Transparent Executive Remuneration Design through the Remuneration Advisory Committee

「For performance-linked bonuses, targets are established for management indicators and priority strategies in line with the annual and medium- to long-term business plans. The amount paid is calculated by multiplying the standard amount set according to position and responsibilities by the degree of achievement of the targets (0.5 to 1.5 times), and is generally paid at a specified time after the end of the fiscal year. Share price-linked compensation is calculated by multiplying the number of phantom shares granted annually according to position and responsibilities by the equivalent share price after a specified period. The resulting amount is accumulated during the term of office and generally paid in a lump sum at a specified time after retirement.」

「The Company uses revenue, net income attributable to owners of the parent, ROE (return on equity), and EBITDA (ordinary income + interest expense + depreciation) as indicators for evaluating company performance, and evaluates performance based on achievement levels for each fiscal year. The results were revenue of ¥28,592 million, net income attributable to owners of the parent of ¥1,578 million, ROE of 9.7%, and EBITDA of ¥8,362 million.」

「The results were revenue of ¥25,892 million, net income attributable to owners of the parent of ¥1,514 million, and ROE (return on equity) of 9.6%. Individual performance is evaluated comprehensively based on the achievement of priority measures established for each individual at the beginning of the period, including "further strengthening the earnings capacity of the welfare-equipment rental wholesale business, the core business" and "expanding lifestyle-support merchandise sales and meal services," as well as from the perspective of improving corporate value over the medium to long term.」

「The results were revenue of ¥23,297 million, net income attributable to owners of the parent of ¥1,675 million, and ROE (return on equity) of 11.1%. Individual performance is evaluated comprehensively based on the achievement of priority measures established for each individual at the beginning of the period, including "further strengthening the earnings capacity of the welfare-equipment rental wholesale business, the core business" and "expanding lifestyle-support merchandise sales and meal services," as well as from the perspective of improving corporate value over the medium to long term.」

「The percentage represented by the ceiling on performance-linked compensation and other remuneration in total compensation is to be set within a range of approximately 30% to 50%, with the percentage increasing as the position and responsibilities become more senior.」

「Authority to determine the policy concerning the amount of compensation and other remuneration for the Company's directors, or the method for calculating it, rests with the Board of Directors. The Board determines the amount of compensation based on recommendations from the Compensation Advisory Committee, chaired by an outside director, after the committee has conducted a fair and highly transparent evaluation.」

「Our policy for determining the amount of compensation and other remuneration for directors and executive officers, or the method of calculating it, is designed to ensure transparency, accountability and objectivity in compensation, align director compensation with medium- to long-term shareholder value, and provide incentives to deliver results, consistent with our role as a company that should contribute broadly to an aging society. The Board of Directors makes the decision based on recommendations from the Compensation Advisory Committee, which is chaired by an outside director.」

「From a corporate governance perspective, we established a Compensation Advisory Committee chaired by an outside director to design the compensation system through transparent procedures, and the committee deliberates and considers matters primarily concerning director compensation.」