Overview of the Effectiveness Evaluation of the Board of Directors

Overview of the Evaluation

This report provides an overview of the effectiveness evaluation of the Board of Directors conducted as of March 2026, targeting 11 directors and auditors. Despite primarily operating via remote meetings, the eight members including external directors were generally found to be appropriately deliberating and ensuring effectiveness. However, challenges identified include appointing directors overseeing the Management Headquarters, incorporating diverse perspectives, increasing external and female directors, enriching deliberation topics, revising performance evaluation methods, strengthening internal controls, and energizing discussions on global expansion, new businesses, and capital policies.

Future Measures

Subject to shareholder approval, the Chief Financial Officer (CFO) and the head of the Management Headquarters, both with overseas experience, will be appointed as directors (the latter as an external director). We will continue to review the composition and number of directors, including external members, and consider increasing female directors in response to societal demand. Furthermore, we aim to promote discussions on internal controls and compliance across the group, new businesses including overseas operations, and capital policies, while continuously reviewing performance evaluation methods through the Nomination and Compensation Committee.