(1) Under its corporate philosophy of “Everything we do is for our customers,” the Company seeks to enhance corporate value through business activities founded on a customer-first approach. The Company regards its contribution to the creation of a prosperous and fulfilling future as the means by which it meets the expectations of all its stakeholders—including customers, shareholders, and employees—and, to this end, has made it a key basic management policy to continuously strengthen corporate governance as the foundation for ensuring the soundness, efficiency, and transparency of management.

(2) In line with the basic policy described above, and to further enhance corporate governance, the Company transitioned from a company with a Board of Auditors to a company with an audit and supervisory committee following the conclusion of the Ordinary General Meeting of Shareholders held in June 2025. The aim of this transition is to promote the separation of management supervisory functions from business execution functions and to achieve highly effective management supervision through robust deliberation at the Board of Directors. The Audit and Supervisory Committee comprises 4 directors who are Audit and Supervisory Committee members, including 3 outside directors. In addition to attending Board of Directors meetings, Audit and Supervisory Committee members carry out their duties by actively participating in important internal meetings and through other means. As a result of this transition, the Company now has 12 directors in total (including 6 outside directors), establishing a structure that enables thorough deliberation and accurate, timely decision-making. In appointing outside directors, including those who are Audit and Supervisory Committee members, the Company places importance on securing independence, and all such directors satisfy the requirements for “independent officers” stipulated by the Tokyo Stock Exchange. With respect to business execution, the Company introduced an executive officer system at an early stage and has since refined it into employment-based and delegation-based systems, thereby clarifying the respective roles and strengthening business execution functions.

(3) In light of the increasing emphasis placed on internal controls, the Company has established an Internal Audit Department under the direct authority of the Representative Director, President & COO. In collaboration with the Administration Headquarters and other units, the Internal Audit Department conducts audits across all business activities, including those of Group companies, examining their appropriateness, the use of company resources, and compliance with laws, regulations, and internal rules. The Company also strives to operate its internal control systems in accordance with the requirements of the Financial Instruments and Exchange Act.

(4) Furthermore, the Company recognizes the communication of financial and non-financial information to shareholders, investors, and other stakeholders as one of its important corporate governance issues. To further promote dialogue with a wide range of stakeholders, the Company strives to disclose corporate information in a manner that is easy to understand, fair, timely, and appropriate.