Corporate Governance

(1) Role and function of Board of Directors

取締役会は、株主に対する受託者責任・説明責任を踏まえ、経営の公正性、透明性および効率性を高め、当グループの持続的成長と中長期的な企業価値の向上を図る役割を適切に果たすため、以下の機能を有する。

1. Decision-making function: Makes decisions on important business operations such as the group's management strategy and plans, resource allocation, organization and personnel, capital policy, internal control systems, and risk management.
2. Supervisory function: Supervises the execution of duties by Director, as well as the establishment and operation of corporate governance, internal control systems, and risk management systems.
3. Self-check function: Based on the role that the company should play as a privately held company, Board of Directors will appropriately exercise its authority and improve the corporate governance of the group.

(2) A framework for the structure of Board of Directors, based on the premise that the Board of Directors will be able to perform its functions.

In order to properly exercise the functions of Board of Directors as defined in the preceding paragraph, Board of Directors shall specify the skills and other requirements that all Director should possess, and shall be composed of Director have a balance and diversity of knowledge, experience, and abilities, and shall be of an appropriate size for effective functioning, consisting of no more than five Director (excluding Director who are audit and supervisory committee members; hereinafter referred to as Director") and no more than five Director are audit and supervisory committee members (hereinafter referred to as "audit and supervisory committee members"). Furthermore, the Audit and Supervisory Committee shall be composed of three or more audit and supervisory committee members, and the majority of them must be Outside Director.

(3) Delegation of decision-making on important business operations to Director

Board of Directors delegates some of the decision-making power for important business operations to Director, thereby accelerating decision-making and business execution by allowing for more thorough deliberation on matters of particular importance.

(4) Appointment of Director and Audit Committee Members

The appointment of Director and audit committee members is based on the principle of a composition that ensures the effective functioning of Board of Directors, and candidates will be determined through the following appointment procedures.
When appointing Director, the President and Director prepares a proposal for the appointment of Director candidates, which is then submitted to the Nomination and Compensation Committee for consultation and advice, followed by deliberation by the Audit and Supervisory Committee, and finally decided upon by Board of Directors.
In appointing members of the Audit and Supervisory Committee, President Director the Audit and Supervisory Committee members will consult with each other to prepare a list of candidates for the Audit and Supervisory Committee members. After consultation with and receiving a report from the Nominating and Compensation Committee, and obtaining the consent of the Audit and Supervisory Committee, the appointment will be decided by Board of Directors.

(5) Remuneration of Director and Audit Committee Members

Director' compensation is determined by Director President, who prepares a compensation policy that sets out the percentage of performance-linked compensation, evaluation methods, etc., so that it functions as an incentive to enhance long-term corporate value. This policy is then consulted with and reported to the Nominating and Compensation Committee, deliberated by the Audit and Supervisory Committee, and finally approved by Board of Directors.
The remuneration of audit and supervisory committee members will be determined through consultation among the committee members, taking into consideration the conflict between audit and supervisory functions and performance-linked compensation.

(6) Internal control system

Board of Directors formulates a "Basic Policy on the Development of an Internal Control System" in order to ensure that business operations are conducted under appropriate control. This basic policy is reviewed by Board of Directors after the Internal Control Committee deliberates on its development and operation, and after taking into account the opinions of the Audit and Supervisory Committee.

(7) Development of successors and management personnel

Board of Directors consults with the Nomination and Compensation Committee to confirm and discuss basic policies and programs regarding the succession of Representative Director and the development of next-generation management talent, and receives a report from the Committee. The Board also monitors the progress of the development of successor candidates and management talent in a timely manner.

(8) Evaluation of the effectiveness of Board of Directors

Board of Directors will annually analyze and evaluate Board of Directors effectiveness based on self-assessments by each Director. Furthermore, it will continuously implement necessary measures to maintain and improve the validity and objectivity of the evaluation methodology and address any identified issues, thereby enhancing the effectiveness of Board of Directors.

(1) Roles and responsibilities of Director

取締役は、株主に対する受託者責任に鑑み、持続的な企業価値の向上を実現することを使命とし、その職務の執行について忠実義務・善管注意義務を負う。
業務執行取締役は、取締役会で承認された中長期的な経営方針に沿って、当グループ全体の業務執行の状況を監督するとともに、その状況を取締役会に報告する。また、取締役会において実効性の高い議論が行われるよう、社外取締役に対して適切な情報提供を行うなど、取締役間の緊密な連携を確保する。
社外取締役は、取締役としての責務に加え、独立した客観的な立場から、自らの知見・経験に基づき提言・助言することにより、取締役会の議論の質および実効性の向上に貢献するものとし、「経営方針・戦略、内部統制・リスク管理等についての適切な提言・助言」、「経営陣の選解任を含む経営の監督」、「内部統制システムの整備・運営状況、コンプライアンス・各種利益相反を含む各種リスク対応の監督・助言」することを主たる役割とする。

(2) Support system for Director

Our company will establish a system that provides support for Director to obtain useful information and, when necessary, to obtain advice from external experts in order to fulfill their roles and responsibilities.
For part-time Outside Director, Board of Directors Secretariat will provide prior explanations regarding matters to be submitted to Board of Directors and provide necessary information.

