Remuneration to Officers

Remuneration paid to officers in the fiscal year ended March 2024

Classification		Number of members paid	Subtotal by type of remureration
Classification		Number of members paid	Base remuneration	Performance-linked remuneration	Non-monetary remuneration	Total amount of remuneration
Directors		7 persons	123,870 thousand yen	15,764 thousand yen	43,729 thousand yen	Total amount of remuneration	183,363 thousand yen
	Outside Directors	4 persons	33,600 thousand yen	-	-	33,600 thousand yen
Audit & Supervisory Board Members		3 persons	40,800 thousand yen	-	-	40,800 thousand yen
	Outside Audit & Supervisory Board Members	2 persons	15,600 thousand yen	-	-	15,600 thousand yen

(Notes)

In addition to the above, employee salaries of 18,607 thousand yen are paid to Directors who concurrently serve as employees.
The Company pays bonuses to Directors (excluding Outside Directors and Non-Executive Directors) as performance-linked remuneration. The details of such performance-linked remuneration are as described in "Policy for determining Directors' remuneration."
The Company grants restricted stock remuneration to directors (excluding Outside Directors) as non-monetary remuneration. The details of such stock-based remuneration are as described in "Policy for determining Directors' remuneration."
In determining the details of remuneration to individual Directors for the fiscal year, the Nomination and Remuneration Committee, whose majority is composed of Independent Outside Directors, conducts multifaceted examinations of remuneration proposals, including their consistency with the determination policy. The Board of Directors honors the Committee's recommendations, in principle, and thus judges that they are in line with the determination policy.

Policy for determining Directors' remuneration

The Company determines remuneration to Directors in line with the shareholders' interests so that it will serve as an appropriate incentive leading to a sustainable increase in the shareholder value. As a basic policy, when determining remuneration to individual Directors, the Company aims to secure appropriate levels corresponding to the degree of their responsibilities.
As for the determination policy for remuneration, the Nomination and Remuneration Committee, whose majority is composed of Independent Outside Directors, is consulted, and the Board of Directors resolves it, honoring the Committee's recommendations.

Remuneration system

Executive Directors

It consists of base remuneration as fixed remuneration, bonuses as performance-linked remuneration, and restricted stock as non-monetary remuneration in line with the shareholders' interest.
The Nomination and Remuneration Committee will decide on the composition of remuneration to individual Directors, where the performance-linked remuneration is set higher for the upper ranking positions reflecting the expected roles for achieving the goals of the Long-Term Business Plan.

Chairman of the Board

It consists of the base remuneration as fixed remuneration and restricted stock as non-monetary remuneration as the Chairman will perform the expected role as a chairperson of the Board of Directors for increasing the shareholders' value in the medium- to long-term, despite being not directly involved in business execution.

Outside Directors

The Company will pay only the base remuneration to Outside Directors in consideration of their duties.

Remuneration composition
* In the case of the performance indicators achieved at 100%

Remuneration amount

Base remuneration

It is provided as fixed remuneration monthly. The amount is determined based on the Company's performance, individual's duties, abilities, and the degree of contribution to the Company's sustainable growth in a comprehensive manner.

Bonuses
(performance-linked
remuneration)

It is paid as a bonus at a certain time each year. In the long-term management plan starting with the the fiscal year ended March 31, 2024, we have made diversification of investment methods part of our business strategy and promotion of ESG-conscious sustainability strategies an important measure, and therefore, from the fiscal year ended March 31, 2024, the achievement level of "business profit before depreciation and amortization", "sustainability initiatives" and "ROE" will be used as indicators for calculating performance-linked compensation. The calculation is based on a comprehensive consideration of those as an indicator of the Company's progress in continuously increasing its corporate value and expanding its corporate scale and creating a new earnings model through portfolio expansion. Target performance indicators and their values will be reviewed from time to time based on the consultation and report of the Nomination and Compensation Committee so that they are consistent with the long-term management plan.

(Reference) Actual business profit before depreciation and amortization and the target for the final fiscal year of the Long-Term Business Plan

(million yen)

2022/3	2023/3	2024/3	2033/3 (target)
8,885	9,194	9,128	18,000

Restricted stock

It is granted in the form of restricted stock linked to the shareholder value. The number of shares given at a certain time each year will be calculated based on the duties and abilities of Chairman and Executive Directors, along with their contributions to the Company's sustainable growth in a comprehensive manner.

Determining method

As for the amounts of remuneration, the President will prepare a remuneration plan, consult with the Nomination and Remuneration Committee, and the Board of Directors will deliberate and make decisions on it, honoring the Committee's recommendations. Regarding restricted stock remuneration, the numbers of shares to be allotted to individual Directors will be resolved by the Board of Directors based on the recommendations of the Nomination and Remuneration Committee.