(Progress of Disclosed Matters) Notice of Occurrence and Exercise of Early Redemption Rights under the 130% Call Option Provision for Euro-Yen Denominated Convertible Bonds with Stock Acquisition Rights due in 2028 picture as pdf PDF

April 23, 2026

(Progress of Disclosed Matters) Notice of Occurrence and Exercise of Early Redemption Rights under the 130% Call Option Provision for Euro-Yen Denominated Convertible Bonds with Stock Acquisition Rights due in 2028

Ferrotec Corporation (Representative Director: He Xian Han; hereinafter "the Company") hereby announces that, with respect to the euro-yen denominated convertible bonds with stock acquisition rights due in 2028 (the "Bonds") issued by the Company, the stock price condition stipulated in the 130% call option provision under the terms and conditions of the Bonds was satisfied on March 24, 2026. As a result, the Company has acquired the right to redeem all outstanding Bonds at 100% of their face value on and after the same date. Today, the Company notified the bondholders that it will proceed with the exercise of such rights.

1. Name of bonds to be redeemed

2. Total amount subject to early redemption

3. Exercise period of stock acquisition rights

   Ferrotec Corporation euro-yen denominated convertible bonds with stock acquisition rights due in 2028

   All outstanding bonds

   * Outstanding balance as of April 21, 2026: 22.77 billion yen (face value) June 17, 2026 (Luxembourg time, unless otherwise stated)

4. Early redemption date June 22, 2026

5. Early redemption price 100% of face value of the Bonds

(Reference) Overview of the Euro-Yen Denominated Convertible Bonds with Stock Acquisition Rights due in 2028

1. Issue date June 23, 2023

2. Original maturity date June 23, 2028

3. Total issue amount 25.0 billion yen (face value)

4. Conversion price 3,592.9 yen

5. Latest share price 7,000.0 yen (closing price on April 22, 2026)

Note: The initial conversion price was 4,020 yen. The above conversion price has been adjusted in accordance with the conversion price adjustment provisions of the Bonds, as announced on November 14, 2025. The Company has set March 31, 2026 as the record date for dividend payments on retained earnings. Bondholders who exercise their share acquisition rights during the period from April 1, 2026 to June 17, 2026 shall be entitled to receive additional shares of common stock of the Company to be delivered through the retroactive adjustment of the conversion price (only if such adjustment is made) in accordance with the provisions of the bond terms.