Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

December 14, 2023
To whom it may concern,
Company name:Name of representative:

Inquiries:

Takashima & Co., Ltd.
Koichi Takashima, President andRepresentative Director(Securities code: 8007; PrimeMarket)
Investor Relations & Public
Relations Unit(Telephone: +81-3-5217-7248)

Notice Concerning the Establishment of a New Company (Subsidiary) in the Industrial Materials Businessand the Transfer of Business to the Subsidiary
Takashima & Co., Ltd.(the “Company”) hereby announce that our Board of Directors has resolved at a meeting
held today to establish a new company (our wholly owned subsidiary) in the industrial materials business and totransfer the business to this new company as follows.

1. Establishment of Subsidiary(1) Purpose of establishing the subsidiary
Our Industrial Materials segment handles a wide variety of commercial products in the fields of textile-relatedmaterials and plastic-related materials, and in recent years the Company have adopted a policy of aiming forsustainable growth by improving our manufacturing, processing, and other functions.
Under this policy, in order to respond to the rapidly changing business environment, the Company have decided
to establish a new company (our wholly owned subsidiary) that will take over our industrial materials business,with the aim of improving our competitiveness by establishing a new governance structure, enhancing organic
collaboration among group companies in the Industrial Materials segment, accelerating decision-making, andflexibly investing in human resources to focus on our core businesses. The new company will be a wholly owned
subsidiary of the Company and will take over the industrial materials business of the Company.
The new company is scheduled to begin operations on April 1, 2024. The Company plans to terminate thebusiness upon completion of fulfillment of claims and obligations under the contract by the end of March 2024.
The Company has considered the smoothest possible method to avoid as much confusion as possible in the current
business operations due to the transition, and to achieve greater flexibility in the selection and concentration ofbusiness operations. As a result, the Company decided not to reorganize the company through a "corporate split"
as stipulated in the Companies Act. Instead, the Company have adopted the scheme of establishing a newcompany and transferring the business to the new subsidiary.
(2) Profile of subsidiaries(1) Company name(2) Location(3) Title and name ofrepresentative

Takashima Industries Co., Ltd.
4, 3cho-me, Kandasurugadai, Chiyoda-ku, Tokyo
President and Representative Director, Tsutomu Nishida(Senior Executive Officer, Division Chief of Industrial MaterialDivision）(4) Business

Design, processing and sales of industrial fibers and textiles, plastic
materials and molded products, parts of rolling stocks, environmentrelated products, etc.

(5) Capital(6) Date of establishment(7) Fiscal year end(8) Major shareholders¥350,000,000
January 19, 2024（scheduled）
March 31
100% held by Takashima & Co., Ltd.
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(1) Date of resolution by Boardof director

December 14, 2023

(2)Date of New Company’s
Establishment

January 19, 2024 (Scheduled)(3)Date of Business Start

April 1, 2024 (Scheduled)Composition of Industrial Materials Segment

The current composition of the group companies in the Industrial Materials segment and the composition afterthe start of operations of the new company are as follows
Industrial Materials segment
Since the start of the new company
business

Current
Business Field
Plasticrelated
field

Textilerelated
field

Takashima & Co., Ltd.

〇〇

Takashima Industries Co., Ltd.

Hi-Land Inc.

〇〇

Hi-Land Inc.

〇

CLS Corporation

Company Name

CLS Corporation

Company Name

TAKCEL Co., Ltd.

〇TAKCEL Co., Ltd

Takashima Robot Marketing Co.,Ltd.

〇

Takashima Robot Marketing Co., Ltd.
〇

Sinbou Edix Co., Ltd.

Sinbou Edix Co., Ltd.

3. Outlook for the Industrial Materials Segment
As stated in the "Notice Concerning Revisions to Consolidated Full-Year Financial Results Forecasts andDividend Forecast for the Fiscal Year Ending March 31, 2024." dated December 14, 2023, the Company has
revised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2024, to net sales of
94,000 million yen, operating profit of 2,300 million yen, ordinary profit of 2,400 million yen, and profit
attributable to owners of parent is projected to be 4,800 million yen. The Industrial Materials segment is expected
to segment net sales of 19,000 million yen and segment profit of 420 million yen.
4. Future Outlook
The establishment of this subsidiary is expected to incur one-time expenses, but the impact on the Company's
consolidated financial results for the fiscal year ending March 31, 2024 and thereafter is expected to beinsignificant.
Please refer to the "Notice Concerning Revision to Consolidated Full-Year Financial Results Forecasts andDividend Forecasts for the Fiscal Year Ending March 31, 2024" separately disclosed today for the consolidated
earnings forecasts for the fiscal year ending March 31, 2024, which incorporate other factors.

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