Notice Regarding Establishment of Overseas Subsidiary, Capital Increase of Existing Subsidiary (Grandchild Company), and Changes to Specified Subsidiary

Overview of New Company Establishment and Subsidiary Capital Increase

Arisawa Manufacturing Co., Ltd. plans to establish a subsidiary named "Arisawa Manufacturing America Inc." in California, USA in February 2026, engaged in manufacturing and sales of electronic materials and industrial structural materials. The capital will be 4,500 thousand USD (approx. JPY 698 million), fully owned by the company. Additionally, a capital increase of 10,000 thousand USD (approx. JPY 1,550 million) will be executed for the consolidated subsidiary Protec Arisawa America Inc. (PAA), raising its capital from 3,200 thousand USD to 13,200 thousand USD. PAA is a global manufacturer of FRP pressure vessels for water treatment, and this capital increase aims to enhance production capacity and update equipment to respond to market expansion in the United States.

Future Outlook and Impact

The impact of the new company establishment and capital increase on the consolidated results for the fiscal year ending March 2026 is expected to be minimal. The factory to be acquired by the new company will be leased to PAA for the time being, aiming to improve cost competitiveness through equipment renewal and automation promotion of aging facilities. As business expands, ways to utilize the factory will be considered, and timely disclosure will be made if any matters that should be disclosed arise.