Notice Regarding Implementation of Stock Grant Program Using Employee Shareholding Association and Disposal of Treasury Stock by Third-Party Allotment

Overview

Topy Industries, Limited resolved at a board meeting held today to implement a stock grant program utilizing the employee shareholding association and to dispose of treasury stock by third-party allotment in connection with this program. The shares to be disposed are 56,655 common shares of the Company, and the payment date is 2027-02-05. The allotment will be made through the employee shareholding association, and the allotment price is 3,165 yen based on the market closing price.

Impact and Outlook

Under this program, eligible members whose treasury stock will be disposed of will receive a special incentive payment, and the full amount will be contributed to the employee shareholding association to cover the payment for the disposal. Dilution is expected to be approximately 0.24% on a total issued shares basis and approximately 0.27% on a total voting rights basis, and the market impact is assessed as minimal. This measure aims to strengthen human capital measures under the medium-term management plan and to enhance employees' sense of ownership and participation in management.