Notice of Share Buyback Due to Introduction of Trust-Type Employee Stock Ownership Incentive Plan

Disposal Overview

In conjunction with the introduction of the Employee Stock Ownership Incentive Plan (E-Ship®), Hotchiss will dispose of 165,900 shares (about 0.78%) at 4,520 yen per share through third-party allocation on August 19, 2026. This disposal will be conducted through Nomura Trust & Banking Co., Ltd., with a total amount of 749,868,000 yen. The disposal price has been set based on the market stock price to eliminate arbitrariness, and the dilution is expected to be minimal.

Purpose of Disposal and Impact on Shareholders

This treasury stock disposal is part of the implementation of an employee stock ownership plan aimed at incentivizing employees to enhance corporate value. The scale of dilution will be approximately 0.78% of the total issued shares. The disposal price has been set based on the most recent market closing price and has been reviewed and approved by the Audit & Supervisory Committee to ensure legality. The company will continue to promote employee shareholding and work towards increasing corporate value.