Development of an investment business centered on both operating businesses and finance

「Acquisition date 1 March 2026 Percentage of voting-rights-bearing capital interest acquired 100.00%」

「Regarding the business rehabilitation of ㈱ライトオン, a major rehabilitation investment project undertaken by the investment company ㈱Ｗ＆Ｄインベストメントデザイン, the company made it a wholly owned subsidiary effective 1 March 2026 as the fundamental reform of its earnings structure was progressing as initially expected, completing the fundamental rehabilitation.」

「In addition, the company made ナルミヤ・インターナショナル㈱ a wholly owned subsidiary effective 1 October 2025 through a share exchange, putting it in a position to halt the outflow of profits to non-controlling interests.」

「Based on a resolution of its board of directors meeting held on 28 November 2024, the company acquired 44,233 common shares of 三菱商事ファッション㈱ (currently エムシーファッション㈱) for ¥9,325 million in cash on 28 February 2025. As a result, 三菱商事ファッション㈱ (currently エムシーファッション㈱) and its subsidiaries became consolidated subsidiaries of the company.」

「From the first quarter of the current consolidated cumulative period, the company has made ㈱アンドブリッジ, which operates the off-price store 「& Bridge」, a consolidated subsidiary, and will promote business collaboration with ㈱ティンパンアレイ to maximize synergies.」

「The company additionally acquired part of its interest in its consolidated subsidiary ㈱ナルミヤ・インターナショナル. As a result, the group's ownership interest increased from 51.6% to 59.8%.」

「The company acquired shares in ㈱ストラスブルゴ, which has unique strengths including luxury select retail and agency representation for European and US brands, to expand the portfolio of the group's apparel business.」

「Because the company's consolidated subsidiary 株式会社ヒロフ acquired all shares of 株式会社 T&L, T&L became a consolidated subsidiary of the company.」

「The tender offer ended on 14 February 2022, and on 21 February 2022 the company acquired 2,691,000 common shares of ㈱ナルミヤ・インターナショナル for ¥3,310 million in cash. As a result, the company's voting-rights ownership ratio in ㈱ナルミヤ・インターナショナル became 51.59%, and the company and its subsidiaries became consolidated subsidiaries.」

「At a meeting of its board of directors held on 13 January 2022, the group resolved to acquire common shares in 株式会社ナルミヤ・インターナショナル, its equity-method affiliate, through a tender offer under the Financial Instruments and Exchange Act, and entered into a capital and business alliance agreement with the target company on the same date.」

「In November, we made Laxus Technologies Inc. a subsidiary. The company operates a subscription-based rental and sharing service specializing in luxury brand handbags.」

「In August, we established ㈱アンドブリッジ, an equity-method affiliate, as a joint venture with ㈱ゴードン・ブラザーズ・ジャパン, a professional firm specializing in movable assets, to develop a new format of off-price stores. We opened its first store in Nishi-Omiya, Saitama Prefecture, in September.」

「Specifically, in April we made Original Inc., the U.S. operator of the online custom-shirt brand “Original Stitch,” a subsidiary, expanding our online custom-shirt portfolio and customization platform using sizing technology. In June, through our subsidiary ㈱ワールドインベストメントネットワーク, we made 神戸レザークロス㈱ a subsidiary to expand our footwear portfolio and develop a footwear customization business in the future.」

「Through the W&D Design Fund, the company invested in 株式会社ヒロフ, which develops bags and women's shoes under the 「ＨＩＲＯＦＵ」 brand. In March 2019, it additionally acquired shares in 株式会社ナルミヤ・インターナショナル, which plans and sells baby and children's clothing, and made it an equity-method affiliate.」

「株式会社ティンパンアレイ and 株式会社アスプルンド, which became a subsidiary in the fourth quarter of the previous fiscal year, contributed to an increase of ¥14,441 million in revenue and ¥323 million in core operating profit year on year.」

「In the M&A business, the company made 株式会社ティンパンアレイ, which operates the used select shop 「ラグタグ」, a subsidiary effective 2 April 2018, and is working to provide new fashion value unconstrained by the boundaries between primary and secondary distribution while developing the sharing-economy market.」

「In June 2017, we established W&D Investment Design Co., Ltd. with Development Bank of Japan Inc. and formed the fashion-focused jointly managed W&D Design Fund. In December of that year, we invested in Your Sanctuary Co., Ltd., which operates The Secret Closet select shop and Cyclas luxury brand, as the fund's first investment, and have sought to promote the growth of portfolio companies through both operating businesses and finance.」