Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Securities Code: 7976
March 7, 2018
To our shareholders:Eiichiro Suhara
President and Representative Director
Mitsubishi Pencil Co., Ltd.
1-28-1, Ohi, Shinagawa-ku, Tokyo

Notice of the 143rd Annual General Meeting of Shareholders
You are cordially invited to attend the 143rd Annual General Meeting of Shareholders of Mitsubishi Pencil Co., Ltd.
(the “Company”), which will be held as indicated below.
If you are unable to attend the meeting in person, you may exercise your voting rights in writing or via the Internet.
Please review the attached Reference Documents for the General Meeting of Shareholders and exercise your voting
rights by 5:10 p.m. on Wednesday, March 28, 2018 (JST).
1. Date and Time: Thursday, March 29, 2018 at 10:00 a.m. (The venue opens at 9:00 a.m.)
2. Venue:
Event Hall, 7F, Shinagawa General Culture Community Center (Curian)
5-18-1, Higashiohi, Shinagawa-ku, Tokyo
3. Purpose of the Meeting
Matters to be reported:
1. Business Report and Consolidated Financial Statements for the 143rd fiscal year (from January 1, 2017 to
December 31, 2017), and the results of audits of the Consolidated Financial Statements by the Financial
Auditor and the Audit & Supervisory Board
2. Non-consolidated Financial Statements for the 143rd fiscal year (from January 1, 2017 to December 31,
2017)
Matters to be resolved:
Proposal No. 1
Appropriation of Surplus
Proposal No. 2
Election of Twelve (12) Directors
Proposal No. 3
Election of Two (2) Audit & Supervisory Board Members
Proposal No. 4
Revision of Remuneration Amount for Directors and Audit & Supervisory Board
Members- Of the documents to be provided at the time of this notice, the Notes to Consolidated Financial Statements and Notes to Nonconsolidated Financial Statements are posted on our website below in accordance with relevant laws and regulations and theCompany’s Articles of Incorporation, and are not stated in this notice. The Consolidated Financial Statements and the Nonconsolidated Financial Statements audited by the Audit & Supervisory Board Members and the Financial Auditors include Notes toConsolidated Financial Statements and Notes to Non-consolidated Financial Statements posted on our website, as well as the
documents stated in the attached documents of this notice.
Company’s website: https://www.mpuni.co.jp/ir/index.html- If there are any amendments made to the Business Report, Consolidated Financial Statements, Non-consolidated Financial
Statements and Reference Documents for the General Meeting of Shareholders, we will post them on our website as noted above.

-1-

Reference Documents for the General Meeting of Shareholders
Proposal No. 1

Appropriation of Surplus

The Company proposes the appropriation of surplus as follows:
1. Year-end dividends
The Company has given consideration to the business performance of the fiscal year and future businessdevelopment, and it proposes to pay year-end dividends for the 143rd fiscal year as follows:(1) Type of dividend property
Cash(2) Allotment of dividend property and the total amount
14 JPY per common share of the Company
In this event, the total dividends will be 838,803,742 JPY.
(Note) The Company conducted a share split at a ratio of two (2) to one (1) common share with July 1, 2017 as effective
date. The dividend per share for the fiscal year, calculated on a post-share-split basis and including the interim
dividend of 11 JPY, will be 25 JPY, which represents a 5 JPY increase from the previous fiscal year.

(3)

Effective date of dividends of surplus
March 30, 2018
2. Other appropriation of surplus
The Company proposes the following appropriation of surplus as for the retained earnings in order tostrengthen the management foundation in preparation for aggressive business development in the future:(1) Item of surplus to be decreased and amount of decrease
Retained earnings brought forward: 2,000,000,000 JPY(2) Item of surplus to be increased and amount of increase
General reserve: 2,000,000,000 JPY-2-

Proposal No. 2

Election of Twelve (12) Directors

The terms of office of all thirteen (13) Directors will expire at the conclusion of this meeting. Therefore, theCompany proposes the election of twelve (12) Directors, decreasing the number of Directors by one (1) to ensureswift and efficient decision making and business processes. The candidates for Director are as follows:
Candidate
No.

