[Toyo Seikan] Partial Changes and Continuation of the Performance-Linked Stock Compensation System | May 14, 2026

Overview of the System and Changes

Toyo Seikan has resolved to partially revise its performance-linked stock compensation system for directors, and will continue the system following approval at the June 2026 general meeting. The main changes involve shifting the timing of stock issuance from upon retirement to after the points are granted each fiscal year, and implementing transfer restrictions. The system uses a trust to allocate stocks and cash, with eligible directors receiving stocks or cash according to points. The trust period has been extended, and the system will operate over a maximum of five years.

System Operation and Impact on Shareholders

The changes will accelerate the timing of stock allocation from upon retirement to after point grants, and the introduction of transfer restrictions aims to suppress stock circulation and promote long-term corporate value enhancement. At the conclusion of the trust period, stocks will be canceled and a portion of the cash will be donated to public interest corporations. The continuation and modifications of the system are intended to heighten directors’ awareness of long-term corporate value improvement.