Notice Regarding Continuation of Performance-Linked Stock Compensation System for Directors

Overview of the System

Taihei Electric has decided to continue its performance-linked stock compensation system for FY2026, which was introduced in 2017 to enhance the linkage between directors’ compensation and corporate performance and stock value. The trust period has been extended until August 2029, with a target period from FY2027 to FY2029 covering three fiscal years. This aims to promote medium- to long-term corporate value enhancement and increase directors’ awareness of corporate value improvement.

Significance and Future Outlook of the System

The continuation of this system aligns with the company's long-term growth strategy and contributes to increasing directors’ performance-linked awareness. The extension of the trust period ensures stability and sustainability of the system, and the company will continue to focus on enhancing corporate value and maximizing shareholder value. While referencing details announced in 2017, the extension of the target period allows for a consistent long-term incentive design.