[Denso] Disposal of approximately ¥722 million worth of treasury stock | June 2026

Overview of Capital Policy

Denso Corporation disposed of 3,904,900 shares of treasury stock (approximately ¥722 million) on June 19, 2026. This action was taken in conjunction with the introduction of a performance-linked stock reward scheme using trust, called the 'Stock Grant Trust,' with a disposal price of ¥1,850 per share. The shares were entrusted to the Trust Department of The Japan COSTODY BANK, LTD., aiming to provide shares to directors and executives. The disposal was carried out contingent on approval of the scheme's introduction.

Impact on Shareholders and Future Outlook

This disposal of treasury stock is part of the company's capital policy, aimed at strengthening its compensation system for executives. While it may affect the number of tradable shares, it is expected to improve corporate competitiveness and streamline management through the implementation of a performance-linked stock reward scheme. Denso Corporation intends to continue promoting appropriate capital measures to enhance shareholder value.