Board Evaluation

All Kurita Directors and members of the Audit & Supervisory Board performed analysis and evaluation of the effectiveness of the Board of Directors, and the Board of Directors adopted a resolution on the assessment results. The assessment results from the Board meeting held from January to December 2018 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. The aggregate results were discussed at Board meetings and helped
members to better identify problems as well as decide future measures.
Assessment items
  1. Roles and responsibilities of the Board of Directors
  2. Collaboration with External Directors and external Audit & Supervisory Board members
  3. Composition of the Board of Directors
  4. Operation of the Board of Directors
  5. Contributions of individual Directors and Audit & Supervisory Board members
  6. Dialogue with shareholders
Evaluation period From January to December 2018

Evaluation Results

According to the evaluation results, the average self-evaluation of all Directors and members of the Audit & Supervisory Board was generally good in all six areas, indicating that the effectiveness of the Board of Directors is ensured. The area of "collaboration with members of the Audit & Supervisory Board and External Directors" was highly evaluated with less variance of evaluation among Inside Directors, External Directors and members of the Audit & Supervisory Board. On the other hand, while evaluation scores generally showed increasing trends, certain items related to the establishment of structures that support risk-taking of the Kurita Group and the organization of the Kurita Group's risk management systems were evaluated relatively lower than other items. The issue and measures to be addressed in fiscal 2019 were resolved to improve such evaluation.

Issue

Further improvement of governance standards for the Kurita Group as a whole, including group companies in Japan and overseas, is necessary.

Measures

In order to strengthen governance at group companies in Japan and overseas, we will further improve the systems and structures provided by the Company, and the Board of Directors will accurately evaluate operational status and aim to improve effectiveness. In particular, we will strengthen our system for accomplishing PMI* for acquired group companies, including expanding the potential of our human resources.

  • *PMI:Post Merger Integration (Process of integration after M&A)