[Denso] Share Buyback and Incentive Program for Employees｜May 2026

Disposal Details and Purpose

Denso will dispose of approximately 2.86 million shares of treasury stock as restricted stock units for the Employee Stock Ownership Plan (ESOP), aiming to improve employee engagement and continuously enhance corporate value. The disposal price is set at 1,850 yen/share, with a total amount of approximately 5.3 billion yen. This program aims to promote employee wealth accumulation and shared value with the company. The disposal will be carried out on November 2, 2026, and the dilution from this disposal is approximately 0.10% of the total issued shares.

System Details and Future Outlook

This system involves targeted employees contributing a special bonus, which is used to grant restricted stock units. The restriction period runs from November 2, 2026, to November 1, 2031, and restrictions are lifted upon satisfying certain conditions. The dilution effect from the disposal is minimal, and the impact on the market is considered limited. The company will continue to implement measures that both enhance employee engagement and improve corporate value.