Notice Regarding the Absorption Merger of a Consolidated Subsidiary (Simplified Merger)

Overview of the Merger

Heiwado Co., Ltd. resolved at its board meeting on March 25, 2026, to absorb its consolidated subsidiary, Fukui Nanbu Commercial Development Co., Ltd. This is a simplified merger and an abbreviated merger, conducted without approval from the general shareholders' meeting. The effective date of the merger is scheduled for August 21, 2026. Heiwado Co., Ltd. will be the surviving company, and Fukui Nanbu Commercial Development Co., Ltd. will be dissolved. There will be no allocation of shares or cash payments as part of this merger.

Purpose of the Merger and Future Outlook

Fukui Nanbu Commercial Development Co., Ltd. operates retail-related businesses in Fukui City. This merger aims to strengthen the Group's sales capabilities and improve management efficiency. Since this is a 100% wholly-owned subsidiary absorption merger, the impact on consolidated earnings is expected to be minimal. Post-merger, there will be no changes to the company name, location, representative, business activities, capital, or fiscal year.