Operate Circumstance of Corporate Governance-Related Measures

Circumstance of Corporate Governance Structure, Including Management Organizations Related to Management Decision-making, Execution and Supervision

1.Board of Directors

In addition to the regular monthly meetings of the Board of Directors, the Board of Directors holds extraordinary meetings as necessary to make management decisions and supervise business execution.

2.Inspection & Supervisory Board

The Audit & Supervisory Board consists of three members, including two outside Audit & Supervisory Board Members. They attend meetings of the Board of Directors and other important internal meetings, listen to business reports from directors and employees, and inspect approval documents to conduct audits. The two outside Audit & Supervisory Board Members are selected from individuals holding key positions in companies and certified public accountants. By expressing their opinions on the execution of directors’ duties as appropriate, these outside Audit & Supervisory Board Members with diverse experiences contribute to enhancing the neutrality and effectiveness of audits. Furthermore, the independence of outside Audit & Supervisory Board Members is ensured by appointing individuals who have never held positions as representatives of the Company.

3.Executive Officers Meeting

In January 2002, we introduced an executive officer system to separate decision-making from business execution and to achieve and enhance business execution.

4.Internal Inspection

The rules stipulated in the internal regulations are followed by all employees, including directors, in an effort to ensure appropriate and efficient business operations. As a observing, we have established an Internal inspection Office and established a system to prevent internal improprieties and errors through Operate of regular and special inspection based on internal inspection regulations and internal manuals.

5.Account Inspection

Account inspection is commissioned to Deloitte Touche Tohmatsu LLC, a limited liability inspection corporation, to receive advice from time to time in addition to normal inspection services.

(Circumstance of Account inspection)
Inspection Corporation: Deloitte Touche Tohmatsu LLC inspection Corporation

• Certified Public Accountants Leading The Independent Financial Audit
  Okumura Takashi and Hamanaka Ai designated executive employees
• Composition of Supplemental for Account Inspection Operations
  9 certified public accountants and 16 others

6.Collaboration between the Internal Inspection, Inspection & Supervisory Board, and The Account Inspection

The Internal inspection Office, inspection & Supervisory Board Members, and inspection Companies Operate to exchange views on periodically.

7.Operate Circumstance of Efforts to Enhance Corporate Governance in the Past Year

We held 12 regular meetings of the Board of Directors to discuss and decide on important management issues. We also held 12 regular meetings of the Executive Committee to discuss and decide on important matters related to business execution.

For more information, please refer to the Corporate Governance report below.