Nippon Filcon's Pay Table: Three Columns and One Target

(4) 役員の報酬等, the officers' remuneration item of NIPPON FILCON CO.,LTD.'s annual securities report for its 126th fiscal year, December 1, 2024 to November 30, 2025, filed on EDINET on February 25, 2026, occupies pages 50 to 51 of 121. Its table ② prints, for the row 取締役(監査等委員を除く。)(社外取締役を除く。), directors who are neither audit and supervisory committee members nor outside directors, a total of 213,857 thousand yen (US$1.3 million) for five persons, in three columns: 基本報酬 173,040 thousand yen (US$1.1 million), 業績連動報酬 15,930 thousand yen (US$0.10 million) and 非金銭報酬 24,887 thousand yen (US$0.15 million). Its part ５) prints the indicator behind the middle column, 事業計画の連結営業利益（役員賞与計上前）, consolidated operating profit in the business plan before officers' bonuses are recorded, with a target of 542 million yen (US$3.3 million) and an actual of 683 million yen (US$4.2 million). This piece reads the item and sets it beside the same item in the 125th report, filed February 26, 2025, on pages 46 to 48 of 118, where the table printed 215,574 thousand yen (US$1.3 million) for the same row and the indicator printed a target of 596 million yen (US$3.6 million) against an actual of 984 million yen (US$6.0 million).

The item has four numbered parts. ① 役員の報酬等の額又はその算定方法の決定に関する方針に係る事項, matters concerning the policy for deciding the amount or the calculation method of officers' remuneration, is divided into １) 役員報酬の方針等, the policy itself; ２) the board's reason for judging that the year's individual remuneration follows the policy; ３) 役員報酬に関する株主総会の決議年月日および決議の内容, the date and content of the shareholders' meeting resolutions; ４) 役員報酬の額またはその算定方法の決定に関する方針の決定権限, the authority to decide the policy; and ５) 業績連動報酬に係る指標の目標および実績, the target and actual of the performance-linked indicator. ② is the table by officer category. ③ 提出会社の役員ごとの連結報酬等の総額等, consolidated remuneration by individual officer, and ④ 使用人兼務役員の使用人給与のうち、重要なもの, significant employee salaries of officers who are also employees, each print 該当事項はありません, no applicable matters. The 125th report's item has the same parts in the same order.

１) イ, remuneration of directors other than audit and supervisory committee members, opens with a. 基本方針, the basic policy, in one sentence: 当社の取締役の報酬は、会社の業績、社会水準および従業員給与等とのバランスを考慮し、適切な水準に基づき支給することを基本方針とし、取締役会において決定した当社役員内規の定めに従い決定しております — directors' remuneration is paid at an appropriate level with regard to the balance with the company's results, social standards and employee pay, and is decided under the internal officer rules adopted by the board. The next sentence names three components: 基本報酬である月額固定報酬, a monthly fixed amount as basic remuneration; 業績連動報酬である賞与, a bonus as performance-linked remuneration; and 非金銭報酬である譲渡制限付株式報酬, restricted stock as non-monetary remuneration. It adds that outside directors, 監督機能を担う, who carry the supervisory function, receive 基本報酬のみ, basic remuneration only. The report's own figure for employee pay stands on page 8: ５ 従業員の状況 prints 平均年間給与 of 5,601,015 yen (US$34,194) for the filing company's 433 employees as of November 30, 2025, with note ４ stating that the figure includes bonuses and non-standard wages; the 125th report's page 8 printed 5,676,497 yen (US$34,655) for 483 employees. The two figures are quoted as the report's own; the policy sentence names employee pay as one of three things weighed, and this piece draws no ratio between the pages.

b. covers the monthly fixed amount. Standard amounts are set 取締役の役位、役割および責任ならびに在任期間等に応じて, according to each director's rank, role and responsibility and length of service. On that basis the representative director and president draws up a proposal, 総額案および個人別の報酬額案, for both the total and the individual amounts, reports it to the outside directors and the audit and supervisory committee and obtains their consent, and the board meeting held each February decides the total of monthly fixed remuneration, which is paid monthly. c. covers the bonus. Its indicator is 中期経営計画の連結営業利益, consolidated operating profit in the medium-term management plan, called 最重要指標, the most important indicator, and the bonus varies 賞与基準額の0〜150％の範囲内, within a range of 0 to 150 percent of a standard bonus amount, according to the degree of achievement against the plan figure. A proviso follows: ただし、毎年策定する事業計画の連結営業利益の計画値が中期経営計画の連結営業利益の計画値より高い場合は、事業計画の計画値を指標とします — if the consolidated operating profit figure in the business plan drawn up each year is higher than the medium-term plan figure, the business plan figure is the indicator. The board meeting held each December decides the total bonus and the individual amounts, and payment follows 速やかに, promptly.

