Notice Regarding Review of Future RSU Grants for Executive Officers and Introduction of Performance-Linked Stock Option Plan for Executive Officers and Issuance of Stock Acquisition Rights under the Plan

Plan Overview and Purpose

This plan is a performance-linked compensation scheme for three executive officers, where stock acquisition rights vest only upon achieving specified stock price hurdles. Allocations are divided into five tranches, and each tranche requires meeting one of five stock price hurdles (minimum 2,200 yen, maximum 10,000 yen). After vesting, exercise is generally prohibited for three years, and vesting conditions require both continued service and achievement of stock price targets. The maximum number of shares to be issued is 6,650,000 shares, and the eligible persons are the CEO, CFO, and COO.

Impact and Future Actions

Potential dilution from equity-based compensation could reach up to 7.2% of total issued shares; however, dilution is mitigated by strict tranche achievement and exercise conditions, a three-year lock-up, and prohibition of additional grants. Expenses will be recognized in accordance with IFRS 2, and the impact on consolidated results for the fiscal year ending December 2026 is under review. A review of RSU grant levels is scheduled for early 2027.