Share Buyback of Restricted Stock Awards | July 2026

Overview of Capital Policy

Japan Air Conditioning Service will dispose of 47,500 shares of treasury stock on August 10, 2026, as part of a restricted stock compensation plan for directors and officers, raising a total of 76.14 million yen. The disposal price is set at 1,603 yen per share, with the shares to be allocated to four directors, three senior officers, and eight officers. This aims to motivate management to increase stock value and enhance corporate value. The disposal will be conducted in the form of physical contribution, with the restricted period starting from August 10, 2026, until the loss of director status.

Stock Compensation for Officers and Future Outlook

This disposal of treasury stock is intended to share stock price benefits and risks with officers, thereby aiming to improve corporate value. The targeted officers will be subject to transfer restrictions for a certain period, and if they lose their officer status during that time, they will acquire the shares free of charge. The disposal price has been set based on the market stock price. This initiative is positioned as a measure to further incentivize officers and support the company's sustainable growth.