Note: This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shallprevail.

Corporate Governance
Last Updated: June 30, 2021

Toyobo Co., Ltd.
Ikuo Takeuchi
President and Representative Director
Contact: TEL: +81-6-6348-4208
Securities Code: 3101
https://www.toyobo-global.com/
The corporate governance of Toyobo Co., Ltd. (hereinafter referred to as the “Company”) is described
below.

I.

Basic Views on Corporate Governance, Capital Structure, Corporate Attributes andOther Basic Information

1. Basic Views
The Company, to respond to the changing times and enhance sustainable corporate value, hasestablished the policies of (1) ensuring timeliness and accuracy in decision-making, (2) ensuringtransparency in management, and (3) emphasizing fairness. Based on these principles, we are working
to strengthen group governance structure, as well as bolster risk management and compliancestructures.
[Reasons for Non-compliance with the Principles of Japan’s Corporate Governance Code]
The Company complies with all principles of Japan’s Corporate Governance Code.
[Disclosure Based on the Principles of Japan’s Corporate Governance Code][Principle 1-4 Cross-Shareholdings]
The Company shall periodically review cross-shareholdings from assorted perspectives, such as theimpact on improving medium- to long-term corporate value and economic rationality, and sell any stock
which is no longer meaningful as is appropriate. On the other hand, the Company shall enter into crossshareholdings with key business partners when judging that the maintenance and strengthening of
stable relationships with the business partners will contribute to sustainable growth and enhancementof medium- to long-term corporate value of the Company.
The Board of Directors individually reviews cross-shareholdings every year, including future businessstrategies and operational relationships, and determines whether or not to continue holding theseshares.
Also, with regard to the exercise of voting rights in cross-shareholdings, the Company deeply considers
the status of the business partner and the content of the proposals, and as needed, discusses with thebusiness partner. The Company thereby confirms whether these holdings contribute to the sustainablegrowth and medium- to long-term enhancement of corporate value of the Company and its business
partner, and makes a comprehensive decision.
[Principle 1-7 Transactions among Related Parties]
Competitive transactions and transactions involving conflicts of interest between the Company andDirectors must be approved at the meeting of the Board of Directors according to laws and regulations,and internal rules. When this transaction is carried out, important facts shall be reported to the Boardof Directors. Because there is no major shareholder who holds 10% or more of voting rights, the-1-Company has not established approval procedures when conducting transactions with major
shareholders.
[Principle 2-6 Roles as Asset Owners of Corporate Pension Plan]
The results of operating reserves of the corporate pension fund has direct impact on the parent entity.
Therefore, the Asset Management Committee is comprised of labor side representatives and members
selected by the Finance, Accounting and Control, and Human Resources departments. This committee
regularly monitors the status of asset management and deliberates the following items.
1 Matters concerning basic policy of management
2 Matters concerning management guidelines and ratios of policy-related asset holdings
3 Matters concerning the selection and evaluation of the fund management agencies
4 Other matters concerning asset management
The Company is taking efforts to construct a system which enacts proper management, including
appointment of personnel with appropriate qualities in the executive director of operations of thecorporate pension fund and regularly undergoing rotation, as well as regularly sending officers andemployees to a pension seminar run by an outside institution to improve quality. In addition, regarding
the exercising of voting rights by entrusted fund management agencies for proposals submitted at a
General Meeting of Shareholders of the Company, the system appropriately manages conflicts ofinterest between the Company and beneficiaries by respecting the judgment of the entrusted fundmanagement agencies and allowing labor union participation in the Asset Management Committee and
Board of Representatives.
[Principle 3-1 Enhancement of Disclosure](i) Management philosophy, management plan, etc.
The Company maintains a corporate philosophy based on the words the founder Eiichi Shibusawa
lived by: “Jun-Ri-Soku-Yu (realizing prosperity by acting rationally)” Please refer to the Company’s
website for information about “Jun-Ri-Soku-Yu.”
https://www.toyobo-global.com/company/philosophy/
Upon the establishment and public announcement of the management strategy and management plan,
the Company presents its specific goals and a focused explanation of what must be done to achievethese goals through disclosure and explanations at presentation to institutional investors, Integrated
Report, and on the Company’s website. The details of the medium-term plan between 2018 and 2021
is disclosed on the Company’s website.
https://ir.toyobo.co.jp/en/ir/library/plan.html(ii) Basic views and basic policies on corporate governanceFor basic views, please refer to “I. 1. Basic Views” Basic policies are as follows:[Basic policies on corporate governance](1) Securing the rights and equal treatment of shareholders- The Company shall comply with laws and regulations to appropriately secure shareholders’ rights
practically. Furthermore, the Company shall construct an environment for shareholders toappropriately exercise those rights in order to ensure appropriate cooperation with shareholders.
(2) Appropriate cooperation with stakeholders other than shareholders- The Company shall respond flexibly to changes in the times based on the corporate philosophy of“Jun-Ri-Soku-Yu” and take efforts in corporate governance and compliance, which are thefoundations of enhancing corporate value.
- The Company regards corporate value as value formed by balancing economic value (corporate
interests) and societal value (trust and valuation from stakeholders, and contribution to solvingsocial issues). Regarding societal value, the Company establishes a centralized system of grasping
and monitoring efforts toward all stakeholders, including customers, business partners,
shareholders, employees, local communities, etc., under the oversight of the Sustainability
Committee (Chairperson: President) and appropriately engages in collaboration with eachstakeholder while focusing on efforts to solve global social and environmental issues andenhancing sustainable corporate value.

