Azbil transfers its health, welfare, and nursing care business subsidiary to SOHGO SECURITY SERVICES CO., LTD. (ALSOK)

January  19, 2015

TOKYO, January 19, 2015 - Azbil Corporation (Head Office: 2-7-3 Marunouchi, Chiyoda-ku, Tokyo; President: Hirozumi Sone) has announced that it has agreed to transfer all of its shares in Azbil Care & Support Co., Ltd. (hereinafter referred to as ACS) (Head Office: 1-3-5 Sanno, Ota-ku, Tokyo; President: Ichio Kunii), a wholly-own subsidiary that provides health, welfare, and nursing care services, to SOHGO SECURITY SERVICES CO., LTD (hereinafter referred to as ALSOK) (Head Office: 1-6-6 Moto-Akasaka, Minato-ku, Tokyo; President: Yukiyasu Aoyama). A contract to this effect was signed between the two parties today.

Guided by its philosophy of "human-centered automation," the azbil Group has made use of its sensor and network technologies, as well as service capabilities, developed over many years in its Building Automation (BA) and Advanced Automation (AA) businesses, to build up its business in the health, welfare, and nursing care fields. The goal has been to offer high value-added services to support the safety and security of customers. ACS has been an important member of the azbil Group which has played a key role in the field. Making use of its unique corporate structure, which enables it to provide emergency alert response and nursing care services, ACS has built a strong reputation among its customers as a reliable partner, and it has steadily developed its business.

With the steady aging of Japan's population, in the health, welfare, and nursing care fields there is now an increasing demand for the supply and management of more advanced services, beyond emergency call and nursing care. This would employ an extensive network, centering on private homes and assisted living residences, but also including medical institutions and care facilities, as well as other support services.

Through ACS, the azbil Group has thus striven to provide safety and security to its customers with its measurement and control technologies and a high-quality, compassionate service. In response to the changing business environment, ACS has developed a system for the supply of both emergency alert response and nursing care services.

Meanwhile, ALSOK has launched a brand "HOME ALSOK", and in the consumer market has aimed to provide safety, security and convenience, suited to the various lifestyles of a wide range of customers. Going forward, the enhancement and strengthening of services for the elderly is seen to be a top priority. For this reason, ALSOK has been engaged in developing products and services, and in entering and expanding the nursing care business.

Azbil and ALSOK share a common interest - the safety and security of customers. They consider that an important way of achieving this is through the provision of services.

Azbil believes that it is important to have a private sector channel for the provision of a wide range of services, leveraging the unique qualities of ACS, which can provide both emergency alert response service and nursing care services. Azbil has come to the conclusion that the best way to realize future business development in a speedy manner is to place this business within the ALSOK Group, a group that already possesses an extensive customer base in the field of private sector services, and which is currently expanding a range of service to watch over the elderly and to provide nursing care. It was therefore decided to transfer the ACS business to ALSOK.

The azbil Group keeps a close watch of changes in the business environment, in both domestic and overseas markets, ensuring the optimum deployment of management resources and strengthening its corporate structure. In this way, it aims to realize customer satisfaction - by providing greater added value for its products and services - and thus achieve sustainable growth, which will lead to increased shareholders' value.

Going forward, it is planned to complete the transfer of ACS shares and business interests in February 2015. Details will be announced timely by the appropriate way.

Guided by its philosophy of "human-centered automation", the azbil Group is striving to realize customer's safety, comfort and fulfillment, and contributing to global environmental preservation.

Profile of Subsidiary to be transferred

(1) Company name Azbil Care & Support Co., Ltd.
(2) Head Office 1-3-5 Sanno, Ota-ku, Tokyo
(3) Representative Ichio Kunii (President and Representative Director)
(4) Main lines of business Emergency alert response service business including health counseling, offer of emergency care service. Nursing care business including home attendant care, day care, group home, rental of welfare-goods.
(5) Capital ¥410,050,000-
(6) Date established June, 1987

Profile of the Transferee Company

(1) Company name SOHGO SECURITY SERVICES CO., LTD. (ALSOK)
(2) Head Office 1-6-6 Moto-Akasaka, Minato-ku, Tokyo
(3) Representative Atsushi Murai (Chairman and Representative Director),
Yukiyasu Aoyama (President and Representative Director)
(4) Main lines of business Security Services, Total Building Management Services and Disaster Prevention Services and Other Related Business.
(5) Capital ¥18,675,011,600-
(6) Date established July, 1965

* Posted information is accurate as of the date of announcement.