[DENSO] Implementation of Trust-Based Stock Compensation Plan and Sale of Treasury Stock ｜ May 2026

Background and Overview of the Implementation

DENSO will introduce a performance-linked stock compensation plan utilizing a trust, aimed at providing long-term incentives to its executives. The plan will commence in June 2026, and involve granting stocks and monetary benefits to directors during their term, with transfer restrictions until resignation. The plan's approval will be obtained at the June 2026 shareholders' meeting, and the sale of treasury stock is contingent on this approval. The number of shares to be sold is 3,904,900, at 1,850 yen per share, totaling approximately 7.22 billion yen.

Impact on Shareholders and Future Outlook

The sale of treasury stock is part of a long-term incentive plan for directors, and is expected to have limited dilution of shares. The introduction of the plan aims to enhance directors' commitment to increasing corporate value, with expectations for future improvement in performance and shareholder value. The sale is subject to shareholder approval, and it is important to monitor the effectiveness of the plan, as well as its impact on stock liquidity and corporate capital policy.