[Hirogin Holdings] Review of Director Compensation System | May 2026

Review of Performance-Based Remuneration System

Hirogin Holdings will revise its cash-based performance-linked remuneration system for directors and executive officers, implementing a new payout ratio table starting May 13, 2026. The purpose of the system is to promote improved profit levels and sustained corporate value growth. The revision includes increasing the payout ratio related to profit attributable to shareholders of the parent company, from the previous levels, thereby strengthening incentives for profit achievement.

Background of System Revision and Future Outlook

This revision aims to incentivize improved profit levels attributable to shareholders of the parent company and continues to target ongoing profit growth and increased corporate value. The new system will be applied from the fiscal year 2026, aiming to enhance directors' incentives. This approach seeks to promote shareholder value improvement and sustainable management.