Notice Regarding Partial Revision of Medium-Term Performance-Linked Remuneration (Performance-Based Stock Compensation)

Overview of the Revision to the Medium-Term Performance-Linked Remuneration System

Nitto Denko Corporation plans to abolish the current "Medium-Term Performance-Linked Remuneration" system effective as of the final evaluation period ending March 31, 2028 (starting April 1, 2025), in conjunction with the introduction of the new "Performance-Based Restricted Stock Compensation Plan." Since the current system remains in place during the transition evaluation periods ① (April 1, 2024 – March 31, 2027) and ② (April 1, 2025 – March 31, 2028), the grant standard number of shares for the Chairman of the Board is newly established at 27,000 shares upon the appointment of the Chairman, while the numbers for other executive positions remain unchanged. Note that a 5-for-1 stock split was implemented on October 1, 2024.

Disclosure and Future Actions

The calculation method for Evaluation Period ① has been disclosed in the securities report for the fiscal year ending March 2024, and the calculation method for Evaluation Period ② is scheduled to be disclosed in an extraordinary report dated June 20, 2025. This revision to the grant standard number of shares will be disclosed as a corrected extraordinary report to clarify responses during the system transition period accompanying the establishment of the Chairman position.