Notice Regarding Conclusion of Basic Agreement for Share Acquisition of Next Security Co., Ltd.

We hereby announce that at a Board of Directors meeting held on July 1, 2026, our company resolved to conclude a basic agreement for the acquisition of shares in Next Security Co., Ltd.

This basic agreement does not unconditionally obligate the conclusion of a final agreement or the execution of this share acquisition. It is subject to the ongoing due diligence and negotiations toward a final agreement.

1. Reason for Share Acquisition

Our company is engaged in expanding the distribution of safe and secure reused mobile devices, with the reuse mobile-related business as its core, through the purchase, data erasure, cleaning, and sale of used mobile devices.

In recent years, against the backdrop of the increasing use of smartphones, tablets, PCs, and other IT devices in corporate operations, the utilization of cloud services, and the establishment of remote work environments, the importance of information security has grown even further throughout the entire lifecycle of IT equipment, from introduction and operation to collection and disposal. We recognize that particularly for corporate customers, there is a growing need for comprehensive support that includes not only the procurement and reuse of devices but also data management, countermeasures against cyberattacks, and support for building and operating security environments.

Next Security Co., Ltd. sells cybersecurity solutions, provides consulting, and offers support for building, implementing, and operating related environments. They possess knowledge and a track record in providing services in this domain to corporate customers.

If this share acquisition is executed, we will aim to create cross-selling opportunities by leveraging the customer touchpoints of both companies. Specifically, we will propose Next Security's cybersecurity-related services to our corporate customers who have needs for information security measures and IT asset management, among those with whom we have contact through the sale, purchase, and data erasure of used mobile devices for corporations. Conversely, we will propose our services such as the sale, purchase, and data erasure of reused mobile devices to Next Security's corporate customers.

Furthermore, by offering proposals for information leakage countermeasures, implementation and operation support for security software, and management of IT equipment in conjunction with opportunities for our corporate customers to procure, replace, or return devices, we believe this will lead to the expansion of services provided by our group and the strengthening of our business foundation.

Through this initiative, we aim to strengthen our proposal and service provision capabilities in the corporate IT domain by adding Next Security's cybersecurity-related services, while leveraging our existing transaction touchpoints with corporate customers in the reuse mobile-related business. By doing so, we aim to enhance the value provided to existing customers, create new revenue opportunities, expand our group's business areas, and ultimately increase our corporate value in the medium to long term.

2. Overview of Next Security Co., Ltd.

*1 This is an irregular closing period for the five months from April 1, 2025, to August 31, 2025. *2 This is an irregular closing period for the seven months from September 1, 2025, to March 31, 2026.

3. Overview of the Counterparty for Share Acquisition

*abc Co., Ltd. has changed its fiscal year-end from March to August. The fiscal year ending August 2025 is an irregular closing period for the five months from April 1, 2025, to August 31, 2025.

4. Number of Shares to be Acquired, Acquisition Price, and Shareholding Status Before and After Acquisition

5. Schedule

6. Future Outlook

The impact of this matter on our company's performance for the fiscal year ending October 2026 is currently under review. On the other hand, we recognize that the target company possesses a certain level of profitability based on preliminary due diligence. If this share acquisition is executed, in addition to incorporating the target company's earnings base, we anticipate the creation of service proposal opportunities to corporate customers of both our company and the target company. Therefore, we believe it will contribute to the expansion of our group's revenue opportunities and the improvement of corporate value in the medium to long term.