【Amada】Continuation and Revision of the Equity Compensation System Due to Transition to a Company with Audit & Supervisory Committee｜May 14, 2026

Continuation and Revision of the Performance-Linked Stock Compensation System

Amada has resolved to continue and revise the stock compensation system introduced in FY2024 following its transition to a company with an Audit & Supervisory Committee. The system proactively increases the proportion of stock-based compensation in target executive compensation based on its mid-term management plan, thereby promoting both corporate value enhancement and shared interests with shareholders. The scheme utilizes a trust mechanism to deliver shares upon achievement of performance targets, with a trust period of approximately 7 years. Implementation of this system requires approval from the General Meeting of Shareholders.

System Details and Future Outlook

The system grants shares to target directors and others based on points linked to their performance to incentivize achievement. After the trust period ends, any unissued shares and residual assets are allocated to stock-based compensation or donations. By continuing and revising the system, the company aims for mid- to long-term growth and increased shareholder value, encouraging executives’ motivation to enhance corporate value.