Notice Regarding the Resolution on Share Buyback Cancellation (Cancellation of Treasury Stock Based on Article 178 of the Companies Act)

Overview of Treasury Stock Cancellation

At the Board of Directors meeting held on December 23, 2025, Zeon Corporation resolved matters related to the cancellation of treasury stock pursuant to Article 178 of the Companies Act. The type of shares to be cancelled are the Company’s common shares; the total number of shares to be cancelled is 6,000,600 shares (2.79% of the total issued shares before cancellation). The scheduled cancellation date is January 7, 2026, after which the total issued shares will be 209,251,256 shares. Specific details regarding the acquisition timing and acquisition price of the treasury shares are not disclosed.

Purpose of Cancellation and Effect on Shareholder Value

This cancellation aims to improve earnings per share (EPS) and increase shareholder value by reducing the number of issued shares. It is considered intended to strengthen shareholder returns through preventing share dilution and improving capital efficiency. However, specific quantitative impacts on EPS improvement or shareholder value enhancement are not provided in the materials.

Impact on Financials and Stock Price and Future Policy

The reduction in total issued shares through cancellation is expected to improve return on equity (ROE) and increase theoretical stock price. There are no disclosed details regarding future policies on treasury stock acquisition or cancellation, nor the overall positioning within shareholder return policies. This matter should be noted by investors as part of efforts to enhance capital efficiency.