Compliance

 We are working to enhance our compliance system, recognizing that maintaining relationships of trust with our stakeholders is the foundation for sustainable development as a company that coexists with society. We strive to ensure thorough compliance so that all executives and employees act in accordance with corporate ethics, laws and regulations, internal company rules, and social norms.

Promotion System

 The Company implements compliance promotion activities with the participation of all employees, with the Compliance Committee creating plans and then each department conducting training to raise awareness and other activities. The Compliance Committee, chaired by the Compliance Officer, meets four times a year (and whenever a compliance incident occurs). The activities of this committee are reported to the Board of Directors once a year and important matters are reported as necessary.

Internal Audits

 The Company's Internal Audit Department regularly audits the status of business activities to ensure compliance with laws, regulations, the Articles of Incorporation, and various other rules.

Internal Whistleblowing System

 The Company has established a reporting system based on the Whistleblower Protection Act with the aim of early detection and correction of misconduct and strengthening compliance management. The Company has set up contact points both within the Company and externally (through its legal counsel) where employees can consult and report any organizational or individual violations of laws and regulations in the course of business. Whistleblowers are protected from any retaliation for making a report and they can also report anonymously.
 The contents of reports are reported to the Compliance Committee, which determines whether an investigation into the facts is necessary and issues instructions to the relevant department to investigate if an investigation is necessary. If the investigation confirms that a violation of the law has occurred, the Compliance Committee will promptly take the necessary corrective measures.
 In addition, the Internal Audit Department will check whether the corrective measures are working properly, and if it determines that they are not working properly, the Compliance Committee will review the corrective measures.

Reporting desk for employees

Eligibility	employees (full-time employees, contract employees, part-time employees, temporary employees, retirees), and those engaged in work under a contract, etc.
Scope of reporting	Anything that violates laws related to the protection of individual life and body, protection of consumer interests, environmental conservation, ensuring fair competition, etc.
Method of reporting	Interview, telephone, in writing, email

Reporting desk for suppliers

Eligibility	Suppliers who do business with the Company
Scope of reporting	Consultations regarding compliance
Method of reporting	Dedicated inquiry form posted on the website

Workflow of Internal Whistleblowing System

Anti-Bribery Initiatives

 The Company's internal regulations stipulate that it conduct fair transactions and build equal and fair trading relationships. The Company also has established an approval process for the president, General Manager of the Financial and Accounting Department, and responsible officers for any entertainment or gifts above a certain threshold given to business partners, customers, or others.
 Additionally, compliance training is provided to employees to raise awareness of issues such as bribery of public officials and concerns regarding the use of third parties such as consultants.

Compliance with the Subcontractor Act

 To ensure thorough compliance with the Subcontract Act (Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors), the Company regularly investigates the capital and payment terms of our business partners to confirm that each transaction does not violate the Act. We also deepen our purchasing personnel's understanding of the Subcontract Act through in-house education and external training. The Company also works on awareness-raising activities for related departments.

Initiatives for Exclusion of Anti-Social Forces

 In order to eliminate anti-social forces, the Company strives to build close cooperative relationships by regularly communicating with the police and other relevant authorities, and it also makes efforts to collect information on the trends of anti-social forces. Furthermore, the Company has established the Compliance Regulations, which require the severance of ties with anti-social forces. These regulations have been made known to all employees. The Company has added clauses regarding the exclusion of anti-social forces to the various basic transaction agreements it concludes with business partners and others.

Compliance Training

 The Company regularly conducts compliance training to instill an awareness of corporate ethics and compliance with laws and regulations among all employees and to prevent illegal activities before they occur.
In FY2024, the Company conducted training on the themes of corporate activities, human rights, and compliance issues, and all employees, including executives, attended (100% participation rate). Additionally, the Company implemented e-learning on the themes of corporate ethics and compliance to solidify understanding and raise awareness among all employees.

Compliance Violations

 In the event of a serious compliance violation, the Compliance Committee will investigate the relevant department and deliberate and decide on measures to prevent recurrence. In addition, the Disciplinary Committee has a system in place to take appropriate action in the event of a violation.