Z : Application to Select Prime Market in the New Market Segments and Submission of Plan to Meet the Continued Listing Requirements

December 3, 2021

To whom it may concern

Z Holdings Corporation Kentaro Kawabe

President and Representative Director, Co-CEO Stock Code: 4689

Application to Select Prime Market in the New Market Segments and Submission of Plan to Meet the Continued Listing Requirements

Z Holdings Corporation (hereinafter "Company"), has resolved in its board of directors meeting held today, to select the Prime Market in connection with Tokyo Stock Exchange, Inc.'s (hereinafter "TSE") restructuring of the market segments scheduled to take place in April 2022, and has submitted an application to TSE. The Company does not meet the continued listing requirements for this market as of the base date for transition (June 30, 2021), and has announced its plans to meet the level of continued listing requirements (Japanese only). The outline of the plan is as follows.

1. Status of the Company's compliance with the continued listing requirements and target period The Company's compliance with the continued listing requirements for the Prime Market as of the base date for transition is as detailed below. The Company does not meet the requirements for the tradable share ratio, and will take various measures to meet the continued listing requirements for the tradable share ratio by fiscal 2023.

			No. of	No. of Tradable	Tradable	Tradable	Market
			Shareholders	Shares	Share Market	Share	Cap
				(Units)	Cap	Ratio
The	Company's
Status			－	－	－	33.9%	－
(As of	the	base
date for transition)
Continued	Listing	－	20,000	JPY10 billion	35%	－
Requirements
Items	Listed in	－	－	－		－
the Plan

* The Company's status mentioned above is calculated based on the information of distribution of share

certificates, etc. available to TSE as of the base date for transition.

2. Basic policies for measures to be taken to meet the continued listing requirements

The Company has chosen to transfer to the Prime Market, a market for companies that have higher standards of governance and that are committed to sustainable growth and medium to long term enhancement of corporate value, with a focus on constructive dialogue with investors. The Company believes that the steady implementation of its policies as outlined in

1. and (ii) below, is important for achieving sustainable growth and enhancing corporate value over the medium to long term.

1. Increasing the tradable share ratio to improve the environment for the protection of general shareholders and the transparency of governance
2. Pursuing the strategies announced in the strategy briefing on the business integration with LINE Corporation*

• Business Integration with LINE Corporation - Strategy Briefing (March1, 2021)https://www.irwebcasting.com/20210301/2/3f958ffc81/media/20210301_z-holdings_en.pdf

Disclaimer

This is an English translation of the release. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.