1

2

Number of the
Career summary, and position and responsibility in the
Company’s sharesCompany
owned(Important concurrent positions)Aug. 1974
Joined the Company
Mar. 1980
Director
Mar. 1982
Managing Director
Mar. 1985
Director and Vice President
Mar. 1987
President and Representative Director (current
position)
Eiichiro Suhara
274,650 shares(July 19, 1948)
June 2015
Outside Director of Eisai Co., Ltd. (current
Reelection
position)[Important concurrent positions]
President and Representative Director of Yamagata Mitsubishi
Pencil Precision Co., Ltd.
Chairman of Mitsubishi Pencil Vietnam Co., Ltd.
Outside Director of Eisai Co., Ltd.
[Reasons for nomination as a candidate for Director]
Eiichiro Suhara assumed office as President and Representative Director of the Company in 1987. Since then, he has
been leading the Company’s business with strong leadership over all officers and employees by leveraging his wealth ofexperience and wide breadth of knowledge and insight, and playing an important role in determining important mattersconcerning the Company and in supervising business execution; therefore, the Company proposes his reelection as
Director.
Mar. 1991
Joined the Company
Apr. 1991
General Manager, assistant to Managing
Director in charge of Production
April 1992
General Manager, assistant to Director in
charge of Sales
Mar. 1993
Director in charge of Product Planning
Mar. 1995
Managing Director in charge of Product
Planning
Apr. 1995
Managing Director and Group Executive ofMarketing Group
Apr. 1998
Managing Director in charge of Environmental
Tetsuro Suhara
Promotion(November 9, 1951)
129,112 shares
Apr. 2000
Managing Director in charge of Domestic
Reelection
Business and Environmental Promotion
Apr. 2003
Managing Director in charge of Financial
Affairs, International Business, Public
Relations and Affiliated Companies
Mar. 2005
Managing Director in charge of Financial
Affairs, Product Development, Public
Relations, and Affiliated Companies
Jan. 2008
Senior Managing Director
Mar. 2012
Director and Vice President (current position)[Important concurrent positions]
President and Representative Director of Uni Industry Co., Ltd.
[Reasons for nomination as a candidate for Director]
Tetsuro Suhara assumed office as Director of the Company in 1993. He has wide experience and knowledge of major
divisions of the Company, including production, product planning and sales, as well as superior management
capabilities. We consider him suitable for decision making at the Board of Directors and supervising businessexecution; therefore, the Company proposes his reelection as Director.
Name(Date of birth)-3-

Candidate
No.

3

4

Number of the
Career summary, and position and responsibility in the
Company’s sharesCompany
owned(Important concurrent positions)Oct. 1985
Joined the Company
Apr. 1998
General Manager of International Business
Department
Mar. 2001
Director and General Manager of International
Hiroshi Yokoishi
Business Department
11,800 shares(April 17, 1959)
Apr. 2005
Director and General Manager of International
Reelection
Operations Department
Mar. 2017Managing Director and General Manager ofInternational Operations Department (current
position)[Reasons for nomination as a candidate for Director]
Hiroshi Yokoishi has been devoting efforts to cultivate new sales channels by leading our International Operations
Department with his abundant management experience for a long time. As we aim to further strengthen ourinternational business, we consider that his wide-ranging insight will be essential, and he has played an important rolein the decision making at the Board of Directors of the Company; therefore, the Company proposes his reelection as
Director.
Apr. 1980
Joined the Company
Apr. 2001
General Manager, assistant to International
Business Department
Apr. 2003
General Manager of Financial Resources andAccounting Department
Mar. 2006
Director and General Manager of Financial
Resources and Accounting Department
Nobuyuki Nagasawa
Jan. 2008
Director in charge of Financial Affairs, Legal
19,900 shares(April 3, 1957)
Affairs and Information System
Reelection
Apr. 2010
Director in charge of Financial Affairs, Legal
Affairs, Information System, and Internal
Control
Mar. 2016
Director in charge of Corporate Planning andInformation System
Mar. 2017Managing Director in charge of Human
Resources, Corporate Planning and Information
System (current position)[Reasons for nomination as a candidate for Director]
Nobuyuki Nagasawa has comprehensive experience with managerial divisions, including accounting, finance, legal
affairs, IT system, and corporate planning. Additionally, he has experience in the international business division and has
extensive knowledge and multifaceted viewpoint. Therefore, we consider him capable of being responsible forimportant decision making for the management of the Company and supervising business execution; therefore, theCompany proposes his reelection as Director.
Name(Date of birth)-4-

Candidate
No.

