Strengthening the Governance, Compliance and Risk Management Framework

「The Group has established the Sustainability Committee and Risk Management Committee to enhance the Group’s medium- to long-term corporate value. The committees comprise the president and executive officer, executive officers, representatives of subsidiaries, audit and supervisory committee members, and others.」

「As of the date of submission of this document, the Company changed the structure of the Corporate Value Enhancement Committee by dividing it into the Sustainability Committee and Risk Management Committee to improve the effectiveness of the framework. This enables the Group to monitor common risks and issues, including preventing corporate misconduct, strengthening the corporate culture from multiple perspectives, and achieving sustainable business operations.」

「The Group aims to enhance corporate value by creating new value through co-creation with all stakeholders and working to strengthen its management systems and internal controls.」

「Under the Corporate Value Enhancement Committee, the Group has established the Sustainability Council, which discusses how to develop mechanisms for achieving materiality and methods for more compelling disclosure of ongoing activities; the Internal Control and Compliance Council, which discusses the development, operation and review of the internal control system and compliance status; the Financial Strategy Council, which discusses the effective use of resources, assets and capital and financial strategies that take capital costs into account; the DX Council, which discusses the development of a framework for using data and digital technologies across the Group; the Well-Being Council, which discusses measures to improve employee motivation and engagement throughout the Group; and the Risk Management Council, which discusses the early establishment of a framework for Group-wide risk management and business continuity planning (BCP).」

「To respond to a rapidly changing market environment, it is important to accelerate decision-making at each operating company while strengthening the corporate governance, compliance and risk management systems specialized for each field. Accordingly, the Company decided to transition to a pure holding company structure as the optimal framework for achieving this.」