Notes:

• The amounts of directors’ compensation do not include compensation as Group Executive Officers. The total amount of directors’ remuneration, including remuneration as Group Executive Officers, is ¥173,526 thousand, consisting of basic compensation of ¥150,012 thousand and performance-linked compensation (cash) of ¥23,514 thousand.
• The number of payees and the amount of remunerations include one director and the amount of renumeration during their service, who retired from office at the conclusion of the 34th Ordinary General Meeting of Shareholders held on March 26, 2025.
• The total amount of officer’s remunerations etc., total amount of remunerations, etc. by type., and the number of eligible officers do not include one director and one company auditor all of whom serve without remuneration.
• The Company is introducing a performance-linked share-based remuneration system using the directors’ remuneration BIP (Board Incentive Plan) trust scheme for directors of the Company (excluding outside directors and those who are nonresidents of Japan). Covenants, etc. at the time of allotments are provided in “(a) Policy for determining details of remunerations, etc. for officers,” and the delivery status in the business year under review is provided in “2. (1) 5) Status of shares delivered to the Company’s officers as remuneration for the execution of duties during the business year under review.”
• The performance indicator associated with performance-linked remuneration, etc. is consolidated Non-GAAP operating profit, and those results are provided in “1. (1) Business progress and results,” and “1. (2) Trends in financial position and profit and loss.” As the reason for selecting this indicator, the Company has deemed that this is an appropriate indicator for evaluating the achievement of improvements to the medium- to long-term corporate value. In calculating performance-linked remuneration, basic points are allotted in a set period during each business year according to the role of each director and the level of achievement, etc. of performance targets during the covered trust period of the directors’ remuneration BIP trust. After the conclusion of the covered period, additional points allotted to persons covered by the system on the last day of the final business year of the covered period are cumulatively added to the cumulative value of basic points (“Cumulative Points”). A number of the Company’s shares equal to the number of Cumulative Points is delivered or paid to persons covered by the system as share-based remuneration. Furthermore, 50% of the shares corresponding to the points in question (share of less than one unit rounded down) will be delivered as shares, and from the standpoint of securing funds to pay taxes, the remainder will be converted into cash, and cash corresponding to the amount converted to cash will be paid.
• At the 23rd Ordinary General Meeting of Shareholders held on December 20, 2013, the amount of cash remuneration for directors was set at up to ¥600 million annually (not including the portion of employee salaries paid to directors concurrently serving as employees). The number of directors as of the conclusion of this ordinary general meeting of shareholders is eight. Furthermore, in a separate framework from cash remuneration, at the 26th Ordinary General Meeting of Shareholders held on December 20, 2016, the amount of trust funds provided to the trust as funds for the acquisition of the Company’ shares associated with the points allotted to directors (excluding outside directors and non-residents of Japan) as performance-linked share-based payments (directors’ remuneration BIP trust) was set at a maximum of ¥700 million, and the total points at a maximum of 2,800,000 points (corresponding to 2,800,000 shares) for three business years. The number of directors as of the conclusion of this ordinary general meeting of shareholders (excluding outside directors and nonresidents of Japan) is six. At the 32nd Ordinary General Meeting of Shareholders held on December 21, 2022, resolutions were passed to extend the trust period until May 31, 2026, and in conjunction with the change in the Company’s fiscal year-end, to continue with the plan under a new version in which some details were revised. The number of directors as of the conclusion of this ordinary general meeting of shareholders (excluding outside directors and non-residents of Japan) is two.
• The amount of cash remuneration for company auditors was set at a maximum of ¥50 million annually at the 9th Ordinary General Meeting of Shareholders held on December 14, 1999. The number of company auditors as of the conclusion of this ordinary general meeting of shareholders is one.
• The board of directors has delegated the decisions on the amounts of individual director remuneration to Yuichi Kouno, the Representative Director, Group President and Chief Executive Officer. The reason for the delegation is that the board of directors deemed that the Representative Director, Group President and Chief Executive Officer is best suited to conduct evaluations of the division for which each director is responsible while considering the Company’s overall performance, etc. The decisions on the delegated matters are made while referencing the proposed recommendations of the Nomination and Remuneration Advisory Committee to confirm the validity of remuneration levels.