Measures to Prevent Recurrence and Strengthen Internal Controls Following Misconduct at a Subsidiary

「The Audit and Supervisory Committee considered matters including decision-making by the Board of Directors and other bodies, the establishment and operation of group governance, the internal control system, the corporate information disclosure framework, and systems to ensure the proper execution of the accounting auditor's duties. As in the previous consolidated fiscal year, it also monitored and verified the implementation of measures to prevent recurrence of misconduct based on recommendations from the special investigation committee concerning misconduct uncovered at a consolidated subsidiary.」

「Based on the special investigation committee's recommendations for preventing recurrence, our group will implement the following measures and work to restore trust. • HIKE's measures to prevent recurrence: Improve business transparency and establish internal controls over purchasing and procurement. • Our measures to prevent recurrence: Clarify management responsibilities between the parent company and subsidiaries, strengthen internal audits, and enhance the internal whistleblowing system.」