[Translation]
October 15, 2021

Kakuyasu Group Co.,Ltd.
Representative Director and President

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

Absorption type Merger between Two Complete Subsidiaries and Change in theCorporate Name of the Surviving Company
This is to announce that the Company resolved to merge two wholly owned subsidiaries,
Dangami Co., Ltd. (hereinafter “Dangami”) and Sannoh Co., Ltd. (hereinafter “Sannoh”), while themerger is scheduled to take effect on March 1, 2022.
In addition, the Company also decided to change the trade name of Dangami, the survivingcompany, to Dangami-Sannoh Co., Ltd. Along with the merger, Sannoh entails to be disappearedon March 1, 2022 thereafter. Meanwhile, the merger constitutes a tax-qualified merger because of
an inter-corporate merger between two completely owned subsidiaries.
１． Purpose of the merger
The management policy of the Company and its consolidated subsidiaries is centered around theirdetermination and preparedness to meet any customers’ requests. The policy is reflected in thebrand 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. Under its mediumterm growth strategy, the Company aims to expand the reach of the Kakuyasu model to key cities
outside of the Tokyo metropolitan area. To achieve this goal, the Company has acquired two
companies located in Fukuoka, Fukuoka prefecture. In May 2020, the Company acquired SannohCo., Ltd., and in December of the same year, it acquired Dangami Co., Ltd as well.
Sannoh sells liquor for business purposes and operates “Liquors ABC”, a retailer of liquor
primarily sold to downtown restaurants, mainly in Nakasu, Hakata-ku. In the meantime, Dangami
sells liquor for business purposes and operates ten retail stores, including ten “Sake-no Gulliver”
stores, primarily in Fukuoka and Nagasaki prefectures. Both companies are widely recognized intheir respective trade areas.
The liquor and food distribution industry, where the Company operates, has been impacted by theongoing coronavirus pandemic, which is not expected to end in the foreseeable future. Restaurants
continue to take measures to prevent the spread of the virus. Because of the measures to prevent
infection, more people are working from home and fewer are eating out. This has led to an increasein demand for goods and services for home consumption, such as alcoholic beverages for household
consumption, food delivery services, and online shopping. This shift in consumer behavior has
significantly changed the business environment for the Company.
In this environment, the Company has decided to implement the absorption-type merger between
two consolidated subsidiaries as a part of its business restructuring plan to consolidate themanagement resources of the consolidated subsidiaries, enhance and streamline the organizational
management, and increase sales of goods that are intended for home consumption.

２． Summary of the merger（１） Schedule of the merger
・ Board resolution of both companies
・ Board resolution of the Company
・ Signing the merger agreement
・ Shareowner meeting of both parties
・ Effective date of the merger

October 15, 2021
October 15, 2021
October 15, 2021
October 29, 2021 (scheduled)
March 1, 2022 (scheduled)（２） Method of the merger
The Merger will be implemented by way of an absorption-type merger in which Dangami is thesurviving company and Sannoh is the disappearing company, as a result of which Sannoh will
dissolve.
（３） Details of allotments related to the merger
No shares or money will be allotted as a result of the merger, because the merger is based on bothcomplete subsidiaries.
（４） Treatment of equity warrant and warrant bonds in connection with the merger
Sannoh has issued neither equity warrant nor warrant bonds.

３． Overview of both companiesSurviving Company
Disappearing Company
Dangami Co.,Ltd.
Sannoh Co.,Ltd.
1-13-1, Hakataeki-higashi,
1-4-19, Minoshima, HakataHakata-ku, Fukuoka cityku,Fukuoka city
Yoshihiko Namiki
Takanori Yoshida（３）Representative
Selling liquor and goods
Selling liquors and goods（４）Business
JPY 10 million
JPY 10 million（５）Paid-in Capital
May 24, 1967
August 16, 2005（６）Establishment
20,000 shares
200 shares（７）# of Issued shares
January 31
February 28（８）Fiscal year ending
Kakuyasu Group Co.,Ltd.
Kakuyasu Group Co.,Ltd.
（９）Shareowner（10）Business results and financial position of the previous fiscal year
January, 2021
February 2021
Net Assets
JPY 1,048 million
JPY 260 million
Total Assets
JPY 2,334 million
JPY 349 million
BVPS
JPY 52,410.56
JPY 1,300,913.68
Sales
JPY 4,625 million
JPY 1,261 million
Operating Profit (Loss)(JPY 447million)(JPY 140 million)
Recurring Profit (Loss)(JPY 315 million)(JPY 81 million)
Net Profit (Loss)(JPY 267million)(JPY 59 million)
EPS (minus)(JPY 13,394.10)(JPY 297,017.55)（１）Company Name
（２）Headquarters

４． Post-merger status on March 1, 2022 thereafter
Dangami-Sannoh Co.,Ltd.
（１）Company Name
3-16-11, Nanotsu, Chuo-ku, Fukuoka city（２）Headquarters
Representative Director and President Yoshihiko Namiki（３）Representative
Representative Director and Executive Vice President Takanori Yoshida
Selling liquor and goods（４）Business
JPY 10 million（５）Paid-in Capital
January 31（６）Fiscal year ending

５.

Future Outlook
Since the merger constitutes an inter-corporate merger between wholly owned consolidated
subsidiaries, the Company assumes that its impact on the Company's consolidated results is minor
and insignificant.

Disclaimer: This is an English translation of the disclosure. This translation is prepared and provided for thereader’s convenience.