Corporate Value Enhancement Incentives through an Employee Share Ownership ESOP Trust

「Of the 481 treasury shares acquired during the fiscal year, 114 were acquired free of charge under the restricted stock incentive plan for the employee stock ownership association. / Other (disposal of treasury stock under the restricted stock incentive plan for the employee stock ownership association): 16,416 shares」

「The Group had introduced the Employee Stock Ownership ESOP Trust (the “ESOP Trust”) as a trust-based employee stock ownership incentive plan, with the aim of promoting the Group’s sustained development by providing Group employees with incentives to enhance the Group’s medium- to long-term corporate value, expanding employee benefits, and raising employee morale through capital participation as shareholders. The term of the ESOP Trust ended on 29 December 2017.」

「The Company has introduced the Employee Stock Ownership ESOP Trust (the “ESOP Trust”) as a trust-based employee stock ownership incentive plan. The plan is intended to promote the Group’s sustained development by providing Group employees with incentives to enhance the Group’s medium- to long-term corporate value, expanding employee benefits, and raising employee morale through capital participation as shareholders. Under the application of the gross method, the carrying amount of treasury stock recorded was ¥68 million (37,200 shares) at the end of the previous consolidated fiscal year and ¥41 million (22,500 shares) at the end of the third quarter of the current consolidated fiscal year. The carrying amount of borrowings was ¥26 million at the end of the previous consolidated fiscal year, while no borrowings were recorded at the end of the third quarter of the current consolidated fiscal year.」

「The Company has introduced the Employee Stock Ownership ESOP Trust (the “ESOP Trust”) as a trust-based employee stock ownership incentive plan. The plan is intended to promote the Group’s sustained development by providing Group employees with incentives to enhance the Group’s medium- to long-term corporate value, expanding employee benefits, and raising employee morale through capital participation as shareholders. Under the application of the gross method, the carrying amount of treasury stock recorded was ¥68 million (372,000 shares) at the end of the previous consolidated fiscal year and ¥63 million (346,000 shares) at the end of the first quarter of the current consolidated fiscal year. The carrying amount of borrowings was ¥26 million at both period-ends.」

「The ESOP Trust covers all Group employees who join the OUG Group Employee Stock Ownership Plan. The Company established a trust with a trust bank, naming employees who meet certain requirements among those joining the plan as beneficiaries. The ESOP Trust acquired the Company's shares expected to be acquired by the plan over the 4 years and 2 months following its establishment.」

「Under the application of the gross method, the carrying amount of treasury shares recognized was ¥102 million (559,000 shares) at the end of the previous consolidated fiscal year and ¥73 million (397,000 shares) at the end of the third quarter of the current consolidated fiscal year. The carrying amount of borrowings was ¥75 million at the end of the previous consolidated fiscal year and ¥46 million at the end of the third quarter of the current consolidated fiscal year.」

「The Company has introduced the Employee Stock Ownership ESOP Trust (the “ESOP Trust”), a trust-type employee stock ownership incentive plan, to promote the Group's sustained development by providing Group employees with incentives to increase the Group's medium- to long-term corporate value, enhancing employee benefits and raising employees' motivation to work through their participation as shareholders. Under the application of the gross method, the carrying amount of treasury shares recognized was ¥102 million (559,000 shares) at the end of the previous consolidated fiscal year and ¥82 million (450,000 shares) at the end of the second quarter of the current consolidated fiscal year. The carrying amount of borrowings was ¥75 million at the end of the previous consolidated fiscal year and ¥46 million at the end of the second quarter of the current consolidated fiscal year.」

「The Company has introduced the Employee Stock Ownership ESOP Trust (the “ESOP Trust”), a trust-type employee stock ownership incentive plan, to promote the Group's sustained development by providing Group employees with incentives to increase the Group's medium- to long-term corporate value, enhancing employee benefits and raising employees' motivation to work through their participation as shareholders. For accounting treatment in the ESOP Trust's separate financial statements, the gross method is applied, and the Company's shares held by the ESOP Trust are presented as treasury shares in net assets. Under the application of the gross method, the carrying amount of treasury shares recognized was ¥102 million (559,000 shares) at the end of the previous consolidated fiscal year and ¥97 million (530,000 shares) at the end of the first quarter of the current consolidated fiscal year. The carrying amount of borrowings was ¥75 million at both dates.」

「The Group has introduced the Employee Stock Ownership ESOP Trust (the “ESOP Trust”), a trust-type employee stock ownership incentive plan, to promote the Group's sustained development by providing Group employees with incentives to increase the Group's medium- to long-term corporate value, enhancing employee benefits and raising employees' motivation to work through their participation as shareholders. / Total number of shares scheduled to be acquired for the employee stock ownership plan: 990,000 shares」