Review of the Executive Compensation System and Abolition of the Directors’ Retirement Benefit System

「The company has introduced a pre-grant restricted stock compensation system as non-cash compensation for executive directors who are residents of Japan, and a phantom stock plan as cash compensation for executive directors who are non-residents of Japan.」

「The company has introduced a phantom stock plan as cash compensation for executive directors who are non-residents of Japan.」

「At a meeting of the Board of Directors held on 28 June 2023, the company resolved to dispose of treasury shares as restricted stock compensation for its directors, excluding directors who are non-residents of Japan, directors who are Audit and Supervisory Committee members, and outside directors, and carried out the disposal as described below. 1. Overview of the disposal (1) Disposal date: 28 July 2023 (2) Class and number of shares to be disposed of: 6,630 common shares of the company (3) Disposal price: ¥1,323 per share (4) Total disposal value: ¥8,771,490」

「Disposal date: 28 July 2022; class and number of shares to be disposed of: 13,680 common shares of the company; disposal price: ¥974 per share; total disposal value: ¥13,324,320」

「The Nomination and Compensation Committee, in response to inquiries from the Board of Directors, deliberates from an objective standpoint on matters including draft revisions to internal executive compensation rules, compensation levels, and the appropriateness of compensation amounts, participates in the process of determining executive compensation and other payments, and reports its findings to the Board of Directors.」

「At a meeting of the Board of Directors held on 29 June 2021, the company resolved to dispose of treasury shares as restricted stock compensation for its directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and carried out the disposal as described below. Disposal date: 28 July 2021; class and number of shares to be disposed of: 13,410 common shares of the company; total disposal value: ¥13,329,540.」

「At a meeting of the Board of Directors held on 31 July 2020, the company resolved to dispose of treasury shares as restricted stock compensation for its directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and carried out the disposal as described below.」

「In January 2020, the company established a voluntary Nomination and Compensation Committee as an advisory body to the Board of Directors, and decided that compensation for directors and directors who are Audit and Supervisory Committee members would be determined following deliberation by the committee. Effective 26 June 2020, the company revised its compensation system for directors other than directors who are Audit and Supervisory Committee members, with the aim of increasing incentives to improve performance, so that compensation for the following fiscal year is determined based on performance-related indicators such as consolidated operating profit for the previous fiscal year. The revised system also includes restricted stock compensation intended to support the enhancement of corporate value over the medium to long term.」

「Reversal of provision for retirement benefits for directors 258」

「Reversal of provision for retirement benefits for directors 258」

「Reversal of provision for retirement benefits for directors 258」

「The company decided to abolish the retirement benefit system for directors, including directors who are Audit and Supervisory Committee members, upon the conclusion of the 66th Annual General Meeting of Shareholders held on 27 June 2019. As part of its review of the executive compensation system, the company is considering introducing a more incentive-based compensation system for directors, while enhancing objectivity and independence in the decision-making process by establishing a compensation committee and other bodies.」