[Onward HD] Share Buyback and Shareholder Incentive Program | May 2026

Overview of the Disposal

Onward HD will dispose of 265,800 shares of treasury stock on June 26, 2026. The disposal price is 739 yen per share, with a total of approximately 1.96 billion yen. This disposal aims to fund the grant of shares to directors and subsidiary officers as part of a share-based compensation system with restricted stock. Details of the system include provisions that restrict transfer if the recipient continues to serve for a certain period, as well as methods for stock management. The disposal has also been reported in a temporary report in accordance with the Financial Instruments and Exchange Act.

Impact on Shareholders and Future Outlook

This share buyback is intended to incentivize directors and officers, with limited dilution of shares expected. Under the system, recipients will have restrictions解除ed if they continue to serve for a designated period, aiming to enhance long-term corporate value. Continued monitoring of the system’s operation and additional capital policies is necessary.