Notice Regarding Share Buyback with Transfer Restrictions

Overview of the Disposal

Nanyo Corporation has resolved at its Board of Directors meeting on July 21, 2026, to dispose of 7,030 shares of treasury stock as part of an employee stock compensation system. The disposal price is 1,777 yen per share, totaling 12,492,310 yen. The disposal will be executed on August 19, 2026, targeting six incumbent directors. The purpose of the system is to promote sustained enhancement of corporate value and shared value with shareholders. The securities notification based on the Financial Instruments and Exchange Act has been filed.

Purpose of the Disposal and Details of the System

This disposal of treasury stock is part of a restricted stock-based compensation system aimed at incentivizing officers and enhancing corporate value. The targeted directors will contribute cash-based compensation claims as in-kind contributions to acquire the shares. The transfer restriction period begins on August 19, 2026, and lasts until the individual’s retirement or resignation, after which transfer restrictions are lifted. The management of the disposed shares is handled via a dedicated account at Daiwa Securities, and under specific conditions such as organizational reorganization, transfer restrictions may be解除 or shares may be acquired free of charge.