Nomination and Compensation Committee

We established a Nomination and Compensation Committee as a voluntary advisory body to the Company’s Board of Directors.

Objective

The Company established the Nomination and Compensation Committee (hereinafter, the “Committee”) to ensure fairness and transparency in decisions on nominations and compensations of Directors and Executive Officers.

Authority and Responsibility of the Committee

When the Company’s Board of Directors consults the Committee about the items as stated below, the Committee has the authority and responsibility to deliberate such items and to advise the Board.

(Main Items for deliberation)

・Appointment of Directors and Executive Officers

・Performance evaluation of Directors and Executive Officers

・Selection criteria for independent outside Directors and independent outside Audit &

Supervisory Board members

・Policy and procedure to decide the amount and the calculation method of compensations for

Directors and Executive Officers

Composition

The majority of the members of the Nomination and Compensation Committee shall be independent Outside Directors

(Current members)

・Chairman and CEO, Representative Director  Motoi Oyama (Chairman)

・President and COO, Representative Director  Yasuhito Hirota

・Independent Outside Directors  Katsuro Tanaka, Takeshi Hanai, Hitoshi Kashiwaki and Kazuo Sumi

・Outside Expert  Ryuji Hori

※Chairman is elected by members’ mutual voting.