Notice Regarding Establishment of Subsidiary

Background and purpose of establishment

This notice pertains to a resolution to establish a local subsidiary as part of a global strategy for the brand and fashion business to enter the UK market. Aiming to expand in Europe, the company will purchase and sell from London to promote the diffusion of the reuse culture and strengthen the global portfolio. The establishment will be conducted as a wholly owned subsidiary, and by establishing a local presence in the UK, the company aims to increase its overseas market share.

Overview of the establishment and outlook

The new subsidiary will be named KOMEHYO UK LIMITED (provisional). Location: London, United Kingdom. Representative: Masayoshi Katayama. Business: Purchasing and sales of jewelry, precious metals, watches, bags, clothing, etc. Capital at establishment: 2,000,000 pounds. The equivalent yen at the time of settlement is subject to fluctuation due to the exchange rate at the remittance time. Accounting period ends in December; ownership stake is 100% owned by the company. The impact on earnings is expected to be minor in the fiscal year ending March 2027, and timely disclosure will be provided if necessary.