Announcement on the Introduction of an Internal Project System

The company has positioned the succession of century-old enterprises through M&A and value enhancement through cutting-edge technology as the core of its medium- to long-term growth strategy, 'TRIiS2.0,' announced on April 15, 2026.

As the foundation for execution, the company has established two pillars: 'Smart Investment,' which enhances investment decision-making, and 'Smart Company Transformation,' which institutionalizes post-investment value creation.

Now, in order to advance 'Smart Company Transformation,' promote automation and efficiency in operations through AI and other technologies, and build a structure enabling employees to focus on higher-value tasks and generate profits, the Board of Directors meeting held on June 15, 2026, resolved to introduce an internal project system. This system will advance key initiatives designated by the company as projects, along with 'Project Pay'—a compensation system separate from regular salaries, paid based on achievements in each project. This announcement is made as follows.

Details:

1. Purpose of Introduction

The company group has established a new Information Technology Strategy Department to achieve 'Smart Company Transformation,' advancing AI utilization under the leadership of the CTO. This initiative aims to automate or semi-automate non-value-added tasks, while avoiding simple workforce reduction. Instead, through reassignment and retraining of employees to higher-value roles, the company seeks to enhance the overall value-creation capability of the group. The internal project system is being introduced to ensure steady progress in high-value activities and to return a portion of profits to employees who contribute to achieving results in key initiatives. The company expects that this system will boost employees' motivation and willingness to participate proactively, enhance the effectiveness of each initiative, and contribute to long-term profit growth.

2. Overview of the Internal Project System

The internal project system is designed to advance key initiatives designated by the company as projects, with the goal of achieving predefined targets or generating results within each project. Employees who participate in these projects and contribute to results will receive 'Project Pay' based on criteria established by the company. Eligibility, payment amounts, timing, and other details will be determined individually based on each project's progress, outcomes, and internal regulations. Initial projects under this system will focus on early real estate sales, brand value enhancement, identification and monetization of owned assets, cost reduction, and operational efficiency improvements.