Notice Regarding Trade Name Change of Consolidated Subsidiary and Absorption-Type Merger Between Consolidated Subsidiaries

Overview of Business Reorganization

At the board of directors meeting held today, it was resolved that consolidated subsidiary IDA will change its trade name to "Insource Consulting & Digital Co., Ltd." and that ICO will be absorbed and merged. The merger will be conducted between wholly owned subsidiaries, with Insource Digital as the surviving company and Insource Consulting as the dissolving company. The purpose of the merger is to leverage expertise in the digital domain and in personnel development and organizational design to build a service provision structure capable of addressing a wide range of management challenges. The impact on consolidated financial results is expected to be minor.

Schedule and Impact Going Forward

The merger agreement conclusion and approval date is October 19, 2026, and the effective date is January 1, 2027. The merger method is an absorption-type merger with Insource Digital Academy as the surviving company; ICO will be dissolved. No allocation of shares or monetary consideration will occur. The trade name change is scheduled for November 1, 2026, and there will be no changes to the registered head office address, capital, or fiscal year end after the change.