Trust-Based Employee Stock Ownership Incentive Plan

「The trust terminated on 29 November 2019.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥98 million and 40 thousand shares at the end of the previous consolidated fiscal year, and ¥57 million and 23 thousand shares in the second quarter of the current consolidated fiscal year, respectively.」

「Thereafter, the E-Ship Trust will continuously sell our shares to the employee stock ownership association. If, at the termination of the trust, an amount equivalent to gains on the sale of shares has accumulated in the E-Ship Trust, that amount will be distributed as residual assets to persons meeting the beneficiary eligibility requirements. [Excerpt] The carrying value and number of these treasury shares were ¥98 million and 40 thousand shares at the end of the previous consolidated fiscal year, and ¥87 million and 35 thousand shares in the first quarter of the current consolidated fiscal year, respectively.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥150 million and 61 thousand shares at the end of the previous consolidated fiscal year, and ¥98 million and 40 thousand shares at the end of the current consolidated fiscal year, respectively.」

「The carrying value and number of these treasury shares were ¥150 million and 61 thousand shares at the end of the previous consolidated fiscal year, and ¥108 million and 44 thousand shares in the third quarter of the current consolidated fiscal year, respectively.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥150 million and 61 thousand shares at the end of the previous consolidated fiscal year, and ¥125 million and 51 thousand shares in the second quarter of the current consolidated fiscal year, respectively.」

「The carrying value and number of these treasury shares were ¥150 million and 61 thousand shares at the end of the previous consolidated fiscal year, and ¥144 million and 58 thousand shares in the first quarter of the current consolidated fiscal year, respectively.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥243 million and 98 thousand shares at the end of the previous consolidated fiscal year, and ¥150 million and 61 thousand shares at the end of the current consolidated fiscal year, respectively.」

「The carrying value and number of these treasury shares were ¥243 million and 98 thousand shares at the end of the previous consolidated fiscal year, and ¥160 million and 65 thousand shares in the third quarter of the current consolidated fiscal year, respectively.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥243 million and 98 thousand shares at the end of the previous consolidated fiscal year, and ¥186 million and 75 thousand shares in the second quarter of the current consolidated fiscal year, respectively.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥243 million and 98 thousand shares at the end of the previous consolidated fiscal year, and ¥228 million and 92 thousand shares in the first quarter of the current consolidated fiscal year, respectively.」

「Our shares remaining in the trust are recognized as treasury shares in net assets at their carrying value in the trust, excluding incidental expenses. The carrying value and number of these treasury shares were ¥360 million and 146 thousand shares at the end of the previous consolidated fiscal year, and ¥258 million and 105 thousand shares in the third quarter of the current consolidated fiscal year, respectively.」

「Under the plan, we establish the Kawai Employee Stock Ownership Association Trust with a trust bank, and the E-Ship Trust uses borrowed funds to acquire in advance our shares in an amount expected to be acquired by the association over the next 5 years. Thereafter, the E-Ship Trust continuously sells our shares to the association. The shares remaining in the trust decreased from 146 thousand shares at the end of the previous fiscal year to 118 thousand shares in the second quarter of the current consolidated fiscal year, while borrowings recognized under the gross method decreased from ¥377 million to ¥318 million.」

「This plan is an incentive plan for all employees who join the Kawai Employee Stock Ownership Association. Under the plan, we establish the Kawai Employee Stock Ownership Association Trust with a trust bank, and the E-Ship Trust uses borrowed funds to acquire in advance our shares in an amount expected to be acquired by the association over the next 5 years.」