[Digital Arts] Share Buyback and Implementation of Stock Compensation Scheme | June 2026

Overview of the Disposal

Digital Arts resolved at its Board of Directors meeting on July 17, 2026, to dispose of 4,144 shares of treasury stock at 3,570 yen per share. This disposal is part of a stock compensation scheme, where a total monetary reward claim of 14,794,080 yen will be contributed in kind to allotment targets, with shares allocated to two target directors. The restriction period on the shares is set from July 17, 2026, to July 16, 2029, and provisions are made for free acquisition or removal of transfer restrictions upon resignation or retirement.

Impact on Shareholders and Future Outlook

This share buyback aims to enhance shareholder value and motivate directors to improve corporate value. The introduction of the stock compensation scheme is expected to foster long-term commitment from directors toward increasing corporate value. The effect of the disposition on share dilution is considered limited, but ongoing attention is required regarding its influence on future management strategies and performance.