P.32 Corporate Governance (Board Effectiveness)

32 Corporate Governance Evaluation of Board Effectiveness Our Board of Directors consists of 7 directors who decide on business execution and supervise directors’ duties. In the fiscal year ended December 2025, the Board met 14 times with 100% attendance. To ensure effectiveness, it deliberates on key management matters, including the General Meeting of Shareholders, growth strategies, management policies, budgets and financial results, capital investment, stock-related matters, the selection and appointment of Representative Directors and executive directors, organization and personnel, and internal regulations. Activities of the Board of Directors The Board of Directors meets regularly once a month, and holds extraordinary meetings as necessary. The Representative Director & CEO chairs the meetings. The Board comprehensively discusses fundamental management issues, including medium-term management plans, budget control, acquisition and disposal of important assets, organizational restructuring, and personnel policies. Outside Members of the Board of Directors provide advice and proposals based on their professional expertise from an independent standpoint, fulfilling a supervisory function. Activities of the Audit & Supervisory Board The Audit & Supervisory Board met 15 times during the fiscal year, and all 3 Outside Audit & Supervisory Board Members attended all 15 meetings. They verify compliance with laws and the Articles of Incorporation, as well as the fairness and efficiency of business execution by Directors. They also monitor the development and operation of the internal control system. Based on the audit policy, Full-time Audit & Supervisory Board Members communicate with Directors and the internal audit department. They maintain the audit environment by attending key meetings, reviewing approval documents, and conducting on-site audits. Activities of Various Committees The Risk and Compliance Committee is chaired by the Representative Director & CEO and consists of 7 members: 1 Senior Managing Director, 3 Managing Directors, 1 Executive Officer and 1 Outside Audit & Supervisory Board Member. It meets quarterly in principle to review and decide on compliance policies and measures based on Risk Management Regulations, aiming to maintain and strengthen the company-wide system. Management identifies potential risks early. For materialized risks, the committee conducts impact analysis and discusses countermeasures. We have established a system to obtain advice from external experts, such as lawyers, as needed. We have not established voluntary committees equivalent to a Nomination Committee or Compensation Committee. Unique Governance Mechanism We have adopted a virtual-only format for the General Meeting of Shareholders to ensure opportunities for attendance. Through the Premium Yutai Club we operate, shareholders can attend online, exercise voting rights electronically, ask questions, and submit motions. We provide a venue for dialogue utilizing technology, promoting highly transparent shareholder returns and interaction.