[Izumi] Announces Merger of Consolidated Subsidiary and Debt Forgiveness | June 2026

Overview of the Merger

Izumi decided at the Board of Directors meeting held on June 9, 2026, to absorb and merge its consolidated subsidiary Bitchu Development Co., Ltd. The merger will become effective on September 1, 2026, and Bitchu Development will be dissolved. This is a simplified merger between 100% owned subsidiaries, and shareholder approval is not required. As part of the merger, Izumi will forgive a portion of its receivables amounting to 230 million yen to address Bitchu Development’s negative net assets. Bitchu Development is a corporation mainly involved in real estate management and was engaged in shopping center operations.

Future Outlook and Impact

Since this merger is an absorption-type merger between wholly owned subsidiaries, the impact on Izumi's consolidated performance is expected to be limited. The debt forgiveness will eliminate Bitchu Development’s negative net assets, aiming to improve group efficiency and stabilize management. There will be no change in Izumi’s core business activities or capital after the merger, and no obstacles to future business operations are anticipated.