[Translation]
November 12, 2020
Kakuyasu Group Co.,Ltd.
Representative Director and President

Junichi Sato

（Ticker Code：7686 Tokyo Stock Exchange Second Section）
Inquiry toDirectorYoshiyuki Maegaichi

Stock Acquisition of Dangami Co.,Ltd.
This is to announce that the Company resolved to acquire entire common stocks of Dangami Co.,
Ltd. (headquartered in Fukuoka city, Fukuoka prefecture; hereinafter “Dangami”) at the Board ofDirectors meeting convened today, making them a subsidiary company. Details are described asfollows.
１． Purpose of the stock acquisition
The management policy of the Company and its consolidated subsidiaries is centered aroundtheir determination and preparedness to meet any customers’ requests. The policy is reflectedin the brand name, “Anything Liquor Store Kakuyasu”. Under the policy, the Company
develops management strategies for sustainable growth. The Company aims to strengthen its
management structure and improve efficiency by consolidating and streamlining operations.
Since the Company was listed in the 2nd Section of the Tokyo Stock Exchange in December
2019, the Company has been aiming to evolve into a “delivery platform company” byleveraging its distribution infrastructure and expand the Kakuyasu model to major cities
beyond Tokyo and the surrounding prefectures under its medium-term growth strategy. InMay 2020, the Company acquired Sannoh Co.,Ltd. in Fukuoka to expand into regional cities.
Dangami Co., Ltd. primarily sells liquor for business purposes in Fukuoka and Nagasaki
prefectures and operates ten retail stores, including “Sake-no Gulliver” stores, mainly inFukuoka city. These stores are highly recognized in the city. The Company has decided tomake Dangami its subsidiary as a step towards expanding into Fukuoka city, Kitakyushu city,and other regions in Kyushu and expanding its domestic business. The Company aims toexpand and strengthen its revenue base and enhance its corporate value.

２． Overview of the Acquiree（１）Company Name

Dangami Co.,Ltd.

（２）Headquarters

1-13-1 Hakataeki-higashi, Hakata-ku, Fukuoka city（３）Representative

Shoji Dangami, Representative Director（４）Business

Liquor sales for business and retailing liquors（５）Paid-in Capital

JPY 10 million

（６）Establishment

May 24, 1967
Dangami Headquarters Co.,Ltd. 50.0%（７）Shareowner

Shoji Dangami 45.0%
Yuko Dangami 5.0%

（８）Relationshipbetween The Company
and the Acquiree

Capital relationship

Not applicable.

Personnel relationship

Not applicable.

Business relationship

Not applicable.

Whether the buyer falls
under related party

Not applicable.

（９）Business results and Financial position of the past three years
Fiscal Year Ending

January 31, 2018

January 31, 2019

January 31, 2020

Net Assets

JPY 1,090 million

JPY 1,303 million

JPY 1,512 million

Total Assets

JPY 2,273 million

JPY 2,676 million

JPY 2,890 million

BVPS

JPY 54,536

JPY 65,195

JPY 75,623

Sales

JPY 7,206 million

JPY 7,692 million

JPY 7,884 million

Operating Profit

JPY 105 million

JPY 222 million

JPY 215 million

Recurring Profit

JPY 149 million

JPY 267 million

JPY 264 million

Net Profit

JPY 114 million

JPY 213 million

JPY 259 million

JPY 5,736

JPY 10,659

JPY12,982

EPS* The acquiree has undergone the following reorganization.
On November 1, 2020, the acquiree acquired Kotobukiya Co., Ltd. (net sales were 257 million yen inthe fiscal year ended February 29, 2020) and turned it into a subsidiary. The acquiree’s assets andliabilities, excluding those related to its liquor sales business, were absorbed into Dangami HQ Co.,
Ltd. For the split and absorbed businesses, the assets and liabilities were 349 million yen and 104
million yen, respectively. There are no sales related to the businesses.

３． Overview of the Sellers（１）Company Name

Dangami Headquarters Co.,Ltd.

（２）Headquarters

1-13-1 Hakataeki-higashi, Hakata-ku, Fukuoka city（３）Representative

Shoji Yuko, Representative Director（４）BusinessReal estate related business

（５）Paid-in Capital

JPY 10 million（６）Establishment

Octiber 27, 1973

（７）Net Assets

JPY 436 million（８）Total Assets

JPY 615 million
Masashi Dangami 80.0%（９）Shareowner

Dangami Headquarters Co.,Ltd. 16.8%
Yuko Dangami 3.2%

（10）Relationshipbetween the Company
and the Seller※

Capital relationship

Not applicable.

Personnel relationship

Not applicable.

Business relationship

Not applicable.

Whether the buyer falls
under related party

Not applicable.

Regardless of Mr.Masashi Dangami and Ms.Yuko Dangami being sellers, we don’t write
their information because of individuals.

４． Acquiring shares, acquisition price, and post-acquisition ownership(1)

Acquiring shares

20,000 shares(2)

Corresponding voting rights

20,000(3)

Post-acquisition ownership

100.0%(4)

Acquisition price

JPY 2,146 million

Common stock

JPY 2,110 million

Advisors expense and related
expenses※

JPY 36 million

The acquisition price was determined based on the stock valuation by a third party, afternegotiations with the sellers.

５． Schedule

Board Resolution

November 12, 2020

Signing Date

November 12, 2020

Closing Date (scheduled)

December 1, 2020

６． Future Outlook
Three persons of the Company are set to be appointed as directors at Dangami Co., Ltd.
Dangami Co., Ltd. will become a consolidated subsidiary of the Company on December 1,2020, following the stock acquisition. The accounting results of Dangami Co., Ltd. for only twomonths (December 2020 and January 2021) will be included in the Company’s consolidated
results for the current fiscal year. The Company deems the impact of the acquisition is minorand insignificant.
It was also reflected in the results forecast and dividend forecast for the fiscal year ending
March 31, 2021, included in the notice published on November 12, 2020. The Company expects
that the acquisition will contribute to increases in consolidated results in the medium to longterm as the Company leverages both companies’ strengths.

Disclaimer: This is an English translation of the disclosure. This translation is prepared and providedfor the reader’s convenience.