March 20, 2023
To whom it may concern
Company: Japan Securities Finance Co., Ltd.
Representative Executive Officer & President: Shigeki Kushida(Code No. 8511, TSE Prime)
Contact: Kentaro Hibi, General Manager, Corporate Governance Office(E-mail :info@jsf.co.jp)

Review of Executive Remuneration
Japan Securities Finance Co., Ltd. (the “Company”) hereby announces that theRemuneration Committee, at its meeting held today, reviewed the Executive
Remuneration System and resolved to change it as shown in the attachment.
The Company disclosed its 7th Medium-Term Management Plan (FY2023FY2025) in its “Announcement of Formulation of Medium-term Management
Plan" on February 6, 2023 that it will accelerate and deepen the management
reform initiatives that it has been pursuing to date in order to achieve our mediumterm management goal of a 5% ROE. We have also been working to enhanceand strengthen its corporate governance since transitioning to a company with anominating committee, etc. in 2019, and we will continue to work towards furthereffectiveness.
The Company has established a system and level of remuneration for executive
remuneration that is consistent with the Company's mission and management
policies from a perspective of achieving sustainable growth and medium- to longterm corporate value enhancement in accordance with the roles and expectedfunctions of Directors and Executive Officers. The Remuneration Committee has
conducted a series of reviews of the design of officers' remuneration, taking into
account the concept of corporate governance, to ensure that incentives areconsistent with the management policies under the new Medium-Term
Management Plan. Accordingly, the Company has decided to review Executive
Officer remuneration starting in FY2023.
We will continue to strive to enhance and strengthen corporate governance andimplement necessary measures in order to achieve sustainable growth andmedium- to long-term corporate value enhancement.
We thank you for your understanding of the Company’s management philosophy
and look forward to your continued support and cooperation moving forward.
End.
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Attachment
Overview of the Executive Remuneration System
Ⅰ Executive Officers
１． Composition (continuing as at present)⚫ Based on our management philosophy of playing a public role in supporting
the infrastructure functions of the securities and financial markets,
maintaining financial soundness, and performing stable operations, while atthe same time achieving sustainable growth and medium- to long-term
corporate value enhancement, the ratio of fixed remuneration toperformance-linked remuneration shall be as follows.
Basic remuneration (Fixed)

Bonuses

Stock remuneration

65％

20％

15％

２．Performance-linked remuneration (change)（１）Approach⚫ Performance-linked remuneration is divided into short-term and longterm incentives, with bonuses positioned as short-term incentives andstock remuneration as long-term incentives.
（２）Bonuses⚫ Consolidated current fiscal year net income will be used as a reference
index with a viewpoint of clarifying management responsibility for eachfiscal year as a short-term incentive.
⚫ As a method of reflecting this, the performance-linked coefficient shall be
the ratio of the current fiscal year's consolidated net income to theprevious year's consolidated net income, and shall be multiplied by thestandard calculation amount according to the position.
⚫ Officer Bonuses shall be divided into the performance-linked portion andthe personal assessment portion, and the personal assessment portion
shall be increased or decreased according to the personal assessment.
(Example) Image of the Executive Officer’s personal assessment
Fixed remuneration
Bonuses
Stockremuneration
（65%）

（20％）

Performancelinked portion(15%)

2（15％）

Personalassessment
portion (5%)

（３）Stock remuneration⚫ As a long-term incentive, the ROE and consolidated recurring income,which are our management goals of the 7th Medium-term Management
Plan, will be used as a reference indicator.
⚫ As a method of reflecting this, the forecast progress for each fiscal year
through FY2025 will be used as the reference value, and the performancelinked coefficient will be the comparison with the actual results for eachfiscal year.
Performance (example)
Forecast progressAdd

FY2025 target
ROE 5%

Consolidated recurringincome 10 billion yen
Subtract

FY2022

FY2023

FY2024FY2025

Ⅱ Directors (continuing as at present)•••

Directors will receive only a fixed monthly remuneration (basic remuneration)from the perspective of exercising their supervisory function, andperformance-linked remuneration, etc. will not be paid.
Remuneration of individual Directors shall be determined in accordance with
their responsibilities as Directors, such as being full-time or part-time andtheir being appointed as Chairperson.
Directors who also serve as Executive Officers shall not be paid remuneration
as a Director.
End.

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