Policy for Determining the Amount and Calculation Method for Officers’ Remuneration

The Company resolved at the Board of Directors meeting held on April 5, 2021, to adopt a policy for determining the details of remuneration for individual directors. Following the establishment of the Compensation Committee, the Company resolved at the Board of Directors meeting held on February 10, 2022, to revise this policy. The details of the resolution are as follows:

1. Basic Policy
   The Company’s policy is to establish a remuneration system for directors that functions as an appropriate incentive to achieve profit targets and sustainably enhance corporate value, and to determine the remuneration for each director at an appropriate level commensurate with their respective roles and responsibilities.
2. Policy for Determining the Amount of or Calculation Method for Fixed Remuneration for Individual Directors (including policies for determining the timing or conditions for granting remuneration)
   The Company’s policy is that remuneration for directors shall consist of fixed monthly remuneration, and the amount shall be determined comprehensively based on each director’s position, assigned duties, and tenure, while taking into account the Company’s performance, employee salary levels, and remuneration levels at other companies. The Company’s policy is that retirement benefits paid upon resignation shall be determined within a reasonable range based on the director’s position, assigned duties, and tenure in accordance with the Company’s standards.
3. Matters Concerning the Determination of Remuneration for Individual Directors
   The Board of Directors delegates the determination of remuneration for individual directors to the President and CEO. The President and CEO determines remuneration appropriately based on recommendations made to the Board of Directors by the Compensation Committee, a majority of whose members are Independent Directors.

Under the above policy, Hidetoshi Shibuya, President and CEO, determines the amount of fixed monthly remuneration for each director. The reason for this delegation is that the President and CEO is considered best suited to evaluate the performance of each director in their assigned areas and responsibilities while taking a comprehensive view of the Company’s overall business performance. The President and CEO determines the amount of remuneration for each director so that it is consistent with the Compensation Committee’s recommendations to the Board of Directors, and the Board of Directors has determined that such determination is in line with the relevant policy. At the 75th Ordinary General Meeting of Shareholders held on September 27, 2023, it was resolved that the total amount of remuneration for directors shall not exceed 30 million yen per month (including up to 3 million yen for Independent Directors). The number of directors at the conclusion of the meeting was six (including two Independent Directors).

At the 47th Ordinary General Meeting of Shareholders held on September 28, 1995, it was resolved that the total amount of remuneration for Audit and Supervisory Board Members shall not exceed 5 million yen per month. The number of Audit and Supervisory Board Members at the conclusion of the meeting was four. The amount of remuneration for each Audit and Supervisory Board Member is determined through consultation among the Audit and Supervisory Board Members.

Total Amount of Remuneration by Officer Category, Total Amount by Type of Remuneration, and Number of Officers Subject Thereto

Notes

(1) Retirement benefits represent the amount recorded as the provision for retirement benefits for officers for the fiscal year ended June 30, 2025.

(2) There is no non-monetary remuneration.

Total Amount of Consolidated Remuneration for Each Officer

No applicable officers are subject to disclosure.