d. covers restricted stock. The amount is 個人別の基本報酬の総額に対し15％程度, about 15 percent of each individual's total basic remuneration; the board meeting each February decides each individual's 金銭報酬債権額, the amount of the monetary remuneration claim, and the number of restricted shares to be allotted, and the shares are granted each March. e. 報酬等の割合に関する方針 states the intended weighting: 業務執行取締役の報酬割合は、上位の役位ほど業績連動のウエイトが高まる構成とし, the remuneration of executive directors is built so that the higher the rank, the higher the performance-linked weight, and the guideline ratio of the standard amounts is 基本報酬：業績連動報酬：非金銭報酬＝70％：20％：10％. ロ covers audit and supervisory committee members: 基本報酬のみ, basic remuneration only, decided by consultation among the committee members on the basis of standard amounts the committee sets, with regard to the company's results, social standards and employee pay. The whole of イ and ロ reads the same in the 125th report.

３) records the shareholder resolutions. At the 124th annual general meeting on February 27, 2024, the limit for directors other than committee members was set at 年額285百万円以内, 285 million yen (US$1.7 million) a year, of which outside directors 年額20百万円以内, 20 million yen (US$0.12 million), excluding salary for employee duties; and the limit for committee members at 年額48百万円以内, 48 million yen (US$0.29 million), of which outside committee members 20 million yen (US$0.12 million). At the close of that meeting the officers covered by these limits were 取締役（監査等委員である取締役を除く。）７名、監査等委員である取締役３名, seven directors and three committee members. Separately from those limits, the same meeting resolved 年額50百万円以内, 50 million yen (US$0.31 million) a year, as the monetary remuneration paid for the grant of restricted stock to directors other than committee members and outside directors, with 5名, five directors, covered at the close of the meeting. ２) is the board's confirmation that the method of deciding and the content decided are consistent with the policy it resolved. In both reports ３) cites this one meeting, the same three limits and the same counts, and ２) reads the same.

４) places the authority to decide the policy with the board and states its scope: within the total resolved by the shareholders' meeting, the total of monthly fixed remuneration, the total bonus and the individual bonus amounts, and each individual's monetary remuneration claim for restricted stock. It then records a delegation: 取締役会は、代表取締役社長名倉宏之氏に対し、当事業年度における取締役の個人別の月額固定報酬額の決定を委任しております — the board delegated to the representative director and president, 名倉宏之, the decision of the individual monthly fixed amounts for the year. The reason printed is that the president is suited, 当社全体の業績等を勘案しつつ各取締役の担当部門について評価を行うには, to evaluating each director's area of responsibility while taking the company's overall results into account. The step printed so that the delegated authority is exercised appropriately is the one already in b.: before the February board meeting the president reports the individual amounts to the outside directors and the committee and obtains their consent. Committee members' remuneration is decided by consultation among them. The 125th report's ４) names the same person and prints the same reason.

５) is one sentence long, printed across two lines. The indicator for performance-linked remuneration is 事業計画の連結営業利益（役員賞与計上前）, consolidated operating profit in the business plan before officers' bonuses are recorded; its target was 542 million yen (US$3.3 million) and the actual 683 million yen (US$4.2 million). The 125th report's ５) printed a target of 596 million yen (US$3.6 million) and an actual of 984 million yen (US$6.0 million). The operating profit the reports print in their business review carries a different label. Page 21 of the 126th report states 営業利益は668百万円（前期比27.8%減）, operating profit of 668 million yen (US$4.1 million), down 27.8 percent from the prior year, alongside sales of 27,842 million yen (US$170.0 million) and ordinary profit of 944 million yen (US$5.8 million); page 18 of the 125th report states 営業利益は924百万円（前期比46.4%増）, 924 million yen (US$5.6 million), up 46.4 percent. This piece quotes the two labels as printed and does not reconcile the indicator with the reported operating profit.

