Voluntary Return and Reduction of Executive Compensation in Response to Weak Performance

「<From 21 September 2025> The basic compensation of executive directors will be determined by the Board of Directors based on the basic compensation table for executive directors prescribed in the directors' compensation rules, taking into comprehensive consideration not only the positions, roles, responsibilities and periods of service in which they have been involved in management to date, but also their management experience, expertise, knowledge and expected contributions, and reflecting the recommendations of a voluntary compensation committee in which outside directors constitute a majority. The basic compensation table for executive directors consists of fixed compensation and performance-linked compensation in a ratio of 70% to 30%. Performance-linked compensation consists of short-term incentive compensation (10%) and medium- to long-term incentive compensation (20%), with a system allowing compensation to be increased or decreased within a specified range.」

「The Company has taken seriously the contents of the “Summary of Financial Results for the Fiscal Year Ended March 2026 [Japanese GAAP] (Consolidated)” disclosed on 14 May 2026 and, in order to clarify management's responsibility, decided at a meeting of the Board of Directors held today on a policy to reduce remuneration for directors for the next fiscal year, excluding directors who are Audit and Supervisory Committee members, as follows.」

「In addition to having been compelled to solicit applicants for voluntary retirement as part of a fundamental reform of our business structure, we took seriously the fact that the performance of the ladies' innerwear and related sales business had not escaped its downward trend and that the consolidated performance target set in the profit plan for the fiscal year had declined substantially. To clarify management's responsibility, the representative director and president voluntarily returned 40% of their monthly fixed compensation for May and June 2022, while the other directors, excluding directors who are Audit and Supervisory Committee members, voluntarily returned 20%. In addition, monthly fixed compensation was reduced by 30% for the representative director and president and by 10% for directors, excluding directors who are Audit and Supervisory Committee members, from July 2022 through June 2023.」