Disposal of Treasury Stock with Transfer Restrictions | June 2026

Overview of Capital Policy

Nippon Chemical Industries will dispose of 43,463 shares of treasury stock at 2,056.5 yen per share on July 17, 2026, raising a total of 89.38 million yen. This disposal is part of a transfer restrictions stock compensation system aimed at providing long-term incentives to targeted directors and executive officers. The disposal will be executed through the contribution in kind of monetary compensation claims, with the shares allocated along with transfer restriction periods. Restrictions are outlined for解除 of transfer restrictions upon resignation or during corporate reorganizations, including unrestrained transfer or free acquisition of shares. This approach aims to enhance the company's mid- to long-term value and strengthen executive engagement.

Impact on Shareholders and Future Outlook

The current disposal of treasury stock does not lead to stock dilution and is a measure to balance capital raising with enhanced incentives for executives. Since the disposed shares will not flow into the market, the direct impact on the stock price is expected to be limited. Moving forward, the company plans to continue initiatives to increase long-term corporate value and improve executive engagement. As part of its capital policy, this strategy provides shareholders with a stable corporate management and expectations for sustainable growth over the medium to long term.