D&M Company Announces Partial Changes and Enhancement of Shareholder Benefit Program

D&M Company Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Akiyoshi Matsushita; Securities Code: 189A) announces that, at today’s board meeting, it has resolved to partially revise and enhance its shareholder benefit program, as initially disclosed in the May 11, 2026 press release titled 'Announcement Regarding Introduction of Shareholder Benefit Program.' The changes will take effect starting with the shareholder benefits based on the May 31, 2027 record date, increasing the frequency of distribution and expanding the funding allocated. Details are as follows.

1. Reasons for the Change and Enhancement

On May 11, 2026, D&M Company announced the introduction of a shareholder benefit program with the objective of increasing awareness among investors and encouraging long-term shareholding, thereby expanding its shareholder base and improving stock liquidity.

Since the initial disclosure, amendment reports under the Large Shareholding Disclosure System have indicated significant transfers of the company’s shares within a short period, reflecting changes in shareholding patterns. Additionally, as of May 31, 2026, the number of shareholders holding 300 or more ordinary shares reached 523. Furthermore, as separately announced today in the 'Notice Regarding Revision of Consolidated Earnings Forecast,' the company’s business continues to perform steadily. In light of future growth investments and the need to strengthen its financial foundation, the company has decided to enhance shareholder return opportunities to attract broader investor interest.

The shareholder benefit program can influence investors’ decision-making, making stable and continuous operation essential. The company recognizes that changes to the program must be carefully considered. However, taking into account feedback from investors, the current system—featuring tiered allocations (1 or 2 units) and continuity holding requirements—has been found to make the benefit value less intuitive. The company now believes that simplifying the structure will make investment in its shares more accessible to individual investors, thereby supporting shareholder base expansion and improved liquidity.

Therefore, the first shareholder benefit based on the November 30, 2026 record date will be implemented as originally announced on May 11, 2026. Starting with the May 31, 2027 record date, the benefit entitlement date will shift to twice annually—May 31 and November 30. Additionally, the funding per entitlement date will be set at 10 million yen, resulting in an annual total of 20 million yen, thereby enhancing the program. Concurrently, from the May 31, 2027 record date onward, the company will eliminate the 1-unit/2-unit allocation tiers and continuity holding requirements, adopting instead a new method where the benefit amount per shareholder is calculated by dividing the total benefit budget by the number of eligible shareholders on each record date.

The company emphasizes its commitment to operating the shareholder benefit program stably and sustainably. Going forward, it will comprehensively assess business performance, financial conditions, shareholder count trends, and stock liquidity, and will consider further increasing the benefit budget if stable operation remains feasible.

2. Details of the Changes and Enhancements

The shareholder benefit based on the November 30, 2026 record date will remain unchanged from the terms disclosed in the May 11, 2026 announcement. The shareholder benefits from the May 31, 2027 record date onward will be revised as follows.

3. Overview of the Revised Program

(1) Shareholder Benefit Based on November 30, 2026 Record Date

The inaugural shareholder benefit based on the November 30, 2026 record date will be implemented as previously announced—awarding 1 or 2 units based on continuous shareholding since May 31, 2026.

(2) Shareholder Benefits from May 31, 2027 Record Date Onward

Starting from the May 31, 2027 record date, shareholder benefits will be granted twice annually—on May 31 and November 30. Shareholders holding 300 or more ordinary shares on each record date will be eligible. The benefit budget per record date will be 10 million yen. The amount per shareholder will be calculated by dividing this budget by the number of eligible shareholders. Amounts under 1,000 yen will be rounded down. The benefit will be provided in the form of electronic gift cards. Specific details on redemption methods and other information will be announced once finalized.

4. Illustrative Calculation After the Change (Reference)

As a reference, assuming that the 523 shareholders who held 300 or more shares as of May 31, 2026 remain the same as of November 30, 2026, and all qualify for the 2-unit benefit, the benefit amount per shareholder would be approximately 18,000 yen, with a reference yield of 6.6% for 2-unit recipients under these conditions.

5. Future Outlook

This change will have no impact on the consolidated financial results for the fiscal year ending May 2026. The consolidated earnings forecast for the fiscal year ending May 2027, including the impact of this change, will be disclosed in the earnings release scheduled for July 14, 2026.

▶ D&M Company IR Information

https://www.dmcompany.co.jp/ir/

About D&M Company Ltd.

Under the mission of 'Development by Investment and Consulting' (regeneration, growth, development), D&M Company specializes in the healthcare, nursing care, and welfare services industries, providing comprehensive support in finance, management, and human resources. Rather than offering standard services, the company designs and implements tailored solutions based on each client’s unique situation and needs. Leveraging the analytical and execution capabilities of finance and healthcare professionals, it flexibly combines financial support, management consulting, and HR services. When necessary expertise is not in-house, the company utilizes its network to connect clients with optimal partners and talent. D&M Company aims to realize patient-centered, high-quality, and sustainable healthcare. To ensure Japan’s healthcare, nursing, and welfare systems remain world-class, the company supports the industry through operational improvement and talent acquisition, striving to secure safety, peace of mind, and opportunities for all.