5

6

7

Number of the
Career summary, and position and responsibility in the
Company’s sharesCompany
owned(Important concurrent positions)Apr. 2005
Joined the Company
Apr. 2010
General Factory Manager of Gunma Factory
Apr. 2012
General Manager of Sales Planning Department
Mar. 2013
Director in charge of Corporate Planning
Nov. 2015
Director in charge of Corporate Planning andShigehiko Suhara
General Manager of International Operations
46,440 shares(February 11, 1979)
Planning Department
Reelection
Mar. 2016
Director in charge of Product Development andNew Business Development
Mar. 2017Managing Director in charge of Writing
Business, New Business Development, ProductDevelopment and Quality Assurance (current
position)[Reasons for nomination as a candidate for Director]
Shigehiko Suhara has served as General Factory Manager of Gunma Plant and General Manager of Domestic andInternational Sales Planning, and has been in charge of Corporate Planning, Product Development, and New Business
Development. In addition to his diverse experience and knowledge, he also possesses superior management execution
capabilities and leadership. He has played an important role in important decision making at the Board of Directors of
the Company and in supervising business execution; therefore, the Company proposes his reelection as Director.
Apr. 1981
Joined the Company
Apr. 2005
General Manager of Production Engineering
Department
Apr. 2008
General Manager of Production Control
Department and General Factory Manager
of Yokohama Factory
Akira Fukai
Mar. 2009
Director, General Manager of Production(January 3, 1959)
Control Department and General Factory
6,800 shares
Reelection
Manager of Yokohama Factory
Apr. 2010
Director and General Manager of Production
Control Department
Mar. 2011
Director in charge of Production
Jan. 2012
Director in charge of Production and General
Factory Manager of Yokohama Factory (current
position)[Reasons for nomination as a candidate for Director]
Akira Fukai has extensive knowledge and experience in the production division, and leads the production site with his
excellent communication skills. He plays an important role in decision making for the management of the Company;
therefore, the Company proposes his reelection as Director.
Apr. 1981
Joined the Company
Apr. 2003
General Manager of Product Development
Department
Apr. 2007
General Manager of Gunma Research andDevelopment Center
Kazuhisa Kirita
Apr. 2011
General Manager of Product Development(November 13, 1958)
5,800 shares
Department
Reelection
Mar. 2012
Director and General Manager of ProductDevelopment Department
Mar. 2016
Director in charge of Technologies, Patent
Administrations and Cosmetics (current
position)[Reasons for nomination as a candidate for Director]
Kazuhisa Kirita has been deeply engaged in product development for two (2) different divisions: product development
and R&D. He has devoted his efforts to making better products and possesses abundant knowledge and experience. His
knowledge has been reflected at meetings of the Board of Directors of the Company, and he is a person who canmanage important decision making; therefore, the Company proposes his reelection as Director.
Name(Date of birth)-5-

Candidate
No.

8

9

10

Number of the
Career summary, and position and responsibility in the
Company’s sharesCompany
owned(Important concurrent positions)Apr. 1983
Joined the Company
Apr. 2005
General Manager of Yokohama Research andHitoshi Suzuki
Development Center(June 7, 1958)
9,200 sharesMar. 2013
Director and General Manager of Yokohama
Reelection
Research and Development Center (current
position)[Reasons for nomination as a candidate for Director]
Based on extensive knowledge and management experience in research and development, Hitoshi Suzuki has worked
extensively to manage the R&D division, spared no effort regarding the development of innovative technologies andengaged in the development of products rooted in what customers require. With this experience and knowledge, heplays an important role in the decision making for the Company; therefore, the Company proposes his reelection as
Director.
Apr. 1984
Joined the Company
Apr. 2008
General Manager of Financial Resources andAccounting Department
Naoto Hasegawa
Mar. 2016
Director in charge of Legal Affairs and General(September 29, 1960)
9,400 shares
Manager of Financial Resources andReelection
Accounting Department
Mar. 2017
Director in charge of Financial Affairs andLegal Affairs (current position)[Reasons for nomination as a candidate for Director]
Naoto Hasegawa has a wealth of knowledge and experience concerning finance, accounting and legal affairs. He has
played an important role in important decision making for the management of the Company and in supervising businessexecution, such as examination of capital policy and efforts aimed at bolstering governance system; therefore, theCompany proposes his reelection as Director.
Apr. 1985
Joined the Company
Apr. 2007
General Manager of Product Development
Department
July 2011
General Director of Mitsubishi Pencil Vietnam
Co., Ltd.
Nobuo Yamamura(August 24, 1962)
4,600 shares
July 2013
Managing Director of Mitsubishi Pencil Tokyo
Reelection
Sales Co., Ltd.
Apr. 2015
General Manager of Sales Planning Departmentof the Company
Mar. 2017
Director and General Manager of Domestic
Sales Department (current position)[Reasons for nomination as a candidate for Director]
Nobuo Yamamura has served the Company through important positions at product development, domestic sales, andmajor domestic and overseas subsidiaries, and he has management experience in both fields of manufacturing and sales.
He continues to utilize his cross-cutting knowledge and experience in seeking out new markets, as well as to manage
important decision making for the Company; therefore, the Company proposes his reelection as Director.
Name(Date of birth)-6-

