Notice Regarding the Occurrence and Exercise of the Right of Early Redemption under the 130% Call Option Clause on the Euro Yen Convertible Bonds Due 2028

Regarding the Occurrence and Exercise Decision of the Early Redemption Right

FerroTec Corporation announced that for the Euro yen convertible bonds with warrants due 2028 (total issuance amount of 25 billion yen), on March 24, 2026, the stock price condition under the 130% call option clause was satisfied, resulting in the occurrence of the right of early redemption on all outstanding bonds as of that date. In response, the company has decided to exercise this right on April 23, 2026. However, it noted that in case of unforeseen circumstances such as a sudden change in market conditions, the exercise may not proceed.

Details of Early Redemption and Future Actions

The early redemption target is the entire outstanding principal of 25 billion yen (face value) as of March 24, 2026, with the redemption amount set at 100% of the face value. The exercise deadline for the warrants is June 17, 2026, and the early redemption date is June 22, 2026. The initial conversion price was 4,020 yen, which was adjusted to 3,592.9 yen on November 14, 2025. Notifications will be sent to bondholders upon the exercise of rights.