大氣社（1979） – Notice of Change in Consolidated Subsidiaries

(Translation)April 19, 2022Company name:Representative:Contact:TEL:URL:Taikisha Ltd.Koji KatoRepresentative Director, President(TSE Prime Market, Securities Code: 1979)Yasushi NakajimaDirector, Executive Corporate Officer, Chief Executive, Administrative Management Headquarters+81-3-5338-5051https://www.taikisha.co.jp/Notice of Change in Consolidated Subsidiaries Taikisha Ltd. (the “Company”) hereby announces that it has resolved at its Board of Directors meeting held on April 19, 2022, the Company reviewed a capitalalliance with respect to its consolidated subsidiary Geico S.p.A. (“Geico”) and has resolved to change our shareholding ratio in Geico to 14.5%. With this share transfer, Geico and its consolidated subsidiaries, J-CO America Corporation, J-CO Mexico, S. de R.L. de C.V., Geico Brasil Ltda. Geico PaintingSystem (Suzhou) Co., Ltd, “Geico Russia” LLC, Geico Taikisha GmbH, Geico Taikisha Controls d.o.o. and Process Solution Partner Rus LLC (“Geico Group”) willbe excluded from the scope of consolidation.1. Reasons for the Share transfer Since 2011, the Company has acquired 51.0% of Geico’s outstanding shares and has been working to complement and strengthen the technological andmarket strengths of the two companies through the capital alliance with Geico. Because of the continuing pandemic situation caused by the COVID-19 and the conflict between Russia and Ukraine which is expected to affect the capitalinvestment of European automakers and cause a sharp rise in price of resource, materials and equipment, the Paint Finishing System business of theCompany focuses on the automobile market in regions other than Europe in external collaboration with Geico and expands automation business areas otherthan the automobile market in order to improve medium- to long-term business value. Given the above background and in accordance with the purpose of the Corporate Governance Code, the Company has decided to reduce the shareholdingratio in Geico from 51.0% to 14.5% from the view of focusing on capital efficiency.2. Overview of consolidated subsidiary to be changed(1) Company name(2) Location(3) Representative & title(4) Description of business(5) Capital(6) Date of establishment(7) Major shareholders & ratio of shareholding Geico S.p.A.Cinisello Balsamo, Milan, ItalyDaryush Arabnia, President and ChairmanDesign and construction of paint finishing systems and plants for the automotive industryEUR 3,627,000 (JPY 423 million)December 1963Taikisha Ltd.　51%Gecofin S.p.A. 49%3. Overview of the counterparty of the Share Transfer(1) Company name(2) LocationGecofin S.p.A.Cinisello Balsamo, Milan, Italy4. Schedule of the Share Transfer(1) Date of Board of Directors resolution(2) Contract dateApril 19, 2022April 19, 20225. Future outlook As the result of this share transfer, though the Geico Group will be excluded from the scope of consolidation, the Company will maintain its global businessAlliance with Geico and continue to collaborate on a project basis. The impact on financial results is currently being aggregated and it will be included and disclosed in the Financial Report to be announced in the near future.