Evaluation of the Board of Directors

Evaluation of the effectiveness of theBoard of Directorsin FY2024

[Summary of the results of the analysis and evaluation of the effectiveness of the Board of Directors as a whole]

the Companyconducts self-evaluation and analysis of the effectiveness of theBoard of Directorsof Directors with the aim of improving the functions of theBoard of Directorsof Directors.
Self-evaluation and analysis were conducted in the following manner with the advice of an external organization. In December 2024, we conducted a questionnaire survey of all Directors andAudit & Supervisory Board Memberwho are members of theBoard of Directorsof Directors. The answer method was to ensure anonymity by answering directly to an external organization.
Based on reports from external organizations, we analyzed, discussed, and evaluated the results at the regularBoard of Directorsin April 2025. A summary of the results is as follows:

1. Achievements in FY2024 based on the issues set in FY2023

Challenge	Achievements
In order to strengthen our group's business model, the "Three Cycles," and realize our 2030 Vision, we will evaluate the current situation, grasp the progress, and discuss the long-term direction for each initiative theme.	*Based on discussions at the Board of Directors' meeting, we disclosed "Actions to Achieve Management Aware of Capital Costs and Stock Prices" on June 28, 2024. (Disclosure Summary) 1. Current Situation Analysis - Reasons for Low PBR 2. Policy for PBR Improvement - Factor Analysis for PBR Improvement (Logic Tree) 3. Initiatives for PBR Improvement - Improving Profitability - Appropriate Capital Allocation and Balance Sheet Improvement - Promoting Growth Strategies and Strengthening Dialogue Since the second quarter, the Planning Division has been leading the review of goal achievement scenarios, KPIs, and hurdle rates for each business and priority issue. At the Group Management Strategy Meeting and Board of Directors' meetings held in October and November 2024, we explained the results of our review and discussed the long-term direction and initiatives for each business.

Challenge

Achievements

In order to strengthen our group's business model, the "Three Cycles," and realize our 2030 Vision, we will evaluate the current situation, grasp the progress, and discuss the long-term direction for each initiative theme.

*Based on discussions at the Board of Directors' meeting, we disclosed "Actions to Achieve Management Aware of Capital Costs and Stock Prices" on June 28, 2024.

(Disclosure Summary)
1. Current Situation Analysis
- Reasons for Low PBR
2. Policy for PBR Improvement
- Factor Analysis for PBR Improvement (Logic Tree)
3. Initiatives for PBR Improvement
- Improving Profitability
- Appropriate Capital Allocation and Balance Sheet Improvement
- Promoting Growth Strategies and Strengthening Dialogue

Since the second quarter, the Planning Division has been leading the review of goal achievement scenarios, KPIs, and hurdle rates for each business and priority issue. At the Group Management Strategy Meeting and Board of Directors' meetings held in October and November 2024, we explained the results of our review and discussed the long-term direction and initiatives for each business.

2. Evaluation results for FY2024 and issues for FY2025

(1) Evaluation results in FY2024
As a result of conducting a questionnaire on the composition, operation, discussion, support system, training, and operation of thePersonnel & Remuneration Advisory Committeeof the Board of Directorsof Directors, and analyzing it while comparing it with the results of questionnaires from other companies provided by external organizations, theBoard of Directors of Directors received a generally positive evaluation. We were able to confirm that the overall effectiveness is ensured.
Among the opinions shared at the Board of Directorswere the following:

item	Main opinions
Board of Directors Discussions	・With outside directors attending the monthly Management Executive Committee and Group Management Strategy Committee, as well as quarterly reports from the Chief Officer, information is provided in a timely manner, leading to constructive discussions at Board of Directors meetings. ・There are many opportunities outside of Board of Directors meetings for the president to exchange opinions with outside directors and for discussions with executives, so questions and discussions at Board of Directors meetings can be focused on key points. ・I feel that discussions are taking place that meet the needs of stakeholders.
Support system	・The Group Management Strategy Meeting fully fulfills its complementary role in providing information, leading to lively discussions at Board of Directors meetings. ・By having Outside Directors report and participate in discussions at Group Management Strategy Meetings and Monthly Executive Committee Meetings outside of Board of Directors meetings, I feel that we are able to provide fairly detailed information, including on issues and responses. ・I think it's a great initiative that Outside Directors are able to attend executive meetings and ask questions and express their opinions. This allows for certain discussions with the executive team before the Board of Directors' resolutions. Each division head not only reports on progress toward achieving the medium-term management plan at the monthly Executive Committee Meeting, but also works while always keeping the achievement of the medium-term management plan in mind.

item

Main opinions

Board of Directors Discussions

・With outside directors attending the monthly Management Executive Committee and Group Management Strategy Committee, as well as quarterly reports from the Chief Officer, information is provided in a timely manner, leading to constructive discussions at Board of Directors meetings.
・There are many opportunities outside of Board of Directors meetings for the president to exchange opinions with outside directors and for discussions with executives, so questions and discussions at Board of Directors meetings can be focused on key points.
・I feel that discussions are taking place that meet the needs of stakeholders.

Support system

・The Group Management Strategy Meeting fully fulfills its complementary role in providing information, leading to lively discussions at Board of Directors meetings.
・By having Outside Directors report and participate in discussions at Group Management Strategy Meetings and Monthly Executive Committee Meetings outside of Board of Directors meetings, I feel that we are able to provide fairly detailed information, including on issues and responses.
・I think it's a great initiative that Outside Directors are able to attend executive meetings and ask questions and express their opinions. This allows for certain discussions with the executive team before the Board of Directors' resolutions. Each division head not only reports on progress toward achieving the medium-term management plan at the monthly Executive Committee Meeting, but also works while always keeping the achievement of the medium-term management plan in mind.

(2) Challenges for FY2025
FY2025 is the final year of theMedium-Term Business Plan 2025and the year of formulation of the next Medium-Term Management Plan. The Board of Directorswill also use theGroup Management Strategy Committee, attended by all Directors andAudit & Supervisory Board Member, as a forum for discussion to supervise efforts to achieve theMedium-Term Business Plan 2025and to conduct fruitful discussions on the formulation of the next Medium-Term Management Plan.

3. Initiatives and Results of the Previous Year

Year of initiative	assignment	Initiative results
2016	Advance distribution of materials for the Board of Directors meeting	To facilitate discussion, we distributed as many materials as possible one week before the event.
2016	Review of agenda items for the Board of Directors	We have begun operations based on the Board of Directors Rules (revised in April 2016) that comply with the Corporate Governance Code.
2017	Enhancement of matters to be reported to the Board of Directors	The Board of Directors will ensure regular opportunities to discuss the progress of the medium-term management plan.
2017	Ensuring opportunities for executive training	Executive training is conducted annually.
2018	Improved board reporting	Regarding performance reports, we devised ways to present materials and report them.
2019	Strengthening support for outside directors	We have strengthened our provision of information by providing more detailed explanations in advance, reflecting discussions in the minutes of board meetings, and providing more information.
2020	Expanding the items to be reported to the Board of Directors	The Board of Directors has expanded its discussions from a medium- to long-term perspective.
2021	Enhancing reporting items, ensuring deliberation time, and making materials easier to understand	Quarterly business task reports have begun.
2022	Follow up on important matters, expand discussions, and increase opportunities for exchanges of opinions between outside directors and the representative director	Strengthened follow-up by reporting to the Board of Directors on the progress of important projects. Ensured opportunities for the President and Outside Directors to exchange opinions at the Personnel and Remuneration Advisory Committee.
2023	Toward achieving the Medium-Term Management Plan 2025, we will further deepen discussions on progress, challenges, and future strategies.	The progress rate against the mid-term management plan targets was included in the monthly business report materials. Every quarter, the General Manager of the Planning Division gave a summary report on the progress of the mid-term management plan, and important issues and future strategies were discussed in more depth.

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