[Disclosure Memo] Reading House Foods Group Inc.'s Share Buyback: Points to Verify

Reference Disclosure

• Company Name: House Foods Group Inc.

• Stock Code: 2810

• Disclosure Date: May 11, 2026

• Disclosure Title: Notice Regarding Determination of Matters Related to Share Buyback

• Reference Material: Company IR Material "Notice Regarding Determination of Matters Related to Share Buyback" (House Foods Group Inc.)

1. Details of this disclosure

House Foods Group Inc. has resolved matters related to a share buyback. The acquisition limit is 12 million shares, the total acquisition cost limit is 26 billion yen, and the acquisition period is from May 12, 2026, to April 23, 2027. The acquired treasury shares are scheduled to be fully cancelled after the acquisition is completed. (House Foods Group Inc.)

This disclosure is not an earnings revision, but rather a disclosure regarding shareholder returns and capital policy.

2. Points to note first

The first thing to confirm is that both the upper limit of 12 million shares and the upper limit of 26 billion yen are maximums, and the acquisition is not a guaranteed quantity. Calculating simply based on the May 11 closing price of 3,337 yen, the number of shares that can be acquired for 26 billion yen is approximately 7.79 million shares. This is about 8.5% of the 91,180,189 shares excluding treasury shares from the total issued shares, which differs from the 13.16% stated in the disclosure.

Next, this is not a disclosure that directly indicates earnings improvement. Since it does not show improvements in sales, operating profit, ordinary profit, or net profit, it must be verified separately from the growth potential of the core business.

Also, since the acquisition period is about 11 months, it does not necessarily mean that the maximum will be acquired in a short period. It is necessary to track the actual acquisition pace, monthly acquisition status, and acquisition price.

Regarding the stock price, the closing price on May 11 was 3,337 yen, and the trading volume was 985,200 shares. The stock price has risen significantly from the previous business day's closing price of 2,959.5 yen, so there is a possibility that the reaction to the disclosure content has already occurred in the short term.

3. Numerical verification

Regarding the share buyback, the confirmable figures are as follows.

• New acquisition resolution: Applicable

• Shares subject to acquisition: Common stock

• Maximum number of shares to be acquired: 12,000,000 shares

• Percentage of total issued shares (excluding treasury shares): 13.16%

• Maximum acquisition cost: 26,000,000,000 yen

• Acquisition period: May 12, 2026 to April 23, 2027

• Treatment after acquisition: All acquired shares are scheduled to be cancelled upon completion of the acquisition

• Number of issued shares excluding treasury shares as of March 31, 2026: 91,180,189 shares

• Number of treasury shares as of March 31, 2026: 7,318,227 shares

The number of shares acquired for the current month, the acquisition cost for the current month, the cumulative number of shares acquired, and the cumulative acquisition cost cannot be confirmed in this disclosure as it is at the stage of a new resolution. Progress rates also require waiting for monthly acquisition status disclosures.

Regarding dividends, this disclosure indicates a policy of aiming for a DOE of 3% or more and, in principle, implementing progressive dividends. However, the specific dividend amount cannot be confirmed from this disclosure alone. (House Foods Group Inc.)

4. Points that can be confirmed as facts

• A resolution for a share buyback was passed on May 11, 2026

• The maximum number of shares to be acquired is 12,000,000 shares

• The maximum acquisition cost is 26 billion yen

• The acquisition period is from May 12, 2026 to April 23, 2027

• All acquired treasury shares are scheduled to be cancelled after the acquisition is completed

• The maximum percentage of total issued shares (excluding treasury shares) is 13.16%

• This disclosure is not a revision of earnings forecasts

5. Points that can be considered as interpretations

Points the market is likely to check are the size of the 26 billion yen maximum acquisition cost and the fact that all shares are scheduled to be cancelled after acquisition. This may easily attract attention as shareholder returns that are conscious of capital efficiency.

On the other hand, whether the maximum number of shares or the maximum acquisition cost becomes the practical constraint depends on the stock price level. Based on the closing price on May 11, it does not calculate that 13.16% can be acquired as is.

Furthermore, while share buybacks can impact EPS and supply-demand dynamics, they do not improve operating profit or cash-generating ability itself. Therefore, in future reviews, it is necessary to separately examine core business profitability, cash flow, and the financial burden of the acquisition funds.

6. Points to watch regarding stock price and supply-demand

Based on stock price data, the closing price on May 11 was 3,337 yen. The 25-day moving average is approximately 3,070.6 yen, and the 75-day moving average is approximately 3,032.5 yen; the closing price is above both.

Trading volume was 985,200 shares, which is about 5.2 times the 20-day average volume of approximately 190,085 shares. While this is a reaction accompanied by volume, it is necessary to verify separately whether this increase will end as a one-day event or continue from the next business day onward.

In the short term, I would like to check if the stock can maintain its gains after the opening, whether it avoids ending as a bearish candle after a high opening, and if it can maintain the 25-day and 75-day moving averages at the close.

7. Future monitoring conditions

Points to check in the short term

• Will the trading volume on the business day following the disclosure exceed the 20-day average?

• Can it maintain the 25-day moving average at the close?

• Can it maintain the 75-day moving average at the close?

• Will it avoid ending as a bearish candle after a high opening?

• Will it avoid ending as a one-day overreaction?

• Will it avoid becoming relatively weak on days when the market sentiment is poor?

Points to check in the medium term

• Can the actual acquisition pace be confirmed through monthly share buyback status reports?

• Will progress be made in monetary terms against the 26 billion yen acquisition limit?

• Is the acquisition price becoming too high?

• Will the cancellation of shares after acquisition be carried out as planned?

• Is shareholder return becoming a financial burden?

• Are the core business profit levels and cash flow consistent with the return policy?

8. Current Summary

• Performance: This disclosure does not directly indicate an improvement in business performance.

• Continuity: Since the acquisition period is approximately 11 months, it is necessary to monitor monthly progress.

• Shareholder Returns and Financials: While the 26 billion yen share buyback limit and the plan to cancel shares after acquisition can be confirmed, further verification of the financial burden and remaining capital capacity is required.

• Stock Price and Supply/Demand: Although the stock rose with volume on May 11, I would like to confirm the continuation of trading volume and the maintenance of the moving average from the next business day onward.

9. Disclaimer