-2-(3) Ensuring appropriate information disclosure and transparency- The Company conducts appropriate disclosure of not only financial information, but also nonfinancial information such as the management policy and corporate governance based on laws andregulations. Furthermore, the Company takes efforts to provide easily understandable and useful
information from the perspective of actively disseminating information about the Company’s efforts
and ensuring the transparency and fairness of Company’s decision-making.
(4) Responsibilities of the Board of Directors- Based on their fiduciary responsibility and accountability to shareholders, the Board of Directors of
the Company shall construct a governance system, described as below, which aim to enhancesustainable corporate value.
- The Company adopts a structure of a company with Board of Corporate Auditors for corporate
governance and implements an executive officer system. This system allows for timely decisionmaking and efficient business execution by clearly separating the roles of “decisionmaking/oversight” by the Board of Directors and “execution” by the Executive Officers.
- Due to the diverse and specialized nature of the Company Group businesses, the Board of
Directors is comprised of Directors who serve concurrently as Executive Officers, excluding
Chairman and Outside Directors. Furthermore, one third or more of the Directors shall be Outside
Directors to ensure the transparency and fairness of Company management.
- Outside Officers are appointed based on the Standards of Independence so that they will be able
to execute its role and responsibilities. In particular, for Outside Directors, the following main roles
and responsibilities are stipulated to be fulfilled from the perspective of ensuring a monitoring
function and maximizing shareholder return.
i. advise on management policy, management plan formulation, and management improvement
based on own knowledge.
ii. supervise management through the appointment and dismissal of management and otherimportant decisions at the Board of Directors.
iii. oversee any conflicts of interest between the Company or shareholders and management.
- The Company aims to enhance its support system for Outside Officers, such as the administrative
office of the Board of Directors providing prior explanation of important matters. Furthermore, aLiaison Meeting of Outside Officer, comprised only of Outside Officers, is held regularly, where they
can share their understanding and exchange information.
- The Company shall maintain transparency and fairness regarding the nomination andcompensation of Directors, etc. by consulting to the advisory body comprised mainly of Outside
Directors.
(5) Dialogue with shareholders- The Company, in order to contribute to the enhancement of sustainable corporate value, strives toconstruct an appropriate environment for its shareholders to exercise their rights. Furthermore, theCompany discloses in a timely and appropriate manner both financial and non-financial information
which can contribute to constructive dialogue as well as takes efforts to construct a system topromote constructive dialogue between the Company and shareholders and investors.
(iii) Policies and procedures in determining the compensation of the senior management and Directors
The policies and procedures related to the compensation of senior management (hereinafter“Directors who serve concurrently as Executive Officers”; the same shall apply hereinafter) and other
Directors are stated in the Notice of the Annual General Meeting of Shareholders (“4. Mattersconcerning corporate officers” of the Business Report) (Company’s website:
https://ir.toyobo.co.jp/ja/ir/stock/shareholder.html).
(iv) Policies and procedures in the election and dismissal of the senior management and the nominationof candidates for Director and Corporate Auditor
The Company establishes the Nomination and Compensation Advisory Committee (Chairperson:
Outside Director), a majority of whose members are Outside Directors, as an advisory body for the
Board of Directors for the election and dismissal of the senior management and the nomination ofcandidates for Director. The Committee deliberates and reports on the basic policy for nominations,elections and dismissals, succession plans, performance evaluations and other matters. The Board of-3-

Directors shall make decisions based on the reports. Furthermore, for the nominations of candidates
for Corporate Auditor, the Board of Corporate Auditors shall hold interviews beforehand to determine
the suitability of candidates, the Nomination and Compensation Advisory Committee shall deliberate
the nominations, and the Board of Directors shall make decisions based on the reports.
(v) Statements concerning the election and dismissal of the senior management and the nominationof candidates for Director and Corporate Auditor
The appointment of senior management is determined based on whether an individual possesses theexperience and qualities necessary for the field they will be in charge of, and whether they possess aperspective that views the entire company, together with their leadership, favorable reputation,
performance evaluation, etc. Career summaries of candidates for Director and Corporate Auditor are
disclosed in the Notice of the Annual General Meeting of Shareholders (Reference Documents for
General Meeting of Shareholders).
Information regarding the dismissal of senior management shall be disclosed as needed in a timely
and appropriate manner to stakeholders, including shareholders.
[Supplementary Principle 4-1-1 Outline of Scope of Matters Delegated to Management]
In addition to matters designated by laws and regulations, and the Articles of Incorporation, as well as
matters delegated by the General Meeting of Shareholders, the Board of Directors of the Company
shall make resolutions regarding important management matters designated in the Board of Directors
Regulations, etc. Furthermore, matters which fall outside the scope of matters for decision by Board of
Directors shall be decided by the Board of Managing Executive Officers and Controlling Supervisorsdelegated by the Board of Directors or by internal memos, based on detailed and specificproposal/report standards established based on importance.
[Principle 4-9 Independence Standards and Qualification for Independent Outside Directors]
Independence Standards for Outside Officers is stated in the Notice of the Annual General Meeting of
Shareholders (Reference Documents for General Meeting of Shareholders) (Company’s website:
https://ir.toyobo.co.jp/en/ir/stock/shareholder.html).
[Supplementary Principle 4-11-1 Composition of the Board of Directors]
The Board of Directors shall be comprised of Directors who serve concurrently as Executive Officers,
excluding the Chairman and Director who also serves as Chairperson of the Board of Directors andthe Outside Directors. Directors who serve concurrently as Executive Officers are appointed fromamong Executive Officers based on whether an individual possesses the experience and qualities
necessary for the field they will be in charge of, and whether they possess a perspective that views theentire company, together with their leadership, favorable reputation, performance evaluation, etc. The
Company considers that the system of six Directors who serve concurrently as Executive Officers, one
non-executive Chairman and four Outside Directors (11 Directors in total) has composition and size
which allows the overall Board of Directors to conduct accurate and timely decision-making while
maintaining diversity. Please refer to Principle 3-1 (iv) for policies and procedures related to the electionof Directors.
[Supplementary Principle 4-11-2 Concurrent Positions Held by Directors and Corporate Auditors]
In the election of Directors and Corporate Auditors, the Company confirms that candidates do not haveconcurrent positions which could hinder the expected execution of their duties before they arenominated. In the Business Report and the Reference Documents for General Meeting of Shareholders,the Company discloses the status of important concurrent positions, including cases when a candidate
is serving concurrently as an officer in another listed company.
[Supplementary Principle 4-11-3 Evaluation of Effectiveness of the Board of Directors]
From January to April 2021, in order to further enhance the functions of the Board of Directors, theCompany carried out an overall analysis and evaluation of the effectiveness of the Board of Directors
in fiscal 2021 with the support of an external organization. An outline of this evaluation is as follows:-4-

