Announcement Regarding Conclusion of Capital and Business Alliance, Termination of Capital Alliance, Change in Business Alliance, Share Offering and Scheduled Changes in Major Shareholders and Other Related Parties

Overview of Capital and Business Alliance with JAL

Lifenet Insurance Company has agreed to transfer 14,726,100 common shares (18.32% of total outstanding shares) held by au Financial Holdings (auFH) to Japan Airlines Co., Ltd. (JAL), with the transfer scheduled for execution in late June 2026. Following this, a capital and business alliance agreement will be concluded with JAL to promote joint development of insurance products and build sales frameworks leveraging JAL’s brand strength and customer base. JAL will become a major shareholder of our insurance company and is expected to nominate one director.

Termination of Capital Alliance with auFH, Change in Business Alliance, and Future Outlook

The capital alliance with auFH will be terminated on the transfer execution date; however, the business alliance with the KDDI Group will transition into an autonomous partnership without capital ties, continuing collaboration as an important strategic partner. The transfer and start of the capital and business alliance are scheduled for late June 2026. The impact of this transaction on the fiscal year ending March 2027 performance is expected to be minor, but it is anticipated to contribute to business expansion and enhancement of corporate value in the mid- to long-term.