August 21, 2024
AIN HOLDINGS INC.
Representative: Kiichi Otani, President and Representative Director(Stock code 9627: Tokyo Prime Market, Sapporo Securities Exchange)
Inquiries: Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-3-5333-1812

Notice of Company Split (Absorption-Type Company Split) Between Consolidated
Subsidiaries (Corrected Version)
AIN HOLDINGS INC. (“the Company”) hereby announces that, effective October 1, 2024, theinterior goods and sundries retail sales business of Francfranc Corporation (Head office: Minato-ku,Tokyo; “Francfranc”), a wholly owned subsidiary of the Company, will be split off and absorbed by AIN
PHARMACIEZ INC. (Head office: Sapporo, Hokkaido; “AIN PHARMACIEZ”), another wholly owned
subsidiary of the Company (“absorption-type company split”). Details are as follows. The disclosureof some items and details are omitted as this is an absorption-type company split between
consolidated subsidiaries of the Company.
1. Purpose of the absorption-type split
In the AIN HOLDINGS Group (“the Group”), the cosmetic and drug store business operates thechain of AINZ & TULPE cosmetic and drug stores. AINZ & TULPE aims to be a unique andcomprehensive beauty retailer that satisfies customer needs with an always-fresh lineup ofcosmetic and beauty products sold via stores that offer a fun shopping experience. The brand istargeting further growth and aims to clearly stand apart from other beauty retailers with a lineup oforiginal products focused on cosmetics.
Francfranc became a subsidiary on August 20, 2024 after the acquisition of all its shares by theCompany. Since its establishment, Francfranc has operated a business selling interior goods andsundries aimed at a wide range of customers, mainly women in their 20s and 30s, centered on theFrancfranc flagship brand. Through the operation of 153 stores in Japan, nine stores overseas ande-commerce sales, Francfranc offers urban and sophisticated lifestyle proposals.
AINZ & TULPE and Francfranc have stores in similar markets and target customer segmentswith similar values, but they are complementary in terms of product lineups and retail categories.
The Company believes that Francfranc’s addition to the Group will generate synergies byleveraging the strengths of both companies. It aims to maximize these synergies through theabsorption-type company split.

2. Summary of the absorption-type company split(1) Schedule
Approval of absorption-type company split atAugust 21, 2024

Board of Directors meeting (Francfranc)
Conclusion of absorption-type company split

August 21, 2024

agreement
Approval of absorption-type company split at
AnnualGeneral

Meetingof

September 30, 2024

Shareholders(Francfranc)
Effective date

October 1, 2024 (scheduled)(2) Method
An absorption-type company split in which Francfranc is the splitting company and AIN
PHARMACIEZ is the succeeding company.
(3) Allotment of shares
No shares or other consideration will be transferred as a result of the absorption-type company
split, as both Francfranc and AIN PHARMACIEZ are wholly owned subsidiaries of the Company.
(4) Treatment of share options and bonds with share options
Not applicable(5) Change in capital as a result of the absorption-type company split
There will be no change in the capital of the Company at the time of the absorption-type company
split.
(6) Rights and obligations to be assumed by the succeeding company
On the effective date, the assets and liabilities and associated rights and obligations of the interior
goods and sundries retail sales business of the splitting company will be assumed by thesucceeding company.
(7) Prospects for fulfillment of obligations
No obstacles to fulfilling the obligations of the splitting company are anticipated after theabsorption-type company split.
3. Overview of the companies involved(1) Company name

Francfranc (splitting company)(2) Business

Planning, development and sales ofinterior goods and sundries

AIN PHARMACIEZ (succeedingcompany)
Operation of dispensing pharmacies
and cosmetic and drug stores(3) Date ofestablishment

July 11, 1990

June 24, 2015

3-5-12 Kita Aoyama, Minato-ku,
TokyoKazuyuki Sano, President andRepresentative Director andExecutive Officer¥100 million

5-2-4-30, Higashi Sapporo,
Shiroishi-ku, Sapporo¥100 million

56,104 shares

10,000 shares¥8,423 million¥43,308 million¥23,765 million¥132,332 million¥175,526.71¥4,330,864.26

AIN HOLDINGS INC. (100.00%)

AIN HOLDINGS INC. (100.00%)(4) Head office(5) Representative(6) Capital stock(7) Number of sharesissued andoutstanding(8) Net assets(9) Total assets(10) Net assets pershare(11) Major
shareholders andShoichi Shudo, President andRepresentative Director

shareholding ratios(12) Net sales¥39,651 million¥303,541 million(13) EBITDA¥4,685 million¥16,511 million(14) Operating profit¥2,946 million¥11,131 million(15) Ordinary profit¥2,842 million¥11,434 million(16) Profit¥993 million¥5,825 million(17) Profit per share¥20,701.20¥582,569.76(18) Fiscal year-end

August 31April 30(Note) The above summary is based on FY8/24 forecasts for Francfranc and data for AIN PHARMACIEZ as of April
30, 2024.

4. Summary of business division to be split off(1) Business
Retail sales of interior goods and sundries(2) Operating results (forecast for FY8/24)
Net sales ¥39,216 million(3) Assets and liabilities to be split off (forecast for August 31, 2024)
AssetsItem

Liabilities
AmountItem

AmountCurrent assets¥14,163 million

Current liabilities¥7,373 million

Non-current assets¥5,435 million

Non-current liabilities¥7,487 million

Total¥19,598 million

Total¥14,860 million(Note) The above amounts are projected balance sheet amounts as of August 31, 2024; actual amounts to be
succeeded will be adjusted for any increase or decrease up to the effective date.

5. Situation after the absorption-type company split
After the absorption-type company split, the fiscal year-end for Francfranc will be April 30. Therewill be no other changes to the company name, business activities, head office location, title andname of representative, or capital of Francfranc. In addition, there will be no changes to thecompany name, business activities, head office location, title and name of representative, capital,
or fiscal year of AIN PHARMACIEZ.
6. Outlook
The Company is currently assessing the impact of the acquisition of Francfranc shares, including
the impact on consolidated financial results. Any matters requiring disclosure will be promptly
disclosed.