Decision to Make Additional Contributions to Equity Compensation Trust | May 2026

Overview of Capital Policy

KH Neochem will make an additional contribution of 55 million yen on May 27, 2026, based on the trust agreement concluded with Mizuho Trust & Banking Co., Ltd., as part of its share compensation system for Directors. The funds are intended to acquire shares necessary for future director compensation. The shares will be ordinary shares of the company, purchased from the market, with the acquisition period scheduled from May 27, 2026, to June 10, 2026.

Future Outlook and Impact on Shareholders

This additional contribution demonstrates the continuation and strengthening of the incentive system for Directors, aiming for long-term corporate value enhancement. Expanding the equity compensation trust aims to boost executive motivation and promote sustainable corporate growth. It does not involve direct capital increase for shareholders, and the dilutive impact is expected to be limited.