Announcement of Partial Revision of the Equity Compensation Program | May 2026

Program Overview

Kyorin Pharmaceutical has partially revised its performance-linked stock compensation program targeted at directors and delegated executive officers. The program uses monetary contributions as its funding source to acquire and grant shares through a trust mechanism. The revision enhances flexibility and transparency by adding delegated executive officers as beneficiaries and setting limits on point grants. The document also explains the detailed structure of the program and the trust management, aiming to ensure program continuity and the enhancement of corporate value.

Program Impact and Future Outlook

The revision of this program aims to strengthen incentivization for officers and ensure management neutrality. Expanding the scope of eligible participants is expected to motivate management and improve long-term corporate value. The trust structure and the point grant limits ensure fairness and sustainability, while maintaining alignment with the company's medium-term management plan.