[Japan Steel Works Ltd.] Issue of New Shares with Transfer Restrictions｜June 22, 2026

Overview of Capital Policy

Japan Steel Works Ltd. will issue 12,393 common shares by converting a total of approximately 97.94 million yen in cash compensation rights to five targeted directors and eleven operating officers, based on a restricted stock compensation scheme. The issue price is set at 7,903 yen, determined based on the market stock price, and aims at long-term value sharing. The transfer restriction period extends until resignation, prohibiting transfer or collateralization during the period, and will be解除 upon resignation. This initiative is designed to incentivize management and enhance corporate value.

Impact on Shareholders and Future Outlook

This issuance of new shares is intended to strengthen incentives for the targeted executives and to promote long-term corporate value enhancement. The long-term transfer restriction period is expected to limit shareholder dilution and reinforce management commitment. Going forward, the company will monitor the operation status of the scheme and business performance trends to pursue sustainable growth and maximize shareholder value.