Nomination and Compensation Committee

The Company has established a Nominating and Compensation Committee in order to ensure fairness and transparency in relation to the nomination of Directors and Executive Officers, and in relation to determining their compensation. The majority of the members of the Nominating and Compensation Committee are independent Outside Directors, and the Board of Directors respects the opinions of the Nominating and Compensation Committee when it resolves to determine the nomination and compensation of Directors and Executive Officers.

The Committee’s chair is appointed from among the Independent Outside Directors by resolution of the Nominating and Compensation Committee.

(Activities in 2019)

Number of meetings held: 5

Main items for deliberation:

• Performance evaluation and performance-based bonuses for Directors and Executive Officers in the fiscal year ended December 31, 2018

• Setting targets for Directors and Executive Officers in the fiscal year ended December 31, 2019

• Selection of candidates for Director/Executive Officer

• Consideration of corporate governance structure

• Consideration of succession planning

(Composition of the Committee Members)

Outside Director Hitoshi Kashiwaki (Chairperson of the Committee)

Outside Director Kazuo Sumi

Outside Director Makiko Yamamoto

Outside Director Miwa Suto

Outside Director Yasushi Yokoi

Chairperson and CEO, Representative Director Motoi Oyama

President and COO, Representative Director Yasuhito Hirota