Notice Relating to the Establishment of a New Subsidiary in the Netherlands

Optex Co., Ltd. (Headquarters: Otsu City, Shiga Prefecture, President & CEO: Toru Kamimura) has established a new Netherlands-based subsidiary, Optex Security B.V., with the goal of strengthening business operations in Europe.

1. Purpose of Establishing the Subsidiary
In order to respond to changes in the market resulting from the withdrawal of the United Kingdom from the EU, and to accelerate the expansion of our business in the region, we are establishing a subsidiary in The Hague, Netherlands, as part of a reorganization of our European base. This subsidiary will, from the Netherlands, cover our customers in various countries across Europe and promote our visual verification solutions business that connects sensors and images, which is one of our strategies for growth in the field of security. In the visual verification solutions business, customer-based sales activities and technical support are essential, and localization and strengthening our sales force can increase the number of market contacts and lead to expansion and acceleration in the European market. We also hope that this will help avoid confusion caused by the withdrawal of the United Kingdom from the EU, and optimize our logistics to be sustainable in the medium to long term.

2. Outline of the Subsidiary
(1) Trade name: Optex Security B.V.
(2) Date of establishment: September 25, 2020
　　※Start of operation is scheduled for January 2021
(3) Address: Henricuskade 17, 2497 NB The Hague, The Netherlands
　　※Planned to be moved to Amsterdam in April 2021
(4) Representative: Masaya Kida, Managing Director
(5) Main business operations: Sales and support for security-related products and systems
(6) End of fiscal year: December 31

3. Future Outlook
The impact of the establishment of this subsidiary on the consolidated financial results for the fiscal year ending December 31, 2021 will be minor.