(Method for the analysis and evaluation of effectiveness)
A survey of roughly 40 questions was conducted to Directors and Corporate Auditors. The responses
to this survey were made directly to the external organization as in the previous fiscal year. The analysis
and evaluation were carried out by the Board of Directors based on the aggregate results reported by
the external organization.
(Outline of the analysis and evaluation after conducting the survey)
1. Analysis and evaluation(1) The results of the evaluation indicated that the number of members of the Board of Directors, theratio of inside and outside Directors and management of the Board of Directors meetings by the
Chairperson were largely appropriate.
(2) The Company has made efforts to further separate decision-making/oversight and businessexecution. However, there are insufficient discussions on solving medium- to long-term
management issues, such as DX, personnel strategies and the business portfolio.
(3) Regarding the fire accident and inappropriate cases concerning quality, the Company takes thesematters seriously and believes it is necessary to further promote initiatives for improving
effectiveness, such as enhancing risk management systems and confirming the progress of thoseenhancements.
2. Issues and future initiatives
The issues identified and future initiatives for improving the overall effectiveness of the Board of
Directors are as follows:(1) Further enhancement of risk management for safety and disaster-management measures, quality
assurance, etc.
→ Further enhance risk management systems for the entire Group through initiatives such as theestablishment of Risk Management Committee and supervision of the committee’s activities.
(2) Enhancement of the internal audit function for the entire Group→ To enhance the internal audit function, establish a system for regularly reporting the status ofinternal audits directly to the Board of Directors.
(3) Enhancement of sustainable corporate value through initiatives related to ESGs, DX, the businessportfolio, etc.
→ For ESGs, DX, the business portfolio and other themes from a medium- to long-term
perspective that require continued deliberations, hold meetings in addition to the Board of
Directors meetings as needed.
(4) Further enhancement of initiatives related to the succession plan and election procedures for CEO→ To improve the transparency, fairness and effectiveness of the procedures for determining thenominations and compensation of officers, review the operation of the advisory body for the
Board of Directors.
(5) Greater efficiency regarding the management of the Board of Directors meetings→ Review the following items regarding the management of the Board of Directors meetings,
further improve efficiency of the meeting management and secure sufficient time fordeliberations for important management matters.
(i) Narrow down the individual items, such as by reviewing the agenda criteria.
(ii) Make the time for advance distribution of materials earlier.
(iii) Further ensure organization of the issues for deliberation and shorten the time for explanations.
(iv) Create an annual plan for agenda items (including important themes).
Through these efforts, the Board of Directors strives to improve the overall effectiveness of the Boardof Directors.
[Supplementary Principle 4-14-2 Policy on Training of Directors and Corporate Auditors]
As well as giving explanations to newly appointed Directors and Corporate Auditors concerning theirroles and responsibilities, the Company bears the cost to send Executive Officers and Directors to an
external training program upon their appointment, in order to acquire the necessary knowledge. In
addition, newly appointed Outside Directors and Outside Corporate Auditors are given explanations
concerning the Company’s operations, finances, and organization, etc. and provided visits to each-5-business site. They are continuously provided with opportunities after assuming office to acquire thenecessary knowledge in order to sufficiently fulfill their roles and responsibilities.
[Principle 5-1 Policy for Constructive Dialogue with Shareholders]
Policy for dialogue with shareholders are as follows:[Policy for dialogue with shareholders]
The Company constructs a system and takes efforts to promote constructive dialogue between the
Company and investors and shareholders based on the below policy in order to continuously improve
corporate value.
(Controlling supervisors)
Appointing Executive Officers who control IR operations as controlling supervisors, the Company
constructs a system and takes efforts to generate constructive dialogue between the Company andinvestors and shareholders.
(Sufficient opportunities for dialogue)
The Company implements the below measures for sufficient opportunities for dialogue.
- Annual General Meeting of Shareholders- Earnings briefings- Presentation to institutional investors- Disclosure of related information on the Company’s website(Execution of individual dialogue)
In addition to the measures above, when the Company determines that it is beneficial to the mediumto long-term improvement of corporate value and sustainable growth of the Company, it also conducts
individual dialogue with institutional investors, while taking into consideration fairness in information
disclosure.
(Method of feedback)Executive Officers controlling IR operations report information gained by dialogue with institutional
investors to the Board of Directors, etc.
(Cooperation with internal departments which assist dialogues)
The department in charge of IR operations cooperates with the Accounting and Control Department
and other related departments and summarizes the content, etc. of the dialogues while sufficiently
taking into consideration management of insider information.
(IR related materials)
The Company’s website includes the following materials to contribute to dialogues, etc.
- Consolidated Financial Report (in Japanese and English)- Presentation materials for earnings briefings (in Japanese and English)
Audio recordings and scripts of presentations (H1 and year-end earnings; in Japanese and English)
Scripts of Q&A for the presentation (in Japanese and English)- Consolidated Financial Statements (in Japanese and English)- Notice of the General Meeting of Shareholders (in Japanese and English)- Extraordinary Reports (voting results) (in Japanese and English)- Newsletter to Shareholders- Factbook (in Japanese and English)- Integrated Report (in Japanese and English)-6-2. Capital Structure
Foreign Shareholding Ratio

From 10% to less than 20%[Status of Major Shareholders]Name

Number of Shares Owned(Shares)

Shareholding Ratio(%)

The Master Trust Bank of Japan, Ltd.
(Trust Account)

8,303,100

9.35

Custody Bank of Japan, Ltd. (Trust
Account)

5,431,100

6.11

National Mutual Insurance Federation ofAgricultural Cooperatives

3,558,000

4.00

Custody Bank of Japan, Ltd. (Trust
Account 9)

2,091,700

2.35JAPAN POST INSURANCE Co.,Ltd.

2,015,000

2.27

TOYOBO Employee Stockholders’
Association

1,832,674

2.06

Toyukai

1,801,110

2.03

Nippon Life Insurance Company

1,750,803

1.97

Meiji Yasuda Life Insurance Company

1,402,900

1.58

DFA INTL SMALL CAP VALUE
PORTFOLIO

1,258,200

1.42

Controlling Shareholder (except for
Parent)—Parent (Listed Stock Market)

N/A

Supplementary Explanation—

3. Corporate Attributes
Listed Stock Market and Market Section

Tokyo Stock Exchange First Section

Fiscal Year-End

MarchType of BusinessTextiles & Apparels

Number of Employees (Consolidated) at
End of the Previous Fiscal Year

1,000 or more

Net Sales (Consolidated) for the Previous
Fiscal Year

From 100 billion yen to less than 1 trillion yen

Number of Consolidated Subsidiaries at
End of the Previous Fiscal Year

From 50 to less than 100-7-

4. Policy for Measures to Protect Minority Shareholders in Conducting Transactions with
Controlling Shareholder—

5. Special Circumstances Which May Have Material Impact on Corporate Governance—-8-II. Business Management Organization and Other Corporate Governance Systems
Regarding Decision-making, Execution of Business, and Supervision in
Management
1. Organizational Composition and Operation
Organization Form

Company with Board of Corporate Auditors[Directors]
Maximum Number of Directors Stipulated in
Articles of Incorporation

14

Term of Office Stipulated in Articles ofIncorporation

1 yearChairperson of the Board

Chairman (excluding the case where the person
concurrently serves as President)

