[Daito Limited] Share Buyback and Introduction of Stock-Based Compensation System | July 2026

Overview of the Buyback

Daito Limited resolved to repurchase 19,500 shares of treasury stock at 751 yen to improve incentives for directors and enhance company value over the mid- to long-term. The buyback will be executed on August 20, 2026, targeting nine directors and executive officers. The shares are granted as part of a restricted stock remuneration system, with conditions that restrictions are解除ed upon retirement or resignation. This aims to increase directors' engagement in management and promote value sharing with shareholders.

Impact on Shareholders and Future Outlook

This share buyback does not involve share dilution and aims to strengthen incentive systems for directors to elevate corporate value. The system's introduction is expected to increase directors' participation in management and contribute to long-term corporate growth. Performance conditions, such as achieving an operating profit of at least 1.5 billion yen in the fiscal year ending March 2027, are set, linking the buyback to company performance.