Notice Regarding Determination of Share Exchange Ratios in Simplified Share Exchange

Determination of Share Exchange Ratios and Background

This matter concerns the formal determination of the share exchange ratios under the agreement for a simplified share exchange in which Kumiai Chemical Industry Co., Ltd. will become the wholly owning parent and Ihara Kensei Co., Ltd., Nihon Printing Co., Ltd., and Kumica Logistics Co., Ltd. will become wholly owned subsidiaries. The calculation used each company’s average share price of 659 yen, resulting in ratios of Ihara Kensei 2.34x, Kumica Logistics 1.12x, and Nihon Printing 0.42x. The total number of shares to be delivered is planned at 1,521,229 shares, and provisions are set regarding fractional share handling and treatment of odd-lot (less-than-unit) shares.

Impact on Shareholders and Future Schedule

The effective date of this share exchange is November 1, 2026. Shareholders of the target consolidated subsidiaries will be delivered shares of Kumiai Chemical Industry Co., Ltd., with fractional entitlements potentially settled in cash. Opportunities and procedures for exercising rights related to sale or purchase of less-than-unit shares are stipulated, and measures to protect shareholder interests are provided. After the effective date, the company plans to acquire the majority of shares of the target consolidated subsidiaries, including processing of issued shares.