For the purpose of securing further effectiveness and improving the functions of the Board of Directors, we
implement an effectiveness evaluation of the Board of Directors. Specifically, we conduct a written and oral
self-evaluation questionnaire survey of all the Directors and Auditors concerning the effectiveness of the
Board of Directors in terms of its structure, operation, agenda items, and the system that supports it, as
well as management strategies and challenges.
Based on the results of the survey, we share the evaluation results of the current situation and the
challenges with the Board of Directors and hold constructive discussions on future initiatives.
The increase in External Directors and Auditors on the Board of Directors has led to greater diversity and
improved the Board’s effectiveness. The Board monitors annual policies and medium-term management plans
and holds sufficient discussions on important agenda items, such as M&As and alliances.
In the future, we will work to further improve the effectiveness of the Board of Directors by reviewing
the agendas at Board of Directors meetings to increase the number of important agenda items, such as
healthcare, DX, overseas, ESG, and capital cost.
The increase in External Directors and Auditors has led to greater diversity in terms of professional
knowledge, experience and skills. The Board now consists of individuals who can contribute to frank,
active and constructive discussions.
We can continue to expect expertise and diversity, as well as constructive and fruitful discussions
going forward.
Board of Directors meetings are effectively and efficiently operated as any materials to be submitted
to the Board of Directors are sent in advance and important agenda items are explained beforehand to
board members.
We will continue to run the Board of Directors systematically according to the annual schedule of
Board of Directors meetings. We will also continue to hold effective and efficient meetings by
scheduling them appropriately and allocating time according to the importance of the agenda item.
The agenda items for Board of Directors meetings are appropriately selected as the direction of
corporate strategies and the medium-term management plan are shared with the Board of Directors, and
the scope of delegation to the management team, including executive officers, is clearly defined.
Going forward, in order to further enhance discussions of important agenda items, we will review the
annual agenda of the Board of Directors and consider prioritizing items based on urgency and
importance.
Directors and Auditors are provided with appropriate opportunities to hold meetings with external
officers and Directors/executive officers for the purpose of enhancing the effectiveness of the
Board.
Going forward, we will consider holding regular meetings for external officers only or meetings
between external officers and internal senior management to allow external officers to deepen their
understanding of the Group’s philosophy and management strategies.
The results of self-evaluation by Directors and Auditors indicate that they have been able to update
information through site visits and exchange meetings with other external officers, as well as to
express their opinions based on their own experience and professional knowledge.
The Directors and Auditors will continue to make self-improvement efforts in order to demonstrate
their experience and knowledge.
Management strategies and issues with awareness of capital cost and stock price are shared
appropriately, and discussions on important matters such as M&A and alliances are held.
Going forward, we will further enhance discussions on growth strategies with awareness of capital cost
and stock price, business portfolio rebalancing, management resource allocation (store, systems,
investment in human resources), and matters including healthcare, DX, overseas, and ESG.