Strengthening Internal Controls and Corporate Governance

「We have established the Internal Control Office, the Risk and Compliance Committee and the Internal Audit Office as organizations reporting directly to the Representative Director, President and Executive Officer, who is the Chief Executive Officer, and have assigned personnel with appropriate experience and knowledge to conduct cross-functional investigations, guidance and supervision concerning compliance with laws and regulations, the Articles of Incorporation and internal rules.」

「In addition to assigning dedicated internal control personnel to each company, we established a Risk Management Office and Internal Control Office as the second line, alongside the existing Internal Audit Office as the third line. The new offices are responsible for guiding the first line, comprising each operating company and group company, so that it can establish effective risk management and internal controls, thereby strengthening governance.」

「The Internal Audit Office has 4 dedicated personnel and reports directly to the Representative Director and Chairman, independently of the operating divisions. It audits all divisions on matters set out in the Basic Policy on Medium- and Long-Term Internal Audits, including legal compliance, internal controls, and compliance with regulations, rules and business processes, as well as matters considered necessary in a timely manner, including the appropriateness of cost management, ordering authority, safety management and management figures.」

「We consider strengthening corporate governance functions to be an important issue and recognize that the proper operation of the internal control system is important to ensure the reliability of financial reporting.」