Introduction of a Performance-Linked Stock Compensation Plan

「At the 129th Annual General Meeting of Shareholders held on 26 June 2025, in connection with the transition to a company with an Audit and Supervisory Committee, the persons covered are directors (excluding directors who are Audit and Supervisory Committee members, outside directors and non-residents of Japan; hereinafter, together with executive officers who enter into delegation agreements, the “Directors and Other Officers”).」

「The common shares included in the "Fully Voting Shares (Other)" category include 212,100 shares of the company held by the Officer Compensation BIP Trust, representing 2,121 voting rights.」

「The carrying amount of these treasury shares was ¥306 million and the number of shares was 216,466 at the end of the previous consolidated fiscal year, compared with a carrying amount of ¥360 million and 212,154 shares at the end of the current consolidated fiscal year.」

「The common shares included in the "Fully Voting Shares (Other)" category include 134,700 shares of the company held by the Officer Compensation BIP Trust, representing 1,347 voting rights.」

「At a Board of Directors meeting held on 15 May 2024, the company decided to continue the plan.」

「The common shares included in the "Fully Voting Shares (Other)" category include 216,400 shares of the company held by the Officer Compensation BIP Trust, representing 2,164 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 252,600 shares of the company held by the Officer Compensation BIP Trust, representing 2,526 voting rights.」

「The carrying amount of these treasury shares was ¥368 million and the number of shares was 260,376 at the end of the previous consolidated fiscal year, compared with a carrying amount of ¥357 million and 252,624 shares at the end of the current consolidated fiscal year.」

「The common shares included in the "Fully Voting Shares (Other)" category include 257,200 shares of the company held by the Officer Compensation BIP Trust, representing 2,572 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 257,200 shares of the company held by the Officer Compensation BIP Trust, representing 2,572 voting rights.」

「The carrying amount of these treasury shares was ¥222 million and the number of shares was 133,198 at the end of the previous consolidated fiscal year, compared with a carrying amount of ¥368 million and 260,376 shares at the end of the current consolidated fiscal year.」

「The common shares included in the "Fully Voting Shares (Other)" category include 260,300 shares of the company held by the Officer Compensation BIP Trust, representing 2,603 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 260,300 shares of the company held by the Officer Compensation BIP Trust, representing 2,603 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 133,100 shares of the company held by the Officer Compensation BIP Trust, representing 1,331 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 133,100 shares of the company held by the Officer Compensation BIP Trust, representing 1,331 voting rights.」

「At a Board of Directors meeting held on 10 May 2019, the company added executive officers who have entered into mandate agreements with the company, excluding non-residents of Japan, to the scope of the BIP Trust. These officers and directors are collectively referred to as "directors and other eligible officers" below.」

「The common shares included in the "Fully Voting Shares (Other)" category include 136,900 shares of the company held by the Officer Compensation BIP Trust, representing 1,369 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 136,900 shares of the company held by the Officer Compensation BIP Trust, representing 1,369 voting rights.」

「The common shares included in the "Fully Voting Shares (Other)" category include 115,600 shares of the company held by the Officer Compensation BIP Trust, representing 1,156 voting rights.」

「The company adopted a structure known as an Officer Compensation BIP (Board Incentive Plan) Trust, or BIP Trust. After directors and other eligible officers retire, including retirement due to death, the company delivers shares acquired through the BIP Trust and pays cash equivalent to the proceeds from the sale of those shares, according to position and the degree of achievement of company performance targets and other measures.」

「At the 122nd Annual General Meeting of Shareholders held on 27 June 2018, the company introduced a performance-linked share compensation plan for its directors, excluding outside directors and non-residents of Japan. The plan is intended to clarify the link between directors' compensation and the company's share value and increase their awareness of contributing to improved performance and increased corporate value over the medium to long term.」

「The performance-based stock compensation plan is intended to strengthen the motivation to contribute to the Group’s sustainable growth and the enhancement of corporate value over the medium to long term. Shares are delivered based on the participant’s position and the degree to which the targets of the medium-term management plan are achieved. For each three-fiscal-year covered period, the maximum contribution is ¥310 million and the maximum number of points granted to directors is 195,000, with 1 point corresponding to 1 share. Points comprise a 50% fixed component and a 50% variable component linked to performance; the performance-linked points vary from 0% to 200% according to target achievement, resulting in total points varying from 50% to 150%.」