Nagoya Railway Executes Subsidiary Reorganization | July 2026

Overview of the Reorganization

Nagoya Railway, at its Board of Directors meeting held on July 24, 2026,, decided to reorganize its consolidated subsidiaries, Meitetsu Department Store and Meitetsu Customer Service. Meitetsu Department Store will be dissolved on September 1, 2026, and the Company will succeed in the commodity gift certificate business. Consequently, the Company will forgive claims of 11,520 million yen related to Meitetsu Department Store to facilitate smooth business transfer. The split-off and absorption merger will be conducted through simplified procedures based on the Companies Act, without the need for approval at the General Meeting of Shareholders.

Future Outlook and Impact

This reorganization is expected to have a limited impact on the consolidated and individual performance for the fiscal year ending March 2027. The dissolution of Meitetsu Department Store and business succession aims to resolve debt overhang and improve operational efficiency, while debt forgiveness will reduce financial burden. Details regarding specific asset and liability amounts and future schedules are currently under detailed negotiation.