Through our business we will aim to solve social issues and become a sustainable company, contributing to the achievement of a sustainable society.

Against the backdrop of rising interest in SDGs and ESG investments, and with non-financial information that could
have an impact on medium- to long-term earnings becoming increasingly important, the Group has identified ESG
materialities and value creation processes that should be addressed as a priority. By doing so it seeks to contribute to
achieving a sustainable society through its business activities, increase corporate value and grow over the medium and long term.

In the Environmental (E) area the Group has identified the three materialities of“ Develop and manufacture
environmentally friendly products”,“ Respond to climate change”, and“ Use sustainable resources”, and is working
on initiatives that include the urgent issues of reducing CO2 emissions, promoting activities that reduce energy
consumption, and providing products that contribute to renewable energy.

In terms of Social (S) materialities, the Group has identified the four materialities of“ Contribute to the development of industry through technological innovation”, “Pleasant working environment”,“ Personnel training”,
and“ Diversity and inclusion”, and is aiming to promote innovation by leveraging core technologies, promote the
empowerment of women and the hiring of foreign and other employees, help employees achieve better work-life
balance, and enhance employee satisfaction.

As for Governance (G) materialities, the Group has identified the three materialities of“ Corporate governance”,
“Compliance”, and“ Risk management”, and will strive to thoroughly implement disclosure of sustainability-related
information to stakeholders, CSR procurement, and supply chain management.

With regard to value creation, in terms of processes that exhibit increases in corporate value and the continuation
of sustainable growth, the Group has identified a series of actions ranging from committing financial and non-financial capital, which is the source of value creation, to the promotion of businesses, and the creation of shared value with stakeholders.

In addition, with the aim of creating a governance structure that will contribute to sustainable management, the Group has disclosed a skills matrix that shows the balanced composition of the Board of Directors as a whole and the
appropriateness of the selection process, which it created by referring to the skills and diversity required of the Board
of Directors under the management strategy.

Lastly, the Group is currently actively promoting initiatives to achieve the various goals set forth in the“ Sustainable Development Goals (SDGs)”. While enhancing the understanding of employees to ensure that the activities become firmly rooted in the workplace, we will use the goals and targets of the SDGs as our compass for the future, and through our business activities we will solve social issues and be a sustainable company with value in the world.