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Strategic Partnership Announcement

Tsunagu Group Holdings, based in Chuo-ku, Tokyo, has initiated a joint venture with Eucalia, located in Chiyoda-ku, Tokyo, to enhance recruitment efforts in the care industry. This initiative follows their strategic business partnership disclosed on July 15, 2025, originally aimed at supporting recruitment in the healthcare sector.

Background of the Initiative

Japan's care industry has long faced significant labor shortages, with the effective job opening-to-applicant ratio as of March 2025 reaching approximately 3.97 times for care-related professions, significantly higher than the national average of 1.16. Furthermore, the aging population is projected to increase the demand for care staff, necessitating a robust recruitment strategy to counteract the persistent workforce shortfall.

Several facilities have resorted to reliance on staffing agencies and temporary labor, which negatively impacts profitability and poses financial sustainability issues. This calls for a comprehensive improvement in recruitment capabilities within the care sector, identified as an urgent matter.

Overview of the Partnership Efforts

The recruitment costs challenge not only the industry at large but also Eucalia’s subsidiary, Clutch Eucalia. Tsunagu Group plans to evaluate and enhance Clutch's recruitment activities through targeted assessments, aimed at implementing strategies to streamline and fortify their recruitment process. Together, Tsunagu Group and Eucalia will establish effective solutions addressing labor shortages, kicking off with Clutch while adhering to their mission described on July 15: striving to address crucial societal challenges, particularly those faced by healthcare and care facilities.

Future Outlook

Currently, the immediate impact on consolidated earnings is expected to be negligible. However, the ongoing execution of these initiatives will be closely monitored, and any emerging issues will be transparently communicated regarding their possible effects on financial performance.

About Eucalia

Eucalia Corporation, a publicly-listed company as per the Tokyo Growth Exchange (stock code: 286A), is located on the 19th floor of the Kasumigaseki Building in Chiyoda-ku, Tokyo. Under the leadership of President Hideo Misawa, Eucalia specializes in comprehensive management support for healthcare, senior-related businesses, and advanced medical devices. Its mission is focused on