[Toyo Electric Manufacturing] Share Buyback and Affiliated Company Changes | July 2026

Details and Purpose of Disposal

Toyo Electric Manufacturing, based on a resolution at the Board of Directors meeting on July 15, 2026, resolved to dispose of 578,000 shares of treasury stock through a third-party allotment to JR East. The disposal price is set at 2,013 yen per share, raising approximately 1.16 billion yen. The funds will be allocated to the research and development of high-efficiency electrical equipment for railway vehicles and next-generation Shinkansen electrical components, positioning this as part of technical collaboration and growth strategy. This will also involve changes in the company's capital relationships and affiliated companies.

Future Outlook and Impact on Shareholders

The funds raised from the share disposal are expected to be used for research and development aimed at high-efficiency, high-speed, and low-maintenance electrical equipment for railway vehicles. Deepening capital and technological collaboration with JR East aims to enhance the safety and reliability of railway infrastructure. Post-disposal, the major shareholder ratio will increase to 20.00%, and changes in affiliated companies will also alter the shareholder composition. The specific impact on future performance remains undecided, but this is positioned as a strategic measure aiming for sustainable growth and corporate value enhancement.