Established on February 18, 2016

Those to whom any of the following clauses apply do not meet the independence requirements to become an outside officer of the Company.

  1. The person and/or his/her spouse has been an employee of the Company or Group in the past ten years.

  2. The person is a major business partner of the Company or Group (i.e., a business partner who provides products or services to the Company or Group with a transaction value equivalent to 2% or more of the Company’s consolidated sales for the most recent year) or is an individual who executes these business transactions.

  3. The person is an executive of a financial institution that is a major lender of the Company or Group (i.e., a lender whose loan amount is equivalent to 2% or more of the Company’s consolidated total assets for the most recent year).

  4. Other than the compensation for officers offered by the Company or Group, the person has earned an average of 10 million yen or more in cash or other property benefits annually over the past three years for their services as an accountant, tax accountant, lawyer, or as any other professional.

  5. The person has a potential conflict of interest with general shareholders.

  6. The person belongs to an audit firm that performs legal audits of the Company or Group.

  7. The person is immediate or extended family of someone who falls under any of the clauses 1-6 above.

End of document