Notice Regarding the Resolution on Share Buyback and Cancellation of Treasury Stock (Acquisition of Treasury Stock Based on the Provision of Article 165, Paragraph 2 of the Companies Act and Cancellation of Treasury Stock Based on the Provision of Article 178 of the Companies Act)

Overview of Share Buyback and Cancellation

DAIHEN Corporation resolved at the Board of Directors meeting on February 3, 2026, to acquire and cancel treasury shares aimed at enhancing shareholder value and capital efficiency. The acquisition will target up to 300,000 shares of the Company's common stock (1.2% of total outstanding shares) with a maximum total purchase price of 4 billion yen. The acquisition period is from February 4 to March 31, 2026, and will primarily be conducted through market purchases. The cancellation will apply to all acquired shares and is scheduled for February 13, 2026.

Impact on Shareholders and Treasury Stock Holdings

As a result of this share buyback and cancellation, the number of shares outstanding will decrease by approximately 1.2%, which is expected to mitigate dilution and improve capital efficiency. As of January 30, 2026, the Company held 1,183,969 treasury shares, and this buyback and cancellation will be conducted additionally. Note that treasury shares held by the stock delivery trust for employees amounting to 112,100 shares are not included in the treasury stock count.