Expansion of Joint Procurement, Product Development and Sales Capabilities through the Capital and Business Alliance with Shinmei Co., Ltd.

「Shimmei Holdings and the company entered into a capital and business alliance agreement dated 10 May 2017. The two companies determined that cooperation in joint procurement of ingredients and products, establishment of product development systems, and expansion and development of sales systems, as well as a capital and business alliance extending beyond conventional business categories, would be an effective means of achieving mutual growth.」

「Shinmei Holdings Co., Ltd. Basic Agreement for Capital and Business Alliance Business alliance Joint procurement of ingredients and food products by both companies; establishment of a development structure; expansion and development of the sales structure Capital alliance (Note 1) Acquisition of 1,900,000 common shares of the company Agreement date 10 May 2017 Agreement term No specified term」

「Since December last year, the company has been developing a core menu kit through a collaboration with a well-known restaurant chain and is also planning to turn regional speciality foods into menu items.」

「The company has begun considering a sales strategy to strengthen expansion into the Kansai region, where it can maximise synergies with the Shinmei Holdings Group.」

「Our group will continue pursuing safe, reliable and delicious food ingredients that meet customer needs, in order to fulfill its role as part of society's infrastructure and as the company responsible for the Shimmei Group's last mile. Although the market for food delivery is expected to continue expanding, we will also actively pursue new businesses that could become a second or third core business, including alliances with other companies in the same industry, strengthening our proprietary private-label products and expanding operations in the Kansai region.」

「The company has begun selling its own private-label products on a sequential basis and is continuing to develop new private-label products. In November, it will begin selling Aichi Mikawa Beef Fruit Curry, supervised by a chef who formerly served as the Imperial Household's chef, followed by Aichi Mikawa Beef European-style Curry and Nostalgic Retro Curry. Going forward, it will focus on building a system that allows consumers nationwide to purchase these products through its e-commerce site, in addition to sales through its regular menu books.」

「The company also began selling its own private-label product, Shunmi Hyakusen, through its e-commerce site, and will begin selling products including Kin no Nizuke, Kin no Nikomi Beef Steak and Gin no Burikama in August. It is also considering selling these internally developed private-label products through mass retailers and other outlets.」

「Amid rapidly changing business conditions, the company group will pursue safe, reliable and delicious ingredients that meet customer needs, both to fulfil its role as social infrastructure and as the company responsible for the Shinmei Group's last mile. Although the food delivery market is expected to continue expanding, the company will also actively pursue new businesses that can become a second and third pillar, including alliances with other companies in the same industry, strengthening its own private-label products, and expanding into the Kansai region.」

「In addition to continuing to open new locations, the company will further strengthen synergies with the Shinmei Group to meet customers' broad needs by developing and actively selling its own private-label products focused on taste and quality, introducing new chilled products centred on cut fruit and sushi, and enhancing new products and services, including reviewing existing standard menu items.」

「Amid these changes in the business environment, the company group became a consolidated subsidiary of Shinmei Holdings Co., Ltd. through a third-party allotment of shares on 4 March 2021, and intends to maximise synergies between the two companies. Specifically, these comprise ① strengthening products and services to compete with other companies, ② improving logistics efficiency, and ③ enhancing creditworthiness.」

「Shinmei Holdings Co., Ltd. Basic Agreement for Capital and Business Alliance Business alliance Joint procurement of ingredients and food products by both companies; establishment of a development structure; expansion and development of the sales structure Capital alliance Acquisition of 1,900,000 common shares of the company Agreement date 10 May 2017 Agreement term No specified term」

「Regarding major affiliates, on 26 May 2017 Shinmei Co., Ltd. acquired shares equivalent to 19.92% of the company's voting rights. Based on the substantive influence criterion, Shinmei Co., Ltd. consequently became an other affiliated company of the company.」

「Regarding major affiliates, on 26 May 2017 Shinmei Co., Ltd. acquired shares equivalent to 19.92% of the company's voting rights. Based on the substantive influence criterion, Shinmei Co., Ltd. consequently became an other affiliated company of the company.」

「The business alliance is planned to focus on the following areas. In addition, the companies will consider further expanding the scope of the alliance going forward. ① Establishing a joint procurement and development structure for ingredients and products by both companies; and ② expanding and developing the sales structure. Regarding major affiliates, on 26 May 2017 Shinmei Co., Ltd. acquired shares equivalent to 19.92% of the company's voting rights. Based on the substantive influence criterion, Shinmei Co., Ltd. consequently became an other affiliated company of the company.」

「On 10 May 2017, the company and Shinmei Co., Ltd. agreed to enter into a capital and business alliance and executed a basic agreement, with the aim of strengthening and expanding both companies' businesses through the mutual use of resources held by their respective groups. The business alliance is planned to focus on the following areas: ① establishing a joint procurement and development structure for ingredients and products by both companies; and ② expanding and developing the sales structure.」