Summary of initiatives and evaluation results concerning the effectiveness of the Board of Directors

With the aim of enhancing the effectiveness of the Board of Directors, the Company has been conducting evaluations of the Board’s effectiveness since the 65th fiscal year (ended March 31, 2016), hereby disclosing the results of the analysis and evaluation for the 75th fiscal year (ended March 31, 2026) as below.

• Purpose and method of evaluating the Board’s effectiveness

  In addition to the authority and other matters stipulated in the Companies Act, the Board of Directors is responsible for formulating, monitoring the progress of, and discussing the Company’s business direction and management strategies; deliberating on the prospects for achieving management goals and their reasonableness; as well as strengthening internal controls and governance, conducting risk assessments for a variety of initiatives.
  To verify that we are properly fulfilling these responsibilities, we evaluate the Board’s effectiveness through a self-assessment questionnaire administered to all directors, including outside directors. Furthermore, the Audit & Supervisory Board analyzes results and identifies issues. Subsequently, the Board of Directors deliberates on issues surfacing in the interest of further enhancing its effectiveness and working toward resolution, thereby striving to improve the Board’s function.

• Introduction of the evaluation of the Board’s effectiveness and evaluation items

  Since the 65th fiscal year (ended March 31, 2016), the Company has been conducting effectiveness evaluations of the Board of Directors based on the following four items: (1) “Board Composition,” e.g., the diversity of board members and the proportion of outside directors; (2) “Board Operations,” including the frequency of board meetings, the content and volume of materials submitted, and deliberation time; (3) “Board Meeting Agenda,” covering topics such as succession planning, appointment and dismissal of senior management, compliance and internal controls, and discussions on major risks; and (4) “Support System for the Board,” including the provision of necessary information, information exchange and sharing of recognition based on the independent and objective stance of independent outside directors, as well as the provision of necessary training opportunities.

• Confirmation of effectiveness and issues for the 75th fiscal year
  (ended March 31, 2026)

  For the 75th fiscal year (ended March 31, 2026), the Board of Directors of the Company confirmed that the Board is generally functioning appropriately with respect to the above-stated evaluation items and that the effectiveness of the Board has been ensured. Going forward, we will continue to advance initiatives to enhance the manner in which the Board functions, based on the skills required of directors and our corporate governance guidelines. Furthermore, recognizing “enhancing discussions on medium- to long-term management issues, including the cost of equity,” as well as “the succession plan for directors,” as priority issues, we will proceed with discussions at Board meetings.