Notice Regarding Disposal of Treasury Stock by Third-Party Allotment Accompanying Introduction of Stock Compensation Trust for Executives

Overview of Capital Policy

Hokko Chemical Industry Co., Ltd. resolved at the Board of Directors meeting to dispose of 160,000 shares of treasury stock by third-party allotment on May 8, 2026. The disposal price is 1,780 yen per share, with a total disposal amount of 284,800,000 yen. This disposal is for a stock compensation trust corresponding to a performance-linked stock compensation plan for executives, which was resolved on January 13, 2026, and approved at the shareholders meeting on February 26. The disposal recipient is The Bank of Tokyo-Mitsubishi UFJ, Ltd. (trust account), and the shares correspond to the number planned to be granted over four fiscal years according to the stock grant rules based on the trust agreement.

Impact on Shareholders and Procedures

The number of shares disposed represents 0.58% of total issued shares (0.62% of total voting rights), and the dilution impact is considered minor. The disposal price was calculated based on the Tokyo Stock Exchange closing price on the business day immediately prior, and all auditors have opined that the price is lawful and fair. Furthermore, under Tokyo Stock Exchange regulations, procedures for obtaining independent third-party opinions or shareholder approval are not required.