Notice Regarding Recognition of Extraordinary Income Due to Sale of Policy-Held Shares

Policy-Held Share Reduction Policy

Seika Sangyo Co., Ltd. is reviewing the effects of holding policy-held shares based on the Corporate Governance Code, and is gradually reducing their holdings while assessing whether continued holding is appropriate. The policy announced on January 16, 2025, aims to reduce the ratio of policy-held shares to consolidated net assets to 10% by the fiscal year ending March 2028. The company will continue to examine reduction strategies beyond the fiscal year ending March 2029, striving to further improve asset efficiency. Funds obtained through reduction will be used for growth investments and shareholder returns.

Details and Impact of Investment Securities Sale

In the fiscal year ending March 2027, the company expects to record approximately 1.6 billion yen as extraordinary income (gain on sale of investment securities). The sale involves 4 securities, with the transaction period from May 13, 2026, to the end of December 2026. The expected gain is calculated based on the current stock prices of the securities, and includes uncertainties due to future stock price fluctuations.