June 23, 2022
To our shareholders and investors:
KYORITSU MAINTENANCE CO., LTD.

Supplementary Explanation for “Proposal 4: Determination of remuneration for allocatingtransfer restricted shares to Directors (excluding Directors who are Audit and Supervisory
Committee Members and Outside Directors)” of the 43rd Ordinary General Meeting ofShareholders

The Company is providing a supplementary explanation for “Proposal 4: Determination ofremuneration for allocating transfer restricted shares to Directors (excluding Directors who are Auditand Supervisory Committee Members and Outside Directors),” that is to be resolved at the 43rdOrdinary General Meeting of Shareholders in order to ensure the shareholders’ understanding of theproposal.
1. Overview of this proposal(1) Objective for introducing this proposal
In order to have the Company’s Directors (excluding Directors who are Audit and Supervisory
Committee Members and Outside Directors) (hereinafter referred to as “Eligible Directors”) sharethe merits and risks of fluctuating share prices with shareholders and further increase their incentive
to contribute to the enhancement of increasing share price and corporate value, the Company
proposes to introduce a system of remuneration for allocating transfer restricted shares to theEligible Directors (hereinafter referred to as the “Plan”).
(2) Conditions for introducing the Plan
Since the Plan involves paying monetary compensation receivable for allocating transfer restricted
shares to the Eligible Directors as a remuneration, the introduction of the Plan is subject to thecondition of obtaining the approval of the shareholders at this General Meeting of Shareholders forthe payment of remuneration that is involved. Note that at the Company’s 40th Ordinary General
Meeting of Shareholders held on June 26, 2019, the remuneration amount for the Company’sDirectors (excluding Directors who are Audit and Supervisory Committee Members) was approved
as a maximum amount of 1,000 million yen per year (not including the employee’s salaries portionfor Directors who also serve as employees). Now, at the upcoming General Meeting ofShareholders the Company is requesting the shareholders’ approval to set, separately from theaforementioned remuneration amount for the Directors, the total amount of monetarycompensation receivable to be paid as remuneration, etc. regarding transfer restricted shares for
Eligible Directors to a maximum of 200 million yen per year, and also to specify that the aggregate
number of transfer restricted shares to be allocated to Eligible Directors shall not exceed 260,000
transfer restricted shares per fiscal year in comprehensive consideration of various matters such as
the level of contribution of Eligible Directors.
2. Purpose of the Plan
(1) Total amount of monetary compensation receivable and the aggregate number of transfer restricted
sharesThe Company shall provide each Eligible Director an amount of monetary compensation

receivable within the aforementioned annual limit as remuneration etc., regarding transfer
restricted shares, and each Eligible Director shall receive their allocation of transfer restricted
shares by paying all of the monetary compensation receivable by the method of in-kind
contribution in accordance with the resolution of the Board of Directors of the Company. Themaximum number of transfer restricted shares to be allocated to Eligible Directors per fiscal year
shall be either “not more than 260,000 shares, the upper limit for transfer restricted shares” or “notmore than the number equivalent to 200 million yen, which has been set as the maximum amountfor the amount of monetary compensation receivable,” whichever is the lower value. To provide
examples, two cases are given below:[Case 1]
In a case where 260,000 shares, the upper limit for transfer restricted shares, are allocated over aten-year period, then as stated in the Notice of the 43rd Ordinary General Meeting of Shareholders,the dilution rate would be 6.6%.
[Case 2]
In a case where the transfer restricted shares equivalent to 200 million yen, which is the maximum
amount for the total amount of monetary compensation receivable, are allotted based on a shareprice of “1,800 yen,” which is the lowest share price of the Company in the past five years, thenumber of transferable shares calculated by dividing 200 million yen by 1,800 yen would be“111,100 shares,” and the dilution rate for ten years would be 2.8%.
We ask shareholders to understand that this proposal is drafted in a way that the aggregate numberof transfer restricted shares and total amount of monetary compensation receivable proposed in thisproposal are simply the respective “upper limits,” and we plan to make appropriate allotments
within these limits with the understanding of our shareholders.