Notice Regarding the Complete Acquisition of Consolidated Subsidiary (Teikei Vaporizer Co., Ltd.) through Simplified Share Exchange

Overview of Share Exchange

Aisan Industry Co., Ltd. resolved at its Board of Directors meeting on March 30, 2026, to make its consolidated subsidiary, Teikei Vaporizer Co., Ltd., a wholly owned subsidiary through a share exchange. This share exchange will be conducted under the simplified share exchange method, with Aisan Industry as the parent company and Teikei Vaporizer as the subsidiary. The share exchange ratio is 6.12 shares of Aisan Industry for each share of Teikei Vaporizer, with 121,176 shares scheduled to be issued. The share issuance will be covered by treasury stock and no new shares will be issued. The effective date is planned for July 1, 2026.

Purpose and Future Outlook

The purpose of the share exchange is to promote the global production strategy under the medium-term management plan and to enhance responsiveness to market changes through faster decision-making. By making Teikei Vaporizer a wholly owned subsidiary through the share exchange, Aisan Industry aims to reconstruct an optimal production system. The impact of this share exchange on Aisan Industry’s consolidated performance is expected to be minimal.