[Shinagawa Reflora] Share Buyback and Introduction of Stock Compensation System | July 2026

Overview of Share Buyback

Shinagawa Reflora will dispose of 33,588 treasury shares on July 24, 2026. The disposal price is 1,873 yen per share, totaling 62,910,324 yen. This disposal is based on a post-vesting performance-linked stock compensation system introduced in 2023, which grants shares to five directors. The system links performance, with an evaluation period from April 1, 2025, to March 31, 2026. The restrictions on share transfer remain until the date of disposal and until the directors' positions are terminated.

Stock Compensation System and Future Outlook

This system was introduced to enhance director incentives and improve corporate value, with shares granted based on performance achievement. Shares disposed during the restriction period cannot be transferred or used as collateral, with restrictions lifted after the period ends. The introduction aims to encourage management's long-term commitment to increasing corporate value. Going forward, the company will continue to operate its performance-linked compensation system to maximize shareholder value.