【Kansai Paint】Capital Policy Adjustment as of June 26, 2026 | Adjustment of Conversion Price for Euro-Yen Convertible Bonds

Overview of Capital Policy

Based on the resolution approved at the General Shareholders' Meeting on June 26, 2026, Kansai Paint adjusted the conversion prices of Euro-Yen convertible bonds maturing in 2029 and 2031, effective from April 1, 2026. The adjustments were made in conjunction with the approval of surplus dividend proposals for common stock, resulting in new conversion prices of 2,676.1 Yen for both bonds. The background for the adjustments includes an increase in dividends, aiming to mitigate dilution risk and optimize capital costs. The adjusted prices also include a condition whereby the bonds can be exercised if the price exceeds 130%, i.e., 3,478 Yen.

Impact on Shareholders and Future Outlook

The recent adjustment of the conversion prices benefits shareholders by reducing dilution and improving capital policy flexibility. Kansai Paint plans to continue optimizing capital efficiency, while maintaining its dividend policy and funding strategies. The conditions after adjustment are linked to stock price trends and dividend movements, so investors should monitor future stock prices and dividend developments closely.