Notice Regarding Disposal of Treasury Stock Covered by Restricted Stock Compensation

Overview of Capital Policy

Bakufu disposed of 26,367 shares of treasury stock to targeted directors and executive officers based on the restricted stock compensation system. The disposal price was 1,999 yen per share, totaling approximately 52.7 million yen. The purpose of the disposal is to achieve sustainable enhancement of corporate value and to provide incentives. The transfer restriction period is set to 30 years. The disposal period spans from July 13, 2016, to July 12, 2056, with the restriction lifted as long as the recipients continue their positions.

Impact on Shareholders and Future Outlook

This treasury stock disposal does not dilute shares and is intended as part of an incentive scheme to motivate officers to improve corporate value. The long-term transfer restriction period and the condition of continued service aim to steadily enhance shareholder value. Going forward, the company will continue to appropriately manage the shares and provide incentives according to the operational status of the scheme and officers’ continued employment.