Executive Compensation Comprising Fixed Remuneration, Performance-Linked Bonuses and Stock Options

「The company has not currently introduced performance-linked compensation. As non-monetary compensation, it will introduce stock options in the form of share-based compensation for executive directors, with the aim of sharing with shareholders the benefits and risks arising from changes in the share price and increasing their motivation to contribute to the sustainable enhancement of the group's corporate value.」

「Individual compensation for executive directors responsible for business execution, including the representative directors and excluding outside directors, comprises fixed compensation and executive bonuses, taking into account their responsibility for improving performance in each fiscal year and increasing corporate value over the medium term. Fixed compensation is determined according to each director's position, taking into consideration the business environment and other factors. Executive bonuses are determined based on the performance of the group and the director's responsible division during the fiscal year, the degree of progress against the business plan and other factors.」