Notice Regarding the Introduction of Performance-Linked Restricted Stock Compensation Plan

Purpose and Overview of the Performance-Linked Restricted Stock Compensation Plan

TOYO TIRE CORPORATION has decided to newly introduce a performance-linked restricted stock compensation plan aimed at achieving the performance targets of the medium-term management plan and enhancing corporate value through the review of the executive compensation system. Under this plan, restricted shares and monetary claims provided to secure tax payments will be granted as remuneration to eligible directors, contingent upon approval at the 110th Annual General Meeting of Shareholders on March 27, 2026. The compensation limit is set within 200 million yen annually, with up to 200,000 shares issued per year. The performance evaluation period covers five fiscal years from the fiscal year ending December 2026 through the fiscal year ending December 2030.

Details of the Plan and Impact on Shareholders

This plan uses TSR (Total Shareholder Return) and indicators from the medium-term management plan as performance evaluation metrics, and shares and monetary compensation will be delivered after the evaluation period ends. During the transfer restriction period, transfer or pledging of shares is prohibited and shares will be managed in dedicated accounts. Provisions for treatment upon resignation or death of eligible directors are defined, allowing substitution with monetary payment under certain conditions. Following shareholder approval, this plan is expected to be implemented continuously, with the aim of strengthening alignment with shareholder interests.