World Co. to reorganize into B2C and B2B segments, adjust capital

World Co., Ltd. is undertaking a significant group reorganization to enhance governance, optimize resources, and accelerate growth across its B2C and B2B segments. This involves transitioning to a two-segment structure: "B2C" (encompassing Brands and Platforms) and "B2B" (focusing on Solutions). Key changes include transferring B2C-related subsidiary shares to World Brands Co., Ltd. and B2B-related subsidiary shares to World Solutions Co., Ltd., integrating management functions into these intermediate holding companies. World Platform Service Co., Ltd. will be renamed World Solutions Co., Ltd., and several subsidiaries will merge or be liquidated to streamline operations.

Concurrently with the reorganization, World will reduce its capital reserves by the amount increased from a share exchange with Right-On Co., Ltd., transferring the funds to other capital surplus. This aims to facilitate flexible capital management post-share exchange, which is set to be effective on March 1, 2026. This capital reduction will not impact the company's net assets or performance, and the share exchange, involving the issuance of 3,422,563 new shares, is predicated on a 1-for-2 stock split of World shares.

The reorganization, which primarily involves wholly-owned subsidiaries and the parent company, is expected to have a negligible impact on consolidated financial performance for the fiscal year ending February 2027. However, it is projected to significantly enhance long-term corporate value by accelerating decision-making and optimizing resource allocation across both B2C and B2B business domains.