Introduction of a performance-linked stock compensation plan

「The company has introduced a performance-linked stock compensation plan using a BIP trust for executive compensation, covering the company’s directors, excluding directors whose primary duties are as directors of subsidiaries, outside directors and non-residents of Japan, and executive officers, excluding non-residents of Japan, collectively referred to as “directors and other officers.”」

「The company has continued to be unable to establish a BIP trust for executive compensation. Accordingly, as an alternative until the introduction of performance-linked stock compensation, it decided to introduce share-price-linked compensation paid in cash instead of shares and calculated using the same method as performance-linked stock compensation.」

「Starting in the fiscal year ended March 2020, the company introduced a performance-linked stock compensation plan. The plan is intended to motivate directors and other officers to achieve the medium- to long-term performance targets set out in the 19-21 Medium-Term Management Plan, “Challenge for Further Growth: Together with Health, Together with Local Communities,” enhance corporate value over the long term, and share the same interests as shareholders by creating a high degree of alignment between consolidated performance and the company’s share price.」