Revision of the Executive Compensation System and Establishment of a Nomination and Compensation Committee

「Revision of executive remuneration: ROE added as a performance metric; stock-based remuneration increased from 5% to 10% of total remuneration」

「For directors who are not Audit and Supervisory Committee Members, we pay once a year in the following fiscal year an amount determined within a range of 0% to 250% of the position-specific standard amount, based on achievement of performance targets such as operating profit and each individual’s role-specific achievements.」

「The remuneration system for directors (excluding Audit and Supervisory Committee members), previously consisting of basic remuneration (fixed remuneration) and directors' retirement bonuses, has been revised to comprise three types: basic remuneration (fixed remuneration), performance-linked remuneration (short-term incentive remuneration), and stock-based remuneration (medium- to long-term incentive remuneration). Performance-linked remuneration (short-term incentive remuneration) is paid once a year in the following fiscal year, in an amount determined within a range of 0% to 250% of the standard amount for each position. At a Board of Directors meeting held on 24 March 2021, the Company established a Nomination and Compensation Committee comprising all independent outside directors and the Representative Director and President. Going forward, the Nomination and Compensation Committee will determine the specific details of the individual remuneration and other compensation for each director (excluding Audit and Supervisory Committee members) based on resolutions delegating authority from the Board of Directors.」