Conflict-of-Interest Management Framework at Listed Subsidiaries

「At the listed subsidiaries, the ratio of independent outside directors on the boards was increased to at least one-third, and Conflict of Interest Management Committees with a majority of independent outside directors were established to review the rationality, fairness and other aspects of transactions with the parent company.」

「Furukawa Battery Co., Ltd. and Tokyo Special Electric Wire Co., Ltd., both listed subsidiaries, have established a Conflict of Interest Management Committee, a majority of whose members are independent outside directors, to review the rationality, fairness and other aspects of transactions with the parent company, in light of the structural conflict-of-interest risk between the Company and the minority shareholders of the listed subsidiaries. They have also increased the ratio of independent outside directors on their boards to at least one-third.」