[Tokyo Cosmos Electric] Disposal of Treasury Shares and Incentive Grant | July 2026

Overview of Capital Policy

Tokyo Cosmos Electric will implement a grant of transfer-restricted stock to directors as part of its long-term incentive program. On August 7, 2026, 6,910 shares will be allocated to four targeted directors, with a transfer restriction period of 30 years. The fair valuation of the allocated shares is set at 1,071 yen, with the disposal occurring without monetary contribution, and detailed regulations regarding share management and transfer restrictions are stipulated.

Future Outlook and Impact on Shareholders

This disposal aims to provide a long-term incentive to directors, promoting sustained enhancement of corporate value. During the transfer restriction period, the transfer or collateralization of the shares will be restricted, and restrictions will be lifted upon resignation or corporate restructuring. This structure is expected to foster long-term commitment from management and enhance shareholder value.