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Compensation

Compensation Policy and the Amount of Compensation

Compensation policy

The Compensation Committee establishes compensation policy regarding compensation of each director and/or executive officer as follows.

Since the main responsibility of directors is to supervise the execution of the overall Group's business, compensation for directors is determined at an adequate level to secure highly competent personnel and to ensure the effectiveness of the supervisory function.

Since the responsibility of executive officers is to increase corporate value in their capacity as executives responsible for companies or divisions within the Group, compensation for executive officers is divided into fixed compensation and performance-based compensation, and determined at an adequate level to secure highly competent personnel and ensure that their compensation package functions is an effective incentive to improve business performance.

(1) Director's compensation

Fixed compensation is paid to directors who do not concurrently hold office as an executive officer, and is based on status as a full-time or part-time director and on the duties performed.

Fixed compensation is paid to directors who concurrently hold office as an executive officer, in addition to the executive officer compensation specified in (2) below.

(2) Executive officer's compensation

Executive officer compensation is comprised of the basic compensation based on executive officer rank (e.g. president and chief executive officer, corporate senior executive vice president) and service compensation calculated according to the duties of the executive officer. Some 40-25% of the service compensation will fluctuate from zero (no compensation) to two times according to the year-end performance of the Company or of the division for which the executive officer is responsible.

(3) Compensation standard

Compensation standards are determined at suitable levels for a global company, with the aim of securing highly competent management personnel. The compensation standards of other listed companies and payroll and benefits of employees are considered when determining the Company's compensation standards of management.

Amounts of Compensation for FY2015

Amounts of compensation of directors and executive officers in FY2015 were as follows:

Position Number of Persons Total Amount
(Millions of yen)
Directors
(including Outside Directors)
24 230
Outside Directors 9 88
Executive Officers 40 872

(Notes) The above-mentioned compensations include: 1) compensations for Directors who retired at the closing of the Extraordinary General Meeting of Shareholders held on September 30, 2015 and Executive Officers who resigned at the closing of the Board of Directors meeting held on the same date with regard to the period from April 2015 to the retirement or resignation date; 2) compensations for Directors and Executive Officers who resigned no later than the Extraordinary General Meeting of Shareholders with regard to the period from April 2015 to the resignation date; and 3) compensations for, among Executive Officers who were appointed Executive Officers at the above-mentioned Board of Directors meeting, Executive Officers who resigned no later than March 31, 2016 with regard to the period from their appointment date to resignation date.

It should be noted that in the consolidated amount of compensation, etc., no individual officer received ¥100 million or more.

This Web site contains projections of business results, statements regarding business plans and other forward-looking statements. This information is based on certain assumptions, such as the economic environment, business policies and other factors, as of the date when each document was posted. Actual results may differ significantly from the estimates listed here.

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