Sharing Value with Shareholders through Restricted Stock Compensation

「Other (disposal of treasury shares under the restricted stock compensation plan) 19,200 22,483」

「(Note) Treasury shares decreased by 30,000 shares as a result of the disposal of treasury shares as restricted stock compensation carried out on 14 September 2020.」

「Based on a resolution of the board of directors dated 28 August 2020, the company decided to dispose of 30,000 treasury shares as restricted stock compensation. However, because the payment date was 14 September, the number of treasury shares as of the filing date of this quarterly report was 20,500.」

「To secure treasury shares for delivery to participants in the stock compensation plan, the company acquired 50,000 treasury shares for a total of ¥43.050 million on 28 April 2020 through the Tokyo Stock Exchange's off-auction purchase of treasury shares (ToSTNeT-3), pursuant to a resolution of the company's board of directors dated 27 April 2020 and under Article 156 of the Companies Act as applied with the necessary changes pursuant to Article 165, paragraph 3 of that Act. The shares represented 1.84% of the total number of issued shares.」

「At the annual general meeting of shareholders held on 29 August 2019, the company introduced a compensation plan under which restricted stock worth no more than ¥50 million per year would be granted. Although the plan does not set performance targets or other indicators, the company makes an in-kind contribution of all monetary compensation claims paid under the plan to 3 eligible directors, namely executive directors other than major shareholders, in exchange for the issuance or disposal of the company's common shares.」