② is a table with four columns of amounts and one of counts: 報酬等の総額(千円), total remuneration; 報酬等の種類別の総額(千円), total by type, split into 基本報酬, 業績連動報酬 and 非金銭報酬; and 対象となる役員の員数(名), the number of officers covered. The 126th table has three rows. 取締役(監査等委員を除く。)(社外取締役を除く。): 213,857, 173,040, 15,930, 24,887, 5 — 213,857 thousand yen (US$1.3 million) in total for five persons: basic 173,040 thousand yen (US$1.1 million), performance-linked 15,930 thousand yen (US$0.10 million) and non-monetary 24,887 thousand yen (US$0.15 million). 取締役(監査等委員)(社外取締役を除く。): 21,180, 21,180, ―, ―, 1 — 21,180 thousand yen (US$0.13 million) for one person, with a dash in the performance-linked and non-monetary columns. 社外役員, outside officers: 28,800, 28,800, ―, ―, 4 — 28,800 thousand yen (US$0.18 million) for four persons, again with dashes. The three components of the first row were added as a verification and agree with the printed total; no new number is written here.

The 125th table on page 47 has four rows and a note. 取締役(監査等委員を除く。)(社外取締役を除く。): 215,574, 161,505, 30,902, 23,167, 5 — 215,574 thousand yen (US$1.3 million) for five persons, of which basic remuneration 161,505 thousand yen (US$1.0 million), performance-linked 30,902 thousand yen (US$0.19 million) and non-monetary 23,167 thousand yen (US$0.14 million). 取締役(監査等委員)(社外取締役を除く。): 15,885 thousand yen (US$0.10 million), one person. 監査役(社外監査役を除く。), corporate auditors other than outside corporate auditors: 5,295 thousand yen (US$0.03 million), one person. 社外役員: 28,200 thousand yen (US$0.17 million), eight persons. The note beneath reads: 上記には、2024年２月27日開催の第124回定時株主総会終結の時をもって退任した取締役２名（うち社外取締役２名）および監査役３名（うち社外監査役２名）を含んでおります。なお当社は、2024年２月27日に監査役会設置会社から監査等委員会設置会社に移行しております — the figures include two directors, both outside directors, and three corporate auditors, two of them outside, who retired at the close of the 124th meeting, and the company moved from a company with a board of corporate auditors to a company with an audit and supervisory committee on February 27, 2024. The 126th table, whose year began nine months after that date, prints three rows and no 監査役 row. Its first row's components were also added as a verification and agree with the printed total.

The counts in the 126th table can be read against ① 役員一覧 under (2) 役員の状況 on pages 40 to 43, which lists the officers as of February 25, 2026 under the heading 男性8名 女性2名 （役員のうち女性の比率20％）, eight men and two women. Five are directors who are neither committee members nor outside directors: 名倉宏之, 代表取締役社長 社長執行役員; 齋藤芳治, 専務取締役; 佐野明宣 and 野村国大, each 常務取締役; and 久慈健仁, 取締役. One is 青木豊, 取締役（常勤監査等委員）, the full-time committee member. Four are outside directors: 阿部稔 and 伊能優子 as 社外取締役, and 佐々木章浩 and 木村尚子 as 社外取締役（監査等委員）, all four so named in note １ to the list. The list's 所有株式数(百株) column, shares held in hundreds, prints 1,371 for 名倉, 1,072 for 齋藤, 614 for 佐野, 556 for 野村, 356 for 久慈, 268 for 青木 and a dash for each outside director, with 計 4,237; the 125th list on pages 36 to 39 printed 計 3,624. The table prints counts, not names; the list's groupings of five, one and four match the table's counts, and this piece writes no further number from that correspondence.

The non-monetary column has a counterpart in the share pages. (4) 取得自己株式の処理状況及び保有状況 on page 33 prints, under その他（譲渡制限付株式報酬としての自己株式の処分）, other disposals of treasury shares as restricted stock remuneration, 71,900 shares with 処分価額の総額 36,021 thousand yen (US$0.22 million) for the fiscal year and a dash in both 当期間 columns. The note to the consolidated statement of changes in equity on page 75 states that the year's decrease of 248,900 treasury shares consisted of 177,000 shares sold from the 従業員持株ＥＳＯＰ信託 to the employee shareholding association and 71,900 shares disposed of as restricted stock remuneration; the two figures were added as a verification and agree with the printed decrease. The 125th report's page 29 printed 65,000 shares and 35,165 thousand yen (US$0.21 million), and its page 72 the same 65,000 shares within a decrease of 246,900, beside 181,900 sold from the trust. Policy d. says the grant is made each March. 処分価額の総額 is quoted here under the label the table prints and is not read as the remuneration amount in the table ②, which is a separate printed figure.

