Executive Compensation Linked to Prior-Year Performance and Achievement of Key Initiatives

「To align the compensation of directors other than those serving as Audit and Supervisory Committee Members to a certain extent with the Company's performance, an additional amount is paid on top of the base annual salary set for each position, using as indicators the previous fiscal year's ordinary income or loss and the amount of improvement in ordinary income, which primarily reflect operating performance, as well as achievement of predetermined initiatives.」

「Monthly compensation is paid in 12 equal installments based on the total of the base annual salary and the additional amount. Under the executive compensation system determined by the Board of Directors, the base annual salary is determined each June according to the executive's position, while the additional amount is determined by position after taking into consideration the previous fiscal year's ordinary income or loss, the amount of improvement in ordinary income, and the achievement of predetermined initiatives. No fixed ratio is set between the base annual salary and the additional amount, but the latter may be approximately 85% to 94% of the base annual salary at most.」