Governance Information Disclosure

We established our Basic Policy on Information Disclosure in FY2011, and since then have strived to be a trustworthy company through timely and proper disclosures of important information pertaining to our corporate activities and influential information for investment decisions to our customers, shareholders, business partners, and all other stakeholders.
To coincide with the enforcement of the Fair Disclosure Rule in April 2018, we revised this policy to formulate the Disclosure Policy and are actively working to strengthen our information disclosure system and management of material information.

• Disclosure Policy

Policy on Constructive Dialogue with Shareholders

We strive to encourage understanding of the company’s management by providing opportunities for explanations and constructive dialogue with the stock market. We will continue to share information acquired through dialogue within the company and consider incorporating it in processes where necessary.

1. Designation of a member of management or director to oversee all aspects of shareholder dialogue, including the items listed in （2）-（5） below, to ensure constructive dialogue
   We appoint the representative director as the person who controls dialogue with shareholders, the CFO or division manager in charge of IR as the person in charge of handling information, the manager of the Communication Division as the person in charge of timely disclosure, and the manager of the Accounting Division as the person in charge of annual securities reports, etc. (the structure is shown in the schematic diagram of an overview of the system for timely disclosure later on this page).
2. Measures for organic collaboration among internal divisions that assist with dialogue, including Investor Relations, Corporate Planning, General Affairs, Finance, Accounting, and Legal
   The above divisions all belong to the Corporate Planning, Corporate Operations, and Finance & Investor Relations departments. Along with sharing information and challenges during regular meetings and collaborating together on a daily basis, divisions strive to appropriately address challenges and other matters.
3. Initiatives related to enhancing means of dialogue beyond individual interviews (e.g., briefing sessions for investors and IR activities)
   In addition to financial results briefing sessions, we plan and hold briefing sessions for investors and other opportunities for dialogue as needed. We also participate in events for external investors.
4. Measures for providing appropriate and effective feedback to senior executives and the Board of Directors on shareholder opinions and concerns identified through dialogue
   Directors and senior executives will obtain information directly through attendance at briefing sessions for investors, released analyst reports, and other channels and receive reports from responsible sections regularly and when necessary.
5. Policy for managing insider information during dialogues
   In order to prevent insider trading, we strictly adhere to the Insider Trading Management Rules, which stipulate regulations concerning matters such as compliance with the Financial Instruments and Exchange Act and other related laws as well as the management of internal information. When we have dialogue, we try to manage the information in a way to avoid being suspected of giving any insider information while disclosing information not selectively but fairly. We set the period from the day following the end of the settlement term (quarterly and full-year) to the date of the announcement of financial statements as a “period of silence.” In the meantime, we obtain knowledge on the prevention of insider trading and give education to update the knowledge.

Measures to Realize Management
With Awareness of Cost of Capital and Stock Price

In order to continuously increase corporate value, the Company has set ROE of approximately 10% as one of the key goal indicators (KGIs) by FY2026 in our 2026 Medium-Term Management Plan, and will pursue improvement of profitability on capital with an awareness of the cost of capital. We are also striving to expand constructive dialogue with shareholders and investors through efforts for shareholder returns as well as SR and IR activities.

Our current analysis, targets, and initiatives to realize management with awareness of cost of capital and stock price are disclosed in our 2026 Medium-Term Management Plan: Step for the FUTURE posted on our website, as well as in our financial results presentation for the second quarter of fiscal year 2023.

(Reference) For details, please refer to URL below.

2026 Medium-Term Management Plan: Step for the FUTURE -Four years to embark for the future-（1.1MB）
p.2, 10-11

Financial results for the second quarter of fiscal year 2023（3.8MB）
p.16

Opportunity for dialogue	Content
Meetings for analysts and institutional investors	Briefing sessions on financial results, management plans, etc. (Three times per year)
	Individual interviews and small meetings (as appropriate)
	Site tours and tours of our facilities for institutional investors and securities analysts (as needed)
	Participation in conferences organized by securities companies (as needed, including overseas)
IR activities for individual investors	E-mail service for distributing IR information to individual investors (as needed) Publishing Shareholder Reports
Posting IR documentation on the Company’s website	Financial results information, financial results briefing materials, timely disclosure materials, securities reports, quarterly reports, notices of convocation of Ordinary Shareholders Meeting, Shareholder Reports, Corporate Reports, etc.

• Investor Relations

We strive to enhance our corporate value by timely disseminating information about our development of new technologies and products, awards received, and management initiatives through press briefings, invitations for news coverage, press releases, and other means in addition to proactively implementing internal and external PR, for example enhancing our website and Company newsletter.