Notice Regarding the Introduction of a Performance-Linked Restricted Stock Compensation Plan and the Voluntary Surrender of Stock Compensation Stock Options (Stock Acquisition Rights)

Overview of PSU Plan Introduction

World Co., Ltd. plans to introduce a performance-linked restricted stock compensation plan (PSU plan) targeted at directors and executive officers to achieve its medium-term management plan “VISION-W.” Subject to shareholders’ meeting approval, monetary remuneration claims of up to 450 million yen annually will be granted to eligible persons, which will be contributed in kind and converted into common shares. The performance evaluation period covers three fiscal years from the fiscal year ending February 2027 to the fiscal year ending February 2029, with the number of shares granted determined based on multiple performance indicators including consolidated ROE, ROIC, and TSR. Conditions such as transfer restrictions and reasons for free acquisition are also stipulated.

Voluntary Surrender of Stock Options and Future Outlook

In conjunction with the PSU plan introduction, eligible directors and executives plan to voluntarily surrender stock compensation stock options (4th series stock acquisition rights) equivalent to 705,000 shares. This change addresses issues related to the traditional incentive structure based on stock price conditions and transitions to the PSU plan incorporating both performance and capital efficiency indicators. The surrender application will be made after the shareholders’ meeting on or after May 28, 2026, with minimal expected impact on performance.