We are further reinforcing our internal control system, based on the acknowledgment that it is an important responsibility of management to build and manage such a system that ensures business execution in compliance with laws and regulations.

We have established a code of corporate ethics that consists of 20 articles for all directors and employees to ensure compliance in business execution with laws and our corporate charter, so that accountability to society and corporate ethics are met. These 20 articles are listed in the employee handbook given to all directors and employees, and are also disseminated via our training. Employees submit pledges related to these standards. Also, at the end of each fiscal year, directors sign declarations that they have met their obligations of prudence and good faith in business execution that complies with laws and regulations, and submit them to the Board of Corporate Auditors. These declarations then become business execution policy for the board members to follow for the next fiscal year. Also, all directors and employees are required to inform the person in charge or a corporate auditor of any known or suspected violation of rules and regulations or improper behavior.

We have worked, well in advance, to take the appropriate measures to correspond with the application of the internal control reporting system to ensure “trustworthiness in financial reporting,” as stipulated under the Financial Instruments and Exchange Law. The effectiveness of internal control was evaluated through company-wide internal control and business process assessments. As a result, we judged the Internal Control Over Financial Reporting of our company group to be effective as of the end of the said fiscal year.