Notice Regarding Disposal of Treasury Stock by Third-Party Allotment Accompanying Additional Contribution to Performance-Linked Stock Compensation Plan

Overview of Treasury Stock Disposal

Taikisha Ltd. resolved on February 26, 2026, to dispose of 124,700 treasury shares by third-party allotment at 3,553 yen per share, totaling 443,059,100 yen, based on the performance-linked stock compensation plan (Stock Grant Trust BBT). The disposal party is formally the trustee, The Nomura Trust and Banking Co., Ltd. (Trust E Account), but effectively corresponds to the same stock allocation to five executive directors and seventeen executive officers of the company. The number of shares disposed corresponds to the expected shares for three business years from the end of March 2026 through the end of March 2028, resulting in a dilution rate of 0.19% relative to the total outstanding shares.

Calculation of Disposal Price and Procedure

The disposal price is based on the average closing price of the company's common stock on the Tokyo Stock Exchange over one month from January 13 to February 9, 2026, amounting to 3,553 yen per share, representing 92.65% of the closing price on the day before the board resolution date of 3,835 yen. Five auditors (including three outside auditors) have expressed the opinion that the disposal price is not particularly advantageous. Since the dilution rate is below 25% and there is no change in the controlling shareholder, obtaining an independent third-party opinion or shareholder approval procedures were deemed unnecessary.