Number of Directors

11

Appointment of Outside Directors

Appointed

Number of Outside Directors

4

Number of Independent Officers Designatedfrom among Outside Directors

4Outside Directors’ Relationship with the Company (1)NameAttribute

Masaru Nakamura

From anothercompany

Takafumi Isogai

Academic

Kimie Sakuragi

From anothercompany

Masaaki Harima

Attorney at law

Relationship with the Company*
a

b

c

d

e

f

g

h

I

j

k

△

* Categories for “Relationship with the Company”* “○” when the director presently falls or has recently fallen under the category;“△” when the director fell under the category in the past;* “●” when a close relative of the director presently falls or has recently fallen under the category;and“▲” when a close relative of the director fell under the category in the pasta. Executive (a person who executes business; hereinafter, the same) of the Company or its
subsidiaryb. Non-executive director or executive of the parent of the Company
c. Executive of a fellow subsidiary of the Company
d. Party whose major client or supplier is the Company or an executive thereof
e. Major client or supplier of the Company or an executive thereof
f. Consultant, accounting professional or legal professional who receives a large amount ofmonetary consideration or other property from the Company besides compensation as a director-9-g. Major shareholder of the Company (or an executive of the said major shareholder if theshareholder is a corporation)h. Executive of a client or supplier of the Company (which does not correspond to any of d., e., orf.) (the director himself/herself only)
i. Executive of a corporation to which outside officers are mutually appointed (the director
himself/herself only)
j. Executive of a corporation that receives a donation from the Company (the director
himself/herself only)
k. OtherOutside Directors’ Relationship with the Company (2)Name

MasaruNakamura

Takafumi Isogai

Kimie Sakuragi

MasaakiHarimaDesignationas
Independent
Officer

Supplementary Explanationof the Relationship

Reasons for Appointment○

Masaru Nakamura worked
for Sumitomo Corporation, abusiness partner of theCompany. Sales fromtransactions with Sumitomo
Corporation make up lessthan 1% of the Company’ssales on average for the past
three years. Therefore, theCompany determined that
there is no risk of a conflict ofinterest between him andgeneral shareholders.

The Company elected Masaru
Nakamura so that his extensive
experience and wide-ranging
knowledge as a manager can beleveraged to provide advice andsupervision to the Company’s
management.

No items to report.

The Company elected Takafumi
Isogai so that his extensive
experience and wide-ranging
knowledge as an academic
specializing in the quality control
field can be leveraged to provide
advice and supervision to theCompany’s management.

No items to report.

The Company elected Kimie
Sakuragi so that her extensive
experience and wide-ranging
knowledge in the fields ofcorporate ethics, compliance,sustainability, etc. can beleveraged to provide advice andsupervision to the Company’s
management.

No items to report.

The Company elected Masaaki
Harima so that his extensive
experience and wide-ranging
knowledge as an attorney at law
can be leveraged to provide
advice and supervision to theCompany’s management.

○

○

○

- 10 -

Voluntary Establishment of Committee(s)Equivalent to Nominating Committee or
Compensation Committee

Established

Committee’s Name, Composition, and Chairperson’s Attributes
Committee Equivalent toNominating Committee

Committee Equivalent toCompensation Committee

Committee’s Name

Nomination and Compensation
Advisory Committee

Nomination and Compensation
Advisory Committee

Total Committee Members

33

Full-time Members

00Inside Directors

11Outside Directors

22

Outside Experts

0

0

Other

0

0

Chairperson

Outside Director

Outside Director

Supplementary Explanation
For the major items of deliberation in the above committee, please refer to “(iii) Policies and procedures
in determining the compensation of the senior management and Directors” and “(iv) Policies andprocedures in the election and dismissal of the senior management and the nomination of candidates
for Director and Corporate Auditor” in [Principle 3-1 Enhancement of Disclosure] in [Disclosure Basedon the Principles of Japan’s Corporate Governance Code]. The composition of the Nomination andCompensation Advisory Committee is as follows:(Nomination and Compensation Advisory Committee)
Chairperson
Masaru Nakamura, Outside Director
Committee Member Kimie Sakuragi, Outside Director
Committee Member Seiji Narahara, Chairman and Director(Observer
Hiroyuki Sugimoto, Outside Corporate Auditor)[Corporate Auditors]
Establishment of Board of Corporate
Auditors

Established

Maximum Number of Corporate Auditors
Stipulated in Articles of Incorporation

5

Number of Corporate Auditors

4

Cooperation among Corporate Auditors, Financial Auditor and Internal Audit Department- Corporate Auditors hold regular meetings to exchange information, in addition to receiving reportson the audit plans and results from Financial Auditor.
- Corporate Auditors receive explanations on the status of activities, including internal audit plans,from the Internal Audit Department, exchange opinions, and receive reports on the results ofinternal audits and reports on the status of internal control evaluations related to financial reports.

- 11 -

Appointment of Outside Corporate Auditors

Appointed

Number of Outside Corporate Auditors

2

Number of Independent Officers Designatedfrom among Outside Corporate Auditors

2

Outside Corporate Auditors’ Relationship with the Company (1)NameAttribute

Relationship with the Company*
a

b

c

d

e

f

g

h

i

j

Hiroyuki Sugimoto

Certified public
accountant△

Akihiko Irie

From anothercompany

△

k

l

m

* Categories for “Relationship with the Company”* “○” when the corporate auditor presently falls or has recently fallen under the category;“△” when the corporate auditor fell under the category in the past;* “●” when a close relative of the corporate auditor presently falls or has recently fallen under the
category; and“▲” when a close relative of the corporate auditor fell under the category in the pasta. Executive (a person who executes business; hereinafter, the same) of the Company or its
subsidiaryb. Non-executive director or accounting advisor of the Company or its subsidiaryc. Non-executive director or executive of the parent of the Company
d. Corporate auditor of the parent of the Company
e. Executive of a fellow subsidiary of the Company
f. Party whose major client or supplier is the Company or an executive thereof
g. Major client or supplier of the Company or an executive thereofh. Consultant, accounting professional or legal professional who receives a large amount ofmonetary consideration or other property from the Company besides compensation as acorporate auditor
i. Major shareholder of the Company (or an executive of the said major shareholder if theshareholder is a corporation)
j. Executive of a client or supplier of the Company (which does not correspond to any of f., g., orh.) (the corporate auditor himself/herself only)
k. Executive of a corporation to which outside officers are mutually appointed (the corporate auditor
himself/herself only)
l. Executive of a corporation that receives a donation from the Company (the corporate auditor
himself/herself only)
m. Other- 12 -

Outside Corporate Auditors’ Relationship with the Company (2)Name

Designationas
Independent
Officer

Supplementary Explanationof the Relationship

Reasons for Appointment○

Hiroyuki Sugimoto worked
for KPMG AZSA LLC, theFinancial Auditor of theCompany. However, heresigned from theaforementioned firm in 2010.
Therefore, the Company
determined that there is norisk of a conflict of interest
between him and generalshareholders.

