Notice of Implementation of Restricted Stock Compensation System and Disposal of Treasury Stock

Overview of Disposal

Nihon Seiki will dispose of 6,786 common shares at 2,531 yen per share on July 17, 2026. This disposal is part of the restricted stock compensation system, granted as stock compensation to directors and executive officers, and will be carried out with shareholder approval. The purpose of the disposal is to achieve sustainable enhancement of corporate value and to incentivize executives. Managed through a dedicated account, the transfer restriction period is from July 17, 2026, until the resignation of the eligible personnel.

Impact on Shareholders and Future Outlook

The current disposal of treasury stock involves dilution but aims to strengthen incentive systems for directors and improve corporate value. The introduction of the restricted stock system encourages long-term commitment to the company and aims to enhance shareholder value. Going forward, the company will continue to promote capital policies and personnel strategies that contribute to shareholder value enhancement, pursuing sustainable growth.