Kasumigaseki Capital Co., Ltd. (hereinafter "KC"), headquartered in Tokyo’s Chiyoda City, announced on September 5 that it has established a Malaysian subsidiary, KASUMIGASEKI CAPITAL (MALAYSIA) SDN. BHD. (hereinafter "KC (MALAYSIA)"), based in Kuala Lumpur, and commenced logistics business in Malaysia as its first foray into the ASEAN region by utilizing KC’s expertise on frozen and chilled warehouses as well as on the development of automated frozen warehouses. An overview of the initiative is described below.

In addition, as its first project in Malaysia, KC has executed a sale and purchase agreement for the acquisition of a plot with a major Malaysian developer that is wholly owned by a local company listed on the Main Board of Bursa Malaysia (Malaysian Bourse) and commenced a project to develop an automated frozen warehouse.

1. Background for launching business in Malaysia

Malaysia’s population and economy continue to grow, and the country has established its position as a logistics base in Southeast Asia. Malaysia enjoys a geographically favorable location, functioning as a significant hub connecting the ASEAN countries. The Malaysian government is also pursuing the development of logistics infrastructure. International logistics demand is expected to expand in the future. In addition, e-commerce is expected to grow due to income increases accompanying economic growth while exports are likely to increase in the wake of swelling demand for halal products in developing economies in Asia, the Middle East, Africa and other regions. Against that background, KC considers Malaysia to be an extremely promising market for developing the logistics sector.

KC launched logistics services in June 2020 in response to the need for capital investment in frozen and chilled warehouses ahead of the CFC regulation from 2030, expanding demand for such warehouses amid increasing consumption of frozen foods, labor shortages in the logistics industry caused by the 2024 logistics issue stemming from the shortage of truck drivers, workforce aging and other factors, and the severe working environment in the frozen temperature zone. KC has mainly promoted the development of frozen and chilled warehouses as well as accelerating the development of automated frozen warehouses, which integrate the element of automation into cold storage, as one of the methods to realize new logistics solutions.

In anticipation of a tight supply and demand balance of frozen and chilled warehouses in the Malaysian logistics market, which is expected to expand in the future, KC has decided to launch business in Malaysia as its first step into the ASEAN market with the intention to grasp further business opportunities based on KC’s business development policy of operating in areas "which combine growth potential and social significance." By leveraging the expertise on frozen and chilled warehouses and automated frozen warehouses accumulated in the course of promoting logistics services in Japan, KC will aim to achieve its further growth, expanding the logistics business in Malaysia by capitalizing on market growth there while keeping in view expansion into other ASEAN countries.

2. Project overview

(1) Project name: Setia Alaman

(2) Asset type: Automated frozen warehouse

(3) Location: Plot 25, Setia Alaman, 41050 Klang, Selangor

(4) Access: Approx. 37km from city center of Kuala Lumpur (approx. 40-min. drive)

Close to the "Bandar Bukit Raja" IC on the New Klang Valley Expressway

(5) Site area: 12,262m2

(6) Total floor area: 11,453m2

(7) Construction start: October 2026 (planned)

(8) Construction completion: December 2028 (planned)

Completion image: https://cdn.kyodonewsprwire.jp/prwfile/release/M108820/202509024448/_prw_PI2fl_u22O12wO.jpg

* This is for illustrative purposes only and may differ from the actual building.

3. About KC’s subsidiary KASUMIGASEKI CAPITAL (MALAYSIA)

(1) Company name: KASUMIGASEKI CAPITAL (MALAYSIA) SDN. BHD.

(2) Location: Sky Zone 1, Exchange 106, Lingkaran TRX, 55188, Tun Razak Exchange (TRX), Kuala Lumpur, Malaysia

Comment from directors

Ryo Sugimoto (Director and Executive Chairman)

This is the first overseas logistics business for KC and it means a turning point for our business. We are taking on a challenge in ASEAN’s logistics market, starting from Malaysia, by fully leveraging our expertise on frozen and chilled warehouses and automated frozen warehouses in Japan. With the development of a new model of logistics infrastructure from Malaysia, we will aim to bring innovation to our global supply chain.

Toshihiro Ohkuma (Managing Director)

Malaysia continues to grow with diversity of human resources and geographically favorable location, and it is great to start KC’s first overseas logistics business from this country. We will build a new logistics infrastructure system while working closely with the local community. From there, we hope to develop a supply chain that extends to the world and achieve sustainable growth together.

4. Future outlook

KC believes that the impact of this matter on its performance for the fiscal year ending August 2026 will be minimal, but considers that it will contribute to enhancing its performance and corporate value in the future.

* This is an abridged translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this and the original, the original Japanese document shall prevail.