Transition to a Company with an Audit and Supervisory Committee and Oversight by Outside Directors

「We have adopted a company with an Audit and Supervisory Committee as our corporate organizational structure. By establishing an Audit and Supervisory Committee in which outside directors constitute a majority, we aim to strengthen the auditing and supervisory functions over the Board of Directors' execution of duties and improve the transparency and efficiency of processes through the participation of outside directors in management.」

「Pursuant to a resolution of the 114th Annual General Meeting of Shareholders held on 25 February 2016, the Company changed from a company with a board of corporate auditors to a company with an audit and supervisory committee. We believe that strengthening the audit and supervisory functions of outside directors will ensure effective corporate governance and further enhance the Company's management control system.」