Notice Regarding Changes to a Specified Subsidiary (Grandchild Company)

Overview and Purpose of Capital Increase

Japan Eyewear Holdings Co., Ltd. has resolved a capital increase in its grandchild company KANEKO FRANCE SARL through its consolidated subsidiary Kaneko Eyewear Co., Ltd. The capital increase amount is 500,000 euros (equivalent to approximately 91 million yen) and is scheduled for 2026-03-31. Following the capital increase, the capital stock will be 1,200,000 euros (approximately 219 million yen), with Kaneko Eyewear Co., Ltd. maintaining 100% ownership. The purpose of the capital increase is to strengthen brand presence through direct store openings in France and to enhance repair and maintenance services for local customers.

Financial Situation and Future Outlook

KANEKO FRANCE SARL has shown an increasing trend in sales over the past three years, with sales reaching 669 thousand euros in the fiscal year ending December 2025. Although operating income and net income remain in deficit, improvements are evident. This capital increase will reclassify the grandchild company as a specified subsidiary; however, the impact on consolidated results for the fiscal year ending January 2027 is expected to be minimal. There will be no changes in personnel relationships, and product wholesale transactions from the parent to the subsidiary will continue.