May 15, 2023
Company name:
Representative:Inquiries
Tel:

ES-CON JAPAN Ltd.
Takatoshi Ito, President &Representative Director(TSE Prime Market, code 8892)
Kenji Fujita, Director,
Head of Management Division+81-3-6230-9308

Notice on Termination of Business Alliance withNISSEI BUILD KOGYO CO., LTD.
ES-CON JAPAN Ltd. (ES-CON JAPAN) announced its decision, made at the Board of Directors’
meeting held today, to terminate the basic agreement on a business alliance with NISSEI BUILD
KOGYO CO., LTD. ("NISSEI BUILD KOGYO" hereinafter) that had entered into effect on November
2, 2012 ("Alliance Agreement" hereinafter).
1. Reason for termination of the business alliance

ES-CON JAPAN entered into the Alliance Agreement (including capital alliance) with NISSEIBUILD KOGYO on November 2, 2012, for the purpose of achieving synergies among its
businesses and building a sustained mid- to long-term relationship between the two companies.
Additionally, ES-CON JAPAN implemented an increase of shares through third-party allotment toNISSEI BUILD KOGYO on November 20, 2012.
Due to the secondary offering of the entirety of ES-CON JAPAN’s shares held by NISSEI BUILD
KOGYO, an agreement was reached to terminate the Alliance Agreement.
2. Specifics of the termination

As of today, NISSEI BUILD KOGYO holds 6,500,000 shares of ES-CON JAPAN. However, thetwo companies have agreed upon the secondary offering of the entirety of ES-CON JAPAN’s
shares held by NISSEI BUILD KOGYO. For more information, please refer to the news release
titled "Notice on Secondary Offering of Shares" announced today.
Additionally, while the Alliance Agreement will be terminated, ES-CON JAPAN and NISSEI BUILD
KOGYO remain on favorable terms and will continue to engage in business.

13. Summary of alliance partner

(1)
(2)
(3)

Trade Name
Address
Title/Name ofrepresentative(4)

Business(5)

CapitalDate ofEstablishment
Major shareholders
and shareholding
ratio

(6)
(7)

Relationshipbetween ES-CON
JAPAN and listedcompany

NISSEI BUILD KOGYO CO., LTD.
3-chome 16-10 Kanaiwakita, Kanazawa-shi, Ishikawa
President and Representative Director Akifumi Kimura
Design, manufacturing, construction, and rental of prefabricatedhousing construction products; design, manufacture, construction,and maintenance of multi-story parking garages, etc.
490 million yen
July 3, 1961
SPACE VALUE HOLDINGS CO., LTD.
100%
Capital relationship

NISSEI BUILD KOGYO holds 6,500,000
shares in ES-CON JAPAN.
Not applicable
Business alliance partner

Personnel relationship
Business relationship
Status of related
Not applicableparties(9)
Business results over the last three years(Unit: Million yen)
Fiscal year end
September 2020
March 2021
March 2022
Net assets
21,38822,25722,553
Total assets
35,56735,11633,298Net sales
14,187
17,18031,328Operating income-479667464
Ordinary income-372
1,113937
Net profit
471
1,239
1,113
(Note) Of the "Business results for the last three years," the fiscal years ending in September 2020
and March 2021 each have an accounting period of six months due to a change in the fiscalyear end.
(8)

4. Dates(1)(2)

Date of resolution byboard of directors
Date of terminationof the AllianceAgreement

May 15, 2023
May 15, 2023

5. Future outlook

The impact of this matter on ES-CON JAPAN's business performance is expected to be minimal.

2