Announcement regarding the partial decline of compensation.

Regarding the incident where unexpected components were found in some of our red yeast-related products (referred to as "this incident"), as stated in the "Summary of the Board of Directors based on the investigation report of the Fact Verification Committee" dated July 23, 2024, we have received a report from the Fact Verification Committee on the series of our responses to this incident (referred to as "Committee Report").
We deeply apologize once again for causing significant inconvenience and concern to all our stakeholders, including customers, business partners, shareholders, and investors, regarding this incident.
In order to clearly define the management responsibility for the series of our responses to this incident, as stated in the "Announcement regarding the transfer of the Representative Director and partial voluntary return of executive compensation" dated July 23, 2024, the then Chairman of the Board of Directors resigned as the Representative Director and Director, and the then President and Representative Director also resigned from the position of President and Representative Director, with the partial voluntary return of executive compensation for the then President and Representative Director and Executive Director.
Recently, both Executive Officers and External Directors/Audit & Supervisory Board Members have offered to waive a part of their compensation. We have accepted these offers and would like to inform you as follows.
We will continue to consider the management structure of our company going forward.

1. Part of the executive officers' compensation will be declined.

From the executive officers, we have received a serious statement of their responsibility for the series of our responses to this matter, and have decided to accept their offer to decline part of the compensation as outlined below.

(Note) As of January to March 2024, members of the Group Executive Committee (GOM)

2. ② Partial Refusal of the Remuneration of External Directors and Auditors

From external directors and auditors, in order to carry out measures to prevent recurrence with all employees united towards improving the company's corporate value, and to further strengthen the trust relationship with internal officers and promote initiatives, the following offer to partially decline remuneration was made, and the company has decided to accept these offers.