Two governance pages frame the item. (1) コーポレート・ガバナンスの概要 on page 34 states that the company adopts the 監査等委員会設置会社 form and, as of the filing date, has seven directors other than committee members, two of them outside directors, and three committee members, two of them outside directors; that the board, chaired by 名倉宏之, meets monthly and as needed; and that the 常務会, made up of all executive directors, the full-time committee member and the executive officers, meets weekly in principle, with 10名, ten executive officers, of whom five are also directors. Page 39 prints ④ 取締役会の活動状況: 取締役会を17回開催, seventeen board meetings in the year, and 17回/17回中 for each of the ten directors. Page 47 prints 監査等委員会を14回開催, fourteen committee meetings, and 14/14回中 for each of the three members. The 125th report's page 35 printed seventeen board meetings, and its page 43 printed 監査役会を４回、監査等委員会を10回, four meetings of the board of corporate auditors before the transition and ten of the committee after it.

Then a new body. Page 34 continues: 2026年２月25日に任意の指名・報酬委員会を設置いたしました — on February 25, 2026, the date the report was filed, the company established a voluntary nomination and remuneration committee, which deliberates on the appointment and dismissal of directors, succession planning and remuneration at the board's request and reports its conclusions to the board. Its 委員長, chair, is 名倉宏之, and its 委員, members, are the four outside directors, 阿部稔, 伊能優子, 佐々木章浩 and 木村尚子. ⑤ 指名・報酬委員会の活動状況 on page 39 repeats the date and adds: そのため、当事業年度における活動はありません — and so there was no activity in the fiscal year. The remuneration item's parts １) to ４), which describe the outside directors and the committee giving consent to the president's proposal before the February board, are printed in the same words as the year before; the committee is dated to the filing date, after the year the item covers.

Set side by side, the two items differ in two printed places. The indicator's target and actual: 596 million yen (US$3.6 million) and 984 million yen (US$6.0 million) in the 125th report, 542 million yen (US$3.3 million) and 683 million yen (US$4.2 million) in the 126th. The table: four rows and a transition note in the 125th, three rows in the 126th, with the first row's three components moving from 161,505 thousand yen (US$1.0 million), 30,902 thousand yen (US$0.19 million) and 23,167 thousand yen (US$0.14 million) to 173,040 thousand yen (US$1.1 million), 15,930 thousand yen (US$0.10 million) and 24,887 thousand yen (US$0.15 million), and the row 社外役員 from 28,200 thousand yen (US$0.17 million) for eight persons to 28,800 thousand yen (US$0.18 million) for four. The policy text in １), the board's confirmation in ２), the 2024 resolutions in ３), the delegation to the president in ４) and the two 該当事項はありません in ③ and ④ read the same in both years. Outside the item, the governance pages of the 126th report carry text of their own, among it the paragraphs on the nomination and remuneration committee dated February 25, 2026 on pages 34, 35 and 39; this piece compares the item, and the governance pages only where quoted.

Method. The desk located the two annual securities reports in the EDINET document-list API for February 25, 2026 and February 26, 2025, retrieved the PDFs through the same API, and read them with pdfplumber: (4) 役員の報酬等 (pages 50 to 51 of the 126th report, 46 to 48 of the 125th), the cover (page 1), the five-year table (page 2), the employee page (page 8), the business review (page 21 of the 126th, 18 of the 125th), the treasury share page (page 33 of the 126th, 29 of the 125th), the governance outline (pages 34 to 35 of the 126th, 30 of the 125th), the board activity page (page 39 of the 126th, 35 of the 125th), the officer list (pages 40 to 43 of the 126th, 36 to 39 of the 125th), the committee page (page 47 of the 126th, 43 of the 125th) and the equity note (page 75 of the 126th, 72 of the 125th). The remuneration tables were read with extract_tables and the columns matched to their printed headings; the row labels are given as printed, with the parenthetical second line of each label kept. Apart from the reference conversions to US dollars at ¥163.8 = US$1 and the four additions stated above as verifications, one remuneration-component sum and one treasury-share decrease sum for each year, nothing here is computed: no component is divided by a total, no year is differenced, and the indicator is not reconciled with the reported operating profit. Names are given in the Japanese form the reports print.