On the Introduction of a Performance-Linked Stock Compensation Plan

Today, Chubu Electric Power has decided to introduce a new performance-linked stock compensation plan, the "Board Benefit Trust" (hereinafter this plan), for directors (excluding external directors) and managing executive officers who do not concurrently serve as directors (hereinafter, collectively, "directors"). A resolution regarding this matter will be submitted to the 95th Shareholders Meeting to be held on June 26, 2019.

1 Background and objective of the plan

This plan forges a direct link between the directors' pay and our company's performance and stock value. The directors will share with all stockholders, the benefits of a rise in stock price but also the risks of falling prices. The aim is to raise the directors' awareness of their roles in increasing the Chubu Electric Power Group's mid-to-long term performance and growth in corporate value.

2 Overview of the plan

This plan is a performance-linked stock compensation plan in which Chubu Electric Power's stock is first acquired by the Trust using the company's capital. Then, the Chubu Electric Power stock or the amount calculated based on the market price of the Chubu Electric Power stock is paid out from the Trust to the directors based on Chubu Electric Power's Executive Officer Stock Payout Provisions.