Evaluation of the Effectiveness of the Board of Directors/Training for Officers

• To strengthen corporate governance in an aim to achieve sustainable growth and improve medium-to-long-term corporate value, the Board of Directors Effectiveness Evaluation Committee, consisting of outside directors and auditors each fiscal year, takes the lead in analyzing and evaluating the effectiveness, etc. of the Board of Directors, and the Company takes continual action to improve the effectiveness. Further, based on the belief that the diversity of directors has an impact on the Board of Directors’ effectiveness and has a major impact on sustainable growth and the ability to increase the Company’s corporate value over the medium- to long term, we compiled a list of the skills required of the Board of Directors as a whole into the skills matrix (see pages 83 to 84 for details). These skills are necessary to achieve the goals of our management strategies and for the effectiveness of the matrix for appointing director candidates.

 In fiscal 2023, “improving officer skills based on the skills matrix” was positioned as a theme of the greatest importance. Training through outside courses was carried out focused on building up management skills that are lacking in individual directors, auditors, and executive officers among the “management skills” listed in the skills matrix (pages 83 to 84).

 As one part of the succession plans, the system was changed so that directors and executive officers serve as chief officers related to sustainability and risk management, and practical training is carried out for acquisition and improvement of management skills through actual work.