TV Asahi : Notice Regarding Acquisition of Shares of ITTY, INC.

Note: This document is a direct translation of the Japanese release. If there are any discrepancies between this document and

the original Japanese version, the original Japanese version prevails.

	November 12, 2020
Company name:	TV Asahi Holdings Corporation
Representative:	Hiroshi Hayakawa, Chairman and CEO
Securities code:	9409 (Tokyo Stock Exchange, First Section)
Contact:	Masaya Fujinoki, Senior Executive Director
Telephone:	[phone]

Notice Regarding Acquisition of Shares of ITTY, INC.

(and conversion to consolidated subsidiary)

TV Asahi Holdings Corporation (the "Company") hereby announces that its consolidated subsidiary TV Asahi Corporation ("TV Asahi") has resolved at the Board of Directors meeting held today to acquire the shares of ITTY, INC. ("ITTY") and make it a consolidated subsidiary (wholly-owned subsidiary).

1. Reason for Acquisition of Shares

The business environment surrounding the TV Asahi Group is changing significantly. With the aim to evolve into a television station for the new era, the Company is currently executing the TV Asahi 360° Medium-term Management Plan running from FY2020 through FY2025. As part of this management plan, the Company is undertaking organizational reforms and working to maximize earnings by bringing together the content production function and business function under one directive. The TV shopping business, which operates in line with TV broadcasting, is one of the key businesses of the Company, and in order to further expand operations in this domain, TV Asahi has decided to acquire the shares of ITTY and make it into a consolidated subsidiary.

Guided by its corporate philosophy of "producing allure", ITTY widely sells internally developed products on e-commerce sites and through TV shopping channels. It also has an extensive array of hit products.

The Company believes this acquisition will strengthen the collaboration between the two companies and contribute to increasing the Group's corporate value.

2. Overview of the Company to Become a Consolidated Subsidiary

(1)	Company name	ITTY, INC.
(2)	Address	2-14-18, Shibuya, Shibuya-ku, Tokyo
(3)	Representative	Yo Takimoto, President / Member of the Board
(4)	Business	Product planning and development
(5)	Capital	100 million yen

(6) Establishment date	October 27, 2017
Voting rights ownership	100.00%
(7)
ratio after acquisition
		There is no capital relationship between the
	Capital	Company and ITTY. There are also no noteworthy
	relationship	capital relationships between ITTY and the
		Company's related parties and/or affiliates.
		There are no personnel relationships between the
Relationship between the	Personnel	Company and ITTY. There are also no noteworthy
(8)	relationship	personnel relationships between ITTY and the
Company and ITTY
		Company's related parties and/or affiliates.
		There are no business relationships between the
	Business	Company and ITTY. There are also no noteworthy
	relationship	business relationships between ITTY and the
		Company's related parties and/or affiliates.

1. Operating results and financial position of ITTY for the last two years

Fiscal year ended:	August 31, 2018	August 31, 2019
Net assets	945	million	yen	1,051	million	yen
Total assets	2,240	million	yen	2,007	million	yen

*ITTY has no subsidiaries or group companies, and thus, the figures for operating results and financial position for the last two years are of a non-consolidated basis.

1. Schedule
2. 1. Date of Board of Directors resolution: November 12, 2020
   2. Date of agreement: November 2020 (scheduled)
   3. Date of share transfer: November 2020 (scheduled)
3. Future Outlook

The impact of this acquisition on consolidated earnings is minor.

Reference: FY2020 Consolidated Earnings Forecast (announced Nov 12, 2020) and FY2019 results

	Net sales	Operating	Ordinary	Profit attributable to
	income	income	owners of the parent
	million yen	million yen	million yen	million yen
Forecast for fiscal year	5,000	8,000	6,000
255,000
ending March 31, 2021
Results for fiscal year ended	293,638	12,565	32,048	26,398
March 31, 2020