New executive compensation plan linked to financial performance and share value

「For fiscal 2026, performance-linked cash compensation (bonuses) will have evaluation weights of 50% for profit for the year attributable to owners of the parent, 20% for consolidated business profit, 20% for FUJI ROIC and 10% for the engagement score.」

「The company performance metrics used in the calculation are “profit for the year attributable to owners of the parent,” “consolidated business profit” and “FUJI ROIC”*1 as financial evaluation KPIs, and the overall company score from the engagement survey as the non-financial evaluation KPI. The evaluation weights for each KPI are 50% for “profit for the year attributable to owners of the parent,” 20% for “consolidated business profit,” 20% for “FUJI ROIC” and 10% for the engagement score.」

「For evaluations of executive duties, ESG targets linked to the basic policy of the medium-term management plan “Reborn 2024,” “Deepening sustainability (a sustainability strategy integrated with the management strategy),” will be established, with the evaluation weight set uniformly at 10%.」

「In addition to the compensation described above, from fiscal 2022 the company introduced a separate cash compensation plan linked to performance evaluations of executive duties, which varies from 0% to 200% based on individual evaluations, for directors who also perform executive duties, excluding the representative director and president.」

「Under this plan, company shares will be delivered to directors who hold office during the 3 fiscal years from the fiscal year ending 31 March 2021 through the fiscal year ending 31 March 2023.」

「Based on a resolution at the 92nd Annual General Meeting of Shareholders held on 18 June 2020, the company introduced a share compensation plan for its directors, excluding outside directors, with the aim of more clearly linking directors' compensation to the company's share value and encouraging directors to share with shareholders the benefits and risks arising from changes in the share price, thereby heightening their awareness of contributing to improved medium- to long-term performance and increased corporate value.」

「Following this review, our new executive compensation plan will consist of (1) base compensation, which is fixed compensation, (2) performance-linked cash compensation (bonuses) and (3) performance-linked share compensation, both of which are variable compensation.」