Transition to a Company with an Audit and Supervisory Committee and the Executive Officer System

「As matters for resolution at the 80th Annual General Meeting of Shareholders scheduled for 18 December 2025, the company has proposed the election of 4 directors (excluding directors who are Audit and Supervisory Committee members) and the election of 1 director who is an Audit and Supervisory Committee member. If these proposals are approved, the company's Board of Directors will have 4 directors (excluding directors who are Audit and Supervisory Committee members), an increase of 1, and will continue to have 4 directors who are Audit and Supervisory Committee members, including 3 outside directors, for a total of 8 directors, including 3 outside directors.」

「The company has adopted the company-with-an-Audit-and-Supervisory-Committee system for the purpose of achieving more transparent management and improving management agility by strengthening the Board of Directors' audit and supervisory functions. The company has also introduced an executive officer system under which the Board of Directors, the company's decision-making body, and executive officers responsible for business execution based on those decisions share responsibilities.」

「To ensure transparency and objectivity in procedures relating to the nomination and compensation of directors and enhance corporate governance, we have established a voluntary Nomination and Compensation Committee as an advisory body to the Board of Directors.」

「The company has changed to a company with an Audit and Supervisory Committee for the purpose of achieving more transparent management and improving management agility by further strengthening the Board of Directors' audit and supervisory functions and the corporate governance framework. The company has also introduced an executive officer system under which the Board of Directors, the company's decision-making body, and executive officers responsible for business execution based on those decisions share responsibilities.」

「At the 71st Annual General Meeting of Shareholders held on 20 December 2016, amendments to the Articles of Incorporation providing for the transition to a company with an Audit and Supervisory Committee were approved, and the company changed from a company with a Board of Corporate Auditors to a company with an Audit and Supervisory Committee. The purpose of this transition was to achieve more transparent management and improve management agility by further strengthening the Board of Directors' audit and supervisory functions and the corporate governance framework. The company has also introduced an executive officer system under which the Board of Directors, the company's decision-making body, and executive officers responsible for business execution based on those decisions share responsibilities.」