Notice of Disposal of Treasury Stock Under Restricted Stock Compensation Scheme

Overview of the Disposal

JAFCO Group plans to dispose of 39,489 shares of treasury stock on August 6, 2026, raising approximately ¥930 million. The disposal is conducted under a restricted stock compensation scheme for directors and executive officers, with a set disposal price of ¥2,355 per share. The purpose of the disposal is to enhance incentives for officers and to foster sustainable increase in corporate value. The company has also submitted an extraordinary report in accordance with the Financial Instruments and Exchange Act.

Impact on Shareholders and Future Outlook

This disposal of treasury stock is expected to have a limited dilutive effect on the share count, aiming to improve long-term corporate value through strengthening incentive schemes. The disposal is subject to restrictions under a restricted stock scheme, where recipients are required to remain in certain positions for a specified period, which is expected to motivate officers and contribute to sustainable corporate growth.