Number of the
Career summary, and position and responsibility in the
Company’s sharesCompany
owned(Important concurrent positions)Apr. 1971
Joined Mitsubishi Estate Co., Ltd.
June 2002
Director and General Manager of Yokohama
Branch of Mitsubishi Estate Co., Ltd.
June 2003
Executive Officer and General Manager of
Yokohama Branch of Mitsubishi Estate Co.,Ltd.
Toshihide Yoshimura
June 2005
Executive Officer of Mitsubishi Estate Co., Ltd.
(February 12, 1949)
Reelection–
June 2005
President and Director of Aqua City Co., Ltd.
OutsideJune 2006
President and Representative Director of
Independent Officer
Chelsea Japan Co., Ltd.
11
Apr. 2009
Senior Adviser of Mitsubishi Estate Co., Ltd.
June 2012
Councilor of the Research Institute for HighLife Foundation (current position)
Mar. 2015
Outside Director of the Company (current
position)[Reasons for nomination as a candidate for Outside Director]
Based on a wealth of experience and knowledge as a corporate manager, Toshihide Yoshimura has provided
considerable advice and suggestions that have contributed to ensuring appropriate decision-making procedures and toenhancing governance system including crisis management from his position independent of the Company’s
management team. Therefore, the Company proposes his reelection as Outside Director. His term of office as Outside
Director will be three (3) years at the conclusion of this General Meeting of Shareholders.
Apr. 1976
Joined Fuji Photo Film Co., Ltd. (currently
FUJIFILM Corporation)
Dec. 1999
Representative Director and Vice President of
Keio Academic Enterprise Co., Ltd.
Apr. 2001
Professor of Graduate School of Keio
University Media and Government
Apr. 2004
President of The Industry-Academia
Collaboration Initiative Nonprofit Organization(current position)
Kenichiro Senoh
June 2012
Independent Outside Director of Teijin Limited(January 1, 1954)(current position)
Reelection–
Member of the Advisory Board of Teijin
OutsideLimited (current position)
Independent Officer
12Mar. 2017
Outside Director of the Company (current
position)[Important concurrent positions]
President of The Industry-Academia Collaboration Initiative
Nonprofit Organization
Independent Outside Director of Teijin Limited
Visiting Professor of Hitotsubashi University Graduate Schoolof Commerce and Management (MBA)Director of Intellectual Property Association of Japan[Reasons for nomination as a candidate for Outside Director]
Based on his diverse experience and knowledge of practical research that connects the both fields of technology andbusiness, Kenichiro Senoh has actively made comments that have contributed to enhancing governance system from an
objective, multi-pronged perspective. Therefore, the Company proposes his reelection as Outside Director. His term ofoffice as Outside Director will be one (1) year at the conclusion of this General Meeting of Shareholders.
(Notes) 1. Eiichiro Suhara concurrently serves as President and Representative Director of Yamagata Mitsubishi Pencil Precision
Co., Ltd. The Company purchases its specified products from this company and is also leasing real estate to thiscompany.
2. Eiichiro Suhara concurrently serves as Chairman of Mitsubishi Pencil Vietnam Co., Ltd. The Company purchases its
specified products from this company.
3. Eiichiro Suhara concurrently serves as an Outside Director of Eisai Co., Ltd. There is no steady business relationshipbetween the Company and this company.
Candidate
No.

