Board of Directors

Remuneration for Directors
FY2021 (July 1, 2020 - June 30, 2021)

1.Total Remuneration by Position, Total Remuneration by Type, and Number of Applicable Directors, etc.

Note: The Company transitioned from a company with an audit & supervisory board to a company with an audit & supervisory committee on September 28, 2016.

2.Disclosure of Policy on Determining Remuneration Amounts and Calculation Methods

In January 2021, the Company established the Nomination and Compensation Committee as a voluntary advisory body to the Board of Directors in order to enhance the fairness, objectivity, and transparency of the evaluation and decision-making process regarding the nomination and compensation of directors and to further enhance the corporate governance system.
The role of the Nomination and Compensation Committee of the Company is to discuss and advise the Board of Directors on matters related to the election and dismissal of directors, matters related to the selection and dismissal of representative directors, matters related to the remuneration of directors, and other matters as requested by the Board of Directors.
The Nomination and Compensation Committee is composed of three or more members, the majority of whom are independent outside directors. The chairperson of the Committee is appointed by resolution of the Board of Directors from among the members who are independent outside directors.
The Nomination and Compensation Committee verifies the appropriateness of the policy for determining the individual remuneration of the Company's directors, and then the policy is determined by resolution of the Board of Directors.
The details of the policy for determining the remuneration of individual directors of the Company are outlined below.

1. Basic Policy
The Company's basic policy is that the remuneration of Directors shall be based on a remuneration system that takes into account the interests of shareholders so as to function as an incentive for the sustainable enhancement of corporate value. The remuneration for each director is determined at an appropriate level based on the responsibilities of each director.

2. Policy for Determining the Amount of Basic Remuneration (Monetary Remuneration) by Individual
The remuneration system for the Company's directors (excluding those that are Audit & Supervisory Committee members) consists of basic remuneration as monthly fixed monetary remuneration and stock compensation-type stock options (non-monetary remuneration) for the purpose of sharing shareholder interests. However, the Company has suspended the granting of stock compensation-type stock options since March 25, 2019, and is continuing to examine the appropriate remuneration system for directors.
The basic remuneration for the directors is fixed monthly monetary remuneration, and the Company considers the level of remuneration for directors at other companies of the same scale, the Company's business performance, and the salary level of employees, in accordance with the position and responsibilities of each director. Basic remuneration is paid on a monthly basis.

3. Policy on Determining the Content of Individual Remuneration for Directors
The Company's Board of Directors has delegated to the president & CEO, representative director the authority to determine the specific details of individual remuneration for each director of the Company.
The content of this authority is the evaluation and allocation of the determination of the amount of basic remuneration for each director.
However, in order to ensure that the delegated authority is exercised appropriately, the delegatee must hold sufficient discussions with the independent outside directors through the Nomination and Compensation Committee.
The remuneration of directors who are members of the Audit & Supervisory Committee is determined through discussions among the Audit & Supervisory Committee members within the scope of the total amount of remuneration approved by a resolution of the General Meeting of Shareholders.

As of December 29, 2021