Notice of Share Buyback Related to Implementation of Restricted Stock Compensation Plan

Overview of Capital Policy

Shin Cosmos Electric will dispose of 4,900 common shares on July 24, 2026, as part of its restricted stock compensation plan aimed at providing medium- to long-term incentives to directors. The disposal price is set at the closing market price of 4,685 yen, with the total amount reaching 22,956,500 yen. The 10 targeted directors will receive stock allocations in the form of monetary compensation claims contributed as assets, with a transfer restriction period of 20 years. The shares will be managed in a dedicated account, with restrictions on transfer and collateralization, and provisions are included for handling during organizational reorganization.

Impact on Shareholders and Future Outlook

This disposal of treasury shares aims to promote long-term shareholder value sharing and enhance director motivation. Since the transfer restriction period limits liquidity, dilution of shares is expected to be limited. The company will continue to monitor the implementation status of the scheme and the long-term effectiveness of incentive measures, with the aim of increasing corporate value.