Notice Regarding Disposal of Treasury Stock as Restricted Stock Compensation

Overview of Disposal of Treasury Stock as Restricted Stock Compensation

Kuraray Co., Ltd. resolved at the board meeting to dispose of 87,710 shares of treasury stock as restricted stock compensation at ¥1,619 per share, totaling ¥142,002,490, with the payment date set for April 24, 2026. The shares are allocated as 44,100 shares to 6 directors, 32,830 shares to 19 executive officers, and 10,780 shares to 11 auditors. The disposal is conducted through in-kind contribution of monetary claims, and the restriction period is set to last until retirement.

Purpose of Disposal and Overview of Restricted Stock Allocation Agreement

This disposal aims to provide incentives encouraging continuous enhancement of corporate value to the eligible directors and others under the restricted stock compensation system introduced in February 2021, thereby promoting value sharing with shareholders. During the restriction period, transfer or pledge of shares is prohibited, and the transfer restrictions are lifted upon retirement; however, if retirement is without just cause or misconduct occurs, the Company will acquire the shares without compensation. The shares are managed by Daiwa Securities, and reasonable measures for lifting the transfer restrictions are established in the event of organizational restructuring.