Notice Regarding the Grant of Units Under the Performance-Linked Stock Compensation Plan for Executive Officers

Overview of the Performance-Linked Stock Compensation Plan

At the Compensation Committee and Board of Directors meeting on March 27, 2026, Kokuyo Co., Ltd. resolved to grant units under the performance-linked stock compensation plan to executive officers. The granted units consist of two types: Financial Indicator Units (up to equivalent of 762,930 shares, approximately 637.73 million yen) and Stock Price Indicator Units (up to equivalent of 93,542 shares, approximately 78.19 million yen). The performance evaluation period is two years from January 1, 2026, to December 31, 2027, for the Financial Indicator Units, and three years from April 1, 2026, to March 31, 2029, for the Stock Price Indicator Units.

Purpose of Grant and Plan Details

The plan aims to incentivize executive officers to enhance corporate value by granting shares based on the achievement of performance targets set in the medium-term management plan and stock price indicators. The granted shares are subject to transfer restrictions for a certain period, include provisions for treatment in case of resignation during the vesting period, and contain clawback clauses. The shares granted may be delivered through disposal of treasury stock or issuance of new shares.