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In April 2016, EA Pharma was established via an absorption-type split with the Company as the splitting company and Ajinomoto Co.'s wholly-owned subsidiary AJINOMOTO PHARMACEUTICALS CO., LTD. (AJINOMOTO PHARMACEUTICALS) as the succeeding company. The Company accounted for this absorption-type split using the acquisition method based on IFRS 3 “Business Combinations”, and it is judged that the fair value of AJINOMOTO PHARMACEUTICALS' identifiable assets and liabilities exceeded the sum of acquisition costs and non-controlling interests at the time of the business combination. As such, the Company will record 9,283 million yen of other income as a bargain purchase (equivalent to gain on negative goodwill under Japan GAAP) during the first three-month period of the fiscal year ending March 31, 2017.

The accounting procedure outlined above is based on all information available at present. For a period of one year from April 1, 2016 (the date of acquisition), if any complete information is obtained regarding the facts and circumstances existing at the time of acquisition, revisions will be carried out based on the relevant information.