Policy for determining executive compensation not established

「To continue the current stock benefit trust scheme, we have decided to make an additional cash contribution to the trust, which will acquire the shares expected to be required for future benefits (the "Additional Trust Contribution"), and to dispose of treasury shares to Japan Custody Bank, Ltd. (Trust E Account), the re-trustee that has received a re-trust from the trustee of the trust established under the trust agreement to hold and dispose of the company's shares in operating the scheme (the "Treasury Share Disposal").」

「The carrying amount and number of treasury shares were ¥1,052 million and 291 thousand shares at the end of the previous consolidated fiscal year, and ¥859 million and 237 thousand shares at the end of the current interim consolidated accounting period, respectively.」

「Total compensation for directors, excluding directors who are Audit and Supervisory Committee members and outside directors, was ¥873 million, comprising ¥496 million in fixed compensation, ¥77 million in performance-linked compensation, and ¥300 million in performance-linked bonuses.」

「The carrying amount and number of these treasury shares were ¥1,054 million and 291 thousand shares, respectively, at the end of the previous consolidated fiscal year, and ¥1,052 million and 291 thousand shares, respectively, at the end of the current interim consolidated accounting period.」

「The carrying amount and number of these treasury shares were ¥1,056 million and 292 thousand shares, respectively, at the end of the previous consolidated fiscal year, and ¥1,054 million and 291 thousand shares, respectively, at the end of the second quarter of the current consolidated accounting period.」

「Total compensation for directors, excluding directors who are Audit and Supervisory Committee members and outside directors, was ¥520 million, comprising ¥370 million in fixed compensation, ¥22 million in performance-linked compensation, and ¥127 million in performance-linked bonuses.」

「The Company's shares remaining in the trust are recorded as treasury shares under net assets at their carrying amount in the trust, excluding incidental costs. The carrying amount and number of these treasury shares were ¥1,056 million and 292 thousand shares, respectively, as of the end of the third quarter of the consolidated accounting period.」

「Pursuant to a resolution at the 40th Annual General Meeting of Shareholders held on 24 June 2022, the Company introduced a new performance-linked share compensation plan, the Share Benefit Trust (BBT (Board Benefit Trust)), for directors other than outside directors and executive officers (collectively, “Directors and Other Eligible Officers”).」

「For the 3 fiscal years from the fiscal year ending March 2023 through the fiscal year ending March 2025, the total number of shares to be granted will be capped at 225,000 shares for directors among the directors and other eligible officers, and 67,500 shares for executive officers.」

「Compensation for directors will be set at a level that not only motivates management aimed at enhancing corporate value over the medium to long term, as well as the short term, but also enables the Company to secure diverse and highly capable personnel. Compensation levels will be competitive compared with those of companies in the same industry and companies of similar size in other industries.」

「The Company has not established a policy for determining the amount of compensation for directors and executive officers or the method of calculating it.」