[Seven Bank] Continuation of Performance-Linked Share-Based Compensation System | May 22, 2026

System Overview

Seven Bank resolved to continue the performance-linked share-based compensation system introduced in 2017 beyond 2026. The system uses a trust modeled after the US ESOP (Employee Stock Ownership Plan) scheme, and it provides for the delivery of shares or cash to executive officers and some employees upon retirement or resignation. The trust period has been extended to August 10, 2026, with shares acquired from the market through a trust administrator, and dividends are also paid. The purpose of the system is to promote long-term enhancement of corporate value and to align the interests of management and shareholders.

System Structure and Future Outlook

The system is based on a trust agreement, through which cash is entrusted and shares or cash are delivered to beneficiaries. If performance targets are not achieved during the trust period, the system may be continued through amendments to the trust agreement or additional contributions, with residual shares considered for gratuitous transfer or cancellation. After the trust ends, residual assets will belong to the company, and residual assets after deducting trust-related expenses may be donated. The continuation of the system is positioned as a strategic measure aimed at improving corporate performance over the medium to long term and maximizing shareholder value.