Notice Regarding the Business Integration of Mitsubishi Kakoki Kaisha, Ltd. and Tsukishima Holdings Corporation

Overview of the Business Integration

Mitsubishi Kakoki Kaisha, Ltd. and Tsukishima Holdings Corporation will carry out a business integration based on equal treatment, scheduled to be effective on April 1, 2027. Through an absorption-type company split with Mitsubishi Kakoki Kaisha, Ltd. as the split company and a preparatory company as the successor by absorption-type company split, a joint holding company will be established and Tsukishima Holdings will be made a wholly owned subsidiary via a share exchange. Furthermore, following the absorption-type company split, trade name changes and organizational restructuring will be implemented to integrate the water environment and industrial machinery businesses.

Growth Strategy and Future Outlook

Post-integration, the combined entity will generate synergies across three domains: standalone equipment, engineering, and water environment. It aims to create high-value-added solutions in GX fields and high-performance materials, accelerate external growth including M&A, and expand overseas. The target is net sales of 350 billion yen and operating income of at least 30 billion yen in the fiscal year ending March 2036. A two-year period will be used to eliminate dilution, and shareholder returns including share buybacks will be considered.