Notice Regarding Disposal of Treasury Stock and Share Offering

Overview of Capital Policy

Union Tool Co., Ltd. resolved at the board meeting held on April 6, 2026, to dispose of treasury stock and conduct a share offering. Specifically, this involves a public offering disposal of 1,800,000 treasury shares, a share offering (overallotment) of 270,000 shares, and disposal of treasury shares by third-party allotment of 270,000 shares. The disposal price will be determined between April 14 and April 17, 2026, with Nomura Securities Co., Ltd. acting as the underwriter and seller. Consequently, the number of treasury shares is expected to decrease to a maximum of 296,487 shares after disposal.

Use of Proceeds and Future Outlook

The maximum estimated total net proceeds of approximately 26.92 billion yen will be mainly allocated to the construction cost of the Nagaoka Sixth Plant (approximately 4.2 billion yen), expansion of cutting tool manufacturing equipment at the Mitsuke Plant (approximately 1.95 billion yen), and expansion of production equipment at the Nagaoka Plant (approximately 23.87 billion yen). These capital investments are scheduled to be completed between June 2027 and December 2028, aiming to expand production capacity and improve production efficiency. Furthermore, if the net proceeds exceed the planned capital investment amount, the surplus funds are planned to be allocated to research and development expenses. This fundraising is expected to contribute to medium- to long-term growth and strengthening of the financial base.