CORPORATE GOVERNANCE

Basic Views

The Company recognizes that enhancing corporate governance is essential to ensuring the continuity and stable development of its business and maximizing the interests of all stakeholders, including customers, business partners, shareholders and investors, local communities, the global environment, as well as officers and employees.
In particular, the Company believes it is important to develop and maintain an effective internal control system, establish an appropriate risk management system, strengthen the compliance system, and further enhance the audit system.

Reasons for Adoption of Current Corporate Governance System

The Company has established the Board of Directors, the Audit and Supervisory Board, and the Accounting Auditor as corporate institutions under the Companies Act.
The Board of Directors, as the highest decision-making body for management, concentrates authority and responsibility for business execution. The Audit and Supervisory Board and its members, who are independent from business execution, are responsible for the audit function over the Board of Directors. This structure enables appropriate management decision-making and business execution, while ensuring effective checks and balances within the corporate governance system.
In addition, the Company has established a voluntary Nomination and Compensation Committee, composed mainly of Independent Outside Directors, to strengthen the supervisory function over management.
Furthermore, the Company has established an Internal Audit Office to ensure effective internal controls, a Risk Management Committee to strengthen its risk management framework, and a Compliance Committee to enhance its compliance system.
The Company also strengthens its corporate governance framework by obtaining advice from external experts, such as attorneys, as necessary. The Company has adopted this structure in order to further enhance its corporate governance, improve the supervisory function of the Board of Directors, increase management efficiency and soundness, and ultimately enhance corporate value.

Corporate Governance Structure

Corporate Governance Report

The company's Corporate Governance Report is submitted to Tokyo Stock Exchange.