Strengthening the Oversight Framework, Including Outside Directors and Nomination and Compensation Committees

「Following a resolution at the 35th Annual General Meeting of Shareholders held on 18 December 2025, the Company changed from a company with a board of corporate auditors to a company with an audit and supervisory committee. The purpose is to further enhance corporate governance by making management decision-making faster and more efficient to achieve sustainable growth and enhance corporate value over the medium to long term, while strengthening the Board of Directors' oversight function by giving directors who are audit and supervisory committee members voting rights at Board meetings.」

「At our company, outside directors constitute a majority of the total number of directors, and outside corporate auditors constitute a majority of the corporate auditors. We actively incorporate appropriate advice and recommendations from an external perspective into management. In addition, we have established nomination and compensation committees under the Board of Directors, with outside directors making up the majority of their members, to ensure the appropriateness and transparency of director appointments and compensation.」