UT Group Co., Ltd.

Employee Shareholding Association

Employee Shareholding Association

UT Group has adopted a scheme to share profits, which are the outcome of corporate growth, among all employees.

One of the purposes of UT Group’s public listing was to share what we achieved with our employees.
We envision that if our employees become the largest shareholder, they will be able to share the same direction and interests with the Company, and the Company will be overwhelmingly enhanced. This chain of thought led us to introduce the Employee Shareholding Association. We are pleased to say that, at present, many of our employees have become shareholders of UT Group.

Merits of the Employee Shareholding Association

POINT.1
Any employee can voluntarily purchase UT Group’ shares from one unit of 1,000 yen.
POINT.2
No annoying procedure is needed, as the purchased amount is paid through payroll deductions.
POINT.3
Any employee can receive 10% of the amount as an incentive from the Company.

ESOP has also been introduced

An “Employee Stock Ownership Plan (ESOP) Trust Utilizing Employee Shareholding Association” (ESOP Trust) that uses the mechanism of the Employee Shareholding Association is a system in which you may receive a distribution of earnings resulting from a rise in the stock price, in addition to dividends. Beneficiaries are employees who have joined the Employee Shareholding Association. Previously the Employee Shareholding Association directly purchased shares from the stock market. With the adoption of the ESOP Trust, the trustee makes a lump-sum purchase of the number of shares that the Association is expected to acquire over the next five years. Then the Shareholding Associations acquires those shares from the ESOP Trust at the market price. When there are ESOP Trust earnings resulting from an upward swing in the stock price when the ESOP Trust ends, the remaining funds will be distributed according to the members contribution ratio, in addition to dividends on common stock.

Previous Employee Shareholding Association

Pay 10% of the amount of contribution as incentive

 
After adopting the “ESOP Trust Utilizing Employee Shareholding Association”

The trustee makes a lump-sum purchase of the number of UT Group shares that the Association is expected to acquire. Then the Associations acquires those shares from the ESOP Trust at the market price with contribution from its members, incentives, and dividends.

How receivable distributions are generated

When the trustee’s monthly price (market price) of UT Group shares sold to the Association exceeds its lump-sum purchase price (\543), the ESOP Trust makes a gain. If the accumulated gains over the trust period exceed the accumulated loss, the net gains or remaining funds will be distributed to members of the Association, according to their net contribution ratio (the number of shares purchased – the number of shares withdrawn).

Employees eligible to receive distributions

 
  • ・The number of shares owned at present is not relevant. The amount of distribution will be determined by the number of shares purchased with contributions made during the a period from July (applied by the end of June) to the end of the trust.
  • ・UT Group employees who are members of the UT Group Employee Shareholding Association when the trust ends (Those retired will be excluded.)
  • ・Members whose contribution amount to the Association during the trust period exceeds their withdrawal amount
  • ・The amount of distribution to each member becomes proportionately higher to the net increase in the number of shares of the member (the number of shares purchased – the number of shares withdrawn) during the trust period.

Q&A

Q.I participate in the Employee Shareholding Association. Do I need to register with the ESOP Trust?
A.
There is no need to do anything. We recommend you to consider making more contributions.
Q.Can I receive distributions even I become a member of the Association after the start of the ESOP Trust?
A.
Yes, you can. If you make contributions to the Association during the trust period, you will be eligible to receive distributions.
Q.If our stock price declines and no distribution can be generated, do the members of the Association have to bear the loss caused by the lower stock price?
A.
No, the members will not bear the loss.
* However, the loss on the shares you own through the Association will not be compensated.
Q.When does the trust period end?
A.
It is scheduled to end in June 2019. However, the trust will terminate when the remaining shares in the trust are sold out due to an increase in the number of participants.
Q.When can I receive distributions?
A.
Distributions will be paid out when the trust period ends.
Q.Can you tell me the amount of distributions?
A.
The amount will not be determined until the trust period ends.