Notice of Signing Agreement on Business Integration for Promoting Metropolitan Area Strategy by Maxvalu Kanto Co., Ltd., Daiei Inc., and Aeon Market Co., Ltd.

Overview of Personnel Changes

This case involves an absorption-type company split where Maxvalu Kanto Co., Ltd. (MV Kanto) is the succeeding company and Daiei Inc. is the splitting company, transferring Daiei's Kanto business to MV Kanto. Furthermore, an absorption-type merger will be conducted with MV Kanto as the surviving company and Aeon Market Co., Ltd. as the dissolving company. Additionally, a share exchange will be carried out making MV Kanto a wholly owned subsidiary of U.S.M.H. The effective date of these transactions is scheduled for March 1, 2026. The reason for these changes is to strengthen the dominant strategy and improve management efficiency and regional adaptability of the supermarket business in the metropolitan area. Specific names of persons subject to the change or detailed position changes are not disclosed.

Impact on Management Structure

Through this business integration, the U.S.M.H group aims to achieve a supermarket business sales of over 1 trillion yen and a network of 1,000 stores in the metropolitan area by consolidating localized store networks and customer bases to enhance efficient store operations and flexible service provision. This aims to reduce procurement costs, improve management efficiency, and achieve sustainable growth and enhanced corporate value. To ensure fairness, an independent special committee has been established, a third-party appraisal agency has conducted evaluations, and measures have been taken to avoid conflicts of interest.