The Company elected Hiroyuki
Sugimoto to reflect his
knowledge, etc. in the auditing of
the Company because hepossesses extensive experiencein auditing as a certified public
accountant.

○

Akihiko Irie worked for Osaka
Gas Co., Ltd., a business
partner of the Company. The
Company’s procurement
volume from Osaka Gas Co.,
Ltd. made up less than 1% of
the company’s sales on
average for the past three
years. Therefore, theCompany determined that
there is no risk of a conflict ofinterest between him andgeneral shareholders.

The Company elected Akihiko Irieto reflect his extensive experienceand knowledge, etc. as an auditor
in the auditing of the Company
because he has been involved in
auditing as an auditor of listedcompanies, etc.

HiroyukiSugimoto

Akihiko Irie

[Independent Officers]
Number of Independent Officers

6

Matters relating to Independent Officers
All Outside Officers who meet the qualifications for independent officer are designated as independent
officers.
[Incentives]
Implementation of Measures to Provide
Incentives to Directors

Other

Supplementary Explanation
The Company introduced a plan of compensation for granting restricted shares to Directors (excluding
Outside Directors). Furthermore, the Company introduced a similar plan for Executive Officers.
Recipients of Share Options- 13 -

Supplementary Explanation—[Director Compensation]
Disclosure of Individual Directors’Compensation

No individual disclosure

Supplementary Explanation
The total amount of compensation, etc. for Directors and Corporate Auditors for the previous fiscal year
was 325 million yen for 15 Directors and 66 million yen for four Corporate Auditors. Of the amount, thetotal amount of compensation, etc. for Outside Directors and Outside Corporate Auditors was 41 million
yen for five Outside Directors and 15 million yen for two Outside Corporate Auditors.
The total amount of compensation, etc. includes the compensation for five Directors who retired at theconclusion of the 162nd Annual General Meeting of Shareholders held on June 24, 2020.
Policy for Determining Compensation
Amounts or Calculation Methods Thereof

Established

Disclosure of Policy for Determining Compensation Amounts or Calculation Methods ThereofThis information is stated in the Notice of the Annual General Meeting of Shareholders (“4. Mattersconcerning corporate officers” of the Business Report) (Company’s website:
https://ir.toyobo.co.jp/ja/ir/stock/shareholder.html).
[Supporting System for Outside Directors and/or Outside Corporate Auditors]
As the administrative office of the Board of Directors, the Corporate Planning Department holds priorbriefings of important matters.
Members of the Internal Auditing Department are assigned as Corporate Auditors’ staff to assist
Corporate Auditors in their duties.
[Status of Persons Who Have Retired from a Position Such as President, CEO & Co-COO]
Retired President, CEO & Co-COO, etc. Holding Advisory or Any Other Position in the Company
Working FormandConditions(Full-time/Part-time,
Paid/Unpaid,etc.)

Date of
Retirementfrom Position
Such asPresident

Term of
OfficeName

Title/
Position

Responsibilities

MinoruShibata

Honorary
SeniorAdvisorExternal activities, etc.
(uninvolved in management)

Part-time,
unpaidJune 29, 2004

1 year

Junji
TsumuraHonorary
SeniorAdvisorExternal activities, etc.
(uninvolved in management)

Part-time,
unpaidJune 29, 2010

1 year

Ryuzo
Sakamoto

SeniorAdvisorExternal activities, etc.
(uninvolved in management)

Part-time,
paid

June 24, 2020

1 year- 14 -

Total Number of Retired President, CEO & Co-COO, etc. Holding
Advisory or Any Other Position in the Company

3

Other Matters
The senior advisor and honorary senior advisor system is established in internal rules.

2. Matters on Functions of Business Execution, Audit and Supervision, Nomination andCompensation Decisions (Overview of Current Corporate Governance System)
The Company is a company with Board of Corporate Auditors, and under this governance system, haselected four Outside Directors and adopted the Executive Officer system.
(1) Board of Directors
The Board of Directors has 11 Directors, including four Outside Directors. The term of office of a
Director is set at one year to ensure a timely response to changes in the business environment and toclarify the responsibilities of the Directors. Directors are appointed in a well-balanced manner, with
Executive Directors and Outside Directors who perform duties from a company-wide perspective. The
Board of Directors makes decisions and reports on matters such as management policy andmanagement planning, as well as oversees the business execution of each Director and Executive
Officer. Regular Board of Directors meetings are held once a month, with extraordinary meetings being
held as necessary.
(2) Business execution
There are 20 Executive Officers, including some who serve concurrently as Directors. President andRepresentative Director serves currently as CEO and efficiently executes businesses. The Board ofManaging Executive Officers and Controlling Supervisors, where Managing Executive Officers andControlling Supervisors participate, deliberates in advance on matters to be resolved by the Board of
Directors, and determines matters related to business execution that has been entrusted by the Boardof Directors. The Corporate Planning Committee and the Financial Control Committee are establishedunder the Board of Managing Executive Officers and Controlling Supervisors. They deliberate on
important investment and financing projects, etc. from their respective expert standpoints, thereby
managing business risk. The Board of Executive Officers also discusses management issues andcommunicates management policies.
(3) Board of Corporate Auditors
There are two full-time Corporate Auditors and two part-time Corporate Auditors (Outside Corporate
Auditors). They execute their duties by utilizing their knowledge and extensive experience related tofinance and accounting.
(4) Audit by Corporate Auditors, internal audit, and accounting audit(Audit by Corporate Auditors)- The Board of Corporate Auditors of the Company consists of four members - two full-time Corporate
Auditors and two part-time Corporate Auditors (Outside Corporate Auditors). In addition, in order toassist the duties of the Corporate Auditors, we have assigned two staff members for Corporate
Auditors to have them support the Corporate Auditors in their execution of duties.
- Corporate Auditors attend Board of Directors meetings and other important meetings to express
their opinions based on the Company’s regulations, and investigate the business and property
status of the Company by verifying the content of reports received from Directors, etc., and reading
important documents such as approval requests, etc. They request explanations as necessary andexpress their opinions from an independent and objective standpoint. Additionally, Outside
Corporate Auditor Hiroyuki Sugimoto has many years of experience as a certified public accountant
and has considerable knowledge of finance and accounting.

