Assessment of the Board of Directors’ Effectiveness

We have been conducting an annual analysis and assessment of the effectiveness of the Board of Directors since FY2015 in order to improve its functionality.

(1) Method for analyzing and assessing the overall effectiveness of the Board of Directors

The Board of Directors analyzed and assessed the overall effectiveness of the Board of Directors based on the results of the following questionnaire.

- Method: Signed questionnaire

- Target: Six directors and four Audit & Supervisory Board Members in office at the end of March 2023

- Period: April 2022 to March 2023

- Assessed: Composition, effectiveness, operation, and discussion process of the Board of Directors, as well as systems for obtaining information and providing assistance, etc.

(2) Overview of results for analyzing and assessing the overall effectiveness of the Board of Directors

The opinions and results of the FY2022 assessment showed higher scores for the composition, operation, and discussion process of the Board of Directors, with the discussion process seeing particular improvement. More active discussion occurred at Board of Directors meetings, and under the confident facilitation of the chairperson, the ideas that the outside directors and outside Audit & Supervisory Board Members expressed were actively incorporated in and appropriately contributed to board decisions. These findings supported the conclusion that the board’s effectiveness had been ensured.

To further enhance board effectiveness, we will continually improve and strengthen our corporate governance system even more by diligently addressing the issues that arise and fully considering opinions.