【Kami Group】Introduction of Performance-Linked Stock Compensation System Based on Mid-Term Management Plan | May 2026

Overview of the Performance-Linked Stock Compensation System

Kami Group, by resolution of the Board of Directors on May 19, 2026, will revise its executive compensation system and obtain approval at the general shareholders' meeting to introduce a new performance-linked stock compensation system. This system grants stock and cash based on the achievement level of performance targets in the company's mid-term management plan, with eligible directors contributing cash claim rights to acquire stock. The purpose of this system is to promote sustainable enhancement of corporate value and align interests with shareholders. Details are based on a four-year evaluation period from 2027 to 2030, assessing indicators such as consolidated ROE, TSR, CO2 emission reductions, and employee engagement scores.

Impact on Shareholders and Future Outlook

With the introduction of the new system, the compensation structure for eligible directors will shift from traditional cash and stock to a performance-linked mix of stock and cash payments. This change aims to promote mid- to long-term performance improvement and increase shareholder value. Implementation requires shareholder approval, and the specifics of the system's continuity and timing of payments will be decided by the Board of Directors. The introduction of this system is intended to deepen value-sharing between management and shareholders, contributing to future performance improvements and enterprise value growth.