Questionnaire-Based Evaluation of Board Effectiveness and Improvement Proposals

「For the fiscal year ending March 2026, the Company evaluated that the depth of Board discussions and the speed of management decision-making had steadily improved, owing to measures taken in connection with the transition to a company with an Audit & Supervisory Committee, including narrowing the matters submitted to the Board through delegation of authority, holding advance briefings on agenda items for outside directors, and conducting residential training for officers.」

「For the fiscal year ended March 2025, after the analysis and evaluation, the Board exchanged views with outside directors and Audit & Supervisory Board members, held discussions between the Representative Director and Audit & Supervisory Board members, and had the directors responsible for each area organize the issues. It then concluded that “by expanding opportunities for multifaceted and multilayered discussions involving outside officers and external expertise, management decisions with greater depth are now made more quickly than before, and the Board’s effectiveness has steadily improved.”」

「For the fiscal year ended March 2024, after the analysis and evaluation, the Board exchanged views with outside directors and Audit & Supervisory Board members, held discussions between the Representative Director and Audit & Supervisory Board members, and had the directors responsible for each area organize the issues. It then concluded that “following the important decision to address management with an awareness of the cost of capital and the share price, opportunities for discussion involving outside officers and external expertise have expanded, enabling more multifaceted and multilayered consideration than before, and the Board’s effectiveness has steadily improved.”」

「After each fiscal year-end, the Audit & Supervisory Board conducts a questionnaire survey of all directors and Audit & Supervisory Board members regarding the effectiveness of the Board of Directors and analyzes and evaluates the results. For the fiscal year ended March 2023, following the analysis and evaluation, the Board exchanged views with outside directors and Audit & Supervisory Board members, the representative director consulted with the Audit & Supervisory Board, and the directors in charge organized issues. The Board concluded that its effectiveness had been secured through timely and appropriate measures, including global supply chain management and price revisions, in response to management issues such as tight parts supplies and higher material costs.」