March 7, 2022
Earth Corporation

Overview of evaluation results on the effectiveness of the Board of Directors
Earth Corporation’s Board of Directors conducts a survey of directors and other members
regarding the effectiveness of the Board of Directors, and analyzes and evaluates thesurvey results. Following is an outline of the evaluation results on the effectiveness of theBoard of Directors for the fiscal year ended December 2021.
1.

Evaluation guidelines

Subjects

Directors and Auditors as of December 2021

Implementation
methodSurvey of subjects, referring to advice from outside lawyers

Description ofquestionsItems related to preparations for meetings of the Board ofDirectors, discussions at meetings, maintaining an environment
to ensure the effectiveness of the Board of Directors, and otherrelevant matters

Evaluation
methodAfter tabulating and analyzing survey responses, confirm issues
at meetings of the Board of Directors

2.

Evaluation results
Upon analyzing the survey responses, the issues indicated below were identified. In
this regard, we confirmed that in general, the effectiveness of Earth Corporation’s
Board of Directors has been secured, mainly with respect to the following points.
① Sharing discussion items in advance, the number of discussion items, criteria
for items to be discussed, and the volume and content of materials② Discussions regarding management strategies and management plans,
supervision regarding the construction of internal controls, discussions andmatters involving risks, active participation by outside directors, time spent in
discussions, and allocation of time (to each discussion item)③ Makeup of the Board of Directors, comments regarding management strategies
and management plans, and opportunities for training

3. Issues and initiatives(1) Issues identified in the previous evaluation
Based on the issues identified in previous evaluation, improvement initiatives wereconducted, with the following results.
① Enhancement of follow-up verification regarding investments
Compared to the previous evaluation, there was an increase in responses

indicating an improvement in follow-up verification of impact from resolutions thatbear risks. At the same time, there were also responses indicating that regular
reporting is desirable. Regarding these items, the Board of Directors shall regularly
conduct follow-up verification of investments subject to discussions and resolutions
at meetings of the Board of Directors, and shall strive to identify potential future risks
in advance.
② Enhancing the supervision of nomination decision processes
Compared to the previous evaluation, there was an increase in responses
indicating that supervision by outside directors is functioning to some degree, butsome members expressed the opinion that there are areas requiring improvements
to further increase effectiveness.
Regarding these items, there are plans to establish a “Governance Council(tentative name)” during 2022. The intended roles of this Council will be to provide
advice regarding the skills required of the Board of Directors, and to provide advice
from the perspectives of coverage in the skill matrix when nominating director
candidates and the diversity of gender, nationality, and other attributes.
(2) New issues
Based on the status of initiatives targeting previous issues and the survey response
analysis results, the following items were identified as new issues.
① Strengthening processes related to resolutions involving risk (e.g., M&As,investments, and capital expenditures), ranging from studies of implementation
to follow-up verification② Further enhancing the supervision of nomination and compensation decision
processes③ Enhancing supervision of initiatives related to sustainability
Earth Corporation’s Board of Directors will work to resolve the issues outlined above,
to further increase the effectiveness of the Board of Directors.