Mitsui Chemicals : Partial Revision to the Executive Compensation System（introduction of Malus and Clawback Provisions）

March 31, 2026 Mitsui Chemicals, Inc.

Partial Revision to the Executive Compensation System（introduction of Malus and Clawback Provisions）

Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu; the "Company") hereby announces that at the Board of Directors meeting held today, the Company resolved to introduce malus and clawback provisions into its executive compensation system, which allow for the reduction or the recovery of compensation, as outlined below.

1. Purpose of introduction of malus and clawback provisions

   The Company recognizes that enhancing corporate value and shareholder value requires directors and executive officers to fully understand the importance of their respective responsibilities and to conduct management with a strong emphasis on legal compliance and risk management.

   In order to further enhance its governance standards and more clearly link management responsibility with compensation under the new management structure effective April 1, 2026, the Company has decided to introduce malus and clawback provisions.

   Through the introduction of the malus and clawback provisions, the Company aims to prevent material violations of laws and regulations or other misconduct by directors and executive officers, restrain excessive risk-taking, and clarify management accountability in the event that such incidents occur.

2. Overview of malus and clawback provisions

   In the event that directors (excluding outside directors) or executive officers are involved in material violations of laws and regulations, fraudulent conduct, or material negligence in risk management, or where misstatements or restatements of financial statements occur, the Company may forfeit or cancel, in whole or in part, bonuses that have not yet been paid and shares that remain subject to transfer restrictions.

   In addition, the Company may require the return, without compensation, of all or part of bonuses that have already been paid and the monetary equivalent of the shares for which transfer restrictions have already been lifted.

   The application of the malus and clawback provisions shall be determined through a resolution of the Board of Directors, following the approval of a proposal by the Executive Compensation Committee, which is composed of a majority of independent outside directors and chaired by an independent outside director.

3. Schedule

The effective date of the malus and clawback provisions is April 1, 2026.