1. Basic policy regarding Corporate Governance

We recognize the importance of fair and transparent business operations and, under the Board of Executive Directors's supervision, work to fulfill our corporate governance by properly allocating resources, swift decision-making, promoting compliance and more. We recognize that the Group's continuous growth and long term corporate value is result of the contribution of our stakeholders, including shareholders, employees, customers, business partners, and local communities and will continue to cooperate and maintain a good relationship with the stakeholders.

2. Corporate Governance System

Our company has a highly transparent and effective Corporate Governance structure composed of the Board of Executive Directors, Board of Audit Officers, Accounting Audit Officers and, as an advisory organization for the Board of Executive Directors, the Nomination and Compensation Committee.

1. Board of Executive Directors
   The Board of Executive Directors is composed of 9 members, 2 of which are independent external Executive Directors, and conducts, as a general rule, at least one meeting per month discussing important matters regarding our business operations deciding and supervising business activities.
2. Board of Audit Officers
   The Board of Audit Officers is composed of 3 Audit Officers, 2 of which are external Audit Officers, and conducts, as a general rule, one meeting per month. The Audit Officers cooperates with the internal Audit Office and Accounting Auditor to ensure an efficient and effective Audit System aside from inspecting whether business activities are conducted in accord with laws and ordinances, and internal company regulations, based on audit standards, plans and policies decided upon by the Board of Audit Officers.
3. Accounting Auditor
   We have selected and are audited by PricewaterhouseCoopers Kyoto (PwC) as our Accounting Auditor.
4. Nomination and Compensation Committee
   Established with the purpose of fulfilling our corporate governance, half of the Nomination and Compensation Committee's members are, including the Committee's chairperson, independent external Executive Directors and as an advisory committee, freely sets Nomination and Compensation meetings to increase the fairness, transparency and objectiveness of procedures pertaining to the Nomination and Compensation of Executive Directors, etc..

Framework of Corporate Governance System