Notice of Absorption-Type Merger of Wholly Owned Subsidiary (Daidoh Forward Co., Ltd.), Change in Specified Subsidiary Status and Partial Amendment of Articles of Incorporation

Overview of the Merger

This notice announces that Daidoh Limited will absorb its wholly owned subsidiary Daidoh Forward and make accompanying amendments to its articles of incorporation. The method of the absorption-type merger will have Daidoh Limited as the surviving company and Daidoh Forward as the dissolved company, with an effective date scheduled for 2026-12-01. The merger aims to revive the apparel business as part of the mid-term plan "Evolution and Leap" by accelerating decision-making and consolidating management resources. Approval of the merger agreement will be sought at an extraordinary shareholders' meeting (scheduled for 2026-11-19); Daidoh Forward will not hold a shareholders' meeting because a simplified merger procedure applies.

Impact and Outlook

The impact of the merger on consolidated results is expected to be minor; however, an extraordinary loss (loss on extinction of bundled shares) is expected to be recorded, and the amount is currently under review. Going forward, Daidoh Limited will proactively promote the revival of the apparel business and growth investments to achieve the mid-term plan target of consolidated operating income of 4,000 million yen by the final fiscal year ending 2029.