Notice of Business Integration through Establishment of a Joint Holding Company (Share Transfer) between World Co., Ltd. and TSI Holdings Co., Ltd.

Overview of the Business Integration

This matter reports the execution of a share transfer to implement a business integration between World Co., Ltd. and TSI Holdings Co., Ltd. through the establishment of a joint holding company. The share transfer will be implemented by establishing a new joint holding company that will make World and TSIHD wholly owned subsidiaries. The transfer ratio will be 1 to 0.8 (World 1 share → Joint Holding Company 1 share; TSIHD 1 share → Joint Holding Company 0.8 share). The plan is subject to approval at extraordinary shareholder meetings and authorization by relevant authorities, and the implementation schedule may be subject to change.

Synergies and Future Policy

The objective of the integration is to establish a "third pole" in the fashion industry by combining diverse creativity with a robust management base to improve investment efficiency and expand circular business activities. Specific initiatives include unifying information systems, logistics, and corporate functions; enhancing distribution strategies premised on OMO; strengthening digital marketing; expanding investment in M&A, overseas expansion, and the circular economy; and enhancing talent development. After establishment of the joint holding company, the group will be reorganized into a three-company structure.