Notice Regarding the Business Transfer of a Consolidated Subsidiary

Overview of the Business Transfer

PHC Holdings has resolved at its board meeting on January 1, 2026, to transfer the sales business of the Continuous Glucose Monitoring (CGM) system Eversense, developed by its consolidated subsidiary Ascensia Diabetes Care Holdings AG, to Senseonics Holdings, Inc. The transfer price is 1.1 million USD plus the net amount of the transferred assets and liabilities. The business transfer in the United States is scheduled for January 1, 2026, with completion outside the United States by June 30, 2026. Net sales for the fiscal year ending March 2025 were 3.06 billion yen, and operating income was △9.0 billion yen. This transfer is part of portfolio management enhancement under the Medium-term Management Plan 2027, aiming to improve capital efficiency and reinforce the earnings base.

Transferee and Future Outlook

The transferee, Senseonics Holdings, Inc., headquartered in the United States, develops and manufactures proprietary long-term subcutaneously implantable Continuous Glucose Monitoring systems. PHC Holdings currently holds 9.56% of Senseonics Holdings' shares. The transfer was determined to be optimal as it allows an integrated system covering development, manufacturing, and sales. The impact on consolidated earnings has already been factored into the full-year earnings forecast revision announced on November 12, 2025, and there is currently no need for goodwill impairment. Any significant matters arising in the future will be promptly disclosed.