CORPORATE GOVERNANCE

Basic Approach to Corporate Governance

For a long-term and sound corporate value improvement, the Company recognizes that strengthening and enhancing corporate governance is an important management issue. Therefore, based on its management philosophy, the Company emphasizes dialogue with all stakeholders, including shareholders and partner companies, for sustainable growth and to create medium- to long-term corporate value. The Company is dedicated to implementing effective corporate governance, ensuring high transparency and soundness, and promoting efficient management to achieve sustainable growth.

Overview of Corporate Governance System and Reasons for Adopting the System

The Company has a board of directors, auditors, an audit board, and accounting auditors in place, as stipulated by the Companies Act. The board of directors includes outside directors, and the legality of the board members’ business execution is audited by the audit board, which includes outside auditors. Based on the basic policies established by the board of directors, we regularly hold “Management Meetings,” which consist of executive directors, executive officers, and department heads to discuss essential management issues and individual business executions. The Company centralizes business execution authority and responsibility in the board of directors, while the independent auditors and audit board are responsible for auditing the board of directors, thereby achieving appropriate decision-making and business execution. This system ensures sufficient organizational checks and balances.