Transition to a holding company structure and strengthening of group management functions

「As part of efforts to strengthen the group management platform, we announced the transition to a holding company structure in February 2020. However, since April we have been operating with the highest priority on responding to the risk of the spread of COVID-19, and decided to postpone the transition because it was difficult to allocate sufficient human resources to preparations for the transition.」

「At a Board of Directors meeting held on 4 February 2020, we resolved to begin preparations for transitioning to a holding company structure on 1 October 2020, and to establish a wholly owned subsidiary to serve as the company preparing for the corporate split. The transition to a holding company structure will be implemented subject to approval of the relevant proposals at our annual general meeting of shareholders scheduled for late June 2020 and, where necessary, receipt of permits and other approvals from the relevant government authorities. The holding company will specialize in managing the Group as a whole and seek to maximize enterprise value by formulating group management strategies for expanding existing and new businesses in Japan and overseas, and by optimally allocating and efficiently utilizing management resources. By separating the organization responsible for group management from the organization responsible for promoting the businesses, and clarifying the responsibilities and authority of each, we will seek to accelerate decision-making and strengthen competitiveness.」