Notice Regarding Determination of Disposal Price and Offering Price

Overview of Capital Policy

Union Tool Co., Ltd., based on the board resolution dated April 6, 2026, has determined the disposal price and offering price for the disposal of treasury stock and share offering. The public treasury stock disposal is priced at 16,349 yen per share, totaling approximately 29.4 billion yen; the share offering consists of 270,000 shares totaling approximately 4.4 billion yen. Additionally, treasury stock disposal by third-party allotment is planned, with a maximum total payment amount of approximately 4.2 billion yen. The application period is from April 15 to 16, 2026, with payment dates on April 21 and May 20.

Use of Funds and Future Outlook

The estimated maximum net funds to be raised, approximately 32.4 billion yen, are planned to be allocated to the construction cost of the Nagaoka No. 6 Factory (about 4.2 billion yen), expansion of machinery and equipment at the Mitsuke Factory (about 2 billion yen), and expansion of machinery and equipment at the Nagaoka Factory (about 23.9 billion yen). Any excess funds will be used for research and development expenses for cutting tool products and other products and will be properly managed in the company’s deposit account until allocated. This aims to strengthen production facilities and promote R&D, thereby reinforcing the business foundation.