【CINES CORPORATION】
Notice Regarding Start of New System

Caines Co., Ltd. Announcement concerning the start of the new structure ………………………………………………………………………………… Cindes Co., Ltd. (Headquarters: Honjo City, Saitama Prefecture, President: Masayuki Takaya) started with a new structure with Takaya Masayuki as the top, in order to advance reforms towards a new growth stage from March 1, 2019 I will inform you that I did. Founded on March 1, 1989, Cainz has worked on various reforms such as establishing the foundation of home center business in Japan in the past 30 years, introducing the SPA (manufacturing retail) method ahead of the industry, We have continued to grow with higher sales and higher earnings. Looking ahead to the next 30 years, in order to carry out discontinuous reform in order to continue sustainable growth, from 2019 to 2021 We have formulated the 3-year medium-term management plan “PROJECT KINDNESS (Project Kindness)”. In the first fiscal year, we plan to place investment of ¥ 10 billion to ¥ 15 billion for the purpose of creating a new customer experience and improving store efficiency and efficiency by positioning it as “the year of foundation creation”. We will create new possibilities from “KINDNESS” which is also the source of the company name in the future and will improve customer experience value so that all customers can “Living in Living.
Overview of “PROJECT KINDNESS”
■ Goal Make the next Caines
■ Basic policy 1. Growth at existing business · store, establish high-profit model 2. Construct virtuous cycle to return high profits to members * 3. Creation of new growth drivers ※ Cainz calls employees as members
■ Four strategies 1. SBU * Strategy “Expansion of bold categories creating new customer value” 1. Fostering the overwhelming No. 1 category 2. Development of new categories necessary for providing customer value 3. Shrinking / withdrawing out of value / unprofitable categories 4. Construct a SPA structure that combines high quality and low price 5. New format at SBU base point, creation of new business beyond retail * SBU · · · Strategic Business Unit (Strategic Business Unit) 2. Digital Strategy “Creating an Emotional Experience from Eliminating Bothersessence” 1. Easily find “products” / experience “understand” experience 2. Quick checkout experience 3. Comfortable Click & Collect experience 4. Realization of total supply chain at customer base 5. Build a foundation to build personalized relationships with customers 3. Space strategy “Cain brand direction and engineering in store space” 1. Narrow opening of new store · carefully selected 2. Significant Acceleration of Existing Store Refurbish 3. Space design, experiment and development for improving customer experience 4. Space design, experiment and development for maximizing sales floor efficiency · human-time productivity 5. Standardization of Cain’s standard 4. KINDNESS to Members * “To the company that wants to work proudly” 1. System improvement / human resources investment 2. Improvement of environment to accept diversity 3. Investment in communication that shares values ​​and targets
■ Management Structure Representative Director and Chairman Hiroya Tsuchiya (Hiroshasa Tsuchiya) Representative Director and President Masayuki Takashi (Masayuki Takaya) ※ Toshiya Yoshio assumed office as honorary chairman of the board by resolution of the Board of Directors on February 5 this year

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