Notice Regarding the Disposal of Treasury Stock as Restricted Stock for Directors and Executive Officers and Post-Performance Linked Stock Compensation

Overview of the Disposal

This IR document details the announcement that Smaregi Inc. will carry out a share disposal on July 28, 2026. The targeted shares include restricted stock and performance-linked treasury stock, with a total disposal amount of approximately 2.1 billion yen. The total number of shares to be disposed is 6,400, with 4,700 shares scheduled for disposal. The purpose of the disposal is to enhance liquidity and incentivize executives and employees as part of the company's compensation system. Details of the disposal method and schedule are also outlined, positioning this as a measure aimed at improving shareholder value.

Impact on Shareholders and Future Outlook

The disposal of treasury stock specifies the number of shares and amount released into the market, likely resulting in limited dilution. The proceeds from the disposal amount to approximately 21 billion yen, which are expected to be used for business investments and financial strengthening. Additionally, treasury stock disposal is viewed as beneficial for improving shareholder value and providing management flexibility, potentially influencing future stock price trends. The company continues to demonstrate its commitment to shareholder returns and growth strategies to enhance long-term corporate value.