- 15 -

(Internal audit)- The Company has an “Internal Control Committee,” which is chaired by the officer in charge ofinternal auditing. In addition, the Internal Audit Department has been set up with 14 members to
conduct internal audits, including at group companies, and conducts monitoring activities toevaluate the effectiveness of internal controls.
- The Internal Audit Department explains the status of activities, including internal audit plans,
exchanges opinions with Corporate Auditors, and reports internal audit results and internal control
evaluation status related to financial reports. It also regularly exchanges opinions with Accounting
Auditor.
(Accounting audit)- The status of the accounting audit is as follows.
Name of audit corporation: KPMG AZSA LLC
Continuous audit period: 52 years
Certified public accountant who executed business: Tomoyuki Ono, Tetsuo Yamada, Seiko Ohashi
Composition of assistants: 15 certified public accountants, 12 others, total 27 persons(5) Outline of limited liability agreements with Outside Directors and Outside Corporate Auditors
Pursuant to the provisions of Article 427, paragraph (1) of the Companies Act, the Company hasentered into agreements with all Outside Directors and Outside Corporate Auditors to limit their liability
for damages. The maximum amount of liability under these agreements is the minimum liability amountprovided for under laws and regulations.

3. Reasons for Adoption of Current Corporate Governance System
The Company is a company with Board of Corporate Auditors, and under this governance system, has
adopted the Executive Officer system and has constructed a governance system which enables timely
decision-making and efficient business execution. Outside Directors bear a role of maintaining thetransparency and fairness of the Company’s management by utilizing their extensive experience andproviding opinions from an objective perspective. The Company strives to further ensure transparency
and fairness by establishing a voluntary committee (Nomination and Compensation Advisory
Committee). In view of the diverse and specialized nature of the Company’s businesses, the Company
considers this current governance system to be the most suitable.

- 16 -

III. Implementation of Measures for Shareholders and Other Stakeholders
1. Measures to Energize General Shareholders Meetings and Smooth Exercise of Voting
RightsSupplementary Explanations
Early Notification of General
Shareholders Meeting

In addition to sending notification 22 days before the date of theGeneral Meeting, the Company publishes information on thewebsites of the Tokyo Stock Exchange and the Company prior tosending notification.

Scheduling AGMs Avoiding
the Peak Day

The Company schedules General Meetings to avoid so-called peakdays.

Allowing Electronic or
Magnetic Exercise of Voting
Rights

It is possible to exercise voting rights using the internet.

Participation in Electronic
Voting Platform and Other
Efforts to Enhance the
Voting Environment for
Institutional Investors

The Company participates in the electronic voting platform operated
and administered by ICJ, Inc.

Providing Convocation
Notice in English(Translated Fully or
Partially)

The brief Notice of Convocation and Reference Documents for
General Meeting of Shareholders are provided in English.

Other

The Company strives to enhance report details at the General
Meeting of Shareholders by using IT equipment.

2. IR Activities
Supplementary Explanations
Preparation and Publicationof Disclosure Policy

This is published on the Company’s website.

Regular Investor Briefings
for Analysts and Institutional
Investors

After announcing the H1 and year-end
earnings, the Company holds briefings in which
either President and Representative Director or
Director in charge of the Accounting and Control
Department reports an outline of earnings,
short-term and medium-term goals, and issuesof the Company.

Posting of IR Materials on
WebsiteThe Company posts materials of earnings
briefings for analysts.

Establishment of
Department and/orManager in Charge of IR

The Company established an IR Group in the
Corporate Communication Department.

- 17 -

Explanation byRepresentativeYes

3. Measures to Ensure Due Respect for Stakeholders
Supplementary Explanations
Provisions to Ensure Due
Respect for Stakeholders inInternal Rules, etc.

Provisions are included in Toyobo Group’s Charter of Corporate
Behavior.

Implementation ofEnvironmental
Conservation Initiatives,
CSR Activities, etc.

The Company established a Sustainability Committee chaired byPresident and Representative Director, describes initiatives related to
CSR in the Toyobo Group’s Charter of Corporate Behavior, andissues an Integrated Report once a year.

Formulation of Policies for
Information Provision to
Stakeholders

Provisions related to the disclosure of information are included in the
Toyobo Group’s Charter of Corporate Behavior.

- 18 -

IV. Matters Related to Internal Control System
1. Basic Views on Internal Control System and Progress of System Development
In accordance with Article 362 of the Companies Act and Article 100 of the Regulation for Enforcementof the Companies Act, the Board of Directors approved a resolution as follows and the Company ispromoting a framework ensuring the properness of business operations.
(1) Basic views on corporate governance
The Company, to respond to the changing times and enhance sustainable corporate value, hasestablished the policies of (1) ensuring timeliness and accuracy in decision-making, (2) ensuringtransparency in management, and (3) emphasizing fairness. Based on these principles, we are working
to strengthen governance structure, as well as bolster risk management and compliance structures.
(2) Framework ensuring that execution of duties by directors and employees complies with laws andregulations and the Articles of Incorporation- The Company adopts an Executive Officer system in order to improve the transparency andfairness of management by clearly separating “decision-making/oversight” and “businessexecution.” In the Executive Officer system, which is clearly defined by the Management
Regulations, the Board of Directors oversees the business execution of Executive Officers. The
system also clearly defines in the Executive Officer Regulations, which state that Executive Officers
have an obligation to comply with laws and the regulations, and the Articles of Incorporation.
- The Company establishes a “Compliance Committee” which is chaired by the Executive Officer incharge of compliance, and the Legal and Compliance Department promotes compliancethroughout the Group. Furthermore, the Company establishes compliance consultation centers as
a contact point for reporting internal problems.
- The Company formulates the “Toyobo Group Charter of Corporate Behavior” and the “Toyobo
Groups Staff Code of Conduct,” which will be distributed to the Group’s officers and employees toensure thorough compliance with laws and regulations, and corporate ethics.
(3) Framework ensuring the efficiency of execution of duties by directors- The executive officer system enables timely decision-making and oversight by the Board of
Directors and efficient business execution by the Executive Officers.
- The Board of Directors is in charge of “decision-making/oversight” and the Chairman and Director
serves as Chairperson of the Board of Directors. For “business execution,” President andRepresentative Director leads business execution and serves as Chairperson of the Board ofManaging Executive Officers and Controlling Supervisors while also convening the Board of
Executive Officers.
- The Board of Managing Executive Officers and Controlling Supervisors deliberates in advance onmatters to be resolved by the Board of Directors, and determines matters related to businessexecution that has been entrusted by the Board of Directors. The Board of Executive Officers
discusses management issues and communicates management policies. Through this system, theCompany strives for efficient business execution.
(4) Framework for storing and managing information related to execution of duties by directors- Directors and Executive Officers shall appropriately store and manage documents related to the
execution of their duties and other information, in accordance to the Company’s Document andInformation Management Rules.
(5) Rules and framework for managing risks of loss
- The Corporate Planning Committee and the Financial Control Committee are established underthe Board of Managing Executive Officers and Controlling Supervisors. They deliberate on
important investments and new projects, important investment and financing projects, etc. fromtheir respective expert standpoints, thereby managing business risk.
- The Company establishes a “Sustainability Committee” and “Risk Management Committee”
chaired by President and Representative Director, to focus on efforts to solve global social andenvironmental issues, as well as to enhance the risk management systems supporting themanagement foundation of the entire Group.

