission and authorization of the competent ministry. The company split of the general transmission and distribution business requires approval in the スポーツ ベッティング国 Stockholders' Meeting to be held on June 26, 2019.

1　Objective of the company split

The Electricity Business Act requires the legal unbundling of the power generation and retail business, and the transmission and distribution business by April 2020 to ensure the neutrality of the electricity transmission and distribution industry. In the retail electricity space, we are collaborating with actors in a variety of other fields, in an attempt to actively expand our business and enhance our services.

In light of this environment, スポーツ ベッティング国 has decided to spin off the general transmission and distribution business and retail electricity business, respectively.

2　Overview of the absorption-type split agreement

(1) Type of company split

スポーツ ベッティング国 will be the split company with the Transmission and Distribution Split Preparation Company and the Retail Electricity Split Preparation Company as the successor companies in the absorption-type split.

(2) Stock allocations for the company split

The Transmission and Distribution Split Preparation Company will issue 18.9 million ordinary shares and the Retail Electricity Split Preparation Company 800 thousand ordinary shares at the time of the split, all of which will be allocated to スポーツ ベッティング国.

(3) Changes in stated capital due to the company split

スポーツ ベッティング国's stated capital will not change due to the split.

(4) Rights and obligations to be succeeded

On the day that the contract goes into effect, the rights and obligations associated with the general transmission and distribution business, electric communications business, and related businesses currently conducted by スポーツ ベッティング国 will be succeeded by the Transmission and Distribution Split Preparation Company. The electricity retail business, gas business and related businesses currently conducted by スポーツ ベッティング国 will be succeeded by the Retail Electricity Split Preparation Company.

The obligations related to スポーツ ベッティング国's existing publicly offered corporate bonds will not be succeeded by the successor companies. A separate mechanism to protect the rights of the creditors is being planned.

(5) Projected schedule

Conclusion of the absorption-type split contract	April 26, 2019
Approval of the absorption-type split contract in the Shareholders Meeting (スポーツ ベッティング国 (Note) and each succeeding company)	Jun 26, 2019(scheduled)
Date on which the absorption-type split goes into effect	April 01, 2020(scheduled)

(Note) Only required for the spinning off of the general transmission and distribution business.

3　Overview of the companies involved in the split (as of April 01, 2020 (scheduled))

Trade name	スポーツ ベッティング国 Co.,Inc. (Split company)	スポーツ ベッティング国 Transmission and Distribution Business Spilt Preparation Company Incorporated (Successor company)	スポーツ ベッティング国 Retail Electricity Business Split Preparation Company Incorporated (Successor company)
Location	1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture	1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture	1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture
Position and name of the representative	President & Representative Director Satoru Katsuno	President & Representative Director Yaoji Ichikawa	President & Representative Director Kingo Hayashi
Business description	Management of group companies, nuclear/renewable energy businesses, etc.	General transmission and distribution business, electric communications business, etc.	Electricity retail business, gas business, etc.
Stated capital	430.777 billon yen	40 billion yen	4 billion yen
Fiscal year end	March 31	March 31	March 31