Notice of Change to Policy on Acquisition and Disposal of Treasury Stock Related to Employee Equity Compensation Plan

Overview of the Change

UT Group Co.,Ltd. has changed its policy regarding treasury stock acquisitions in connection with the introduction of an employee equity compensation plan. Instead of the previous policy to acquire treasury stock equivalent to 30% of quarterly net income, the company will adopt a new policy to acquire treasury stock for the period from November 16, 2026 to March 31, 2027 with an upper limit of 6,000 million yen. Acquired treasury stock is planned to be allocated to shares delivered upon exercise of stock options; if such stock options are not exercised in the future, utilization or cancellation will be considered. Funds for the acquisitions will come from company funds, and current cash levels are expected to be 28,700 million yen.

Impact and Future Policy

The company will utilize treasury stock to mitigate dilution from stock options while maintaining financial soundness. Future treasury stock acquisitions will be carried out flexibly, taking into account performance, financial condition, share price, capital efficiency, and growth investment opportunities. Dividend policy will remain in line with the medium-term plan, targeting payout of 100% or more of Net Income Attributable to Owners of Parent, with a floor for dividends per share of 10 yen to maintain stable dividends.