Notice Regarding Conclusion of Basic Agreement for Transfer of Equity Interest in Consolidated Subsidiary

Overview of Equity Transfer

Yodoko Corporation has concluded a basic agreement on January 28, 2026, for the transfer of all or part of its equity interest in its consolidated subsidiary, Yodogawa Seiyo (Hefei) High-tech Steel Sheet Co., Ltd. (YSS). The transfer target is 95% equity interest (74.09% held by the company, 20.91% by SYSCO), and the transfer price is currently under negotiation. YSS engages in the manufacture and sale of galvanized steel sheets and color steel sheets for the Chinese market, but both sales and operating income have been declining in recent years, resulting in ongoing losses.

Outlook and Impact

The equity transfer agreement is scheduled to be concluded on April 24, 2026, with the transfer execution expected in late June 2026. If the transfer is executed, a loss on sale of investment securities is expected to be recorded in the individual financial statements; however, the impact on consolidated financial results is anticipated to be minimal. Details regarding the transfer price and impact amount will be promptly disclosed once available. This equity transfer is positioned as part of efforts to enhance corporate value through selection and concentration of management resources in overseas businesses.