Our Basic Approach to Corporate Governance

The Company believes that its corporate value will be continuously enhanced if we establish a policy, structure, and operating method for compliance activities, deepen our awareness of corporate social responsibilities, comply with applicable laws and regulations in the performance of everyday business, and act in a manner that conforms to social ethics.

In order to treat all of our stakeholders with respect, enhance the soundness and transparency of the company, and increase shareholder value stably over the long term, the Group will establish an organizational structure that allows us to make prompt and rational decisions and increase efficiency of the execution of operations, thereby reinforcing our corporate governance.

Corporate Governance System

Illustrated below is our corporate governance system.

Reasons for Adoption of the Current Corporate Governance System

The Company believes that it can enhance management transparency and further reinforce the corporate governance system if it were to adopt the system of a company with an auditing and supervisory committee comprised of outside directors, in order to have the committee audit and supervise the legality and validity of the execution of the business by the board of directors.

The Company will continue to deliberate on ways to improve the corporate governance system as one of its managerial issues. Under the current circumstances, however, the Company deems this system to be effective in light of the size and operating style of its business.