Notice of Completion of Share Buyback Cancellation (Cancellation of Treasury Shares Based on the Provisions of Article 178 of the Companies Act)

Overview of Treasury Share Cancellation

Komatsu cancelled 20,612,500 shares of treasury stock on December 29, 2025, in accordance with the resolution of the board of directors on April 28, 2025 and based on the provisions of Article 178 of the Companies Act. This represented 2.2% of the total outstanding shares prior to cancellation, with the total number of outstanding shares becoming 930,340,620 shares after cancellation. The treasury shares were acquired through market purchases between April 30, 2025 and November 28, 2025, with a total acquisition cost of 99,999,563,604 yen.

Purpose of Cancellation and Effect on Shareholder Value

The purpose of this treasury share cancellation is to improve earnings per share (EPS) and enhance shareholder value by cancelling all acquired treasury shares. The reduction in the number of shares improves capital efficiency and helps prevent dilution of shares. This is expected to provide better returns to investors.

Impact on Financials, Stock Price, and Future Policy

The cancellation reduces the total number of outstanding shares, which is expected to improve return on equity (ROE) and increase the theoretical stock price. Komatsu plans to continue shareholder return policies through treasury stock acquisition and cancellation to improve capital efficiency. The current cancellation is positioned as part of shareholder returns and is regarded as a measure to enhance corporate value.