Policy on Linking Executive Compensation to ESG Performance Evaluation

Policy on Compensation for the General Manager and Senior Executives

The compensation policy for the General Manager and senior executives is established in accordance with the Company’s “Manager Performance Evaluation and Appraisal Management Regulations.” Compensation decisions are based on a comprehensive evaluation of factors such as sustainability goals, corporate governance, annual profitability, individual performance, and overall contributions to the Company.

This approach aims to effectively assess managerial performance, enhance operational efficiency, and strengthen accountability in management. The Company also benchmarks market compensation levels to ensure that remuneration is reasonable, competitive, and aligned with long-term corporate growth, serving as a reference for salary adjustments, promotions, incentives, and talent development.

The executive compensation structure includes participation in an Employee Stock Ownership Trust (ESOT) program, which reinforces the alignment of management and shareholder interests through equity participation.

To further strengthen corporate governance and advance sustainable development, beginning in 2024, senior executives’ Key Performance Indicators (KPIs) incorporate both financial performance metrics (30%) and ESG-related indicators (8%).

The ESG indicators include objectives such as:

Obtaining external verification for greenhouse gas (GHG) inventories,

Carbon reduction in manufacturing processes,

Participation in the Science Based Targets (SBT) initiative, and

Promoting ISO 27001 information security certification.

Moving forward, the Company will continue to develop carbon reduction targets based on the SBT methodology and expand the scope of ESG performance indicators. These initiatives are intended to enhance financial performance, strengthen corporate governance, and implement the Company’s sustainable development strategy.