Stock Options Tied to Ordinary Profit Targets of ¥8 Billion, ¥9 Billion and ¥10 Billion

「The Group had pursued its third medium-term management target of achieving consolidated ordinary profit of ¥15.0 billion by the fiscal year ending March 2022. In addition to solid M&A demand, the concerted efforts of the entire Group and the various measures described above enabled it to achieve the target one year ahead of schedule, even amid the COVID-19 pandemic.」

「As shown in the table below, for the nine months ended 31 December, operating income, ordinary income, and net income attributable to owners of the parent exceeded the results for the same period of the previous year by 10.3%, 9.1%, and 8.3%, respectively. Having overcome the impact of COVID-19, the company set a new record high for the nine-month period.」

「For the current consolidated fiscal year, consolidated ordinary profit was ¥14,467 million against the full-year ordinary profit forecast of ¥13,500 million, representing a budget achievement rate of 107.2%.」

「In the current consolidated fiscal year, the second year of the third medium-term management target period, the Group set its full-year consolidated ordinary profit forecast at ¥13.5 billion. As a result of proactive sales activities from the beginning of the year, progress against the full-year forecast reached 96.3% in the nine-month period of the current consolidated fiscal year, as described above.」

「Since the previous consolidated fiscal year, the Group has pursued the new medium-term management target of achieving consolidated ordinary profit of ¥15.0 billion by the fiscal year ending March 2022. To achieve this target one year ahead of schedule, it set the full-year consolidated ordinary profit forecast for the current consolidated fiscal year at ¥13.5 billion and launched proactive sales activities from the first three months of the current consolidated fiscal year to achieve it steadily.」

「Since the current consolidated fiscal year, the Group has pursued its third medium-term management target of achieving consolidated ordinary profit of ¥15.0 billion by the fiscal year ending March 2022. To achieve this target one year ahead of schedule, it set the full-year consolidated ordinary profit forecast for the current consolidated fiscal year at ¥12.5 billion. Driven by solid M&A demand and proactive sales activities, it exceeded this full-year forecast.」

「In October 2017, the Group formulated a new third medium-term management target of achieving consolidated ordinary profit of ¥15.0 billion by the fiscal year ending March 2022. At the same time, it issued new share acquisition rights (paid stock options) whose exercise conditions were directly linked to the new medium-term management target.」

「To support further growth, the Group has established a new medium-term management target of achieving consolidated ordinary profit of ¥15.0 billion by the fiscal year ending March 2022. During the first three months of the current consolidated fiscal year, it implemented various measures necessary to achieve this target ahead of schedule.」

「Since the fiscal year ending March 2016, the Group has pursued the medium-term management target of achieving consolidated ordinary profit of ¥10.0 billion by the fiscal year ending March 2019. For the current consolidated fiscal year, the initial full-year forecast for consolidated ordinary profit was set at ¥10.0 billion in order to achieve the target one year ahead of schedule. Driven by solid M&A demand and proactive sales activities, the Group achieved consolidated ordinary profit of more than ¥11.6 billion in the current consolidated fiscal year.」

「In April 2015, the Group formulated its second medium-term management target: “Achieve consolidated ordinary profit of ¥10.0 billion by the fiscal year ending March 2019,” and has worked toward achieving it. Based on the results for the nine-month period of the current consolidated fiscal year described above, the Group is on track to achieve this target in the fiscal year ending March 2018, one year ahead of the original plan. In light of this, in October 2017 the Group formulated a new third medium-term management target: “Achieve consolidated ordinary profit of ¥15.0 billion by the fiscal year ending March 2022.” At the same time, it issued new share acquisition rights (paid stock options) whose exercise conditions were directly linked to the new medium-term management target. Of the directors and employees of the Company and its subsidiaries to whom the rights were allotted, all regular employees who were employed at the time of allotment, 98.0% subscribed for these new share acquisition rights (paid stock options).」

「(i) If ordinary profit exceeded ¥11.5 billion in the fiscal year ending March 2019 and ¥12.5 billion in the fiscal year ending March 2020, 30% of the allocated stock acquisition rights could be exercised; (ii) if ordinary profit exceeded ¥13.5 billion in the fiscal year ending March 2021, 30% of the allocated stock acquisition rights could be exercised; and (iii) if ordinary profit exceeded ¥15 billion in the fiscal year ending March 2022, 40% of the allocated stock acquisition rights could be exercised.」

「To further accelerate its growth, the Group set a new medium-term management target of achieving consolidated ordinary profit of ¥10 billion by the fiscal year ending March 2019. During the current consolidated fiscal year, it set the full-year forecast for consolidated ordinary profit at ¥10 billion, bringing forward achievement of the new medium-term management target by one year, and launched proactive sales activities from the cumulative first quarter to steadily achieve it.」

「The Group has maintained a medium-term management target since the previous consolidated fiscal year of achieving consolidated ordinary profit of ¥10 billion by the fiscal year ending March 2019. Based on this target, the initial full-year forecast for consolidated ordinary profit for the current consolidated fiscal year was ¥8 billion, but driven by solid M&A demand and proactive sales activities, the Group achieved consolidated ordinary profit of ¥9 billion during the current consolidated fiscal year.」

「To further accelerate its growth, the Group set a new medium-term management target of achieving consolidated ordinary profit of ¥10 billion by the fiscal year ending March 2019. To fulfill this new target, the Group launched proactive sales activities from the cumulative first quarter of the current consolidated fiscal year to steadily achieve its full-year forecast of ¥8 billion in consolidated ordinary profit for the current consolidated fiscal year.」

「(i) If ordinary profit exceeded ¥8 billion in either the fiscal year ended March 2016 or the fiscal year ended March 2017, 30% of the allocated stock acquisition rights could be exercised; (ii) if ordinary profit exceeded ¥9 billion in the fiscal year ended March 2018, 30% of the allocated stock acquisition rights could be exercised; and (iii) if ordinary profit exceeded ¥10 billion in the fiscal year ended March 2019, 40% of the allocated stock acquisition rights could be exercised.」