Operating Internal Controls through the Compliance Committee, Internal Whistleblowing and Audits

「The Compliance Committee consists of full-time directors, executive officers, the General Manager of the Corporate Planning Department, the General Manager of the General Affairs and Human Resources Department, and the General Manager of the Finance and Credit Review Department, with the president serving as chair. It ascertains the current status and issues relating to compliance and issues policies and instructions as necessary.」

「During the fiscal year, the company invested a total of ¥3.6 billion to launch new businesses in the Tohoku, Tokai and Kyushu regions and established the equipment and common systems needed to begin mass production. To strengthen its management infrastructure, it also established the Safety and Compliance Supervisory Office, a unit reporting directly to management, revitalized 4 committees, namely the Compliance Committee, Safety and Health Committee, Risk Management Committee and Internal Control Committee, and completed its first year with the foundations for a stronger management infrastructure in place.」

「The Compliance Committee consists of full-time directors, a full-time Audit & Supervisory Board member and the General Affairs and Human Resources Division General Manager. It ascertains the current status and issues relating to compliance and issues policies and instructions as necessary.」

「The company's internal audits are conducted by the Audit Office, which consists of 5 audit staff and reports directly to the president. Based on an annual audit plan approved by the president, the Internal Audit Section conducts operational and accounting audits of each store, including subsidiaries, while the Internal Control Evaluation Section audits the status of internal controls.」

「The company has established a Compliance Committee to ascertain the current status and issues relating to compliance and issue policies and instructions as necessary. As an internal reporting system for compliance violations, it has established channels for direct reports to the secretariat of the Compliance Committee and an external whistleblowing channel for reports to outside counsel, separate from the reporting route to the employee's department head. The Audit Office regularly audits each store and subsidiary and reports the results to the directors and Audit & Supervisory Board members.」