Framework of Corporate Governance System

• Board of Directors The Board of Directors holds a meeting led by the chairman, elected by and from among the directors, at least once a month to decide on important matters and supervise the status of execution of business affairs.
• Board of Company Auditors The board consists of auditors, by and from whom a chairperson is selected, and meets at least six times a year to monitor the status of governance and audits the execution of duties by directors as an independent body entrusted by hareholders.
  Members attend board and other important meetings, review the status of operations and assets, and maintain close contact with the accounting auditors, Internal Audit Ofiice, and internal controls departments. A supplementary external auditor has been appointed to fill any future external auditor vacancies.
• Internal Audit Ofiice This department conducts internal audits of the execution of operations by business execution departments in accordance with the Auditing Plan for that fiscal year. It verifies the internal management system including its appropriateness and efficiency.
  As necessary, the department exchanges opinions with or makes proposals concerning the improvement or correction of a problem to the internal controls departments and reports the results of its audits to the president and auditors.
• Advisory Committee on Nomination and Remuneration This committee, which meets as needed, consists solely of external directors and deliberates on the nomination and remuneration of candidates for directors.
• Management Meeting The meeting consists of directors and executive officers nominated by the president and, in principle, meets twice a month.
  As a decision-making body for fundamental and key matters related to the execution of business affairs, the meeting deliberates and makes decisions from the standpoint of overall management.
• Executive Officer Committee Consisting of executive officers and presidents of the Group companies, the committee meets at least four times a year to communicate the policies expressed by the president and executive officers responsible for departments, report on the status of business execution by each executive officer and Group company president, and discuss initiatives for achieving the medium-term management plan.
• Corporate Ethics Committee The committee consists of executive officers and is chaired by the president. The executive officers responsible for corporate ethics and nominated by the president oversee all matters related to corporate ethics. The committee meets twice year to deliberate on implementation plans for the pervasion and observance of the Code of Conduct and Action Guidelines.
• Internal Finance Control Committee This committee consists of chairman, president, and executive officers. It is chaired by the president and meets four times a year, assuming a central role in Group-wide control, including review and decision-making concerning important atters regarding internal controls for financial reporting.
• Risk Management Committee The committee consists of members of the Management Meeting and chairpersons of various subcommittees appointed by the executive officer in charge of risk management. It meets four times a year and oversees risk management for the entire Group.
  Currently, the executive officer in charge of risk management is the president.
• Sustainability Committee The committee consisting of the President and Representative Director and the Directors. Its meetings are held twice a year.
  It decides on important issues and measures to realize sustainable management.