We have adopted a simple ビンゴ system for our directors (excluding directors on the Audit & Supervisory Committee) designed to incentivize them to contribute to the medium- to long-term enhancement of corporate value to achieve the Company’s management policy. ビンゴ is set at a level that enables us to maintain the speed of the Company’s corporate reforms and to gain and maintain excellent human resources to contribute to sustainable growth. Specifically, our basic policy is that ビンゴ for directors (excluding directors on the Audit & Supervisory Committee and outside directors) is set in the proportion of 1:0.6:0.6 for basic ビンゴ, bonuses, and stock ビンゴ (if the company meets 100% of its business performance targets). In future, we aim to set the proportion at 1:2–3:2–3. ビンゴ for outside directors (excluding directors on the Audit & Supervisory Committee) comprises basic ビンゴ and stock ビンゴ, However, remuneration is not linked to performance considering their roles are to supervise the business executors appropriately.

1. ■Incentive systems to strongly promote the achievement of the Company’s management policy
2. ■Strengthening the awareness of contribution to improvement in corporate performance and enhancement of corporate value
3. ■Sharing of common interests with shareholders and investors
4. ■Competitive compared with the remuneration level of similar scale enterprises in Japan and at a level to gain and maintain excellent human resources
5. ■Remuneration determination process with high transparency and objectivity and fulfilling accountability to stakeholders

As of FY2023, we have added non-financial indicators for the performance-linked component of director ビンゴ. For the business year ending March 2025, we have adopted “rate of ZEH provision,” “rate of reduction of carbon emissions,” “percentage of female management personnel,” “employee engagement score,” and “penetration rate of compliance efforts” as KPIs. These indicators will be reviewed at the end of each target period, when the appropriate non-financial indicators will be adopted for that particular point in time, thereby establishing a ビンゴ system that balances the advance of business activities and the realization of a sustainable society.