Maintaining and Strengthening the Group’s Corporate Governance Framework

「The company has proposed the election of 9 directors as an agenda item for the 26th Annual General Meeting of Shareholders scheduled for 24 June 2026. If the proposal is approved, the Board of Directors will consist of 9 members, comprising 2 internal directors and 7 outside directors, as described below in “(2) Officer Status, ② List of Officers.”」

「To strengthen cooperation between outside directors and audit and supervisory board members, the company has established the Liaison Conference for Independent Officers and Others, consisting of 4 outside directors and 5 audit and supervisory board members, for a total of 9 members as of 20 June 2025, the date of submission of the annual securities report. The conference is generally held every other month to discuss important management matters, including agenda items for meetings of the Board of Directors.」

「The company has adopted a company with an audit and supervisory board structure. The Board of Directors works closely with the Audit and Supervisory Board to make final decisions on important matters and strengthen its oversight of management. The company has also established a highly transparent governance framework in which outside directors and outside audit and supervisory board members together constitute a majority of the Board of Directors and the Audit and Supervisory Board. In addition, the company has introduced an executive officer system to clearly separate management decision-making and oversight from business execution, thereby strengthening governance through the Board of Directors' checks and oversight. To strengthen the independence, objectivity and accountability of the Board of Directors, it has established the Nomination, Compensation and Governance Committee as an advisory committee separate from the Board, with outside directors as its principal members.」

「The company is working to maintain and strengthen a sound and highly transparent Group corporate governance framework.」

「Starting in fiscal 2018, the company introduced an executive officer system to clearly separate management decision-making and oversight functions from business execution, with the aim of strengthening the Board of Directors' checks and oversight as part of its governance framework. To ensure objectivity and transparency, it also established the Nomination, Compensation and Governance Committee, an advisory committee to the Board of Directors composed mainly of independent outside directors.」

「The company formulated the Group Basic Policy on Corporate Governance and will work to maintain and strengthen a sound Group corporate governance framework.」