Performance-Based Compensation and Restricted Stock Compensation

「The target for the performance-linked compensation metric for the fiscal year was consolidated ordinary profit of ¥18,000 million under the Medium-Term Management Plan 2027, while the actual result was ¥22,639 million.」

「The target for the performance-linked compensation metric for the fiscal year was consolidated ordinary profit of ¥18,000 million under the Medium-Term Management Plan 2027, while the actual result was ¥12,679 million.」

「At a meeting held on 28 July 2023, the Company's Board of Directors resolved to dispose of treasury shares as described below, hereinafter referred to as the "Treasury Share Disposal" or the "Disposal." The disposal date is 25 August 2023, and the number of shares to be disposed of is 5,693 shares of the Company's common stock.」

「At a meeting held on 28 April 2022, the Board of Directors resolved to introduce a restricted stock compensation plan as a new compensation system for the Company's directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and executive officers who do not concurrently serve as directors. At the 104th Annual General Meeting of Shareholders held on 28 June 2022, approval was obtained to grant eligible directors monetary claims of up to ¥60 million per year under the plan and to issue or dispose of up to 20,000 shares of the Company's common stock per year, among other matters.」

「Performance-linked compensation is paid in cash and reflects the key performance indicators for each fiscal year, with the amount calculated according to the degree of achievement against the target for consolidated ordinary profit paid annually as a bonus at a specified time. Restricted stock compensation is intended to provide incentives for the sustainable enhancement of the Company’s corporate value and to promote greater sharing of value with shareholders.」