Introduction of a Restricted Stock Compensation Plan

「The company acquired 700,000 treasury shares based on a resolution of the Board of Directors held on 21 November 2025, while disposing of 17,700 treasury shares as restricted stock compensation based on a resolution of the Board of Directors held on 24 December 2025.」

「Based on a resolution of the Board of Directors held on 22 December 2023, the company disposed of 16,400 treasury shares as restricted stock compensation on 22 January 2024.」

「Based on a resolution of the Board of Directors held on 23 December 2022, the company disposed of 17,700 treasury shares as restricted stock compensation on 23 January 2023.」

「As a guideline, the compensation mix for each executive director is 70% base compensation and 30% stock compensation, while the compensation mix for each outside director is 85% base compensation and 15% stock compensation. The company determines appropriate compensation ratios based on a comprehensive assessment of each individual's responsibilities and contribution to performance.」

「As a result of issuing new shares as restricted stock compensation effective 21 January 2022 pursuant to a resolution of the Board of Directors held on 23 December 2021, the number of shares increased by 8,200.」

「At the 25th Annual General Meeting of Shareholders held on 23 December 2021, the company introduced a restricted stock compensation plan for directors, including outside directors, and audit & supervisory board members. It resolved that the total amount would be separate from the above compensation limits and capped at ¥60,000 thousand per year for directors, including up to ¥5,000 thousand per year for outside directors, and ¥3,000 thousand per year for audit & supervisory board members. It also resolved that the total number of common shares newly issued or disposed of would be capped at 16,000 shares per year for directors, including up to 2,000 shares per year for outside directors, and 1,000 shares per year for audit & supervisory board members.」