Notice Regarding Introduction of Share Grant Plan for Employees of Our Group

Purpose of Introducing the System

J. Front Retailing Co., Ltd. is promoting its transformation into a value co-creation retailer group centered on retail business with the aim of achieving its management vision for 2030. The Company will introduce a share grant system using an ESOP trust for executive employees of the group to strengthen commitment as a bridge between management and the field, improve work engagement, and aim for medium- to long-term enhancement of corporate value.

Overview and Mechanism of the System

This system adopts a share grant ESOP trust mechanism, whereby the trust grants or pays the shares of the Company and the equivalent amount of monetized proceeds acquired by the trust to the eligible employees. After the trust is established, the trustee will acquire the Company's shares from the market or directly from the Company, grant points to eligible employees during the trust period, and deliver share grants or monetized payments to employees who meet certain conditions. Upon expiration of the trust period, residual shares will be gratuitously transferred or cancelled as appropriate. Details such as the trust agreement date, trust period, and trust fund amount remain undecided and will be disclosed once determined.