Messages from Outside Directors

Supporting Appropriate Decision-Making to Unlock Future Growth Opportunities

Outside Director
Munetomo Torii  Since its founding, the Company has expanded its business operations based on technological capabilities, guided by the philosophy of supporting the growth of human civilization. In recent years, the cutting-edge semiconductor field has grown against the backdrop of surging demand for AI, and as a result, demand for the Company's photosensitive materials and ultra-purity solvents has also risen sharply. However, challenges have also emerged. These include declining profitability due to rapid business growth and surging capital expenditures (capex), along with the need to confront an uncertain market environment.
 Given this situation, the Board of Directors is being called upon to play a more strategic role as a forum for discussion. To increase the effectiveness of the Board of Directors, it is important to carefully select agenda items and deepen deliberations on business direction and future vision. In particular, I believe it is necessary to further enhance discussions on management decisions that take cost of capital into consideration and long-term perspectives, including sustainability.
 The Nomination and Remuneration Advisory Committee will continue to examine succession planning and a remuneration system based on roles and performance. It will also focus on creating an environment where diverse talent can thrive. In addition, to prepare for future uncertainties such as rapid market changes and geopolitical risks, the committee will provide advice and supervision from a risk management perspective, offering an objective perspective on investments and resource allocation that will contribute to sustainable growth.
 Going forward, I will continue to utilize my knowledge and experience as an outside director to reform the Company's Board of Directors, advance sustainable management, and support appropriate decision-making to seize future growth opportunities.

Promoting Stakeholder Engagement through Information Disclosure

Outside Director
Tokio Matsuo  Inspections of the Company's corporate governance level are now being conducted annually, focusing on compliance with Japan's Corporate Governance Code and using effectiveness evaluations of the Board of Directors. Going forward, it will be important to continue to identify issues and steadily implement initiatives to improve the quality of governance. As a company that is achieving continuous business growth, the Company must improve the quality of discussions and decision-making at Management Meetings, and based on the content of those meetings, enhance discussions at Board of Directors meetings. In addition to being involved in management strategy, the Board of Directors is also expected to supervise the risk management system and engage in dialogue with stakeholders, including employees. I will endeavor to provide objective and constructive opinions on the perspectives from which the Company should view things when working for the benefit of society.
 I understand that the key perspectives in the Company's sustainability management are safety, human capital, society and the environment, and business continuity. From the perspective of meeting the expectations of external stakeholders, we should always be a company that provides the market with high-quality products in a stable and continuous manner, while prioritizing safety and eliminating accidents, promoting mutual understanding and growth among employees, and focusing on efforts to reduce environmental impacts. While progress has been made in disclosing ESG-related data, which has a significant impact on corporate value, the challenge going forward will be to further clarify goal setting and implement the PDCA cycle to achieve those targets. Data-driven explanations are essential to ensure that stakeholders fully understand the Company's contribution to the SDGs, so I ask that the Company continue to steadily promote this.