Executive Compensation Linked to Performance and Corporate Value

「The performance indicators for performance-linked compensation are construction orders received and operating profit margin, which were selected as evaluation items closely linked to business performance. The Company determines performance-linked compensation, based on the achievement rate against management targets for these performance indicators, using a predetermined formula within a range of 0% to 200%. The management targets were standalone construction orders received of ¥99.6 billion and a standalone operating profit margin of 6.0%, while actual results were standalone construction orders received of ¥102.4 billion and a standalone operating profit margin of 5.7%.」

「The performance indicators for performance-linked compensation are orders received and operating profit margin, which were selected as evaluation items closely linked to business performance. The Company determines performance-linked compensation, based on the achievement rate against the annual plan targets for these performance indicators, using a predetermined formula within a range of 0% to 200%. The plan targets were standalone orders received of ¥89.5 billion and a standalone operating profit margin of 4.7%, while actual results were standalone orders received of ¥99.6 billion and a standalone operating profit margin of 7.1%.」

「The performance indicators for performance-linked compensation are orders received and operating profit margin, which were selected as evaluation items closely linked to business performance. The Company determines performance-linked compensation, based on the achievement rate against the annual plan targets for these performance indicators, using a predetermined formula within a range of 0% to 200%. The plan targets were standalone orders received of ¥93.0 billion and a standalone operating profit margin of 4.3%, while actual results were standalone orders received of ¥92.2 billion and a standalone operating profit margin of 7.3%.」

「From the second quarter of the 206th fiscal year, the Company introduced the share compensation plan “Share Delivery Trust for Officers” for its directors, excluding outside directors, and executive officers.」

「From the second quarter of the 206th fiscal year, the Company introduced the share compensation plan “Share Delivery Trust for Officers” for its directors, excluding outside directors, and executive officers.」

「Total amount of compensation, etc., by director category, total amount by type of compensation, etc., and number of eligible directors Directors, excluding outside directors: total compensation, etc., ¥145 million; basic compensation, ¥131 million; non-monetary compensation, etc., ¥14 million; eligible directors, 7」

「The Company introduced a share compensation plan (the “Plan”) for directors, excluding outside directors, and executive officers (collectively, “Directors and Other Officers”) pursuant to a resolution of the 205th Ordinary General Meeting of Shareholders held on 25 June 2021. The Company’s shares remaining in the trust are recorded as treasury shares under net assets at their carrying amount in the trust, excluding incidental costs. At the end of the second quarter of the fiscal year, the carrying amount and number of these treasury shares were ¥149 million and 85,300 shares, respectively.」

「At the 205th annual general meeting of shareholders held on 25 June 2021, the company resolved to introduce a trust-based stock compensation plan for its directors and executive officers, excluding outside directors, collectively referred to below as “Directors, etc.” The trust established for introducing the plan is referred to below as the “Trust.” At a meeting of the Board of Directors held on 5 August 2021, the company resolved matters concerning the acquisition of the company’s shares by the trustee of the Trust.」

「Compensation for directors responsible for business execution and executive officers consists of fixed basic compensation, performance-based compensation that varies according to business performance, and stock-based compensation.」