Notice Regarding Disposal of Treasury Stock as Transfer-Restricted Stock Incentives for Employee Stock Ownership Association

Overview of Capital Policy

Osaka Soda Co., Ltd. has resolved to dispose of up to 88,680 shares of treasury stock pursuant to the transfer-restricted stock incentive system for the Employee Stock Ownership Association. The disposal price is JPY 1,914 per share, totaling approximately JPY 169.73 million, with a payment due date of July 28, 2026. The disposal will be conducted by third-party allotment, targeting up to 1,013 employees qualified as members of the Employee Stock Ownership Association. The transfer restriction period is set from July 28, 2026, to June 2, 2031, during which transfer and pledge of the shares are prohibited.

Impact on Shareholders and Purpose of the Program

The dilution rate resulting from this disposal of treasury stock is minor at 0.07%, and the impact on shareholder value is assessed as limited. The purpose of this program is to support employee asset formation, enhance awareness of participation in management, and promote value sharing with shareholders. The disposal price is reasonably set based on market price, and all auditors have evaluated it as lawful and reasonable. The transfer-restricted stock allotment agreement stipulates the conditions for release of transfer restrictions and provisions for free acquisition.