【Tokuyama】 Continuation and Partial Revision of Performance-Linked Stock Compensation System | June 2026

Overview of the System

Tokuyama Corporation has resolved to continue and partially revise its performance-linked stock compensation system for directors and other executives. The system is linked to the medium-term management plan and provides shares or liquidated damages based on position and achievement of performance targets. The trust period has been extended from September 2026 to August 2031, and the maximum trust amount and number of shares to be granted have been increased. The system aims to enhance transparency and objectivity and strengthen incentives for officers. Operational deliberations are conducted by the committee, and the extension of the trust period and partial revisions aim to improve long-term corporate value.

Impact on Shareholders and Future Outlook

The extension and revision of this system will reinforce incentives for officers and promote the company's medium- to long-term growth. With the trust period extension, adjustments are made to the timing of share grants and monetary payments, with limited impact on share dilution and shareholder value. By maintaining transparency and increasing motivation for officers to achieve performance targets, the company aims for sustainable growth and value enhancement for shareholders.