At the Remuneration Committee meeting held today, Mitsubishi Estate Co., Ltd. (hereinafter 'the Company'), has decided on the revision of the remuneration systems for corporate executive officers.

Background and Purpose of the Revision of the Remuneration System for Corporate Executive Officers

At present, the Company offers the following remuneration systems for officers in addition to basic remuneration: single-year, performance-based remuneration by cash; remuneration by shares with restriction on transfer; Phantom Stock Plan with the performance metric covering the total shareholder return over approximately three years. This is for the purpose of providing an incentive scheme that sustainably improves corporate value, and promotes sharing of values with shareholders.

Since the implementation of current remuneration system, we have been continuously discussed the way to further promote the purpose mentioned above. As a result, we have reached the decision to revise the remuneration system in FY2023* aiming for the followings: To encourage strong commitment for achieving targets in the long-term management plan by enhancing a linkage between the remuneration system and the long-term management plan; To further promote sharing of values with shareholders by increasing the proportion of remuneration accounts for stock and stock price. *the fiscal year ending March 2023.

Overview and Purpose of the Revision of the Remuneration System for Corporate Executive Officers

Enhancing a linkage between the performance evaluation for officers and the long-term management plan

With the objective of increasing commitment for achieving targets in the long-term management plan, consistency will be ensured between KPI and performance evaluation indicators in the long-term management plan and also evaluation items linked to the long-term management plan are to be adopted.

Promoting sharing of values with shareholders

With the objectives of further promoting sharing of values with shareholders, new restricted stock compensation that the payout amount varies depending on performance will be implemented. By doing so, the proportion of remuneration linked with stock price will increase to 30% of the total (currently 25%) and restricted stock period will be changed until the time of resignation as officers (currently approximately 3 years).

Changing composition of the remuneration

With the objectives of increasing the incentive of the remuneration system, the proportion of variable remuneration will be changed to 60% of the total (currently 50%). ?Eligible Officers: Representative Corporate Executive Officers, Senior Executive Officers, Executive Officers and Group Executive Officers. (No change from the current system)

Contact:

Motohiro Sato

General Manager

Corporate Communications Department

Telephone: +81-3-3287-5200

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