Notice of Disposal of Treasury Stock Based on Restricted Stock Compensation Scheme

Overview of the Disposal

Nippon Seika will dispose of 8,500 shares of common stock on July 23, 2026, based on the restricted stock compensation scheme. The disposal price per share is 2,531 yen, with a total of 21,510,000 yen. Six specified directors will make in-kind contributions, and the stock transfer restriction period will continue until their resignation. The disposal will be conducted appropriately based on market stock prices, aiming to ensure transparency of the scheme and to motivate management.

Impact on Shareholders and Future Outlook

This disposal of treasury stock aims to enhance shareholder value and motivate executives. The dilutive effect of this disposal on shares is limited and is expected to contribute to long-term corporate value improvement. The company will continue to promote appropriate capital policies, balancing shareholder returns and corporate growth while maintaining transparency.