Executive compensation policy centered on fixed remuneration, without performance-linked compensation

「With respect to restricted stock compensation, at the annual general meeting of shareholders held on 24 October 2025, the company added a grant method under which part of the cash compensation for each fiscal year is converted into stock compensation, restricted stock is allocated to eligible directors according to the results achieved in that fiscal year, and the conditions for lifting the transfer restrictions are set to remain in effect until the director's retirement, encouraging directors to hold the shares for the long term.」

「To strengthen the commitment to short-term performance, the company will convert part of the monetary compensation for each fiscal year into stock-based compensation and allocate restricted shares to eligible directors based on performance for that fiscal year. It will also add a grant method under which the conditions for lifting the transfer restrictions remain in place until retirement, in order to encourage directors to hold the shares for the long term.」

「The Representative Director and President considers the content of compensation and other benefits based on each director’s position, duties and responsibilities, including whether the role is full-time or part-time, whether it involves executive functions and the scope of oversight, as well as years in office, while assuming that the amount must be sufficient to secure outstanding talent and taking performance against targets into account. The matter is referred to the Independent Outside Directors Advisory Committee, a voluntary body consisting of all independent outside directors, and is decided after receiving its recommendations.」

「The company will provide its directors with stock-based compensation, including stock options, to create incentives for the sustainable enhancement of corporate value and to further promote value sharing between the eligible directors and shareholders.」

「As stated in the 28 September 2021 notice regarding the introduction of a restricted stock compensation plan, the company resolved at a Board of Directors meeting held on 28 September 2021 to introduce a restricted stock compensation plan. The plan aims to promote the sustainable enhancement of corporate value over the medium to long term by increasing the awareness of participating in management among the company’s directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and executive officers who do not concurrently serve as directors, through their ownership of company shares, while further promoting value sharing with shareholders.」

「Compensation consists of monetary basic compensation and non-monetary stock-based compensation, including stock options. In light of their supervisory role, outside directors receive basic compensation only.」

「The company resolved to issue performance-linked paid stock acquisition rights (paid stock options) and stock acquisition rights (tax-qualified stock options), and allocated them as follows on 14 May 2021.」

「The compensation of the company’s directors does not include performance-linked compensation calculated using indicators representing the market price of the company’s shares or the company’s operating performance.」

「The company has not established a policy for determining the amount of executive compensation or how it is calculated. In addition, the compensation of the company’s directors does not include performance-linked compensation calculated using indicators representing the market price of the company’s shares or its operating performance.」