【Dainichi Seika Kogyo】Implementation of Share Buyback and Employee Stock Compensation Program｜June 2026

Summary of Capital Policy

Dainichi Seika Kogyo allocated and disposed of 19,123 shares of treasury stock on July 24, 2026, at a price of 1,055 yen per share. This disposal was conducted as part of a restricted stock award scheme granted to executives, aiming for sustainable enhancement of corporate value and value sharing with shareholders. The method of disposal involved a specific restricted stock allotment, implemented through in-kind contribution of monetary compensation claims. The disposed shares were allotted to four executives, who received 15,311 shares, and four officers with managerial positions, who received 3,812 shares.

Future Outlook and Impact on Shareholders

The disposal of treasury stock this time is part of a stock compensation scheme aimed at improving executive incentives and sustainable corporate value enhancement. The impact on total outstanding shares from the disposal is expected to be limited, aiming to minimize dilution and preserve shareholder value. The company intends to continue managing the program and shares to balance shareholder interests and corporate growth.