[Sunagawa Corporation] Disposal of Treasury Stock and Introduction of Shareholder Incentive System | July 2026

Summary of the Disposal

Sunagawa Corporation will dispose of 35,302 common shares at 756 yen per share on August 21, 2026. This disposal is part of a restricted stock compensation system aimed at improving incentives for directors and officers and sharing value with shareholders. Details of the system include payment for shares, transfer restriction periods, and conditions for free acquisition, with a total of 10 eligible participants. The purpose of this disposal is to improve corporate value and motivate executives.

Impact on Shareholders and Future Outlook

The impact of this treasury stock disposal on share dilution is expected to be limited. The introduction of the system is anticipated to reinforce the commitment of officers to long-term corporate value enhancement, potentially contributing to future management strategies and improved performance. The company will continue to focus on maintaining and increasing shareholder value while promoting medium- to long-term growth strategies.