Notice Regarding the Determination of Terms and Conditions for the Issuance of the 26th Series Stock Acquisition Rights by Third-Party Allotment for Share Buyback through Accelerated Share Repurchase

Overview of Capital Policy

Shin-Etsu Chemical Co., Ltd. conducted share buyback through the Tokyo Stock Exchange's off-auction share buyback transaction (ToSTNeT-3) on 2026-02-16. Based on this result, at the Board of Directors meeting held on 2026-02-16, the terms and conditions for the issuance of the 26th Series Stock Acquisition Rights by third-party allotment were determined. The potential number of shares issuable upon exercise of the stock acquisition rights is capped at 17,570,700 shares, with a reference amount of ¥98,712,192,600. The number of shares to be delivered upon exercise of the stock acquisition rights will be calculated by subtracting the quotient of the reference amount divided by the average stock price from the reference number of shares.

Impact on Shareholders and Future Outlook

The issuance of these stock acquisition rights accompanies the Accelerated Share Repurchase program, with a substantial maximum potential share count of 17,570,700 shares. While there is a dilution risk for shareholders, the actual impact depends on the average stock price trends and the exercise status of the stock acquisition rights. Future dividend increases will also be reflected in the calculation of shares delivered upon exercise, so shareholders should continue to monitor relevant information carefully.