Board Evaluation

All directors and members of the Audit & Supervisory Board analyzed and evaluated the effectiveness of the Board of Directors, and resolved the evaluation results at a meeting of the Board of Directors. The assessment results from the Board meeting held from January to December 2022 are as set forth below.

Analysis and Evaluation Method

Evaluation method This evaluation was conducted via a written survey, with each of the respondents
identified. Following a discussion using the aggregated results, the Board of
Directors, evaluated its effectiveness, clarified issues and adopted measures for
the future.
Assessment items
  1. Roles and responsibilities of the Board of Directors
  2. Fulfilling the function of external directors
  3. Composition of the Board of Directors
  4. Operation of the Board of Directors
  5. Contributions of individual Directors and members of the Audit & Supervisory Board
  6. Dialogue with shareholders
Evaluation period From January to December 2022

Evaluation Results

According to the evaluation results for January to December 2022, the average self-evaluation of all directors and members of the Audit & Supervisory Board was generally good in all six areas, indicating that the Board of Directors is operating effectively. By category, "operation of the Board of Directors" was most highly evaluated as in the previous year. This was followed by "Fulfilling the function of external directors" and "contributions of individual directors and members of the Audit & Supervisory Board." However, in the "roles and responsibilities of the Board of Directors" category, items related to the building and monitoring of the Digital Transformation (DX) promotion structure and "dialogue with shareholders" received relatively low valuations compared with other items in the previous evaluation results.

Issue

The Bord of directors have to show clarified direction for management policy which is planned by management members and identify important appeal point for investors and shareholders to improve the quality of the dialogue.

Measures

Through the following measures, we will build a DX promotion system and improve the quality of constructive dialogue with shareholders and investors.

  1. Clarify the direction of the transformation of the business model and the transformation of the business process utilizing digital technology that management has considered through discussions at the Board of Directors.
  2. Based on the opinions and expectations of shareholders and investors, directors and management will create opportunities for dialogue with shareholders and investors regarding their areas of responsibility and areas of expertise based on the direction that the Group is aiming for through various strategies.