Fast Retailing issues stock options to executives, linking pay to shareholder value

Fast Retailing Co., Ltd. resolved on November 27, 2025, to issue share subscription rights as stock-based compensation stock options, effective December 19, 2025. This initiative aims to reward executive directors and operating officers for their contributions to the Group's profit and link their benefits to the company's share price, enhancing morale and performance, and fortifying operations that prioritize shareholder interests. The "Fast Retailing 16th share subscription rights A type" will be allotted to three executive directors (1,497 shares) and 40 operating officers (7,631 shares).

The exercise period for these share subscription rights will run from December 19, 2028, to December 18, 2035. The value of property incorporated upon exercise will be an exercise price of 1 yen per share. The amount paid upon allocation of each share subscription right will be calculated using the Black-Scholes model, based on a closing share price from December 18, 2025, and an expected remaining period of 6.5 years.

In cases of share splits or consolidations, the number of shares granted will be adjusted. The company reserves the right to acquire these share subscription rights without consideration under specific conditions, such as merger agreements. Any transfer of these rights will require approval by a Board resolution.