Notice Regarding Acquisition of Real Estate for Sale by Consolidated Subsidiary

Overview of Real Estate Acquisition

Our consolidated subsidiary, JALCO Co., Ltd., has decided to acquire approximately 330㎡ of land and a collective residential building (total floor area approximately 460㎡) located in a prestigious residential area in Akasaka, Minato-ku, Tokyo, and concluded a sales contract on March 31, 2026. The acquisition price is less than 30% of our most recent consolidated fiscal year-end net assets, to be funded through borrowings from financial institutions and internal funds. The acquired property enjoys high brand value in Akasaka, Minato-ku, with excellent accessibility to key central Tokyo areas, and is expected to have high liquidity and marketability even in future potential resale scenarios.

Strategic Significance and Future Outlook

Our group aims to expand a stable long-term earnings base, positioning the acquisition and holding of prime real estate as part of our growth strategy. This acquisition contributes to the sophistication of our asset portfolio and is expected to enhance corporate value over the medium to long term. We will continue actively acquiring highly liquid and marketable real estate assets in major metropolitan areas such as Tokyo and Osaka. Additionally, we are promoting investments in our new business of grid-scale storage batteries to diversify our revenue sources. The impact on consolidated results for the fiscal year ending March 2026 is anticipated to be minimal.