D&M Company: Announcement Regarding the Introduction of a Shareholder Benefit Program

D&M Company (Head Office: Kita-ku, Osaka; Representative Director: Akiyoshi Matsushita; Securities Code: 189A) announced today that its Board of Directors has resolved to introduce a shareholder benefit program, as detailed below.

1. Purpose of Introducing the Shareholder Benefit Program

The purpose of introducing this shareholder benefit program is to express gratitude for the continuous support of our shareholders, to increase awareness of our company among a wider range of investors, and to encourage medium- to long-term ownership of our shares, thereby expanding our shareholder base and improving stock liquidity.

Our basic policy is to aim for the market average dividend payout ratio by strengthening our operating and financial foundations, while prioritizing internal reserves for growth strategy investments. This policy will remain unchanged after the introduction of this program. By providing opportunities for returns through shareholder benefits in addition to dividends, we aim to expand our investor base, promote medium- to long-term holdings, enhance recognition of our company, and strive to improve corporate value.

2. Outline of the Shareholder Benefit Program

This program is a shareholder benefit system where electronic gifts, calculated based on a benefit fund of 10,000 thousand yen, will be presented to shareholders holding 300 or more shares of our common stock as of the record date, which is the end of November each year. Shareholders with continuous holdings will receive a higher equivalent benefit amount.

(1) Eligible Shareholders and Grant Conditions

The record date for shareholder benefits is the end of November each year. Shareholders recorded in the shareholder register as holding 300 or more shares of our common stock on this record date are eligible. Details of the grant conditions are shown in the table below. Please note that no shareholder benefits will be implemented with a record date of the end of May 2026. For the first shareholder benefits with a record date of the end of November 2026, eligibility will be determined based on continuous holding status from the end of May 2026.

Note 1: The record date for shareholder benefits is the end of November each year, and no shareholder benefits will be implemented with a record date of the end of May 2026.

Note 2: For the first shareholder benefits with a record date of the end of November 2026, shareholders who held 300 or more shares at the end of May 2026, continuously hold 300 or more shares until the end of November of the same year, and have the same shareholder number, will be eligible for two units of benefits.

Note 3: For shareholder benefits from the end of November 2027 onwards, shareholders who continuously held 300 or more shares from the end of November of the previous year to the end of November of the current year and have the same shareholder number will be eligible for two units of benefits.

Note 4: "Having the same shareholder number" means being recorded with the same shareholder number in our shareholder register on each comparative record date.

(2) Content of Shareholder Benefits

Shareholder benefits are planned to be electronic gifts. We plan to introduce a shareholder benefit program with a fixed benefit fund, where the number of units granted varies depending on the continuous holding status.

Note 1: Shareholder benefits are planned to be electronic gifts, and we envision a format where shareholders can choose from Amazon gift cards, various digital points, and other options. Specific redemption methods and other details will be announced as soon as they are decided.

(3) Calculation Examples

Example 1: Assuming the number of shareholders (holding 300 or more shares: 315 people) at the end of November 2025 is the same at the end of May 2026 and the end of November 2026, and all of them are eligible for the initial two units of benefits, the equivalent benefit amount per unit would be 15,000 yen, and the equivalent benefit amount per shareholder would be 30,000 yen.

Example 2: As an example of a reference value, if the number of eligible shareholders increases to 1,000 people, and all of them are eligible for two units of benefits on each record date, the equivalent benefit amount per unit would be 5,000 yen, and the equivalent benefit amount per shareholder would be 10,000 yen.

(4) Start Date of the Shareholder Benefit Program

The first record date is scheduled for the end of November 2026. For subsequent years from the end of November 2027 onwards, the record date is also planned to be the end of November each year.

(5) Timing of Presentation

Notifications will be sent to eligible shareholders approximately within three months from the record date.

(6) Other

Under the policy of continuously operating this program, it is currently difficult to reasonably foresee the scale of increase in the number of shareholders due to the introduction of this program. Therefore, we will initially start with a benefit fund of 10,000 thousand yen. Going forward, we will comprehensively consider factors such as the increase in shareholder numbers, shareholder composition, stock liquidity, business performance trends, and financial conditions, and review the benefit fund as necessary to ensure a more appropriate level of returns.

3. Future Outlook

The impact of this shareholder benefit program on the consolidated business performance for the fiscal year ending May 2026 is expected to be minor.