Proactive investment through M&A, subsidiary formation and capital and business alliances

「At a meeting of the Board of Directors held on 19 February 2026, the Company resolved to acquire 60% of the issued shares of 株式会社ＭＦ６ and make it a consolidated subsidiary, and acquired the shares on 2 March 2026.」

「Our group acquired 60% of the issued shares of 株式会社ＭＦ６, made it a consolidated subsidiary effective 1 March 2026, and commenced a new live commerce business.」

「To select and concentrate management resources, the Group has already withdrawn from the magnesium battery, urban mining and disinfection OEM businesses, which had not reached the stage of generating earnings. It will nevertheless continue to verify and review the businesses to be pursued, the business environment, the allocation of management resources and business progress, taking available cash into consideration.」

「Of these companies, 日本グリーン油田開発株式会社 and 合同会社ＥＳクリーンエナジー１号 were newly established during the current consolidated fiscal year and have therefore been included in the scope of consolidation.」

「From the second quarter consolidated accounting period, 合同会社ＥＳクリーンエナジー１号 was included in the scope of consolidation because it was newly established.」

「Building and expanding its business network and improving its ability to raise funds are essential to further expanding the Group’s sales and profits and stabilizing its management foundation. To this end, the Group will actively promote collaboration with companies that operate high-quality businesses expected to generate synergies with the Group’s businesses.」

「At a meeting of the Board of Directors held on 14 July 2023, the Company resolved to enter into a purchase and sale agreement to acquire the Omaezaki City Shiraha Solar Power Plant owned by Osaka Chuo Electric Power GK (the “Solar Power Plant”). The acquisition price exceeds 30% of the Company’s total assets and net assets at the end of the immediately preceding consolidated fiscal year.」

「ＥＴＳ has earned customer trust through its high technical capabilities and attentive service and has steadily increased the number of maintenance contracts. Although ETS as a standalone company had moved out of the red and achieved sustained profitability, the Company decided to transfer all of its shares after considering its future plans for sales scale and profitability, as well as cost effectiveness.」

「From the third quarter consolidated accounting period, 飯塚市有井太陽光発電合同会社 and 盛岡市大ケ生太陽光発電合同会社 were included in the scope of consolidation because they were newly established.」

「株式会社ジー・スリーファクトリー began its purchasing and sales business for basic cosmetics, health foods and other products from the third quarter of the consolidated fiscal year ended August 2021. The Company also began supplying disinfection equipment on an OEM basis to a major security company from the fourth quarter of the consolidated fiscal year ended August 2021 as an infection-prevention business.」

「The profit or loss generated by these business activities is classified as the “Sustainable Business” segment.」

「At a meeting of the Board of Directors held on 17 February 2021, the Company resolved to establish a new wholly owned subsidiary and acquire part of the business operated by 株式会社Ｃファクトリー. The business transfer agreement was concluded on 1 March 2021, and the Company acquired the business on the same date.」

「宮城川崎町メガソーラー匿名組合, which was an equity-method affiliate in the previous consolidated fiscal year, was included in the scope of consolidation from the first quarter cumulative consolidated period because additional contributions were acquired and it became a consolidated subsidiary.」

「合同会社エコ・グリーン３号, which was an unconsolidated subsidiary in the previous consolidated fiscal year, was included in the scope of consolidation from the first quarter consolidated accounting period because its materiality increased. In addition, during the second quarter consolidated accounting period, 合同会社エネパークみやこ２ was included in the scope of consolidation following the acquisition of all of its equity interests.」

「The Company regards creating businesses focused on a better future, including energy businesses that address environmental issues, as its corporate mission. However, after considering the relationships and respective synergies among the businesses of the Company, SＢＹ and ＧＭＦ, the substantial and continuing costs required for new store openings and new product development to further develop SＢＹ and ＧＭＦ, and the need to select and concentrate management resources, the Company determined that synergies could be achieved and that the further development of both companies would be significantly supported because the transferee is skilled in developing new cosmetics and beauty contact lenses and conducts real estate sales, leasing and management. The Company therefore transferred all shares of SＢＹ.」

「Subsequently, the Company acquired the shares for cash on 15 October 2018.」

「From the second quarter of the current consolidated fiscal year, 株式会社Green Micro Factory and 株式会社BIZInfo, newly established in February 2018, have been included in the scope of consolidation.」

「To secure stable earnings and achieve future growth and development, the Group believes it needs to actively pursue M&A, establish subsidiaries and enter into capital and business alliances.」