Notice Regarding Measures to Strengthen Internal Control and Corporate Governance

Additional Measures to Strengthen Internal Control and Governance

Yokorei Co.,Ltd. resolved additional measures aimed at rectifying the financial reporting process and reinforcing risk management, following the booking of an extraordinary loss related to investments and loans associated with HI Company. The company will implement strict business investment criteria, curb overseas investments, and enhance risk management capabilities, while considering transition to a company with an audit and supervisory committee. These actions are planned to be implemented including amendments to the Articles of Incorporation assuming the ordinary shareholders meeting in December 2027.

Specific Measures and Future Policy

(1) Establishment of strict business investment criteria: Reform low-profit businesses and prioritize growth investments based on operating cash flow. During the new medium-term plan period, the company will not make investments in overseas food-related companies. (2) Strengthening corporate governance: Consider transition to a company with an audit and supervisory committee, establish a board secretariat, and consider appointing additional outside directors.