Notice Regarding the Commencement of Discussions on the Business Integration between Our Subsidiary and Kanadevia Co., Ltd.

Background and Purpose of Business Integration Discussions

Kanadevia Co., Ltd. is a leading company engaged in environmental and decarbonization businesses, with a track record of delivering waste treatment plants in over 44 countries worldwide. Meanwhile, Nittetsu Engineering Co., Ltd. is a comprehensive engineering company within the Nippon Steel Group, operating in the environmental, energy, and social infrastructure sectors. Against the backdrop of growing domestic and international demand for environmental facilities and the shift toward a decarbonized society, the two companies aim to strengthen their business portfolio centered on three pillars: resource circulation, decarbonization, and resilience through the business integration, aspiring to become a leading company in the environmental domain.

Overview of Business Integration and Future Schedule

A basic memorandum was signed on 2026-02-05, with the final agreement planned for September 2026. Approval will be sought at extraordinary shareholders' meetings of both companies in November, followed by the planned business integration through an absorption-type merger in April 2027. The approach being considered designates Kanadevia as the surviving company and Nittetsu Engineering as the disappearing company, with the integration ratio to be determined based on future due diligence and evaluations by a third-party appraisal firm. The new integrated company may become a listed related or subsidiary company of Nippon Steel, with expectations to maintain listing on the Tokyo Stock Exchange Prime Market.