Announcement of Share Transfer Agreement for Acquisition (Subsidiarization) of Shares of Mitsubishi Corporation Agri-Service Co., Ltd. and MC Ferticom Co., Ltd.

Overview of Share Acquisition

Ichinen Holdings Co., Ltd. has resolved to acquire shares of Mitsubishi Corporation Agri-Service Co., Ltd. and MC Ferticom Co., Ltd., thereby making them subsidiaries. Consequently, seven companies, including Ainou Co., Ltd. and Sekiryo Chemical Co., Ltd., subsidiaries of Mitsubishi Corporation Agri-Service, and Tokiwa Kakken Co., Ltd. and Hokkaido Organic Co., Ltd., subsidiaries of MC Ferticom, are expected to become sub-subsidiaries. Through this acquisition, utilization of fertilizer-related raw material procurement routes and sales networks will be enabled, aiming to expand the scale of the agriculture-related business and improve profitability.

Financial Condition of Subsidiaries and Future Outlook

Net sales and operating income of Mitsubishi Corporation Agri-Service Co., Ltd. and MC Ferticom Co., Ltd. have shown a downward trend from 2023 through the fiscal year ending March 2025. However, through the acquisition, the combined product development and sales capabilities of both companies will be integrated to enhance competitiveness and expand market share within the industry. The share transfer agreement was signed on April 3, 2026, with execution of the share transfer scheduled for June 1, 2026. They are expected to become consolidated subsidiaries from the fiscal year ending March 2027, and any impact on performance will be promptly disclosed.