Notice Regarding Disposal of Treasury Stock as Restricted Stock Compensation

Overview of Disposal of Treasury Stock as Restricted Stock Compensation

On May 21, 2026, the Company resolved to dispose of 15,127 shares of treasury stock as restricted stock compensation to eight directors (excluding outside directors). The disposal price is ¥5,506 per share, totaling ¥83,289,262, which is a reasonable price based on the closing price on the Tokyo Stock Exchange on April 23, 2026. The transfer restriction period shall be from the allocation date until the director's resignation date, during which transfer or setting of pledge rights and other disposal acts are prohibited.

Impact on Shareholders and Purpose of the Restricted Stock System

The dilution rate from this disposal is minimal at 0.02% against total issued shares and is part of a system designed to provide incentives to directors and promote value sharing with shareholders aimed at the sustainable enhancement of corporate value. The restricted stock remains non-transferable until the director’s resignation, at which point conditions for gratuitous acquisition or release of transfer restrictions are applied.