Corporate Governance

The Company has adopted a Board of Directors structure as part of the continuing effort to earn the trust of shareholders, customers, employees and other stakeholders, by pursuing a future of sustainable growth and endeavoring to increase corporate value over the medium and long term. In addition, an executive officer system has been introduced in order to further increase management efficiency, and the Company has appointed Outside Directors and Outside Audit & Supervisory Board Members to oversee and supervise the other Directors with the aim of enhancing transparency, fairness and propriety.

▮Organizational structure for corporate governance

Corporate Governance Report

• Corporate Governance Report (July 2, 2025)
• Standards for Independence of Outside Officers (Established on October 28, 2015)

Officer Training

The Company provides training to newly appointed Directors and Audit and Supervisory Board Members, and seminars are held from time to time. On top of that, when new laws or regulations are introduced, internal seminars are organized with external specialist lecturers.
In fiscal 2024, we invited lecturers from outside to conduct training on the theme of “misconduct prevention” and received reports from Directors and Audit & Supervisory Board Members as confirmation of the effectiveness of the training. Down the road, we will conduct training necessary for Directors and Audit & Supervisory Board members to fulfill their roles.

Implementing Board of Directors effectiveness evaluations

The Company assesses the effectiveness of the Board of Directors, and use the result of the assessment to further improve the Board.
In April 2024, the Company received opinions from a total of 10 internal and external Directors and Audit and Supervisory Board Members regarding the role of the Board of Directors and its management structure for fiscal 2023, and these opinions were reported to the Board of Directors meeting in July. The result confirmed that the running of the Board of Directors provides enough time for discussion to enable swift decision-making. However, there is still room for further improvement in matters such as the training of Directors aimed at acquiring the required knowledge in the discussions of the Board of Directors, deliberation on internal diversity, and the clarification of policy for cross-shareholdings. In response, at the Board of Directors meeting, a report was presented on matters including an upcoming effort for cross-shareholdings as improvement measures based on these results.
We will further refine the assessment, and make use of the result to make our Board of Directors more effective.