[Cosmo Initiatives] Establishment of a Special Subsidiary and Business Development | June 2026

Overview of Business Activities

Cosmo Initiatives approved the establishment and investment in a specific subsidiary at its Board of Directors meeting on June 24, 2026, and plans to make CIF1 a subsidiary. The new company aims to focus on asset securitization and hotel development, with capital of 100 thousand yen and preferred capital of approximately 3,800,000 thousand yen. This move aims to expand the company's business portfolio and promote asset securitization. The company's establishment is scheduled for June 5, 2026, and the subsidiary acquisition is planned for June 29, with minimal impact expected on consolidated earnings for the fiscal year ending March 2027.

Future Outlook and Impact

This subsidiary establishment is part of Cosmo Initiatives' business strategy and will contribute to asset securitization and hotel development initiatives. The capital relationship involves full investment in the subsidiary, with current personnel and transaction relationships maintained. Moving forward, asset liquidation and real estate development are expected to strengthen earnings and improve asset efficiency.