Directors’ Compensation Policy of the Nomination and Compensation Committee

「Performance-based compensation is linked to performance indicators to raise awareness of improving performance in each fiscal year and is paid monthly together with fixed compensation. The performance indicators are consolidated net sales and net income attributable to owners of the parent for the previous fiscal year. The Nomination and Compensation Committee prepares a proposal linking compensation to the evaluations prescribed by the committee and determining the ratio to fixed compensation based on each director's position and responsibilities, and submits it to the Board of Directors.」

「During the current fiscal year, the company held the Nomination and Compensation Committee twice. Attendance by each committee member was as follows.」

「To ensure the appropriateness of compensation levels and transparency in performance evaluations, the Nomination and Compensation Committee, a majority of whose members are outside directors, prepares a draft of the compensation for directors other than directors who are Audit and Supervisory Committee members, taking comprehensive account of their positions, responsibilities, years in office, compensation levels at other companies, the company's performance and employee salary levels, and submits it to the Board of Directors.」

「To establish a compensation structure that functions effectively as an incentive for the sustained enhancement of corporate value, the company referred a draft policy for determining the details of individual director compensation and other remuneration to the Nomination and Compensation Committee. Based on the committee's recommendations, the Board of Directors adopted the policy at its meeting held on 26 February 2021.」