Notice Regarding Cancellation of Treasury Stock

Overview of Capital Policy

Taiheiyo Cement Corporation resolved at the Board of Directors meeting held on February 26, 2026, to cancel 3,639,785 shares of treasury stock pursuant to Article 178 of the Companies Act. This amount corresponds to 5.94% of the total issued shares before cancellation. The scheduled cancellation date is April 14, 2026, which is also the effective date of the share consolidation. The cancellation is conditioned upon the approval of agenda items related to share consolidation at the Extraordinary General Meeting of Shareholders planned for March 24, 2026.

Impact on Shareholders and Future Outlook

Following the cancellation of treasury stock, the total issued shares will be 57,673,111 shares, which is expected to enhance the per-share value through a reduction in the number of shares outstanding. The shares to be cancelled represent all treasury stock held by the company as of February 3, 2026, aiming to improve capital efficiency. The cancellation will be formally implemented following approval at the upcoming shareholders meeting.