ID Holdings Corporation announced that it has resolved to establish a subsidiary at its meeting of the Board of Directors on March 14, 2024. Recently the arrival of generative AI has driven a rapid expansion of the use of AI in numerous business domains. Companies' needs for work-process reform and business reform using AI are expected to grow dramatically.

The ID Group has been active on the AI front, conducting surveys and research on the use of AI and developing ID AI Concierge, an AI chat service, using large-language-model (LLM) technology. The ID Group decided to establish a subsidiary for the purpose of applying the Group's wealth of technology related to AI to its service domains: system management, cybersecurity and software development. The new company will conduct research and development in the AI space, support operations, infrastructure design and software development using the technology, and provide AI services related to security risks.

The Group expects that the new company's operations will enable customers to raise efficiency and accelerate their improvement of quality. Overview of Subsidiary to be Established: Name: ID AI Factory CO., LTD. (tentative name); Location: 12-1 Goban-cho, Chiyoda-ku, Tokyo; Name and title of representative: Yoshitada Kurozumi, President and Representative Director; Description of operations: Research and development in generative AI; support for operations such as system management, cybersecurity and software development; Capital: JPY 95 million; Date of establishment: April 1, 2024 (expected); Major shareholders and shareholding ratio: Wholly owned subsidiary of the Company; Capital relationships: ID AI Factory is established as a wholly owned subsidiary of the Company. Personnel relationships: Officers and employees of the ID Group are expected to be appointed as directors of ID AI Factory.

Trading relationships: No items are applicable, as ID AI Factory is a newly established company. Date of start of operations: On or after April 1, 2024 The establishment of the new subsidiary is expected to have negligible impact on the fiscal year 2023 consolidated business results of the Company as it is scheduled to begin operations on or after April 2024. As and when any items requiring disclosure as impacting business results occur in the future, the Company will disclose such matters promptly.