Transition to a holding company structure separating strategy and operations

「The company carried out a company split on 1 March 2017 and transitioned to a holding company structure.」

「At a meeting of the Board of Directors held on 15 July 2016, the company resolved to establish, on 21 July 2016, a wholly owned subsidiary named Honey's Split Preparation Company, Ltd. (the "Split Preparation Company"), and to approve the execution of an absorption-type company split agreement with the Split Preparation Company in order to carry out an absorption-type company split in which the Split Preparation Company would succeed to certain rights and obligations relating to the operation of the company's apparel retail stores and internet mail-order business in Japan (the "Company Split"), with the objective of transitioning to a holding company structure through a company split, effective 1 March 2017 (scheduled). The absorption-type company split agreement was executed with the Split Preparation Company on 24 August 2016.」

「We will seek to further improve management efficiency across the Group by having our company oversee the Group's overall strategy, management and risk management, while having each operating subsidiary specialize in its respective business.」