Notice of Sale of Treasury Shares Based on Restricted Stock Compensation Plan | July 22, 2026

Details of the Sale and Purpose

Tohneneck Co., Ltd. will sell 11,280 common shares on August 21, 2026, based on its restricted stock compensation plan. The purpose of this sale is to provide incentives to designated directors and to promote sustainable improvement of corporate value. The sale price is set at 2,075 yen per share, totaling 23,406,000 yen. The shares will be transferred to 33 designated directors through a contribution in kind by issuing monetary claims as contributed assets, with the restriction period spanning from the date of share allocation until immediately after resignation or retirement from their positions.

Impact on Shareholders and Future Outlook

While this sale will dilute existing shares, it aims to encourage medium- to long-term growth and stock price appreciation through the introduction of an incentive system. Funds obtained from this sale are expected to be utilized for future business investments and strengthening management foundations. The detailed implementation of the system and the specifics of transfer restrictions will be adjusted according to the directors' positions and retirement timing, aiming to contribute to overall corporate value enhancement.