Notice Regarding Revision of Restricted Stock Compensation Plan

Overview of Revision to Restricted Stock Compensation Plan

World Co., Ltd. resolved to revise its restricted stock compensation plan to promote value sharing between directors and shareholders and to enhance corporate value over the medium to long term. This revision will be submitted for approval at the 68th Annual General Meeting of Shareholders scheduled for May 28, 2026. The key revision changes the transfer restriction period from the conventional method where the Board of Directors sets it between 3 and 5 years to a period extending until the later of the officer’s resignation/retirement or the submission of the securities report for the relevant fiscal year. The conditions for lifting transfer restrictions have been clarified. The compensation amount is capped at 40 million yen annually, with share issuance limited to 80,000 shares per year, both determined based on resolutions of the Board of Directors.

Impact on Shareholders and Future Actions

The revised plan aims for directors subject to the plan to share the risks and benefits related to the company’s stock price with shareholders over the medium to long term. For restricted shares already granted, changes to the transfer restriction period and service conditions will be applied with the consent of the relevant directors. The plan also clarifies handling of free acquisition of restricted shares and treatment during corporate reorganizations, aiming to protect shareholder value and properly align executive incentives.