P.31 Corporate Governance

31 Corporate Governance Average Age: 62 (7 Directors) Average Tenure: 9.0 years (7 Directors; 0 Directors with 4-6 years) We believe that expanding earnings as a going concern and building good relationships of trust with stakeholders lead to increased corporate value. We recognize that establishing corporate governance is essential as a foundation for achieving this, and we strive to develop our systems. Corporate Governance Framework We have established a General Meeting of Shareholders, a Board of Directors, and an Accounting Auditor as bodies under the Companies Act. We adopt an Audit & Supervisory Board system and strengthen audit functions by appointing highly independent Outside Audit & Supervisory Board Members. We judge that a system that balances swift decision-making and operational efficiency according to business scale with appropriate supervision and monitoring is optimal. We have established a compliance system through the Risk and Compliance Committee and the Internal Audit Office and coordinate with legal counsel for important legal judgments. By having each body work closely together, we ensure the soundness, transparency, and legality of our management. Composition of the Board of Directors The Board of Directors decides on legal matters and important management issues, and supervises business execution. It consists of 7 directors with extensive insight and broad knowledge to support sound management and growth. Two of them are independent Outside Members of the Board of Directors who meet the qualification requirements of the Tokyo Stock Exchange. We judge them based on the absence of potential conflicts of interest with general shareholders. This structure ensures management decision-making based on a broad perspective, and enables objective supervision and appropriate advice from an independent standpoint. Independence Diversity Governance Structure Chart