Notice of Decision on Matters Relating to the Acquisition of Own Shares

Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Translation

May 14, 2025

Company name: Kyosan Electric Manufacturing Co.,Ltd. (Securities code: 6742; Tokyo Market)

Name of representative: Ryoji Kunisawa

Representative Director, President

Inquiries: Yuichiro Saito

Strategy Planning Headquarters General Manager of Affairs & Legal Dept.

Telephone: +81-45-503-8100

(Acquisition of own shares as provided in the Articles of Incorporation according to Art. 165, Para. (2) of the Companies Act)

The Company adopted a resolution at the Boad of Directors' meeting held on May 14, 2025 on matters relating to the acquisition of own shares as provided in the Articles of Incorporation according to Article 165, Paragraph (2) of the Companies Act, and hereby notifies you as follows:

1. Reason for the Acquisition of Own Shares

   The Company will acquire its own shares for the purpose of appropriating them for grant of shares under the performance-based stock compensation plan (*) and executing flexible capital policies.

   * The introduction of the performance-based stock compensation plan is subject to approval of the proposal concerning the plan at the Company's 160th ordinary general meeting of shareholders scheduled to be held on June 25, 2025.

2. Matters Relating to the Acquisition

   1. Class of shares to be acquired: The Company's common stock

   2. Total number of shares that may be acquired: 1,000,000 shares (maximum) (Ratio to the total number of shares issued (excluding own shares): 7.68%)

   3. Total cost of share acquisition: 500,000,000 yen (maximum)

   4. Period of acquisition: May 15, 2025 through March 31, 2026

   5. Method of acquisition: Market purchase on the Tokyo Stock Exchange

      (For your reference)

      Status of holding of own shares as of March 31, 2025

      • Total number of shares issued (excluding own shares) 62,744,236 shares

      • Number of own shares 100,015 shares