[Nitto Denko] Disposal of Treasury Stock and Introduction of Stock Compensation Scheme | June 2026

Overview of Disposal

Nitto Denko will dispose of 22,200 common shares at 3,180 yen per share on July 9, 2026. The disposal targets four directors and has already submitted a securities notification under the Financial Instruments and Exchange Act. The purpose of the disposal is part of the performance-linked stock compensation scheme introduced in 2018, aimed at promoting medium- to long-term performance improvement of directors and sustainable enhancement of corporate value. The disposal price is based on the market stock price and considered a reasonable price.

Purpose of the Scheme and Future Outlook

This scheme grants performance-linked shares to targeted directors, encouraging corporate value improvement. It covers three fiscal years from April 2023 to March 2026, with the number of shares determined according to achievement levels of consolidated operating profit, ROE, and ESG non-financial targets. Share allotments are carried out after the end of the evaluation period, based on the market stock price, and are conditional on continued service of the directors and compliance with conduct standards. The introduction of this scheme is expected to strengthen performance-based compensation for directors and enhance corporate value.