Tokai Tokei Shoji Expands Industry Base by M&A of Long-Established Watch Parts Trading Company to Strengthen After-Sales Service

Tokai Tokei Shoji Co., Ltd. (Headquarters: Nagoya City, Aichi Prefecture; Representative Director and President: Tsuguhide Ishiguro), which comprehensively supports customers' beauty from watch and jewelry wholesale/retail to personal gym management, announced that it has acquired all shares of Matsuda Hikari Co., Ltd. (Headquarters: Osaka City, Osaka Prefecture; Representative Director: Yoichiro Matsuda), a specialized trading company for watch parts and tools, as of April 1, 2026, making it a group company.

## Inheriting the "Invisible Infrastructure" of Watches - Strengthening Repair and Parts Supply System
Through this M&A, Tokai Tokei Shoji will incorporate the function of supplying parts and tools that support watch after-sales service into its group, in addition to its sales domain, aiming for further strengthening of its business foundation.

In recent years, the watch industry has seen an aging of technicians responsible for repair and maintenance, leading to a serious shortage of successors. Watch repair technicians are generally highly specialized professionals requiring more than 10 years of experience, and with limited entry of young talent, the succession of skills and maintenance of the supply system have become industry-wide challenges.

In this context, maintaining a stable supply system for essential parts and tools for repairs forms the foundation for technicians to acquire and pass on their skills with peace of mind. In an unstable parts supply environment, repairs themselves cannot be performed, potentially leading to the loss of opportunities for skill succession.

Matsuda Hikari Co., Ltd. has a history dating back to its founding in 1928 and is a specialized trading company that plays an important role in the industry, handling genuine watch parts from domestic and international brands and professional tools.

Through this M&A, Tokai Tokei Shoji will incorporate Matsuda Hikari Co., Ltd.'s parts supply network into its group, thereby contributing to the stabilization of the foundation supporting repair and maintenance and fostering an environment where technical succession can be carried out sustainably.

## Background and Purpose of M&A

### Industry Challenges
In recent years, in addition to changes in the sales market, the importance of parts supply and technical succession supporting repair and maintenance has increased in the watch industry. Especially in the highly specialized after-sales service domain, the establishment of a stable supply system is demanded.

Furthermore, Matsuda Hikari Co., Ltd. also faced challenges such as the aging of its current representative, who has protected the business for many years as the fourth generation, and the absence of a successor. In such circumstances, this M&A was reached as a means to reliably pass on the parts supply network and expertise cultivated by the company to the next generation.

### Purpose of This M&A
Through this M&A, we aim to achieve the following:

- Strengthening of the after-sales service domain
- Establishment of a stable supply system for parts and tools
- Maintenance and development of watch industry technology and infrastructure
- Support for the spread of watch culture to younger generations and the general public

By providing consistent value from sales to after-sales service, we will further promote our philosophy of "popularizing watches and jewelry."

## About Matsuda Hikari Co., Ltd. (M. MATSUDA & CO. LTD.)