MTG to issue stock options to Kirala subsidiary employees

MTG has decided to issue stock acquisition rights (stock options) to directors, executive officers, and employees of its Kirala subsidiary. This initiative follows the acquisition of Kirala on October 7, 2025. The move aims to compensate Kirala's personnel for their forfeited stock options and boost their contribution to MTG Group's performance and corporate value. Terms, including exercise conditions, consider Kirala’s previous stock options and share price ratios.

A total of 3,705 stock acquisition rights will be issued at 840 yen per right. The issue price was determined with reference to an independent valuation from Akasaka International Accounting, factoring in MTG's stock price of 3,980 yen per share on October 22, 2025, and other conditions. The rights will be allotted to 5 directors/executive officers (3,492 rights) and 55 employees (213 rights) of the subsidiary, with an allotment date of December 10, 2025. The exercise period for these rights is from July 30, 2029, to May 29, 2035.

The exercise condition specifies that consolidated EBITDA must reach 12 bn yen or more in the fiscal years ending September 2026, 2027, or 2028. This issuance represents 0.92% of MTG's outstanding shares and is considered reasonable given its link to achieving performance targets that enhance corporate and shareholder value.