Sharing Value with Shareholders Through a Share-Based Compensation Plan

「During the covered period, through the date of conclusion of the ordinary general meeting of shareholders in June 2027, our company and Iyo Bank will each contribute up to ¥600 million to the trust as funds needed to purchase our shares for delivery to our directors, excluding directors who are Audit and Supervisory Committee members, and to Iyo Bank's directors, excluding directors who are Audit and Supervisory Committee members.」

「At meetings of the boards of directors of our company and Iyo Bank held on 27 June 2024, we decided to extend the covered period by 3 years and, accordingly, extend the trust period by 3 years and continue the plan.」

「We and our subsidiary The Iyo Bank, Ltd. have introduced a trust-based stock compensation plan to more clearly link the compensation of our directors, excluding directors who are Audit and Supervisory Committee members, and executive officers, as well as the compensation of directors of Iyo Bank, excluding directors who are Audit and Supervisory Committee members, and its executive officers, to the value of our shares. By sharing with shareholders the benefits and risks arising from changes in the share price, the plan is intended to heighten directors' awareness of contributing to improved medium- to long-term performance and increased corporate value.」