Notice Regarding Issuance of New Shares as Stock Compensation

Overview of the Stock Compensation Plan

Ichikoh Industries, Ltd. has introduced a medium- to long-term performance-linked stock compensation plan for directors and executive officers. At the board meeting held on April 21, 2023, the base number of shares to be granted was determined to be 57,626 shares. Following the end of the performance evaluation period, the final number of shares to be granted was confirmed at 55,316 shares at the board meeting, and it was resolved that the shares would be granted through the issuance of new shares rather than disposal of treasury stock. The stock compensation consists of three types: performance-based, CSR achievement-based, and restricted stock units, with grant rates determined based on achievement levels of ROA, operating profit margin, sustainability, and diversity targets.

Issuance Conditions and Purpose

The new shares will be issued on June 1, 2026, with the issue price set at 515 yen, the closing price on the Tokyo Stock Exchange on April 23, 2026. The total issue amount is approximately 28.48 million yen, allocated as 31,715 shares to 4 directors and 23,601 shares to 4 executive officers. The purpose of the plan is to provide incentives aimed at the sustainable enhancement of corporate value. Detailed provisions are established regarding the calculation methods for the compensation base amount, grant rates, and payment conditions (including continuous service). The financial performance evaluation grant rate is 90%, while the sustainability and diversity conditions grant rates are both 100%.