Relationship with Outside Directors

Our company has appointed five outside directors.

These outside directors bring extensive experience and knowledge from various fields. In addition to attending board meetings, they participate in important meetings such as management conferences. They play a crucial role in enhancing long-term corporate value, objectively evaluating and rectifying the appropriateness and legality of business execution, and strengthening the supervisory function of corporate management.

Furthermore, each outside director collaborates with internal auditors and accounting auditors as necessary, through discussions, reporting, and information exchange to ensure mutual cooperation in their supervisory or auditing duties.

To ensure the practical independence of independent outside directors, the Company has established its own criteria for assessing the independence of outside directors. When an outside director is determined not to fall under any of the items set forth in these criteria, the Company deems such director to be independent from the Company and unlikely to have conflicts of interest with general shareholders.

Establishment of the Nomination and Compensation Committee

To enhance the objectivity and transparency of procedures related to the selection and dismissal of officers, as well as officer remuneration, we have established a "Nomination and Compensation Committee" as a voluntary advisory body to the Board of Directors. This committee is composed of half outside directors, ensuring the soundness of our management.

Monthly Compliance Training

To establish a system for legal compliance, we conduct monthly training sessions for all employees. We will continue to ensure sound business operations by implementing a wide range of measures, including the prevention of insider trading, anti-corruption and anti-bribery initiatives, the exclusion of relationships with anti-social forces, and strict information management.

Risk Management and Compliance in Property Acquisition

When acquiring properties, our company conducts a comprehensive three-stage assessment. This includes evaluating the business viability, key risks, impact on the surrounding environment, and compliance, ensuring a thorough and holistic decision-making process.

Throughout this process, not only the relevant business divisions but also the legal and audit departments are involved. By identifying risks from a broad range of perspectives, we have established a framework that enables us to provide products aligned with social responsibility.