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 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 69 to 71 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.

To improve the effectiveness of the Board of Directors, in fiscal 2022 we launched initiatives to upgrade the skills of individual directors and executive officers based on the skills matrix.

(1)Evaluation process

(2)Key assessment items

1) Medium- to long-term management strategies and management vision
2) Concrete business plans for addressing material issues
3) Allocation of management resources, including investments in human capital
4) Reinforcing the effectiveness of the Board of Directors as well as the delegation of authority to the Board of Executive Officers

5) Skills required by the Board of Directors
6) Succession planning
7) Training for officers based on the skills matrix
8) Compensation system that supports sustainable management

(3)Initiatives for fiscal 2022, evaluation, and future policies

Training for Officers

In fiscal 2022, we conducted six training sessions under the following five themes conducted by outside instructors, focusing on “strengthening of training for officers to improve the skills of directors and executive officers” as the main initiative for improving the effectiveness of the Board of Directors. To polish the management skills, indicated in the skills matrix (pages 69 to 71), we have made changes to our sustainability promotion system so that directors and executive officers serve as chief officers in important internal meetings.

Through this method, we have put into action a practical training system where trainees improve their management knowledge and skills through their work. This also assists with succession plans for candidates for directorship positions.

Training themes

Reason for theme selection

Corporate governance reforms

To formulate management strategies and new medium-term management plans with awareness of sustainability issues

Climate-related disclosure (TCFD)

To reflect climate change issues in our management strategies, in this way having a positive impact on society

Digital governance in the age of DX

To acquire the knowledge that leads innovation based on digital technologies

Improved corporate value from an investor’s perspective (1) and (2)

To implement reforms for more efficient management with a focus on capital costs and stock prices to improve PBR