Evaluating the Effectiveness of the Board of Directors

Our corporate philosophy is "to pursue happiness of all employees and success of all customers through software technology, and to contribute to the improvement of happiness around the world by taking advantage of the technology of Fixstars".
In order for us to maintain and further improve our long-term competitiveness based on this corporate philosophy, we aim to have a Board of Directors that can both oversee appropriate execution and make decisions flexibly.

In accordance with the "Corporate Governance Code" and with the aim of further strengthening the functions of the Board of Directors, we have conducted an evaluation and analysis of the effectiveness of the Board of Directors and hereby announce the summary of the results.

1. Outline of the effectiveness evaluation method

Evaluator 9 directors (including 5 outside directors)
Three corporate auditors (including three outside corporate auditors), for a total of twelve
Evaluation Method Conducted by a third-party organization
  1. Conducting surveys
  2. Tabulation and analysis of responses
Main questions
  1. Composition and Operation of the Board of Directors
  2. Management and business strategies
  3. Corporate ethics and risk/crisis management
  4. Management Evaluation and Compensation
  5. Dialogue with Shareholders, etc.

2. Summary of Evaluation Results

As a result of the above evaluation, we confirmed that the Company's Board of Directors is functioning appropriately and that the effectiveness of the Board of Directors is ensured, centering on free and open discussion at the Board of Directors, information sharing from the executive side, feedback on dialogue with shareholders and others, and the risk management system.

3. Issues identified by the evaluation

On the other hand, the following four points were recognized as issues to be addressed in order to further enhance the effectiveness of the Board of Directors.

  1. Stimulate discussion on sustainability
  2. Share the assumptions and background information related to strategy
  3. Involvement of independent outside directors in nomination and compensation
  4. Review the content of materials and the timing of their distribution

4. Future actions based on the evaluation results

Based on the results of this evaluation of the effectiveness of the Board of Directors, the Board of Directors will continue to implement necessary measures and make improvements to further enhance its effectiveness. The Company plans to conduct and announce the evaluation of the effectiveness of the Board of Directors on a regular basis in the future.