Notice Concerning Additional Acquisition of Shares in Equity-Method Affiliate (Conversion to Consolidated Subsidiary)

Onward Holdings, Co., Ltd. (Headquarters: Chuo-ku, Tokyo; President and CEO: Michinobu Yasumoto; hereinafter referred to as the "Company") is pleased to announce that its Board of Directors has resolved at a meeting held today to acquire all outstanding shares of WEGO Co., Ltd. (Headquarters: Shibuya-ku, Tokyo; President and Representative Director: Kyosuke Sonoda; hereinafter referred to as "WEGO") and make it a subsidiary.

1. Reason for share acquisition
Under its mission statement, "Enriching and Adding Color to People's Lives while Caring for the Planet," the Company provides customers with valuable products and services in the fashion, wellness, and corporate design fields. Meanwhile, WEGO is a fashion company that aims to create new value by combining fashion, culture, and lifestyle under the corporate identity of "YOUR FAN."

In May 2023, the Company entered into a capital and business alliance and became WEGO's shareholder with 20.27% of the total number of its shares issued. Through this alliance, we have aimed to revitalize WEGO's business by utilizing the Company's management know-how and other resources. As a result, WEGO is expected to return to profitability at the operating level in fiscal 2024 for the first time in five fiscal years.

By acquiring the remaining 79.73% of WEGO's shares and making it a wholly owned subsidiary, we will accelerate in DX and human capital investments to further enhance the corporate value of WEGO.