Notice of Business Partnership with Colors Japan — Toward Building a “Value Succession M&A Platform” to Transfer SME Value to the Next Generation Together with Investors

Overview of the Partnership

Through the business partnership with Colors Japan, THE WHY HOW DO COMPANY, Inc. will establish a "Value Succession M&A Platform" to acquire and jointly operate SMEs that face successor shortages or succession challenges, particularly those with a high proportion of real-estate assets, after structuring them to generate stable income. By combining Colors Japan's capabilities in deal sourcing, initial due diligence, PMI, and operational improvement with our governance and compliance framework, we aim to increase the number of acquisitions and enhance long-term corporate value. The partnership is non-exclusive, and terms will be negotiated on a per-transaction basis.

Outlook and Impact on Investors

This partnership supports the mid-term management policy goals of "continuous execution of M&A" and "strategic business partnerships," aiming to increase revenue stability and growth through acquisition and operation of multiple deals. Leveraging Colors Japan's network and on-the-ground capabilities, we plan to increase the number of successor companies and pursue both income gains and capital gains. The impact on consolidated results is under review and will be disclosed promptly if there are matters that should be reported.