Joint Venture AI Data Partners Inc. to Appoint Hiroyuki Kishi as Auditor

abc Inc. (Headquarters: Minato-ku, Tokyo; President: Gen Matsuda; TSE Standard: 8783; hereinafter "the Company") has announced that Hiroyuki Kishi, Professor at the Keio University Graduate School of Media and Design, is scheduled to be appointed as an auditor for the newly established joint venture, AI Data Partners Inc. (hereinafter "the Joint Venture"), as of May 22, 2026.

This move deepens the collaboration established by his appointment as an advisor to the Company on May 8, 2026, with the aim of constructing a governance and business promotion framework for this project.

1. Background and Social Challenges With the expansion of generative AI and big data markets, securing high-performance data center infrastructure to support massive computational processing has become a critical issue for Japan's economic security and digital competitiveness.

The 'AI-Specialized High-Performance Data Center Development Project' promoted by the Joint Venture aims to build this next-generation infrastructure. To properly execute large-scale infrastructure development, transparency in management and business expansion in collaboration with local regulations, administration, and communities are required.

By welcoming Hiroyuki Kishi, a former bureaucrat at the Ministry of Economy, Trade and Industry with experience in the Cabinet Secretariat, as an auditor, the company will introduce his insights and public-private network into its management oversight system. This will enhance the effectiveness of regulatory reform response, site development linked to regional revitalization, and business promotion through public-private collaboration, presenting a governance system that balances transparency and growth to investors.

2. Profile of Hiroyuki Kishi Joined the Ministry of International Trade and Industry (now the Ministry of Economy, Trade and Industry) in 1986. Involved in the formulation of economic and industrial policies and structural reform. Held positions including secretary to the Minister of Internal Affairs and Communications and Advisor to the Cabinet. Currently, he is a professor at the Keio University Graduate School of Media and Design, communicating on the Japanese economy and international affairs through television, lectures, and writing.

3. Future Outlook and Financial Strategy In this project, the company plans to establish a scheme where 'Special Purpose Companies (SPCs)' are set up for each project under the Joint Venture to facilitate agile financing and efficient asset management. For these SPCs, the company will proceed with considerations for acquiring and operating data center-related assets, including the use of project finance and funds from external investors.

Against the backdrop of growing demand for AI infrastructure in Japan, the company plans to proceed with the acquisition and operation of data center-related assets with a target of 10 locations nationwide, aiming for stable profit foundations with an IRR (Internal Rate of Return) of 6% or higher. With the participation of Kishi, an expert in policy and industrial structure, improvement in social trust and project execution capability is expected.

The impact on the consolidated financial results for this term due to this matter is minor. The company will promptly announce progress on joint venture establishment procedures, SPC formation, and specific investment projects when necessary.

4. Overview of the Joint Venture Name: AI Data Partners Inc. Location: 4-9-17 Akasaka, Minato-ku, Tokyo Representative: Tomoki Katada, Representative Director Business Scope: 1. Planning, design, development, construction, ownership, management, and maintenance of AI-specialized high-performance data centers. 2. Data center operations and related hardware/software sales or leasing. 3. Renewable energy utilization, sales, leasing, installation, and consulting for data center operations. 4. Investment, management, and trading of interests in special purpose companies. 5. Acquisition, holding, disposal, and management of securities. 6. All related businesses. Capital: 30 million yen (at establishment) Establishment Date: Late May to June 2026 (planned)