[DTS] Implementation of Share Buyback for Employee Stock Ownership Plan | July 24, 2026

Overview of the Disposal

DTS Corporation will dispose of 204,702 shares of treasury stock at 977 yen per share on July 24, 2026, for the Employee Stock Ownership Plan. The disposal will be conducted via third-party allotment and aims to raise approximately 200 million yen. This measure is intended to support employees' wealth accumulation and enhance corporate value, with the maximum number of shares targeted at 3,247 employees. The disposal price is based on the closing market price on the Tokyo Stock Exchange immediately prior to the transaction date and is considered a reasonable market-aligned price.

Impact on Shareholders and Future Outlook

The share dilution rate from this disposal is approximately 0.12% (relative to the total number of issued shares), indicating a limited impact on shareholders. The purpose of the disposal is to improve employee incentives and sustain corporate value, with limited influence on financial stability post-disposal. The final number of shares to be disposed of will depend on employee participation and approval of the plan, and it is expected to contribute positively to future corporate activities and shareholder value enhancement.