[Showa Sangyo] Abolition of Defensive Measures and Partial Amendment of Articles of Incorporation | May 14, 2026

Abolition of Defensive Measures and Amendment of Articles of Incorporation

Showa Sangyo resolved at its Board of Directors meeting held on May 14, 2026, to abolish the share buyback defense measures introduced in 2008 at the General Meeting of Shareholders scheduled for June 25, 2026. Consequently, provisions related to the defense measures will also be removed from the Articles of Incorporation. The background of this abolition stems from the company's long-term vision "SHOWA VISION 2035" and its medium-term management plan "26-29," which focus on shareholder returns and corporate value enhancement. The company will continue to take necessary measures in accordance with applicable laws and regulations as needed and will provide information to support shareholder decision-making.

Impact on Shareholders and Future Outlook

The abolition of the defense measures may improve stock liquidity and market transparency. On the other hand, removing the defensive measures could potentially increase the risk of hostile takeovers. The company has indicated that it will disclose information as necessary and consider alternative strategies. The amendments to the Articles of Incorporation will be implemented on June 25, 2026, and are scheduled to take effect on the same day. This will enable the company to pursue a more flexible capital policy and aim to maximize shareholder value.