Notice Regarding the Summary of Results of the Effectiveness Evaluation of the Board of Directors

Overview of the Board Effectiveness Evaluation

This disclosure presents an overview of the effectiveness evaluation of the Board of Directors based on the Corporate Governance Code. The evaluation was conducted for all directors (5 in total, including 3 outside directors) and all auditors (3 in total) via anonymous questionnaires, and analyzed across five management domains—structure, operation, agenda, governance, and shareholders/investors—from the perspectives of management, on a four-point scale. Overall, the Board is evaluated as functioning appropriately, but issues were pointed out regarding the composition (increase in independent outside directors and female directors) and the enhancement of IR information provision. Going forward, we will aim to optimize resource allocation and increase corporate value, with strengthened communication to shareholders.

Future issues and initiatives

According to the evaluation results, improvements in capital policy and information disclosure are required, including enhancement of the IR framework, improved web disclosures, and reconsideration of cost of capital and business portfolio. The Board will continue to deepen discussions to strengthen supervision and decision-making processes that contribute to improvements in corporate value.