Convano Makes Axel Mark a Consolidated Subsidiary

At a board meeting held today, Convano resolved to underwrite a third-party allocation of shares by Axel Mark, a company listed on the Tokyo Stock Exchange Growth Market, effectively making it a consolidated subsidiary. Additionally, the company entered into a 3 billion yen commitment-type term loan facility agreement with Axel Mark.

This acquisition is part of Convano's healthcare business growth strategy, aiming to expand services for medical institutions, promote M&A in the healthcare sector, and strengthen support for medical DX.

Highlights - Axel Mark becomes a consolidated subsidiary - Underwriting amount for third-party allocation is 900 million yen - Scheduled to acquire 68.9% of voting rights - Concluded a 3 billion yen commitment-type term loan agreement - Accelerating M&A and business investment in the healthcare sector - Leveraging a network of over 500 medical institutions and a data platform to create synergies - Positioned as a key initiative in the medium-term management plan

Background Convano has been expanding its business from its core nail salon business into consulting, healthcare, and investment & advisory. The healthcare sector is positioned as a vital area for group growth.

Axel Mark is expanding its business into the healthcare sector, focusing on beauty and wellness. By combining management resources, both companies determined that they could create growth opportunities not achievable independently.

Expected Synergies - Expansion of services for medical institutions: Strengthening services by leveraging a network of over 500 clinics. - Promotion of healthcare M&A: Utilizing Convano's M&A expertise and capital supply capabilities. - Deployment of medical DX and AI solutions: Merging proprietary solutions with Axel Mark's brand assets. - Entry into the medical loan business: Establishing the business through Axel Mark.

Relation to Medium-term Management Plan This transaction is a key initiative in the third medium-term management plan and may potentially result in upside for financial results depending on progress.