Analysis and evaluation of effectiveness of the Board of Directors

A questionnaire for all Members of the Board of Directors and interviews with Outside Directors were conducted and the analysis and evaluation were conducted through multiple discussions in the Board of Directors, making reference to the results of the questionnaire and interviews.

Through conducting the questionnaire and interviews, various confirmations were carried out regarding the composition of the Board of Directors, agenda items submitted to meetings, status of deliberation, personal participation of the Director, and other matters regarding the operation of the Board of Directors. Implementation, tallying, analysis, etc. of the questionnaire was carried out by a third party.

Based on the questionnaire results and the analysis and report on the content of interviews, we have determined the company’s Board of Directors is functioning effectively in light of its roles and responsibilities. In particular, we judged that an atmosphere that enables free expression of opinion is being cultivated and broadminded and constructive discussions and exchanges of opinion are taking place.

On the other hand, we recognized that we need to step up efforts to address the following aspects:

• Ensuring thorough monitoring of the execution of duties related to management policies and business strategies
• Enhancing discussions on risk management related to business operation
• Enhancing discussions on Environmental, Social and Governance (ESG) initiatives and actions for SDGs
• Enhancing supervision on internal control systems at overseas Group companies

Based on these evaluation results and issues to be discussed, the Company will continue working to further improve the effectiveness of the Board of Directors.