Notice Regarding Redevelopment of Aizu Factory (Demolition of Old Building and Construction of New Building)

Overview of Redevelopment

Rhythm Co.,Ltd. has resolved to carry out redevelopment of the Aizu Factory including partial demolition and construction of a new factory building. The total investment, covering construction costs and related equipment, is estimated at approx. 50–55 hundred million yen, and the total floor area of the new factory building is planned to be approx. 6,600 ㎡. Construction is scheduled to begin in April 2027, with completion expected in September 2028 and operations commencing in October 2028. The objectives are to capture increased orders, optimize the production system, improve productivity, and reduce costs, thereby strengthening the production base to achieve the company's long-term vision. Funding will be provided through internal funds and borrowings from financial institutions.

Outlook and Impact

The Company expects the impact of this investment on consolidated results for the current fiscal year to be minor, but it is anticipated to contribute to strengthening the production system and enhancing corporate value over the medium to long term. The Company will promptly disclose any matters that should be announced. Funding will be covered by internal funds and borrowings, and this capital expenditure represents a large-scale project in addition to the current medium-term plan.