Share Buyback of Restricted Stock Compensation | August 2026

Overview of Capital Policy

GUNZE Limited disposed of 21,453 shares of treasury stock (equivalent to 85,275,675 yen) on August 6, 2026, as part of its restricted stock compensation system. This disposal was carried out as part of the remuneration system for directors and executive officers and aims to enhance shareholder value and stabilize or increase the stock price. The disposal price was set at 3,975 yen based on market stock prices, also aiming to minimize impacts on stock liquidity and dilution. The details of the disposal were executed through a resolution by the Board of Directors in accordance with the Companies Act.

Impact on Shareholders and Future Outlook

This disposal of treasury stock is part of a system aimed at enhancing shareholder value and does not involve the cancellation of treasury stock without dilution. The disposed shares are granted to executive officers as part of the compensation scheme and are intended to improve long-term corporate value. Going forward, the company plans to continue implementing appropriate stock management and measures considering market impact, as part of shareholder returns and capital policy.