Notice of Completion of Payment for Disposal of Treasury Shares as Restricted Stock Incentives for the Employee Shareholding Association and Partial Forfeiture

Execution of Disposal of Treasury Shares and Change in Amount

Ishihara Sangyo Kaisha,Ltd. executed the disposal of treasury shares under the restricted stock incentive scheme for the employee shareholding association, and the payment procedures have been completed. The changes are that the number of shares disposed is 13,395 shares and the total disposal amount is 41,390,550 yen. The allottee is via the employee shareholding association through a third-party allotment, and the share type and disposal date are treated as the Company's common shares. The reason for the change is the confirmation of the number of members who consented to the scheme.

Impact on Shareholders and Future Outlook

This change relates to the disposal of treasury shares for the employee shareholding association incentive scheme, and this notice does not state any direct dilution effect on shareholders. The disposal date is set as October 31, 2026, and because the allocation method is a third-party allotment, it is possible that a review of internal incentive design is underway. Attention should be paid to future progress and any additional disclosures.