(3) Training policy for Director

Our company will provide opportunities for Director to acquire and update their knowledge as needed, so that they can properly fulfill their roles and responsibilities.

(1) Role of the Audit and Supervisory Committee

The Audit and Supervisory Committee, working in cooperation with Board of Directors, plays a key role in oversight and is responsible for establishing a sound corporate governance system as a statutory, independent body that audits and supervises the execution of duties by Director.
The Audit and Supervisory Committee is responsible for auditing and supervising the execution of duties by Director, deciding on proposals regarding the appointment and dismissal of accounting auditors, and exercising the right to express opinions on the appointment and dismissal of Director other than Audit and Supervisory Committee members, as well as their compensation.
The Audit and Supervisory Committee instructs the internal audit Dept. to conduct necessary investigations, receives reports from it, and establishes a collaborative system with the external auditors and the corporate Audit & Supervisory Committee Member of subsidiaries to ensure the effective functioning of the auditing system throughout the entire group.

(2) Roles and responsibilities of audit and supervisory committee members

In light of their fiduciary duty to shareholders, the Audit and Supervisory Committee members shall perform their duties as Director who are also Audit and Supervisory Committee members and strive to exercise an effective supervisory function.
Audit and supervisory committee members shall audit and supervise the execution of duties by Director, maintaining an independent and objective position and exercising their authority proactively and actively.

(1) Internal Control Committee

内部統制委員会は当グループの「内部統制システムの整備に関する基本方針」の整備、その運用状況の把握と改善等を目的とする。
内部統制委員会は、内部統制に係る重要事項の取締役会・監査等委員会への報告、内部統制システムの整備に関する基本方針の見直しの提言を行う。

(2) Nomination and Compensation Committee

指名・報酬委員会は当グループの経営陣（取締役、社長・常務等役付き役員等）の選解任・報酬方針案の決定、後継者候補および経営人材の育成に関与し、当グループのコーポレートガバナンスの透明性、公平性、客観性等の向上を図り、取締役会の自己牽制機能を強化することを目的とする。
指名・報酬委員会は、取締役会の諮問に応じて議論・モニタリングし、取締役会に答申する。

Chapter 3: Ensuring appropriate information disclosure and transparency

To ensure transparency and fairness in business activities, we will proactively disclose information based on our public relations strategy, fulfilling our accountability to each stakeholder regarding financial and management information, management policies and strategies, governance and compliance, and social and environmental information.

Chapter 4: Ensuring shareholders' rights and equality, and dialogue

1. Securing shareholders' rights

Our company will ensure that shareholders' rights, including voting rights at General Meeting of Shareholders are effectively protected, and that an environment is created that allows them to exercise those rights appropriately.

2. Basic principles of capital policy

当グループは、非上場企業であることの優位性を活かし、持続的成長と中長期的な企業価値向上に繋がる最適な資本／負債のあり方、株主構成やその実現の方法を定めるとともに、資本効率を意識した成長投資と事業ポートフォリオを実現することで、株主の期待に応える。

3. Dialogue with shareholders

President Director be responsible for dialogue with shareholders, and will strive to ensure constructive and meaningful conversations.

Chapter 5: Appropriate collaboration with stakeholders other than shareholders

1. Formulation and implementation of our behavior

当グループは、「企業行動憲章」を定め、グループ一体となって取り組み、企業の健全かつ持続的な発展を目指す。取締役は、高い倫理観と法令遵守の精神に基づいて率先垂範し、その周知と徹底に取り組む。

2. Social and sustainability initiatives

当グループは、これまで培ってきた社会インフラサービスを通じて得られた深い知見と信頼をもとに、株主、社会、顧客、従業員等ステークホルダーとともに、持続的な社会の実現に取り組む。

3. Initiatives for diversity, equity & inclusion

当グループは、従業員一人一人の異なる知識・経験・価値観・個性を尊重し、さらに個人の力・チームの力を最大限発揮・統合することにより、価値提供に活かす "ダイバーシティ・エクイティ＆インクルージョン経営"を進める。

Supplementary Provisions

1. This policy shall come into effect on January 5, 2026 (Reiwa 8).