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News Release

2018/02/15

Announcement of Group Restructuring (Absorption-Type Company Split)

In a meeting today, the Board of Directors of World Co., Ltd. resolved to conclude an absorption-type company split agreement, effective April 1, 2018, under which the existing brand businesses of World’s subsidiaries will be succeeded by new companies and existing subsidiaries. Details are provided below.
The company split will become effective pending approval by an extraordinary general shareholders meeting of World Co., Ltd., scheduled for March 13, 2018.

1. Purpose of Group Restructuring

The World Group implemented its transition to a holding company structure on April 1, 2017, with the aim of market optimization for its brand businesses and acceleration of its initiatives to achieve profitability for its platform businesses. We seek to become a more competitive organization, pursuing businesses that are optimized to the market. To that end, we are spinning off our brands into separate companies by business model and marketing channels as a means of transferring authority even further and facilitating decision making with greater speed.
With this latest restructuring of our Group organization, we are seeking to respond with agility to the changing market through initiatives that include a reallocation of our portfolio of brand businesses, while pursuing even greater efficiency and optimization for our profit structure, thereby balancing growth potential with profitability.

2. Outline of the Company Split

(1) Company Split Timeline

Resolution by the Board of Directors concerning the conclusion of a company split agreement and related issues (by company)
Signing of an absorption-type company split agreement (by company)
February 15, 2018
Resolution by the Shareholders Meeting concerning approval of the company split agreement and related issues (extraordinary meetings of shareholders of each company) March 13, 2018 (scheduled)
Effective date of the company split April 1, 2018 (scheduled)

(2) Details of the Company Split

① New Companies

1) “adabat” Business

Explorers Tokyo Co., Ltd. will be the splitting company in an absorption-type company split, in which its “adabat” golfwear brand business is succeeded by a new company to be established as a subsidiary of World Investment Network Co., Ltd. on April 1, 2018.

2) “HIROKO HAYASHI” Business

World Lifestyle Creation Co., Ltd. will be the splitting company in an absorption-type company split, in which its “HIROKO HAYASHI” brand business for leather accessories is succeeded by a new company to be established as a subsidiary of World Lifestyle Creation Co., Ltd. on April 1, 2018.

3) “PINK-latte” Business

Innovation Link Co., Ltd. will be the splitting company in an absorption-type company split, in which its “PINK-latte” business of shops offering selected brands targeting teenagers is succeeded by a new company to be established as a subsidiary of World Co., Ltd. on April 1, 2018.

② Business Transfers

1) “index” Business

World Lifestyle Creation Co., Ltd. will be the splitting company in an absorption-type company split, in which its “index” business targeting working women and offering clothing and accessories sold in buildings connected to railway stations and fashion-specific buildings is succeeded by Style Force Co., Ltd. on April 1, 2018.

2) “3can4on” Business

Innovation Link Co., Ltd. will be the splitting company in an absorption-type company split, in which its “3can4on” brand business targeting families primarily through stores located in shopping centers is succeeded by Style Force Co., Ltd. on April 1, 2018.

3) “FLAXUS” Business

Innovation Link Co., Ltd. will be the splitting company in an absorption-type company split, in which its “FLAXUS” business of large-scale lifestyle-themed stores located primarily in large shopping centers is succeeded by World Store Partners Co., Ltd. on April 1, 2018.

3. Overview of the World Group’s New Organization and Successor Companies (New and Existing Companies)

(New companies are indicated by shaded boxes.)

Overview of Successor Companies (New Companies)

① ADABAT CO., LTD.

Company name ADABAT CO., LTD.
Head office 6-8-1, Minatojima-Nakamachi, Chuo-ku, Kobe 650-8585, Japan
Representative Isaku Omine
Paid-in capital 5 million yen
Investment ratio WORLD INVESTMENT NETWORK CO., LTD. 100%
Brand Adabat
  • ※ Isaku Omine will concurrently serve as President of Innovation Link Co., Ltd.

② HIROKO HAYASHI CO., LTD.

Company name HIROKO HAYASHI CO., LTD.
Head office 6-8-1, Minatojima-Nakamachi, Chuo-ku, Kobe 650-8585, Japan
Representative Yoshiko Sasaki
Paid-in capital 5 million yen
Investment ratio WORLD LIFESTYLE CREATION 100%
Brand HIROKO HAYASHI

③ PINK LATTE CO., LTD.

Company name PINK LATTE CO., LTD.
Head office 6-8-1, Minatojima-Nakamachi, Chuo-ku, Kobe 650-8585, Japan
Representative Satoshi Kobayashi
Paid-in capital 5 million yen
Investment ratio WORLD CO., LTD. 100%
Brand PINK-latte

Overview of Successor Companies (New Companies)

④ STYLE FORCE CO., LTD.

Company name STYLE FORCE CO., LTD.
Head office 6-8-1, Minatojima-Nakamachi, Chuo-ku, Kobe 650-8585, Japan
Representative Akira Nagamoto
Paid-in capital 30 million yen
Investment ratio WORLD CO., LTD. 100%
Brand THE SHOP TK、OPAQUE.CLIP、HusHusH、OZOC、
Bee Zip、LA ROTONDA、index、3can4on

⑤ WORLD STORE PARTNERS CO., LTD.

Company name WORLD STORE PARTNERS CO., LTD.
Head office WORLD Kita-Aoyama Bldg. 3-5-10, Kita-Aoyama, Minato-ku, Tokyo 107-8526, Japan
Representative Yuichi Nakata
Paid-in capital 30 million yen
Investment ratio WORLD CO., LTD. 100%
Brand NEXT DOOR、FLAXUS

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