Situation of Corporate Governance
1. Basic Explanation of Firm Organization

1. Basic Explanation of Firm Organization

The company believes that a strong corporate governance function and improved competitiveness through expeditious decision-making are indispensable to achieving sustainable growth.

The company has adopted an Audit & Supervisory Board system. As of the date of submission of our annual securities report (May 18, 2023), the company had 11 directors (five of whom are outside directors) and four members of the Audit & Supervisory Board (three of whom are outside members). By including outside directors who are well versed in a variety of areas in the board of directors, we conduct highly effective supervision and strengthen our management structure. We are also working to bolster the functions of the Audit & Supervisory Board, thereby maintaining and strengthening sound management. As a general rule, the board of directors and the Audit & Supervisory Board meet once a month. In addition to these mechanisms, the Company strives to disseminate information through committees led by general managers or other managers below the rank of a representative director. The purpose of these committees is to ensure efficient business activities.

We operate an audit system under which the Audit & Supervisory Board, our outside financial statement auditors, and the Management Auditing Department maintain a close working relationship, exchanging information and opinions as necessary. This system is designed to ensure improvements in the practicability and efficiency of our audits.Each member of the Audit & Supervisory Board attend board of director meetings, while full-time members of the Audit & Supervisory Board are always present at meetings of the Management Council and other important meetings.

Corporate Governance Organization Chart

Board of directors:
Meetings are held once a month, chaired by the President and CEO, to strengthen management supervision functions.Audit & Supervisory Board members also attend.(Five out of 11 directors are independent officers)

Audit & Supervisory Board:
Exchanges information and opinions with the financial statement auditors and Management Auditing Department (the internal audit division) for greater effectiveness and efficiency of audits. (Two out of four Audit & Supervisory Board members are independent officers)

Management coouncil:
Meetings are held in principle twice a month, with full-time and higher-ranked directors, the full-time Audit & Supervisory Board member, and those nominated by the President as core members. Serves as an advisory body for the President for stronger management strategy functions and more efficient decision-making processes.

Management auditing department:
13 dedicated personnel work with various department heads for streamlined management and controls, investigating and assessing the effectiveness and practicability of internal controls across general business operations. Is an independent body from on-site executive departments.