Notice Regarding the Disposal of Treasury Stock as Restricted Stock Compensation

Overview of Treasury Stock Disposal

Unicharm Corporation resolved to dispose of 313,800 shares of treasury stock on April 16, 2026 under the restricted stock compensation plan. The disposal price is 958.1 yen per share, totaling 300,651,780 yen, targeting 24 individuals including 2 directors (excluding outside directors and Audit & Supervisory Committee members), 19 executive officers, and 3 senior managing officers. The restriction period is three years (from April 16, 2026 to April 15, 2029), implemented as a medium-to-long-term incentive aimed at enhancing the responsibilities and performance of the recipients.

Details and Purpose of the Restricted Stock Allocation Agreement

This disposal is based on the restricted stock compensation plan introduced in 2020, aiming to motivate the eligible directors and share value with shareholders. During the restriction period, transfer or disposal of the shares is restricted, and the restrictions are lifted upon expiration of the period or legitimate resignation. In cases of significant accounting misconduct or occurrence of substantial losses, a clawback clause requires the free return of shares. The shares are managed in a dedicated account at Nomura Securities to ensure the effectiveness of the system.