Notice Concerning Absorption-type Merger Between Consolidated Subsidiaries and Changes in Specified Subsidiary

February 26, 2026

To whom it may concern:

FUJITA KANKO INC. ("the Company") hereby announces that it has resolved, at a meeting of the Board of Directors held on February 26, 2026, to carry out an absorption-type merger ("the Merger") between its

consolidated subsidiaries, WHG NISHINIHON INC. ("WHG NISHINIHON") and WHG KANSAI INC. ("WHG KANSAI"). The details are described below.

Since the Merger is between consolidated subsidiaries of the Company, some disclosure items and details have been omitted. WHG KANSAI, which will be dissolved as a result of the Merger, is a specified subsidiary

company of the Company.

1. Purpose of the Merger

   WHG NISHINIHON and WHG KANSAI operate WHG Hotels (the Washington Hotel and Hotel Gracery brand hotels) in the Kyushu and Okinawa regions and in the Kinki region, respectively. The Company will conduct the Merger to integrate the business operations of the two companies to enhance workforce mobility and further reinforce the organizational capabilities.

2. Outline of the Merger

   1. Schedule of the Merger

      Date of resolution by the Board of Directors (the Company): February 26, 2026

      Date of conclusion of the merger agreement (companies involved in the Merger): March 2026 (scheduled)

      Date of the General Meeting of Shareholders for approval of the merger agreement (companies involved in the Merger): March 2026 (scheduled)

      Effective date: July 1, 2026 (scheduled)

   2. Method of the Merger

      The absorption-type merger will be conducted with WHG NISHINIHON as the surviving company and WHG KANSAI as the absorbed company. WHG KANSAI will be dissolved on the effective date.

   3. Details of allotment related to the Merger

      There will be no allotment of shares or other monetary assets, etc. in connection with the Merger as this is a merger between consolidated subsidiaries of the Company.

   4. Handling of share acquisition rights and bonds with share acquisition rights in connection with the Merger Not applicable

3. Overview of companies involved in the Merger

   	Company surviving the absorption-type merger	Company absorbed in the absorption-type merger
   1. Name	WHG NISHINIHON INC.	WHG KANSAI INC.
   2. Location	2-10-8 Sekiguchi, Bunkyo-ku, Tokyo	2-10-8 Sekiguchi, Bunkyo-ku, Tokyo
   3. Name and job title of representative	Representative Director: Masashige Tsutsumi	Representative Director: Kazushi Tanaka
   4. Description of business	Hotel management	Hotel management
   5. Share capital	10 million yen	10 million yen
   6. Date of establishment	January 5, 1996	December 12, 2001
   7. Fiscal year-end	December 31	December 31
   8. Major shareholders and ownership ratios	FUJITA KANKO INC. 100%	FUJITA KANKO INC. 100%
   9. Number of issued shares	201 shares	4,000 shares
   10. Financial position and operating results for the most recent fiscal year
   Most recent fiscal year	Fiscal year ended December 31, 2025	Fiscal year ended December 31, 2025
   Net assets	(46) million yen	(1,623) million yen
   Total assets	1,649 million yen	823 million yen
   Net assets per share	(231,440.86) yen	(405,864.84) yen
   Net sales	3,891 million yen	2,398 million yen
   Operating profit	648 million yen	641 million yen
   Ordinary profit	654 million yen	644 million yen
   Profit	452 million yen	500 million yen
   Profit per share	2,250,269.55 yen	125,220.10 yen

4. Status after the merger

   There will be no change in the name, location, representative, description of business, share capital, and fiscal year-end of the surviving company as a result of the Merger.

5. Future outlook and impact on operating performance

As the Merger is between consolidated subsidiaries of the Company, its impact on the Company's consolidated financial results will be minimal.