Basic Policy Regarding Corporate Governancepolicy

Our basic corporate governance policy is to strive to maintain harmonious relations with all stakeholders including customers and shareholders, and to increase our corporate value while establishing the management structure that will enable legitimate business execution based on compliance with laws and social norms.

Outline of Corporate Governance Structure

We acknowledge the importance of objective and neutral supervision over management from the outside and have an outside director and external auditors who specialize in supervision. Also, recognizing of effectiveness of management supervision function by a check system consisting of auditors, including external auditors, we operate as a company with audit committee.

Our Board of Directors consists of nine directors, and four auditors. Board of Directors meeting is held at least once a month. Furthermore, Executive Committee meetings are held twice a month to carefully examine and deliberate important matters regarding the company’s management.

Additionally, we have adopted the company with an Audit & Supervisory Committees structure. We believe that the oversight and monitoring functions of management are effectively fulfilled through mechanisms such as the Audit Committee, the Board of Directors and the Executive Committee, and the appointment of external directors and external auditors. Moreover, we have established a Risk Management and Compliance Committee, which, along with its subcommittee, the Reward and Disciplinary Committee, deliberates on themes related to compliance with laws and regulations based on corporate ethical standards, social trends, current affairs, and proposals. The committee vigorously promotes compliance and enhances corporate ethics across the company by effectively disseminating information and making necessary proposals to all corporate bodies.

Corporate Governance Framework