September 20, 2019

Correspondent

Announcement of transition to new management system

At the board of directors held today, our company has resolved to conclude a partnership between the company's shareholder shareholders and the company's partnership with satzarah HD, which is due to the conclusion of a share transfer agreement to our company's management So please let me know.

1. Purpose of share transfer and business tie up

The company has been using the drugstore HD, which has been released from satzora HD in June Development of promotion is promoted.

Moreover, in the satatora HD, the production of a new store experience by the use of the AI camera solution of the company is accumulated, and the know-how that leads to the cost reduction and the productivity improvement is accumulated, and the store such as "satotdra" stores and the data, and the thick connection with the destination manufacturer An open innovation project "satudorai AI Lab", which is the most popular open innovation project, is developed to analyze the data in the store and the POS data by the AI camera, and to sell the knowledge obtained from it to the destination manufacturer and to connect to the new revenue source.

Currently, we have demonstrated that there are many other companies in Japan, such as food and drink, apparel, supermarkets, convenience stores, department stores, home centers, and so on, and we can use the "independent" in the chain stores nationwide It reaches the required stage. With the transfer of shares from satzarah HD to our company management, we are able to expect to expand our company's independence by disconnecting from the consolidated subsidiaries of satsuda HD, and expect to expand our AI camera solution, and in addition to the business transfer carried out in February It is possible to drop profits as funds for future technology development and sales promotion. Although we are excluded from the consolidated subsidiaries of satzora HD, we will simultaneously establish a business partnership agreement and maintain cooperation.

Our company and satzora HD are aiming at the digital transformation of the store which utilized the latest technology such as AI, and the new customer experience, the business model, and the productivity improvement from the point of June We provide support for improving the value of real stores in the whole society.

Please see the press release below for details.