Continued Strengthening of Corporate Governance, Compliance and Risk Management

「The group reorganized its structure to strengthen the promotion of DX and sustainability-oriented management. It clarified the Corporate Planning Department, which had been at head-office level, as the headquarters division, placing the Corporate Planning Department and Information Systems Department under it. It also upgraded the former IR and Sustainability Promotion Office to the IR and Sustainability Section. Alongside promoting DX, the group will pursue IR and sustainability initiatives from the 3 ESG perspectives of the environment, society and governance, with a long-term perspective, contributing to the sustainable growth of society.」

「At a meeting of the Board of Directors held on 31 January 2024, the company resolved to establish the Share Supply and Demand Buffer TrustⓇ (the “Trust”) to strengthen corporate governance and increase the ratio of tradable shares.」

「To achieve sustainability-oriented management, the group has formed 3 teams: the IR Promotion Team, the SDGs Promotion Team and the DX Promotion Team. From the 3 perspectives of ESG, namely the environment, society and governance, it will pursue initiatives that contribute to the sustainable growth of society from a long-term perspective. The Board of Directors recognizes the activities of the 3 teams established to achieve sustainability-oriented management as important matters, receives reports on the status of their activities and progress toward their targets, and monitors them.」

「The company reorganized all internal rules and regulations and established a new Nomination and Compensation Committee to strengthen corporate governance.」

「In terms of management infrastructure, the company established a Sustainability Promotion Office and launched full-scale SDGs activities. Going forward, it will continue to pursue a growth strategy involving investment for the post-COVID-19 era in order to respond accurately to rapidly changing market needs. The company has also redefined its mission as realizing the growth of the group and contributing to a sustainable society through its daily corporate activities, and has newly formed an SDGs Promotion Team to advance these efforts.」

「The company has also newly established a Sustainability Promotion Office. It will formulate corporate strategies that take into account the impact of its business activities on the environment, society and the economy, and will work to further strengthen and stabilize management.」

「The company seeks at all times to ensure the efficiency, soundness and transparency of management and to achieve sustained growth in corporate value.」

「Recognizing that corporate operations and activities are supported by many stakeholders, including shareholders, business partners, employees, local residents and financial institutions, the company has adopted the following corporate governance structure in consideration of the need to establish a management system that enables sound and efficient corporate management, together with a monitoring and oversight system to eliminate unsound and inefficient management.」

「Recognizing that corporate operations and activities are supported by many stakeholders, including shareholders, business partners, employees, local residents and financial institutions, the company has adopted the following corporate governance structure in consideration of the need to establish a management system that enables sound and efficient corporate management, together with a monitoring and oversight system to eliminate unsound and inefficient management.」