- 19 -

(6) Framework ensuring the properness of business operations of the corporate group consisting of
the Company and its subsidiaries- In terms of Group management, each responsible department of the Company manages based on
the business content of the relevant company. In this system, the Corporate Planning Department
promotes governance from an overall perspective.
- The Company ensures the properness of operations by clarifying the scope in which the Company
can be involved in the important decision-making matters of subsidiaries and associates inaccordance with the Companies Act based on the Board of Directors Regulations, the Board ofManaging Executive Officers and Controlling Supervisors Regulations, the internal regulations ofmanagement of subsidiaries and associates, and other regulations.
- The Company promotes compliance with laws and regulations across the entire group.
- In order to ensure the reliability of financial reports, the Company constructs an internal control
system which includes group companies and conducts effective management and evaluation of
the system.
(7) Framework ensuring the effectiveness of auditing by Corporate Auditor
a. Matters related to employees who assist the duties of the Corporate Auditors, matters related tothe independence of such employees from Directors, and matters related to securing theeffectiveness of instructions to such employees- In order to assist in the duties of Corporate Auditors, Corporate Auditor staff will be assigned.
Corporate Auditors maintain the authority to provide directions and orders to the staff. The consent
of the Board of Corporate Auditors is required for human resource operations, such as theappointment and dismissal of such staff, employee performance evaluation, performance
evaluation for bonuses, etc. The opinion of the Board of Corporate Auditors must also be requested
in order to apply provisions related to rewards and punishments.
b. Systems for Directors and employees, etc. of the Company and its subsidiaries to report toCorporate Auditors; Other systems related to reporting to Corporate Auditors; Systems to ensurethat employees will not receive disadvantageous treatment due to reporting- The Company and group companies regularly undergo audits by Corporate Auditors and report thestatus of business operations. Furthermore, when Corporate Auditors of the Company request areport of officers and employees of the Group, they must issue that report promptly andappropriately.
- The Company establishes a dedicated e-mail address to enable officers and employees of theGroup to directly consult with or report to Corporate Auditors of the Company.
- The Company thoroughly communicates that persons who consult with or report to Corporate
Auditors of the Company cannot be dismissed or receive other disadvantageous treatment in the
Company or group companies due to the reason that they conducted this consultation or report.
c. Policy on procedures for advance payment or reimbursement of expenses incurred in the executionof duties by Corporate Auditors, and other expenses incurred in the said execution of duties, or
handling of debts- When there is a request from the Board of Corporate Auditors or an individual Corporate Auditor
for expenses required to seek the advice of legal or accounting specialists, this amount is paid
based on the request, excluding cases when that request is acknowledged as unnecessary to their
execution of duties.
d. Other Framework ensuring the effectiveness of auditing by Corporate Auditor- It shall be clearly stated in the Management Regulations, etc. that Corporate Auditors attend
important meetings related to group management such as the Board of Managing Executive
Officers and Controlling Supervisors, the Board of Executive Officers, and Management Board, andprovide their opinions. The same rules are clearly stated for the “Sustainability Committee” and“Risk Management Committee.”- Corporate Auditors regularly hold Group auditor liaison meetings targeting major group companies,
where they aim to enhance auditing related to the construction of an appropriate internal control.

- 20 -

- Corporate Auditors receive reports on the results of internal audits from the Internal Audit
Department, receive reports on the status of evaluations of internal control related to financial report,
and exchange information.
(8) Basic views on eliminating anti-social forces and progress of related efforts- In the “Toyobo Group Charter of Corporate Behavior,” the Company aims for the elimination of antisocial forces by standing firmly against antisocial forces and organizations that pose a threat to theorder and safety of civil life, and takes efforts to thoroughly block any kind of relationship with theseforces.

2. Basic Views on Eliminating Anti-Social Forces and Progress of Related Efforts
The Company’s basic views are published in the above “1. Basic Views on Internal Control System
and Progress of System Development (8).”- 21 -

