Towards New Living Infrastructure Co-Created with Communities: Zenjitsu Foods Co., Ltd. and Toyota Coniq Pro Inc. Sign Business Collaboration Agreement

Zenjitsu Foods Co., Ltd. (Head Office: 6-2-2 Iriya, Adachi-ku, Tokyo; President: Minoru Hirano) and Toyota Coniq Pro Inc. (Head Office: Wataer Tower, 2-101 Kanda-awajicho, Chiyoda-ku, Tokyo; President & CEO: Junichiro Takeda) have signed a business collaboration agreement to create new solutions by combining food distribution and mobility. A signing ceremony was held on Tuesday, June 30.

<Minoru Hirano, President of Zenjitsu Foods Co., Ltd. and Junichiro Takeda, President & CEO of Toyota Coniq Pro Inc.>

Amidst increasing regions where maintaining living infrastructure is becoming difficult due to declining birthrates and an aging population, this agreement aims to enable local businesses and residents to sustainably operate essential services such as shopping, logistics, and transportation, by leveraging the network of Zenjitsu Foods Co., Ltd., which has approximately 1,600 stores nationwide, and the business development and production capabilities in the mobility domain of Toyota Coniq Pro Inc.

Main Initiatives 1: Building and Deploying a Community Co-creation Business Model Connecting Shopping, Transportation, and Delivery

Zenjitsu Foods Co., Ltd.'s member stores will be utilized not only for product sales but also as local logistics hubs.

Through two solutions – "Joint Delivery," which integrates product sales and delivery via mobile supermarkets, and "Cargo-Passenger Integrated Transport," which combines delivery with transportation for shopping – we will treat "people's movement" and "goods' movement" as a single entity, redesign the last-mile delivery structure itself, and aim to build a sustainable delivery model. This initiative is characterized by minimizing new capital investment and reorganizing existing facilities and resources.

Furthermore, by integrating DX and introducing touch displays and new product management systems, we will build a scheme that allows for the provision of products not handled in mobile supermarkets or stores. As a result, sales without inventory will become possible, and without significantly increasing staff workload, we can offer more meaningful shopping opportunities to customers by expanding product categories to include daily necessities and services in addition to conventional food items.

The first phase of new product offerings will involve a demonstration using the touch-panel display "S_mart" to take book orders at mobile supermarkets for delivery the following week.

Moving forward, through demonstrations at pilot member stores, we will verify operational aspects and business viability, and plan for phased deployment to member stores nationwide.

<Main Partner Companies in this Demonstration>

Zenjitsu Foods Co., Ltd. Member Store Murakami Travel Service Co., Ltd.: Operation of mobile supermarkets and product delivery int mart design Inc.: Provision of the digital display shopping system "S_mart" Sato Corporation: Provision of product order data management system

Main Initiatives 2: Creating and Revitalizing Community Hubs that Foster "Shopping, Gathering, Working, Connecting," etc.

In depopulated areas and villages where local shopping facilities have disappeared, we will work in conjunction with the community to create and revitalize multifunctional bases that serve as community hubs, going beyond mere shopping functions by utilizing closed shopping facilities or existing community centers.

Future Development

To maintain essential community services, it is essential not only to optimize individual services but also to reconfigure them as businesses that combine the diverse strengths of companies, organizations, and residents scattered throughout the region, by viewing "shopping" and "transportation" as integrated.

Therefore, we aim to establish and deploy sustainable living infrastructure that can be operated by the community itself nationwide.

In addition, while building on the foundation of "community-led co-creation," we will broadly invite participation from diverse companies and organizations with extensive business foundations, and create new business models that solve regional issues through co-creation.

Statements from Representatives

Minoru Hirano, President of Zenjitsu Foods Co., Ltd.

It is a great honor to have concluded this business collaboration agreement with Toyota Coniq Pro Inc.

As the Zenjitsu Food Chain, we have long served as the foundation for food supply in local communities with our approximately 1,600 member stores nationwide. However, the majority of our member stores are small and medium-sized or individually owned grocery stores, and structural challenges such as the aging of business owners, stagnation in business succession, and rising logistics costs are becoming increasingly severe year by year. Facing these realities, under our mission of "Protecting the food and lives of the region," we have been diligently working to build a system that allows our member stores to continue their businesses stably in the future.

This business collaboration is an extremely strategically significant agreement that will dramatically accelerate these efforts. We will build a concrete framework for maintaining and developing essential community functions in a sustainable manner, including the demonstration and deployment of mobile supermarkets, the standardization of support methods utilizing DX, and the establishment and operation support of consultative bodies with regional stakeholders, including local governments. By maximizing the product supply base and nationwide member store network of the Zenjitsu Food Chain, and combining it with Toyota Coniq Pro Inc.'s advanced knowledge and business conceptualization capabilities for solving regional issues, we will further strengthen the safety net that protects the daily purchasing environment of local residents.

We will continue to devote our full efforts to meet the unwavering support and expectations of our member stores nationwide, as well as our business partners and local customers.

Junichiro Takeda, President & CEO of Toyota Coniq Pro Inc.

Based on the technologies and assets of the Toyota Group, we at Toyota Coniq Pro Inc. are continuously working to create new value by combining mobility as a starting point with diverse fields such as content and services.

In modern times, as social issues become more complex and difficult for a single company or function to solve alone, we recognize that "co-creation," where partners with different strengths collaborate to create new value together, is becoming increasingly important.

With many partners, we aim to create new value for regions and society, energize Japan as a whole, and generate happiness by creating not just mobility services, but also people flow, experiences, and communities.

In this business collaboration, we see great potential in how Zenjitsu Foods Co., Ltd., as a voluntary chain, is deeply rooted in local communities with its member stores nationwide, and has carefully captured the needs and sentiments of each region through its daily business activities. We are confident that by combining our business development and production capabilities in the mobility domain with Zenjitsu Foods Co., Ltd.'s locally rooted network and knowledge, we can build sustainable models tailored to the characteristics of each region and expand their value nationwide.

We will continue to explore new forms of social infrastructure through co-creation with diverse partners and contribute to the realization of a sustainable society where local residents are the protagonists.

[Inquiries Regarding This Release and Agreement]

Zenjitsu Foods Co., Ltd. Development Division Contact: Sugiyama, Ohba TEL: 03-5691-2139

Toyota Coniq Pro Inc. Kono Machi Ichiba Sector Contact: Nakayama, Hayashi Mail: konomachi-ichiba@toyotaconiq.co.jp

Company Overview

Company Name: Zenjitsu Foods Co., Ltd.

Established: May 1962

Capital: 1,800 million yen

Representative: Minoru Hirano, President

Business Description: Headquarters of a food voluntary chain with approximately 1,600 member stores nationwide. Supply of general food, fresh food, alcoholic beverages, quasi-drugs, etc., and management and sales floor guidance.

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

Company Name: Toyota Coniq Pro Inc.

Established: January 2021 (Founded March 1949)

Capital: 50 million yen

Shareholders: Toyota Coniq Co., Ltd. (100%)

<Toyota Coniq Shareholders: Toyota Motor Corporation (66%), Dentsu Group Inc. (34%)>

Representative: Junichiro Takeda, President & CEO

Business Description: Marketing services, consulting, and mobility services for Toyota Motor Corporation and the Toyota Group, etc.

Website: https://toyotaconiq-pro.co.jp