Name(Date of birth)-7-

4. Tetsuro Suhara concurrently serves as President and Representative Director of Uni Industry Co., Ltd. The Company
purchases its specified products from this company and is also renting real estate from this company.
5. There is no special interest between each candidate for Director other than those stated in 1. to 4. and the Company.
6. Toshihide Yoshimura and Kenichiro Senoh are candidates for Outside Director.
7. Pursuant to the provisions of Article 427, paragraph 1 of the Companies Act, the Company has entered into limited
liability agreements with Toshihide Yoshimura and Kenichiro Senoh to limit their liability for damages under Article 423,
paragraph 1 of the Companies Act, on the conditions that the requirements stipulated by laws and regulations are met. If
their reelections are approved, the Company will continue the above-mentioned limited liability agreements with them.
The maximum amount of liability for damages under these agreements is the minimum liability amount provided forunder laws and regulations.
8. The Company has designated Toshihide Yoshimura and Kenichiro Senoh as independent officers under the rule of theTokyo Stock Exchange and has notified the Exchange thereof. The Company plans to continue to designate them as
independent officers.
9. Toshihide Yoshimura and Kenichiro Senoh, who are candidates for Outside Directors, satisfy the “Independence Criteria
for Outside Officers” stipulated by the Company on page 11.

-8-

Proposal No. 3

Election of Two (2) Audit & Supervisory Board Members

The terms of office of Audit & Supervisory Board Members Fumitoshi Nakamura and Toshio Aoi will expire at theconclusion of this meeting. Therefore, the Company proposes the election of two (2) Audit & Supervisory Board
Members. The consent of the Audit & Supervisory Board has been obtained for this proposal. The candidates for
Audit & Supervisory Board Members are as follows.
Candidate
No.

Name(Date of birth)

Career summary and position in the Company(Important concurrent positions)Apr. 1978
Apr. 2001
Apr. 2003
July 20091

2(Notes)Number of theCompany’s shares
ownedJoined the Company
General Manager of Business Support Center
General Manager of Sales Planning Office
President and Representative Director of
Mitsubishi Pencil Tokyo Sales Co., Ltd.
Apr. 2010
Senior General Manager of the Company
Jun Tomaru
Mar. 2012
Director(May 15, 1954)
8,000 shares
July 2013
Director in charge of Human Resources andNew election
General Affairs
Mar. 2014
Managing Director in charge of Human
Resources and General Affairs, Compliance andCorporate Pension System
Mar. 2017
Senior Managing Director in charge ofCorporate Administration and Compliance(current position)[Reasons for nomination as a candidate for Audit & Supervisory Board Member]
In addition to a wealth of experience and knowledge from working in numerous divisions, including sales, humanresources, general affairs and compliance, Jun Tomaru possesses intimate knowledge of the Company’s group businessbased on his management experience at the Company and its subsidiaries, and we anticipate that he will play animportant role in strengthening the auditing system throughout the Company’s group; therefore, the Company proposes
his election as Audit & Supervisory Board Member.
Apr. 1978
Joined The Bank of Yokohama, Ltd.
June 2009
Director and Managing Executive Officer incharge of Credit Department of The Bank of
Yokohama, Ltd.
Apr. 2010
Director, Managing Executive Officer, General
Manager of Head Office and General Manager
of Business Division Head Office in charge ofToshio Aoi
Head Office Block, of The Bank of Yokohama,(October 1, 1955)
Ltd.
Reelection–
OutsideMay 2011
Director of The Bank of Yokohama, Ltd.
Independent Officer
June 2011
Senior Managing Director of The Yokohama
Bankers’ Association (current position)
Mar. 2014
Outside Audit & Supervisory Board Member of
the Company (current position)[Important concurrent positions]
Senior Managing Director of The Yokohama Bankers’
Association[Reasons for nomination as a candidate for Outside Audit & Supervisory Board Member]
Toshio Aoi has accumulated abundant experience as a corporate manager in financial institutions in addition toconsiderable insight in matters regarding finance and accounting. His wide-ranging knowledge has been reflected in his
auditing of the Company, and he has actively provided appropriate advice and suggestions for ensuring compliance withthe law. Therefore, the Company proposes his reelection as Outside Audit & Supervisory Board Member. His term ofoffice as Outside Audit & Supervisory Board Member will be four (4) years at the conclusion of this General Meetingof Shareholders.
1. There is no special interest between each candidate for Audit & Supervisory Board Member and the Company.
2. Toshio Aoi is a candidate for Outside Audit & Supervisory Board Member.
3. Pursuant to the provisions of Article 427, paragraph 1, of the Companies Act, the Company has entered into limited
liability agreement with Outside Audit & Supervisory Board Member candidate Toshio Aoi to limit his liability fordamages under Article 423, paragraph 1, of the Companies Act, on the conditions that the requirements stipulated by-9-

