Notice Regarding Additional Acquisition of Treasury Stock Related to the Stock Compensation System for Directors and Executive Officers

Overview of the Stock Compensation System

Hirogin Holdings Co., Ltd. has decided to additionally acquire treasury stock through a stock compensation system (BIP Trust) for directors and executive officers. This system was introduced during the Hiroshima Bank era in fiscal year 2017, aiming to enhance the awareness of contributing to mid- to long-term performance improvement and corporate value growth within the Group. The remuneration framework, initially set at 900 million yen at the June 2023 shareholders' meeting, was increased to 1 billion yen at the June 2024 shareholders' meeting. The upcoming additional acquisition will be conducted within the scope of this increased framework.

Details of the Additional Acquisition and Future Outlook

The planned additional acquisition consists of common shares equivalent to 150 million yen, to be purchased from the stock market between January 20 and 23, 2026. The targets exclude audit and supervisory committee members, outside directors, and non-resident directors, focusing on other directors and executive officers, corresponding to an increase in the remuneration framework due to the enhancement of the executive structure. For further details of this system, please refer to the material published on March 7, 2023. From an investor standpoint, this measure is noteworthy as an incentive strengthening method for officers, and the dilution impact on the number of shares is considered limited.