Foundation for sustainable growthCompliance
Examples of initiatives undertaken

Basic Policy (Fundamental concept)
ISEKI Group will ensure thorough compliance of each employee to promote healthy and transparent management.

Compliance system
To prevent misconduct and scandals from occurring, ISEKI
Group ensures thorough compliance under the leadershipof the Compliance Working Group (WG), which consistsof departments in charge of the overall managementof each division. The Director in charge of Complianceis responsible for the overall management of the WG.
In January 2023, we set up the Compliance and Legal
Affairs Department, which ensures that Group employees
maintain and enhance awareness toward ethics andaccelerates overall compliance activities. The Department

also administers and promotes the Compliance WG as thesecretariat.
Monthly reports on compliance activities are made to
the ESG Committee, which is comprised of Directors andCorporate Officers and chaired by an Independent Outside
Director. In addition, the Internal Audit Department audits
the status of compliance activities and reports the results
to the Board of Directors, the President and Representative
Director, Outside Directors, and Audit & Supervisory BoardMembers.

Directors in charge ofand deputy in charge ofcompliance
Compliance WG(Secretariat)
Compliance andLegal Affairs Department

ESG Committee

Whistle-blower system
ISEKI Group has set up a group-wide whistle-blowersystem (Ethical Hotline) for the use of all employees,retirees and suppliers. The aim is to enable early detectionof problems within the Company and minimize the crisis
caused by corporate scandals. In addition to an internal
help desk, an external third-party help desk independent
from management executives has been set up, in lightof the purposes of the Corporate Governance Code. The
third-party help desk is available for whistle-blower reports
in Thai and Indonesian, in addition to English and Chinese.
In FY2022, the system handled 38 cases. All cases wereappropriately responded, and their summaries have beenreported to the ESG Committee, with consideration given0
to the protection of whistle-blowers and privacy of relevant
parties.

| Number of whistle-blowing cases

Internal Audit
Department

Number of whistle-blowing cases

3823

Business Division
Sales Planning &Administrative Department

Business Division
Agri-plant
Department

Sales companiesDevelopment &Production Division
Administrative Department

Overseas Business DivisionCorporate BusinessControl Department

Compliance andLegal Affairs
Department

Manufacturingbases

Overseas offices
Overseas sales
subsidiaries

Generaladministration
departments

Education and awareness-raising
To raise awareness of each individual employee toward
compliance, ISEKI Group is implementing various training
programs and awareness-raising activities for employees ina planned way.
Activities for enlightenment<Activities for penetration and education on compliance>
Ensuring of thorough understanding of the “ISEKI
Group Code of Ethical Behavior”
The Company has distributed the “ISEKI Group Codeof Ethical Behavior” to all employees of the Groupand works to ensure that all business activities meet
corporate ethical requirements.
Awareness-raising by issuing “Compliance News”
As a means to provide information regarding
compliance, the Company issues the quarterly“Compliance News” bulletin. With a focus on priority
compliance initiatives, it contains information such as
messages from the management team and examples ofpractical measures undertaken by employees. We thus
work to raise compliance awareness among employees.

Training activities
Every year, the Company carries out a wide range ofeducation and training programs concerning compliancethemes in the day-to-day conduct of business affairs,
especially on points warranting special attention.
Incorporation into company-wide events andeducational training programs
Sales subsidiary president meetings
Manager meetings
Executive training
Newly-appointed manager training
Newly-hired employee training
Individual training programs
Sales subsidiary employee meetings of sales
departments
Facility personnel training of facility departments
Specialized employee training of development
departments

1782018

2019

62020

2021

2022

Initiatives for fair trade and prevention ofcorruption
ISEKI Group ensures that all Group employees have a fairand equitable relationship with suppliers, which is set outin ISEKI Group Code of Ethical Behavior.
In relation to a series of procedures for fair transactionsof products and services at sales subsidiaries in Japan, ISEKI
Group has established and appropriately operated “Sales
Administrative Rules.”In addition, we have formulated conduct guidelines anda manual for compliance with the Anti-Monopoly Act andeducated our employees on the Subcontract Act, thereby
thoroughly ensuring fair and equitable transactions as theentire Group.
Furthermore, the Basic Rules on the Prevention of BriberyInvolving Foreign Public Officers, etc. have been establishedto prevent corruption involving foreign public officers, etc.
and ensure fair transactions. We work to ensure thoroughcompliance with the Rules mainly at overseas bases andoverseas Group companies. In FY2022, ISEKI was subject
to no legal action due to corrupt practices.

Initiatives to eliminate anti-social forces
The ISEKI Group Code of Ethical Behavior sets out that theGroup will not have any relationship whatsoever with antisocial forces. To fulfill our social responsibilities for ensuringsound business operations and eliminating anti-socialforces, we have established the Rules for Response toAnti-Social Forces. Under the leadership of RepresentativeDirectors, we are working on the creation andenhancement of relevant internal systems in cooperation
with external specialized institutions.
Furthermore, we set out specific procedures in theAnti-Social Forces Response Manual and offer in-house
education programs to ensure that our officers andemployees can respond properly to anti-social forces.
Initiatives for protecting personal information
To ensure proper handling of personal information, ISEKIGroup has established and published the “PersonalInformation Protection Policy.” To prevent leakage of anddamage to personal information, the Personal Information
Handling Regulations sets out specific ways to handle
personal information, as well as the establishment ofappropriate measures for safe management. We strive
for appropriate management of personal information by
ensuring thorough compliance with relevant rules throughperiodic education and awareness-raising for officers andemployees.
Being aware of the importance of the protection ofpersonal information, we will keep providing relevant
information to officers and employees and working tostrengthen the protection of personal information both inJapan and abroad.
Electronic information security
With regard to electronic information securitymanagement, administrative departments that handle
system information strive to prevent information leakage,in accordance with the Rules on Electronic Information
Security Management. The IT planning department
preemptively reviews the systems and facilities to be
introduced by administrative departments to ensure thatthey do not have any security issues.
In addition, we have set up the Electronic Information
Security Management Committee led by an Officerin charge of IT Planning to set policies and directions
concerning electronic information security management. If
an issue arises in relation to electronic information securitymanagement, the Committee deliberates on how torespond and make reports to company executives.
As countermeasures against cyberattacks that takeincreasingly diverse and sophisticated forms, we havealso adopted a new service that constantly monitors
unauthorized external access, thereby strengthening theinformation security management system.