[Kemei] Share Buyback Allocation to Employee Shareholding Association | July 2026

Overview of the Disposal

Based on the Board of Directors' resolution on July 24, 2026, Kemei intends to allocate up to 35,150 shares of treasury stock to employees' shareholding association at a price of 3,755 yen per share, totaling approximately 132 million yen. The method of disposal is a third-party allotment, with the payment deadline on November 12, 2026. The purpose of the disposal is to enhance employee welfare and promote management participation, with the transfer restriction period from November 12, 2026, to November 11, 2031.

Impact on Shareholders and Future Outlook

The dilution rate resulting from this disposal is approximately 0.11%, which is minimal, and the impact on shareholders is limited. The disposal price is based on the closing price of the Tokyo Stock Exchange on the previous business day and is regarded as a reasonable valuation. Detailed regulations regarding the解除 of transfer restrictions and handling of employees who retire or suspend membership will also be established, aiming for smooth implementation of the system.