Notice Regarding Revision of the “Basic Policy on the Establishment of Internal Control Systems”

Overview of Revision to Basic Policy on Internal Control Systems

Aeon Hokkaido Corporation resolved at the Board of Directors meeting on April 9, 2026, to revise the "Basic Policy on the Establishment of Internal Control Systems." The revisions cover a broad range of measures, including establishing a framework to ensure compliance with laws and the Articles of Incorporation, the establishment of the Compliance Committee and Sustainability Committee, strengthening the operation of the internal whistleblower system, formulation of risk management regulations and establishment of the Risk Management Committee, and enhancement of the information management system. Through these efforts, the company aims to ensure the proper execution of business, efficient operations, prevention of risks in advance, and minimization of potential damage.

Strengthening the Auditor System and Reporting Framework

Clarifications include securing the independence of employees assisting the auditors and establishing a reporting system to the auditors. Directors and employees are required to promptly report any facts that may involve legal violations or significant losses to the auditors, and measures to prevent any disadvantageous treatment of whistleblowers are thoroughly enforced. Coordination with the parent company and subsidiaries has also been enhanced to build a system for periodic reporting on compliance status. These initiatives aim to improve the transparency and effectiveness of governance.