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 2020 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. Collaboration with members of Audit & Supervisory Board and 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 2020

Evaluation Results

According to the evaluation results for January to December 2020, 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 internal directors, external directors and members of the Audit & Supervisory Board all raised their evaluation ratings. However, in the "roles and responsibilities of the Board of Directors" category, items related to the building and monitoring of the DX promotion structure, which were added as items of evaluation for the current fiscal year received, relatively low valuations compared with other items.

Issue

In response to the evaluation results, we established a theme that "it is necessary to strengthen the involvement of the Board of Directors in order to accelerate the transition of business models utilizing DX and the innovation of business processes."

Measures

It was determined that the Board of Directors will grasp the activities of the DX Committee in charge of supervising the DX of the entire Group and Digital Strategy Division in charge of leading the implementation of initiatives devised on a group-wide basis and that the Board will discuss and give direction regarding the prioritization of short-term and mid- to long-term initiatives and the allocation of management resources.