Director Compensation Policy Combining Fixed and Performance-Based Pay

「21 December 2023 (Note) 84,000 4,650,526 49,140 1,664,816 49,140 1,522,516 (Note) Issuance of new shares as restricted stock compensation Issue price: ¥1,170 Amount credited to capital: ¥585 Allottees: 24 officers of the Company and its subsidiaries」

「At meetings of the Board of Directors held on 2 November 2023 and the 35th Annual General Meeting of Shareholders held on 29 November 2023, the Company resolved to introduce a stock-based remuneration plan under which restricted stock would be granted to eligible officers, with the aim of providing incentives for the sustainable enhancement of corporate value, promoting initiatives to enhance corporate value over the medium to long term, and further sharing value with shareholders.」

「Specifically, the remuneration of executive directors comprises basic remuneration as fixed remuneration, performance-linked remuneration, and restricted stock compensation, while outside directors receive basic remuneration and restricted stock compensation that do not vary according to performance or other factors in order to ensure a high degree of independence.」

「The basic policy is to establish a remuneration structure for the Company's directors that contributes to enhancing corporate value and achieving sustainable growth, and to set appropriate remuneration levels based on the responsibilities associated with each position when determining the remuneration of individual directors. Specifically, the remuneration of executive directors comprises basic remuneration as fixed remuneration and performance-linked remuneration, while outside directors receive basic remuneration that does not vary according to performance or other factors in order to ensure a high degree of independence.」