Corporate Governance

The Company upholds both a customer-oriented and shareholder-oriented approach as fundamental management principles. It recognizes that the achievement of its management goals and the continuous enhancement of corporate value represent essential forms of shareholder return. To achieve these goals, the Company believes it is critical to pursue swift decision-making and appropriate execution of operations, while also strengthening governance functions that promote management transparency. In addition, based on active dialogue with stakeholders, the Company is committed to further strengthening its corporate governance framework.

The Board of Directors comprises six members, including four Outside Directors. The small and strategic composition of the Board is designed to facilitate strategic and agile decision-making on key matters such as management policies and the mediumterm business plan. Matters related to business execution are delegated to Executive Directors, enabling the Company to respond swiftly to changes in the business environment, while allowing the Board to exercise effective oversight over execution.

The Company ensures the proper execution of business operations by clearly defining authority and responsibility, incorporating mutual checks and balances into business processes, and establishing appropriate segregation of duties. At the same time, the Company recognizes the need for periodic reviews and continual improvement and enhancement of these systems.

To ensure that the execution of duties by Directors complies with laws and regulations as well as the Articles of Incorporation, the Board of Directors has established the “Committee on Internal Controls, Etc.,” an organization tasked with building systems for internal control, compliance, and risk management, and undertaking reviews and improvements of such systems.

The Company maintains a firm stance of having no relationships whatsoever with anti-social forces that threaten social order and safety, and conducts no transactions with companies, organizations, or individuals associated with such groups. This policy is thoroughly communicated throughout the Company, from the President and CEO to all officers and employees. In addition, the Company continuously gathers information from relevant government authorities and other sources and has established a system that enables prompt, company-wide responses through close coordination with relevant government agencies and external experts such as legal counsel in the event such a situation arises.