laws and regulations are met. If his reelection is approved, the Company will continue the above-mentioned limited
liability agreement with him. The maximum amount of liability for damages under this agreement is the minimum
liability amount provided for under laws and regulations.
4. The Company has designated Outside Audit & Supervisory Board Member candidate Toshio Aoi as an independent
officer under the rule of the Tokyo Stock Exchange and has notified the Exchange thereof. The Company plans tocontinue to designate him as an independent officer.
5. Outside Audit & Supervisory Board Member candidate Toshio Aoi satisfies the “Independence Criteria for Outside
Officers” stipulated by the Company on page 11.

- 10 -

Reference: Concept of Independence of Outside Officers
In addition to the requirements under the Companies Act, the Company formulates its own “Independence Criteria
for Outside Officers” to ensure proper corporate governance. Based on these independence criteria, the Company
elects candidates for Outside Directors and Outside Audit & Supervisory Board Members. The details of thecriteria are as follows.
[Independence Criteria for Outside Officers]
The Board of Directors of the Company determines that Outside Officers who do not fall under any of the criteria
in the following items are independent.
1. Major shareholder
Major shareholder of the Company or its executing person. “Major shareholder” means any of those who
directly or indirectly hold 10% or more of voting rights at the end of the Company’s most recent fiscal year.
2. Major business partner(1) Our principal business partner or its executing person. “Our principal business partner” means any one of
the following:- The amount of payment from the said business partner to the Company in the most recent business year
exceeds 2% of the Company’s annual consolidated net sales.
- Business partner who is indispensable in fund procurement of the Company and whom the Company
relies on to the extent that there is no substitution.
(2) A party who considers the Company as a major business partner or its executing person. “A party who
considers the Company as a major business partner” means the following party:- The amount of payment from the Company to the said party in the most recent business year exceeds
2% of the said party’s annual consolidated net sales.
3. Professional service provider
A legal expert such as an attorney at law, accounting or tax specialist such as a certified public accountant or
tax accountant, consultant, corporate manager, university professor, etc. who obtains monetary or otherproperty profit exceeding 10 million JPY per year other than executive remuneration from the Company. Whensuch property is obtained by an organization such as a corporation or a partnership, this criterion applies to aperson belonging to such organization.
4. Donation/Grant
A person who receives donation or grant exceeding 10 million JPY per year from the Company. When such
donation or grant is obtained by an organization such as a corporation or a partnership, this criterion applies toan executing person of such organization.
5. A person who has fallen under any of the above 1. to 4. in the past three (3) years.
6. A spouse or a relative within second degree of kinship of a Director or an employee of the Company or theCompany’s subsidiary.
* In these criteria, the term “executing person” means a person who executes business in an organization such asa corporation or a partnership regardless of its title or position name such as director, executive officer,
employee, etc.

- 11 -

Proposal No. 4

Revision of Remuneration Amount for Directors and Audit & Supervisory Board Members

Regarding the remuneration for Directors and Audit & Supervisory Board Members of the Company, the amount
up to 500 million JPY for Directors (including up to 20 million JPY per year for Outside Directors) and the amount
up to 70 million JPY for Audit & Supervisory Board Members were approved at the 136th Annual General Meetingof Shareholders held on March 30, 2011 as the maximum amount of monetary remuneration per fiscal year, andthey remain effective today. The Company proposes to revise the amount of monetary remuneration per fiscal year
to the maximum amount of 600 million JPY for Directors (including 50 million JPY per year for Outside Directors)
and the maximum amount of 100 million JPY for Audit & Supervisory Board Members, in consideration ofchanges to the economic situation and management environment, as well as of other various circumstances.
Moreover, as before, the Company requests that the amount of remuneration for Directors not include the employee
salaries of Directors who serve concurrently as employees.
Additionally, there are currently thirteen (13) Directors (including two (2) Outside Directors) and five (5) Audit &Supervisory Board Members, but if Proposals No. 2 and No. 3 are approved and adopted in their current forms,
then there will be twelve (12) Directors (including two (2) Outside Directors) and five (5) Audit & Supervisory
Board Members.

- 12 -