V. Other
1. Adoption of Anti-Takeover Measures
Adoption of Anti-Takeover Measures

Not adopted

Supplementary Explanation
At the Board of Directors meeting held on April 24, 2020, the Company resolved that upon the expiryof the effective period of “Countermeasures Against Large-Scale Purchases of the Company’s Shares”(hereinafter the “Existing Plan”), which was at the conclusion of the Annual General Meeting of
Shareholders held on June 24, 2020, it would not to continue and abolish the Existing Plan.
The basic policy on ideal person who has control over decisions on the Company’s financial andbusiness policies after the abolition of the Existing Plan is as follows.
(1) Basic policy on ideal person who has control over decisions on the Company’s financial andbusiness policies
The Company believes that since the Company allows the Company shares to be freely traded as alisted company, the decision on whether to accept or reject any large-scale purchases that involve atransfer of control over the Company should be ultimately decided based on the shareholders’ will.
However, some large-scale purchase actions include those that aim to realize the profits of the largescale purchaser at the expense of the Company and those that may actually force shareholders to sell
their shares. We believe that there are some that may impair corporate value and, in turn, the common
interests of shareholders.
As for the person who has control over decisions on its financial and business policies, the Company
believes that anyone who engages in a large-scale purchase or similar activities that may impair the
corporate value of the Company and, in turn, the common interests of shareholders as described above,is not appropriate. The Company believes that a person who has a sufficient understanding of theCompany’s finances, basic philosophy, business activities and core technologies, and aims to increase
corporate value and, in turn, the common interests of shareholders from a long-term perspective isappropriate.
(2) Special efforts for realization of the basic policya. Efforts to improve corporate value by promoting the medium-term management plan
The Company was founded as a cotton spinning business, and thereafter expanded its business tochemical textiles and synthetic fibers. The Company later entered into the markets of films, functional
polymers, ultrahigh strength polyethylene fiber, functional membranes and enzymes for diagnostics,
and has continued to expand its specialty businesses as represented by these products. In the courseof its long history, the Company has nurtured and developed its core technologies, namely,“Polymerization,” “Modification,” “Processing,” and “Biotechnology.” The Company has established abusiness model that responds to meticulous demands of customers with an integrated marketing,development and production segment. Under this business model, the Company has been steadily
executing the medium-term management plan, aiming to maintain and expand its businesses in orderto further place the Company on the path to growth.
b. Efforts to improve corporate value by strengthening corporate governance
Under our corporate philosophy of “Jun-Ri-Soku-Yu,” the Company has established an appropriate
corporate governance system according to the Company’s position, and through various measures
such as the medium-term management plan, we will address social issues. In addition to contributing
to the solution of the above, we will strive to improve economic value and enhance corporate value.
(3) Measures to prevent decisions on the Company’s financial and business policies from being
controlled by persons deemed inappropriate under the basic policy
In the event of a large-scale purchase, the Company will make efforts to secure sufficient informationand time for consideration so that shareholders can properly judge the pros and cons of the largescale purchase. The Company will take appropriate measures within the range permitted by the
Financial Instruments and Exchange Act, the Companies Act and other related laws and regulations.

- 22 -

(4) The reasons why the specific efforts described in (2) and (3) above are in line with the basic policy,
do not impair the common interests of the shareholders of the Company, and are not intended tomaintain the position of the Company’s officers
The specific efforts described in (2) above are based on the medium- to long-term management
strategy for continuously improving the corporate value of the Company and, in turn, the common
interests of shareholders, and are in line with the basic policy of (1) above.
In addition, the specific efforts described in (3) above are to take measures for shareholders toappropriately judge the propriety of a large-scale purchase of the Company’s shares when a large
amount of the Company’s shares are to be purchased. It is intended to maintain and improve thecorporate value of the Company and, in turn, the common interests of shareholders and is in line withthe basic policy of (1) above.
Therefore, we believe that these efforts do not impair the common interests of the Company’s
shareholders, nor are they intended to maintain the position of the Company’s officers.

2. Other Matters Concerning Corporate Governance System
Overview of Timely Disclosure System
The status of internal framework for timely disclosure of corporate information of the Company are as
follows:(1) Basic Policy of Information Disclosure
The Company’s basic policy in regards to corporate communication is to “aim for lively communicationand strive for timely and appropriate information disclosure, taking into consideration fairness andequality.” As such, the Company is focusing on a. information disclosure as a social responsibility(accountability) and b. communication which doesn’t harm corporate value.
(2) Internal Framework for timely disclosure
The Company has set General Manager of Corporate Communication Department as a person
responsible for information handling and the IR Group as an organization responsible for information
disclosure. The departments responsible for matters related to account settlement (including results
forecasts) are the Finance Department and the Accounting and Control Department. The department
responsible for matters related to basic policy of management is the Corporate Planning Department.
The department responsible for matters related to organizational operations, etc. is the Human
Resources Department. The department responsible for matters related to stock and securities
exchanges is the Legal and Compliance Department. Proposal of important matters will be issued byeach responsible department and, after passing through the Board of Managing Executive Officers andControlling Supervisors and being approved in the Board of Directors, the information will be promptly
and timely disclosed. Furthermore, proposals related to decisions will be deliberated in the Corporate
Planning Committee and Financial Control Committee before being proposed to the Board of Managing
Executive Officers and Controlling Supervisors.
If, contrary to our intention, a newspaper publishes information about matters not officially provided by
the Company, our first response will be to disclose the information to our shareholders, investors, etc.,
as promptly as possible, through the stock exchange.
(3) Methods of information disclosure
The Company shall disclose information through one or multiple of the following methods: submissionof Consolidated Financial Statements, etc., registration to stock exchange, distribution of press release,and posting on the Company’s website.
(4) Monitoring pertaining to management of corporate information
Multiple departments will inspect beforehand whether timely information disclosure is conducted
properly and appropriately. In addition, Corporate Auditors will conduct an audit once a year.

- 23 -

(5) Other
The Company makes efforts to train employees regarding information management, spread knowledge
and raise awareness by establishing rules in the Compliance Manual and the provisions on information
handling management.

- 24 -

[Corporate Governance Structure]
General Meeting of Shareholders
Election anddismissal

Election anddismissal

Nomination andCompensation Advisory
Committee*Three members, including
two Outside Directors*Chairperson: Outside
Director

Election anddismissal

ReportingBoard of Directors

Accounting audit* 11 Directors, including four Outside Directors
Consultation

Decision-making, supervision, election,and dismissal

President and Representative Director, CEO

Audit
Reporting

ReportingBoard of Managing
Executive Officers andControlling Supervisors

Board of Corporate
Auditors* Four Corporate Auditors,
including two Outside
Corporate Auditors

Accounting
AuditorReportingAssessing theappropriatenessCorporate Planning
Committee
Financial Control
Committee

Board of Executive
Officers
Sustainability Committee
Business
execution

Risk Management Committee(Various Committees)
Safety and Disaster Management, Global Environment, Product
Liability Prevention/Quality Assurance, Compliance, Export
Reviewing, Internal Control, Information, Research &Development, Intellectual Property

Functionalorganization

Internal Audit Department
Cooperation
Internal audit
Audit

Internal audit

Cooperation

Group companies
Audit

Each Group company’s
corporate auditors

[Information Disclosure Structure]
Related departments(Account settlement
information/Events)(Decisions)(i) Proposals(Other information related
to new products, etc.)(i) Proposals

Corporate Planning Committee/
Financial Control Committee

Board of Managing Executive Officers andControlling Supervisors(ii) Proposals

Board of Directors(iii) Decisions/Instructions

IR Group(iv) External announcement

Stock exchanges•

Information related to

Press/Investors, etc.

···

account settlement

Company’s website

Content of account settlement, revisions toperformance, revisions to dividends, etc.
(Consolidated Financial Report, etc.)•

Information related to···decisions•

Information related toeventsIssuance of new shares, decrease in equity, sharebuybacks, share splits, etc.

···

Damages, changes in major shareholders,matters that cause delisting, etc.