Notice Regarding Absorption-Type Merger (Simplified Merger) of a Wholly-Owned Subsidiary

Overview of the Merger

Avex Inc. has resolved to absorb its wholly-owned subsidiary Avex Healthcare Empower LLC effective as of April 1, 2026. This is a simplified absorption-type merger, and therefore no shareholders' meeting will be held for the approval of the merger agreement. The purpose of this merger is to consolidate management resources and promote efficient organizational operations within the group. The dissolving company has neither issued stock acquisition rights nor bonds with stock acquisition rights, and no new shares or cash allocations will be made.

Impact on Shareholders and Business Performance

Following this merger, there will be no changes to Avex Inc.'s name, location, representative, capital stock, or fiscal year-end. As this is an absorption-type merger of a wholly-owned subsidiary, the impact on consolidated financial results is expected to be minimal. For the fiscal year ending March 2025, consolidated net sales were 131,691 million yen, operating income was △1,819 million yen, and net income attributable to owners of parent was 1,138 million yen. The dissolving company's standalone net sales were 22 million yen, operating loss was △41 million yen, and net loss was △29 million yen.