Notice Regarding Execution of Basic Agreement on Business Partnership

Asahi Co., Ltd. (hereinafter "the Company") has decided to execute basic agreements today regarding the following business partnerships, aimed at revitalizing the overall bicycle market and improving convenience for customers:

・Business partnership with Kyoto Jitensya Hanbai Co., Ltd. (Headquarters: Kyoto Prefecture, hereinafter "Kyoto Jitensya")

・Business partnership with Hayasaka Cycle Shokai Co., Ltd. (Headquarters: Miyagi Prefecture, hereinafter "Hayasaka Cycle Shokai")

1. Reasons for Reaching Basic Agreement on Business Partnership

The Company determined that mutually leveraging the service platforms held by the Company, Kyoto Jitensya, and Hayasaka Cycle Shokai respectively is expected to drive business growth for each company, including sales expansion, improved production efficiency, and enhanced technical capabilities.

Based on this understanding, the basic agreements have been executed in order to advance discussions on specific partnership details in areas such as e-commerce functions and infrastructure, handling of used bicycles, and planning and operation of various events.

Through this partnership, the Company, Kyoto Jitensya, and Hayasaka Cycle Shokai will further strengthen their cooperative framework to provide customers with a better bicycle usage environment and bicycle lifestyle.

The Company will continue to pursue its goal of becoming a company that contributes to people around the world through bicycles.

2. Details of the Basic Agreement

[Overview of Partner Company]

Agreement Date: March 26, 2026

Name: Kyoto Jitensya Hanbai Co., Ltd.

Location: 21-3 Izumiji Higashibayashi-cho, Higashiyama-ku, Kyoto City, Kyoto Prefecture

Representative: Hideki Kondo

Business: Sales of bicycles and accessories (parts), bicycle maintenance inspections and repairs

Established: September 2010

Website: https://www.konscycle.com/

Relationship with the Company: No notable matters in terms of capital, personnel, or business relationships.

[Overview of Partner Company]

Agreement Date: March 26, 2026

Name: Hayasaka Cycle Shokai Co., Ltd.

Location: 4-4-1 Uesugi, Aoba-ku, Sendai City, Miyagi Prefecture

Representative: Takeshi Hayasaka

Business: Sales, maintenance, repair, rental, and leasing of bicycles and motorcycles; sales of related parts and accessories, apparel, snow blowers, outdoor goods, senior cars; handling of various insurance products

Established: May 1, 1965

Website: https://www.hayasaka.co.jp

Relationship with the Company: No notable matters in terms of capital, personnel, or business relationships.

3. Strategic Positioning for the Company

The Company has positioned the expansion of strategic partners through mutual utilization of business platforms as a medium-term priority initiative.

The business partnerships with Kyoto Jitensya and Hayasaka Cycle Shokai are part of efforts being advanced based on these initiatives, and both companies are positioned by the Company as strategic partners.

Note that the Company has already executed a basic agreement toward a business partnership with Sakai Cycle Co., Ltd. on March 9, 2026, and this partnership represents a continuation of that strategic collaboration. Through these partnerships, the Company aims to expand areas of collaboration leveraging the mutual business foundations, which is expected to contribute to the sustainable development of each company and the enhancement of mutual corporate value.

4. Impact on Business Performance

The impact of this matter on the Company's business performance is currently minimal and will not immediately affect performance. If a situation arises in which the impact on business performance can be reasonably calculated in the future, the Company will promptly disclose the information.