Notice Regarding the Purchase of Treasury Stock Due to Fractional Shares Resulting from a Stock Dividend (Purchase of Treasury Stock Based on the Provisions of Article 234, Paragraphs 4 and 5 of the Companies Act)

Overview of Capital Policy

Based on the resolution of the Board of Directors on February 13, 2026, Hirakawa Hewtech Corporation conducted a stock dividend of 0.05 shares per share as of April 1, 2026. Regarding the fractional shares less than one share arising from this stock dividend, the company decided at the Board meeting on April 13, 2026 to purchase these as treasury stock in accordance with the provisions of Article 234, Paragraphs 4 and 5 of the Companies Act. The number of shares to be purchased is 1,686 shares, and the purchase price will be calculated based on the closing price on the Tokyo Stock Exchange on the same day.

Impact on Shareholders and Future Measures

This treasury stock purchase is a measure to handle fractional shares arising from the stock dividend and aims to adjust shareholder dilution. The purchase date is April 13, 2026, and if there is no trading on that day, the first transaction price will be applied. The purchased shares will be held as treasury stock, which will affect the adjustment of the number of outstanding shares. However, there is no mention of specific uses of funds or changes to shareholder return policies.